Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing, Sinosure to provide the insurance
NFC will be the contractor for the design, procurement, construction, commissioning and testing of the Metalkol RTR copper and cobalt project in the DRC. The financing secured by this agreement is over $US 700 mln and it will be done through an innovative debt solution structured and supported by EXIM, ICBC and Sinosure. The construction of the plant is scheduled to be completed within 24 months.
The Roan Tailings Reclamation (RTR) Project, located in the Democratic Republic of Congo 26 km west from Kolwezi, is the comprehensive hydro-metallurgical facility with the target capacity of 70 thousand tonnes of copper per annum (ktpa) and 14 ktpa of cobalt (Phase I) which will then be expanded to 105 ktpa of copper and 21 ktpa of cobalt (Phase II).
Eurasian Resources Group is a principal producer of copper and cobalt in Africa and a major and longstanding contributor to the mining industry in the Democratic Republic of Congo. The RTR project supports ERG when it pursues a growth centered strategy which will see its production increase to about 300kt of copper over the next three to five years.
‘We are pleased to build our relationship with the leading Chinese companies and we are committed to support the local community via social and infrastructure development in the DRC. I would like to thank our partners for the warm reception they gave to our team in Beijing, and specifically NFC who are hosting us today’, said Mr. Machkevitch, Chairman of the Board of Managers of ERG S.a.r.l., during the signing ceremony.
NFC is assisting ERG in bringing the RTR Metalkol project into the production of copper and cobalt, which are the two strategic metals to the future development of China in such key sectors as batteries and superalloys (for cobalt), construction and electronics (for copper).
Mr. Benedikt Sobotka, Chief Executive Officer of ERG S.a.r.l., said: 'It is a major joint achievement of all parties to sign such an agreement in the current market conditions, and testimony to the long term commitment of our group to the countries we operate in. Together with our Chinese partners and the government we will lay the foundation for competitive growth through these 1st tier projects.'
Mr. Machkevitch emphasised: 'Eurasian Resources Group is really committed to achieving a substantial progress to its major investment projects in Kazakhstan and internationally while capitalising on the strong relationships with the Group’s Chinese partners. The Company has been working together with NFC in Kazakhstan successfully for the last six years, and it is our pleasure to extend the cooperation to a new region. The strategic financial support from the two of the world’s largest banks is a strong credential to the reputation of our organisation.’