Mining company Eurasian Resources Group (ERG) has signed a pre-export financing agreement for the Metalkol copper project in the Democratic Republic of the Congo (DRC). The agreement comprises a $150 million credit facility and will enhance ERG’s working capital for the project.
Signed between ERG, mining firm Glencore International and financial institution the Bank of China, the agreement is backed by a supply agreement for copper produced at the Metalkol project. ERG will use the funds to sustain investment in the Metalkol project and the broader Kolwezi region.
“Our combined efforts will further boost regional economic development as well as promote responsible practices in mining and metals extraction across Africa,” stated Nicolas Treand, CEO of ERG Africa.
Mital Patel, Head of Structured Trade Finance at Bank of China, added that “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 environment friendly than conventional mining process, as Metalkol uses historic tailings as its feed.”
