Eurasian Resources Group, a leading natural resources company headquartered in Luxembourg, announced a pre-export finance agreement with Bank of China London Branch and Glencore International, which also specializes in natural resources, on Monday.

Under the agreement, ERG can borrow up to $150 million for working capital or other general corporate purposes. The pre-export finance is supported by a supply agreement for copper cathodes produced by ERG's Metalkol, a major tailings reprocessing operation in the mining sector in the Democratic Republic of Congo.

Nicolas Treand, CEO of ERG Africa, said: "We are delighted that Glencore and Bank of China have partnered with us to arrange this pre-export finance facility for Metalkol, which will enable us to prioritize the investment programme at the enterprise. Our combined efforts will further boost regional economic development, as well as promote responsible practices in mining and metals extraction across Africa."

Jyothish George, head of Copper Marketing at Glencore, said: "We are pleased to partner with Eurasian Resources Group and Bank of China to help support the ongoing supply of critical minerals, such as copper, from the DRC to customers around the world."

Mital Patel, head of Structured Trade Finance at Bank of China London Branch, said: "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 toward electrifying our world and a producer using a more environment-friendly than conventional mining process, as Metalkol uses historic tailings as its feed."

The supply agreement cements ERG's strong portfolio of commercial contracts with global partners and its continued strategy to contribute to economic growth in DR Congo, which has recently become the second-largest copper producer globally, with further potential. Copper cathodes supplied from Metalkol are also expected to support the growing demand for critical minerals to power the green energy transition.

ERG is a reliable and long-term partner in DR Congo and the group continues to invest in copper and cobalt assets in the country, according to the company, adding that the facility agreement will help maintain the group's sustained investment in Metalkol and the wider Kolwezi region.

Kizito Pakabomba, the national minister of mines in DR Congo, recently visited Metalkol, a subsidiary of ERG Africa, in the province of Lualaba. Metalkol processes copper and cobalt tailings from the Kingamyambo dam and the Musonoi River valley.

The official visit marked the strengthening of a shared and promising vision for the sustainable development of the mining sector at national and international levels, according to ERG Africa.

It followed an initial constructive meeting held in Kinshasa in mid-July with ERG Africa's CEO Treand. It marked the continuation of a promising dialogue between the DR Congo's ministry of mines and ERG Africa aimed at promoting the sustainable and inclusive development of the mining sector in the country, the company said.

During this visit, Jean-Claude Lubembe, Metalkol's head of operations, presented the hydromechanical mining and dredging technology used for the extraction of copper and cobalt, highlighting the innovative aspects and the efforts made to minimize the environmental effects and meet the standards of ethical and responsible production.

Pakabomba said: "I would like to commend your efforts in the field of sustainable development as you have presented them. Metalkol is committed to meeting international environmental standards. This is essential in a world where climate challenges are becoming more pressing. The global energy transition depends on critical metals such as cobalt and copper, and your role in this strategic process is an important point not only for our country, but for the whole of humanity."

ERG's Metalkol facility has undergone the Responsible Mineral Assurance Process – a flagship programme of the Responsible Minerals Initiative which was established to verify the responsible sourcing of minerals and aims to deliver increased value chain assurance.

Founded in 2008, the Responsible Minerals Initiative has grown into a respected resource for a range of industries addressing responsible mineral sourcing issues in their supply chains. More than 500 companies and associations from more than 30 industries participated in the RMI today.

Metalkol released the fourth Metalkol Clean Cobalt & Copper Performance Report for 2024 recently, which was independently assured by auditors PwC. It reported on Metalkol's progress, approach, and performance across areas of responsible mining and due diligence in relation to its Clean Cobalt and Copper Framework.

The framework, first released in 2018 as the Clean Cobalt Framework and extended to include copper in 2021, comprises seven commitments that ERG makes to its stakeholders. These commitments are achieved through a set of management systems, processes, controls, and investments designed to comply with OECD guidance and lead the industry toward more sustainable value chains, according to the group's website.