Eurasian Resources Group (ERG) has agreed a US$100mn prepayment facility to supply copper to commodity trading giant Mercuria.
Under the three-year supply agreement, Mercuria will provide up to US$100mn in prepayments to ERG for copper sourced from its mines in the Democratic Republic of the Congo (DRC).
ERG said the facility will strengthen its commercial portfolio, support the “sustainable development of the global supply chains for critical minerals” and increase its financial flexibility.
The company’s chief executive, Shukhrat Ibragimov, said: “This marks an important step in deepening our collaboration with global partners as we work to realise the full potential of our core operations in the DRC.
“It also reflects the confidence our stakeholders place in ERG as a reliable source of responsibly produced copper for global markets.”
Kostas Bintas, global head of metals and minerals at Mercuria, added: “This landmark transaction with ERG reaffirms our long-standing partnership built on trust and shared ambition.
“The facility will strengthen ERG’s asset development in the DRC – a region of growing strategic relevance to Mercuria. Our collaboration across the African Copperbelt reflects our mutual commitment to responsible growth and reliable offtake.”
Luxembourg-headquartered ERG’s main shareholder is the government of Kazakhstan, where it operates many of the country’s production entities.
The company is also one of the world’s largest producers of cobalt and ferrochrome and a large international supplier of copper and iron ore.
Last year, it struck a deal with Glencore and the London branch of Bank of China for a US$150mn pre-export finance facility to support the supply of copper from the DRC.
Meanwhile, Mercuria announced in June it had grown its European revolving credit facilities to US$3.5bn, in a bid to help its expansion in the LNG and metals markets.
The move forms part of a wider trend among commodity traders to grow their metals desks.
