BRI Forum - ERG to build a high-quality cobalt beneficiation facility in the DRC, signs EPC contract with China’s BGRIMM
The plant, with a total investment of US$ 250m, to be commissioned by the end of 2024.
Eurasian Resources Group (ERG), a leading diversified natural resources group headquartered in Luxembourg, signed an agreement with China's BGRIMM Technology Group, a leading institute in mineral and material industries worldwide, in relation to the cobalt beneficiation facility, which ERG is building in the DRC. This production facility is planned to be commissioned by the end of 2024 and cobalt hydroxide should be provided from ERG’s DRC-based Metalkol, one of the world’s largest producers for the battery industry, and one of the largest suppliers of cobalt to China. The agreement with BGRIMM was signed on the 17th of October, at the 3rd Belt and Road Summit Cooperation Forum in Beijing.
ERG further develops its portfolio of assets both in the DRC and globally to produce high quality materials for the li-ion battery sector. At Metalkol, ERG’s flagship operation, the Group has expanded the production capacity ten-fold in the last four years. ERG is also developing its another key asset in the DRC, COMIDE, which has some of the world’s largest known copper and cobalt resources.
In this vein, the cobalt beneficiation facility, which ERG is building up with BGRIMM, provides important addition to its portfolio of assets producing key battery materials as it should deliver high purity cobalt hydroxide tailored for the battery market. It should also further strengthen the Group’s position as a strategic supplier of traceable materials for the electric vehicle industry.
Benedikt Sobotka, CEO of ERG, said: “ERG has been attending the BRI Forum every year since its inception, because we know it is where some of the most important decisions for the global industry are made. It is no different this time: ERG’s agreement with BGRIMM to build a high-quality cobalt beneficiation facility is much needed for critical mineral mining and processing industry and for the green energy transition.”
“It is very exciting to help increase the overall investment in cobalt beneficiation in the DRC. This will also lead to further improvement of infrastructure and bring many benefits for local communities in the country, which is a vital region for metals and mining and a key building block for the cobalt industry,” added Mr Sobotka.
ERG is a key partner to the DRC where it has invested more than US$9 billion; generated more than US$1,6 billion in taxes, dividends and royalties; created around 10,000 jobs; and contributed substantially to the socio-economic development of its surrounding communities. ERG intends to invest a further US$2 billion in the country over the next two years.