ERG Confirms Agreement with Gecamines
Photo: Eurasian Resources Group
Eurasian Resources Group Corporation has released an official statement on the agreement signed with the Democratic Republic of Congo’s state-owned Gecamines, confirming it is aimed at settling a long-running conflict, Orda.kz reports.
Bloomberg was the first to highlight the deal, noting that only the DRC president’s office had initially mentioned the signing without details. At that time, neither ERG nor Gecamines commented. Hours later, ERG issued a press release confirming the settlement.
The corporation said the agreement was a “major” one, focusing on the Swanmines mining project in the DRC.
It is designed to end an arbitration dispute between ERG subsidiaries and Gecamines, currently being reviewed in Paris. The document also outlines a framework for cooperation on the project and expands Gecamines’ role in its implementation.
We are pleased to have reached an understanding with Gecamines and are ready to move forward together in a new phase of cooperation to implement the project. We welcome the deepening of bilateral relations between Kazakhstan and the DRC, including in the metallurgical and mining sector, where both countries have unique opportunities and great potential,
said Shukhrat Ibragimov, Chair of the Board of Directors of ERG Group.
The dispute dates back to 2023, when Gecamines proposed buying out some ERG assets and canceled the creation of a joint venture at the Kalukundi copper-cobalt deposit. That move sparked arbitration proceedings and hindered other ERG projects in the country.
ERG holds major stakes in the DRC, developing significant copper and cobalt deposits.
Oil and gas industry analyst Nurlan Zhumagulov called the deal positive for Kazakhstan.
This is great news, as the Kazakh government owns 40% of ERG. In Congo, ERG has major assets producing cobalt (the second largest producer in the world) and copper. We hope that the settlement with the Congolese government will benefit ERG, because by the end of 2024, ERG suffered a record loss of $1.2 billion.
Original Author: Nikita Drobny
Latest news
- Why Kazakhstan Has Too Many Teacher Graduates and Too Few Qualified Ones
- Stronger Tenge Cools Demand for Cash Dollars in Kazakhstan
- Kazakhstan Tightens Rules on Business Assets for Contract Servicemen
- Kazakhstan Approves New Rules for the Protection of Monuments and Historic Sites
- Kazakhstan Launches New System to Respond to Bullying and Violence Against Children
- Personal Data of Kazakhstanis Was Sold Online to Debt Collectors and MFIs
- Bolashak Scholarships Went to Students Who Did Not Meet the Criteria, Audit Says
- Nearly 20 Billion Tenge Was Spent on Expelled Students, Audit Says
- Kazakh Government Bonds May Enter Euroclear Next Year
- Kazakh Graduates Are Increasingly Working Outside Their Profession
- Kazakhstan Faces a Sharp Demographic Shift as the Population Ages
- Powerful Winds Cause Damage in Several Regions of Kazakhstan
- Kazakh Peacekeepers Organize Medical Aid Mission for Syrians Near the Golan Heights
- Prosecutors Warn Buyers of Illegal Sturgeon and Caviar Face Criminal Liability
- Progress MS-34 Launches From Baikonur Carrying More Than 2.5 Tons of Cargo to the ISS
- Tokayev Says the Stray Dog Problem Must Be Solved “Without Hype”
- Several Districts in North Kazakhstan Remain Under Flood Threat
- Almaty Covers Open Irrigation Channels as Part of Urban Renewal
- Tourist Boats Set to Resume Service on Astana’s Yesil River
- U.S. Embassy in Astana to Auction Cars, Furniture and Medical Equipment
