Swiss commodities trader Mercuria Energy Trading will pay up to USD 100 million to Kazakhstan-based mining group Eurasian Resources Group (ERG) under a copper supply agreement. The three-year deal concerns copper produced in the Democratic Republic of Congo (DRC), the two companies announced on October 31.
According to Reuters, the funds will support the development of ERG’s assets in the DRC, where the company reached an amicable settlement in September with Gécamines to resolve a dispute over the Swanmines copper-and-cobalt project.
The conflict had previously led to the suspension of several mining operations in the south of the country.
Boosting Mining Assets in Congo
ERG—40% owned by the Kazakh state—produces copper, cobalt, ferroalloys, aluminium, iron ore, and thermal coal. The group says it has invested more than USD 9 billion in projects in the DRC since 2009.
“This transaction will accelerate the development of ERG’s assets in the DRC, a region of growing strategic importance for Mercuria,” said Costas Bintas, head of metals and minerals at Mercuria Energy Trading SA.
“It marks an important step in deepening our collaboration with global partners as we work to unlock the full potential of our core operations in the DRC,” added Shukhrat Ibragimov, ERG’s chief executive officer, in the statement.
Mercuria is expanding “aggressively” into the metals sector, with a particular focus on copper-rich countries in Central Africa. The company’s new metals division has generated around USD 300 million in additional trading profits since the beginning of the year, according to Bloomberg News.
Source: Reuters
