ERG mulls selling Mozambican assets, reviewing Congo permits
Kazakhstan-backed Eurasian Resources Group plans to review some of its mining permits in the Democratic Republic of Congo and is considering selling assets in Mozambique as part of a revamp, the chief executive officer of its Africa unit said.
The overhaul is aimed at reducing costs at the cobalt and chrome producer, Nicolas Treand told Bloomberg TV in an interview at the Mining Indaba in Cape Town on Monday.
A global cobalt glut has sent prices of the battery metal to record lows.
鈥淭he market is pretty, pretty bad and pretty depressed and I think it鈥檚 going to be depressed for the next two to three years,鈥 said Treand. 鈥淢y first priority is basically to clean house in the DRC because we have definitely too high costs maintaining all these licenses in DRC right now.鈥
He doesn鈥檛 foresee the war in the east of Congo impacting on ERG Africa鈥檚 operations 鈥渁s we are too far away,鈥 Treand said.
The miner is also reviewing projects in South Africa and Zimbabwe as part of the revamp, Treand said.
(By Jennifer Zabasajja and Ray Ndlovu)
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