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“We are delighted that Glencore and Bank of China have partnered with us to arrange this pre-export finance facility for Metalkol, which will enable us to prioritize the investment programme at the enterprise. Our combined efforts will further boost regional economic development, as well as promote responsible practices in mining and metals extraction across Africa,”
Nicolas Treand,
Chief Executive Officer,
ERG Africa.
Eurasian Resources Group (ERG), a leading global natural resources group, has announced a strategic pre-export finance facility in partnership with Bank of China Limited (London Branch) and Glencore International AG. The agreement will allow ERG to borrow up to $150 million, primarily intended to support working capital and further its investment in one of its flagship operations, the Metalkol copper project in the Democratic Republic of Congo (DRC). This development marks a significant milestone for the group and the broader copper market.
As the world shifts toward a greener future, the demand for critical minerals like copper has skyrocketed. Copper is crucial for the electrification of economies, especially in sectors like renewable energy, electric vehicles, and infrastructure. ERG’s Metalkol facility, which focuses on the extraction of copper cathodes from historic tailings, plays a vital role in meeting this demand while embracing more sustainable mining practices.
The financial backing from Glencore and the Bank of China reflects a strong vote of confidence in ERG’s ability to maintain a reliable supply of copper. The agreement is structured to facilitate the ongoing production of copper cathodes at Metalkol, strengthening ERG’s global portfolio of commercial contracts. This move also reinforces the DRC’s growing importance as the world’s second-largest copper producer, a position that carries significant potential for future expansion.
Nicolas Treand, CEO of ERG Africa, emphasized the strategic nature of the agreement.
“We are delighted that Glencore and Bank of China have partnered with us to arrange this pre-export finance facility for Metalkol, which will enable us to prioritize the investment programme at the enterprise. Our combined efforts will further boost regional economic development, as well as promote responsible practices in mining and metals extraction across Africa,” Treand said.
However, this partnership is not just about providing financial resources but it is a collaborative effort to ensure that the DRC continues to be a hub for responsible and sustainable mining. Metalkol, through its commitment to processing historic tailings rather than relying on conventional mining methods, is setting new benchmarks in environmental stewardship.
Glencore’s Head of Copper Marketing, Jyothish George, highlighted the global importance of this deal. He said, “We are pleased to partner with Eurasian Resources Group and Bank of China to help support the ongoing supply of critical minerals, such as copper, from the DRC to customers around the world.”
Copper, central to many technologies driving the green energy transition, is more than just a commodity in this context but it is a key to powering the future. As industries worldwide transition to low-carbon operations, the need for ethically sourced, environmentally responsible minerals has never been higher. ERG’s copper supply from Metalkol stands as a crucial element in this supply chain.
The partnership also underscores ERG’s dedication to responsible sourcing. The copper produced at Metalkol is part of the Responsible Mineral Assurance Process, a certification aimed at ensuring ethical and sustainable supply chains. ERG has aligned its operations with the principles of the OECD Due Diligence Guidance for Responsible Supply Chains, reinforcing its position as a trusted, long-term partner in the DRC.
Mital Patel, Head of Structured Trade Finance at Bank of China’s London Branch, emphasized the significance of this deal saying, “This transaction has all the hallmarks of a traditional pre-export structure. We have two clients, either side of the supply chain. A commodity that is critical towards electrifying our world and a producer using a more environmentally friendly process than conventional mining practices, as Metalkol uses historic tailings as its feed.”
Furthermore, ERG’s continued investment in the DRC, particularly in the Kolwezi region, highlights its commitment to fostering economic development in the region. The pre-export finance facility will ensure sustained investment in Metalkol, helping it remain a key player in the global copper market.
The broader economic impact of ERG’s operations cannot be understated. By maintaining a reliable supply of copper cathodes, the group not only supports the green energy transition but also contributes to job creation and infrastructure development in the DRC. This dual focus on commercial success and regional upliftment is what sets ERG apart as a responsible and forward-thinking player in the mining industry.
Additionally, ERG’s pre-export finance agreement, supported by the Bank of China and Glencore, is a significant step toward ensuring a sustainable and responsible supply of critical minerals like copper. Metalkol’s environmentally friendly extraction process, combined with its alignment with global due diligence standards, makes it a standout operation in the DRC. As the world continues to shift towards a greener future, partnerships like these will be essential in meeting the growing demand for responsible minerals, driving both economic and environmental progress.
To sum up, this latest agreement signals a bright future not only for ERG and its partners but also for the broader copper market, as well as the communities in the DRC that benefit from ERG’s continued investment.