ERG to suspend production at a copper and cobalt mine in DRC
2019-02-21 09:14:04 [Print]
According to a report, Kazakh miner ERG will temporarily halt production at one of its key copper and cobalt mines in the Congo, laying off workers in the latest hit to mining sector in the resource-rich country.
ERG said its Boss Mining asset will be placed into care and maintenance from the end of February so it can complete a feasibility study on the construction of two processing facilities.
The DRC, one of the poorest countries in the world, is the source of over two-thirds of the global supply of cobalt, a metal that is used in electric car batteries. But miners are grappling with a fall in cobalt prices and the introduction of a new mining code that raises the percentage of royalties they have to pay to the government.
ERG said it is in discussions with the relevant labor unions and once these are completed it will be writing to employees directly. A total of 2,800 workers could be let go, according to a person familiar with the matter.
The company was restructured in December following arbitration brought by Gecamines, Congo's state-owned mining company. ERG's stake was reduced to 51 per cent from 70 per cent, while the share owned by Gecamines rose to 49 per cent.
ERG said its Boss Mining asset will be placed into care and maintenance from the end of February so it can complete a feasibility study on the construction of two processing facilities.
The DRC, one of the poorest countries in the world, is the source of over two-thirds of the global supply of cobalt, a metal that is used in electric car batteries. But miners are grappling with a fall in cobalt prices and the introduction of a new mining code that raises the percentage of royalties they have to pay to the government.
ERG said it is in discussions with the relevant labor unions and once these are completed it will be writing to employees directly. A total of 2,800 workers could be let go, according to a person familiar with the matter.
The company was restructured in December following arbitration brought by Gecamines, Congo's state-owned mining company. ERG's stake was reduced to 51 per cent from 70 per cent, while the share owned by Gecamines rose to 49 per cent.
Copper Conc. TC 25%min CIF China
Unit:USD/mt
China copper concentrate producers' operating rate statistics by province by month
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