In Berlin, the Minister of Finance of the DRC, Nicolas Kazadi, proceeded this Friday, August 27, 2021 to the signing of a Memorandum of Understanding between the Government of the DRC and the mining giant Eurasian Resources Group S.a.r.l (ERG SARL) for investment projects in DRC. The signing comes alongside the 4th G20 Compact for Africa Summit, also known as the Compact with Africa, which aims to mobilize private investment from around the world for the benefit of the DRC in order to diversify the economy and make it more competitive.
The Investment Agreement with the ERG Group allows the mobilization of more than US$300 million in private financing to develop three new innovative projects, namely: (1) a project to build an energy storage system using batteries to facilitate the implementation of projects related to any revenue-generating sector, (2) a project is to build one of the largest Solar PV plants in the DRC to generate electricity, a major pioneering initiative driven by the private mining industry to contribute to the green energy transition, and (3) a project to build a downstream enrichment facility to produce battery materials. This project will ensure the transformation of about 20% of the national cobalt production and will contribute to increase the added value by nearly 15%.
The signing of this agreement is part of the efforts made by the Government of the DRC to mobilize private investments from major international groups, in order to ensure economic recovery through an investment fund for economic diversification and job creation according to the vision of the Head of State Felix Antoine TSHISEKEDI TSHILOMBO.
These investments come at an opportune moment because they will contribute to support the economic recovery after the crisis of the COVID-19 pandemic. The three investment projects will address the exorbitant energy bills that mining and oil companies, hospitals, and educational institutions in the DRC are constantly facing.
For the Minister of Finance, Nicolas Kazadi, the signing of this memorandum is the culmination of the Government’s efforts to consolidate the partnership with the private sector in order to accelerate economic diversification, develop national industry, and create jobs. The new “Investment Fund for Economic Diversification” initiative, under implementation by the SAMA LUKONDE Government through the Ministry of Finance, will help mobilize further private investment. All mining companies are urged to massively adhere to this win-win partnership to develop the mining sector in the DRC.
Mr. Benedikt SOBOTKA, Chief Executive Officer of ERG, congratulated the Government of the DRC for this pioneer initiative which reassures investors in all sectors. He also expressed his satisfaction in view of the influence of the DRC thanks to the multiple opportunities following the signature of this agreement.
Indeed, Eurasian Resources Group S.a.r.l. (ERG) is a company under Luxembourg law that indirectly holds several mining assets in the Democratic Republic of Congo. It is the parent company of the ERG group of companies (ERG) and one of the world’s largest integrated mining companies with an existing portfolio of assets located in Asia, Latin America, and Africa. Its portfolio in the DRC includes a significant number of mining companies in the exploitation and/or exploration phase such as FRONTIER SA, BOSS MINING SA, CCC SARL, COMISA SARL, SWANMINES SAS and METALKOL SA.
In addition, ERG Group companies in the DRC have, over the past decade, actively participated, directly or indirectly, in the development of the DRC through increased investment and the well-being of the population through job creation, training, the fight against illegal mining activities, and the launch of a significant number of agricultural, social and educational initiatives.