DRC suspends contractors at ERG copper/cobalt operations

News Analysis

5

Apr

2024

DRC suspends contractors at ERG copper/cobalt operations

The DRC has suspended nine subcontracting companies working at mines run by ERG.

The measures affect firms with contracts at ERG’s two operating assets in the DRC: RTR Metalkol and Frontier. The government first announced the ban on March 14, alleging that the firms aren’t controlled by Congolese nationals as required by law. The regulator said this week that the sanctions are still in place, after meeting with ERG last week. ERG “must appoint real companies with real Congolese shareholders,” Miguel Kashal Katemb, director general of the Regulatory Authority for Subcontracting in the Private Sector, according to Bloomberg.

From the outside at least, relations look strained between ERG and DRC authorities.

According to a February Reuters report, DRC state-owned miner Gécamines has made a firm proposal and intends to acquire three copper-cobalt assets from ERG in the DRC.

The report was the latest article to suggest that the DRC government is interested in some of ERG's assets. An October 2023 Bloomberg report suggested that Gécamines was interested in taking control of some of ERG’s copper-cobalt assets further to claims that ERG has been too slow in developing certain projects. Not long afterwards, ERG made its plans to invest US$800M in a new hydrometallurgical facility at COMIDE public.



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