(Ecofin Agency) - The Democratic Republic of Congo (DRC) was the world's second-largest copper producer in 2023. To keep this position this year, the country plans to rely on all its operational mines, including those owned by Eurasian Resources Group (ERG).

ERG, which is 40% owned by the Kazakh State and operates in cobalt and copper in the DRC, has signed a $150 million pre-export financing agreement with the Bank of China London Branch and Glencore International. The funds will mainly support the Metalkol copper and cobalt reprocessing project in the DRC.

This financing agreement is backed by a contract to supply copper cathodes from Metalkol. Just months earlier, ERG announced a contract to supply Canadian group Electra Battery Materials with 3,000 tonnes of cobalt hydroxide per year starting in 2026. While details of this contract are still pending, it highlights the strategic importance of the DRC for ERG.

ERG owns several copper and cobalt mines in Central Africa. Over the past few months, the firm has faced various challenges. Nine of its subcontractors were suspended earlier this year for not complying with local content rules, and its Boss Mining operation was suspended in June 2023 due to environmental pollution. Additionally, in the DRC, GECAMINES, the state-owned mining company, expressed interest in buying some ERG assets last February.

The new financing agreement is expected to help ERG strengthen its Metalkol operations and enhance its position in the global copper and cobalt market, which analysts believe has strong long-term prospects. ERG claims to have the support of the DRC government, citing a visit by Mines Minister Kizito Pakabomba to the Metalkol site last August.

During his visit, the minister emphasized "the importance of respecting international environmental standards in a context where copper and cobalt are critical metals for the global energy transition."