The Swiss-based commodities giant Mercuria Energy Group Ltd. is in preliminary talks to develop a strategic tantalum project in the eastern Democratic Republic of Congo, a move that would expand its footprint beyond cobalt and copper into another critical mineral, according to a report by Bloomberg.
The potential project, which is contingent on a U.S.-backed peace deal for the restive region, would focus on modernizing the mining and processing of coltan, the ore from which tantalum is extracted, near the town of Rubaya. The area is home to one of the world’s richest deposits of the mineral.
The discussions come as the U.S. and Congolese governments negotiate a broader agreement to encourage American investment in the DRC’s mineral reserves, which include copper, cobalt, and lithium. Tantalum, a metal vital for electronics, aerospace, and defense industries, represents a strategic pillar of these talks.
Citing people familiar with the matter, Bloomberg reported that companies TechMet Ltd. and Mercuria have held initial discussions with the U.S. government but have not yet engaged in formal talks with Congolese authorities.
The mining license for the deposit is held by the state-owned company SAKIMA, which currently cannot access the concession due to ongoing conflict in the region. The company recently prevailed in a legal dispute with a local firm that had contested its ownership of the license.
The DRC and neighboring Rwanda collectively produce nearly 60% of the world’s tantalum, which was estimated at 2,500 tons last year by the U.S. Geological Survey. Coltan extraction in the DRC is predominantly artisanal, and past attempts by several companies to mechanize production in Rubaya have been thwarted by instability and violence.
The “industrialization of Rubaya” is a key objective of the U.S. initiative, according to Massad Boulos, a senior advisor for the U.S. State Department on African affairs. He indicated that any final investment decision would hinge on the establishment of durable peace in the region.
M&B with Bloomberg