African Continent's Key Minerals: Eurasian Resources Group (ERG) and Gécamines of the Democratic Republic of the Congo Reach a Settlement, Ending Disputes, with the DRC Project Still Undecided

¬ Eurasian Resources Group (ERG) and Gécamines have reached a settlement, ending the dispute, with the Democratic Republic of the Congo project still pending.

¬ Eurasian Resources Group (ERG) and Gécamines signed a settlement agreement, ending the dispute over the copper-cobalt project at Swanmines in the Democratic Republic of the Congo.

¬ The agreement lacks clarity on financing, timelines, and Gécamines' stronger position.

Eurasian Resources Group is restructuring its African business, bringing uncertainty to its Congolese assets.

On September 11, the Kazakh-backed mining company Eurasian Resources Group (ERG) signed a settlement agreement with the state-owned mining company Gécamines of the Democratic Republic of the Congo. The agreement was announced during President Félix Tshisekedi's visit to Kazakhstan and aims to resolve long-standing disputes over the Swanmines copper-cobalt project.

Eurasian Resources Group stated in a statement: "The settlement agreement aims to resolve the dispute submitted to the Paris International Chamber of Commerce (ICC) arbitration tribunal. It also lays the foundation for promoting the development of the Swanmines project on a cooperative basis, strengthening Gécamines' participation in the project, and reflecting both parties' commitment to successfully developing the project for the benefit of all stakeholders, including local communities."

Swanmines was initially owned by ERG with 75% shares and Gécamines with 25% shares, but has faced delays since 2023. Gécamines accused ERG of slow progress and demanded revocation of the mining license, stating that the site "has not been developed." ERG rejected these allegations in the ICC arbitration process.

Although the new agreement lays the foundation for a friendly settlement, details remain scarce. ERG has not clarified how Gécamines will expand its influence at Swanmines, nor has it disclosed financing terms or development schedules. The original plan was for the mine to produce 16,400 tons of copper and 3,400 tons of cobalt annually.

This settlement comes as ERG restructures its African investment portfolio. In February this year, Nicolas Treand, head of ERG's African operations, told Bloomberg that the company plans to reduce production costs by reassessing its assets in the Democratic Republic of the Congo, South Africa, and Zimbabwe. Since then, few details have been disclosed, making it difficult to assess the impact on Swanmines.

In the Democratic Republic of the Congo, ERG is also advancing the $800 million Comide hydrometallurgical copper-cobalt plant, while operating the Frontier and Metalkol projects. Its subsidiary Boss Mining has been shut down since 2023 due to environmental violations.

In addition to Swanmines, Gécamines has expressed interest in acquiring other ERG assets in the Democratic Republic of the Congo in 2024 and has submitted a formal offer.

Source: ecofinagency

Original: www.toutiao.com/article/1843051403872328/

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