Diversified natural resources group Eurasian Resources Group (ERG) has signed an agreement with China’s BGRIMM Technology Group for the construction of a cobalt beneficiation facility, in the Democratic Republic of Congo (DRC).
This facility, which will process material provided from ERG’s Metalkol mine in the DRC, is expected to be commissioned by the end of 2024.
The agreement with BGRIMM was signed on October 17 during the third Belt and Road Summit Cooperation Forum, in Beijing.
“ERG’s agreement with BGRIMM to build a high-quality cobalt beneficiation facility is much-needed for the 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,” says ERG CEO Benedikt Sobotka.
At Metalkol, ERG’s flagship operation, the group has expanded production capacity ten-fold in the last four years.
ERG is also developing another key asset in the DRC, Comide, which it says 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, is expected to be an 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.
ERG plans to invest a further $2-billion in the DRC over the next two years.