Eurasian Resources Group (ERG), one of the world's leading cobalt producers, has reported that a military-backed group has taken over a substantial part of its cobalt and copper deposit near Kolwezi in the Democratic Republic of Congo. The intruders are exploiting the site on a near-industrial scale, specifically targeting over 100 million tons of valuable waste, known as tailings, which ERG holds rights to reprocess. This incursion, reportedly supported by Congolese soldiers, is threatening the commercial viability of ERG's Metalkol unit, which is the world's fourth-largest cobalt producer, operating as a commercially driven environmental rehabilitation initiative since 2018. Congo's government holds a 10% stake in Metalkol.
The takeover centers around Fatou Ntete Etumba, a Congolese businessman whose company, Societe Cooperative Miniere Hosanna, claims government authorization to clean up a riverbed on ERG’s land. Hosanna has presented a certificate from an environmental agency and cited instructions from Interior Minister Jacquemani Shabani. However, Shabani has clarified that his correspondence did not grant authorization. Despite protests from Metalkol to government officials, Hosanna's operations have expanded, with excavators and dump trucks removing tailings, and Congolese military personnel blocking Metalkol staff from the area. The General Inspectorate of Mines is mediating, stating Hosanna is not authorized for decontamination.
The portion of the river basin targeted by Hosanna contains approximately 45 million tons of tailings. ERG estimates that if these volumes are removed, Metalkol's operational lifespan as a major cobalt and copper supplier could be reduced from about nine years to just three. This potential loss of years could result in over $10 billion in lost sales for Metalkol at current copper and cobalt prices. This situation highlights ongoing struggles for mining investors in Congo amidst efforts by Washington to counter China's influence and Kinshasa's assertive approach to managing cobalt supply.
President Félix Tshisekedi issued a directive on July 10, 2026, ordering an immediate end to the unauthorized presence of armed personnel at mining sites and the dismantling of illegal mining networks supported by uniformed personnel. This directive was aimed at addressing issues like intimidation, extortion, and disruptions to supply chains. ERG had hoped this would resolve the incursions, as its subsidiaries have faced repeated invasions by illegal miners since 2024. However, ERG sources indicate that their sites remain occupied, and the company is awaiting actual changes on the ground following the presidential order. The effectiveness of this directive will be a critical test of Congolese authorities' credibility and the country's business climate.
