Eurasian Resources Group (ERG), a major cobalt producer, reports that military-backed intruders have taken over a large portion of its cobalt deposit in the Democratic Republic of Congo. These intruders are exploiting the site near the city of Kolwezi on a near-industrial scale, primarily targeting waste material rich in cobalt and copper. ERG's subsidiary, Metalkol, holds rights to reprocess over 100 million tons of these tailings, which are estimated to contain billions of dollars worth of metals.
The incursion, which ERG says involves scores of laborers protected by Congolese soldiers, is threatening the commercial viability of its Metalkol unit. The company alleges that this could lead to a loss of years of revenue and potentially cut the operating life of its flagship asset by two-thirds. The tailings are reportedly being delivered to three Chinese-owned refineries in the vicinity. This situation highlights the ongoing challenges faced by international mining companies in the DRC, including illegal artisanal and small-scale mining (ASM), and occurs amidst efforts by Washington to counter China's influence in the Congolese mining sector.
At the center of this takeover is Congolese businessman Fatou Ntete Etumba, whose company, Societe Cooperative Miniere Hosanna, claims government authorization to clean a riverbed on ERG's land. This initiative reportedly has the backing of influential officials, including an army general under US sanctions. ERG disputes the legality of Etumba's actions, and despite interventions from the nation's mining ministry and a statement from the Interior Minister denying authorization for Hosanna's operations, the company's activities have continued to expand. Hosanna has recruited artisanal miners to work around the clock, with Congolese military personnel blocking Metalkol staff from accessing the affected areas.
The section of the river basin targeted by Hosanna contains approximately 45 million tons of tailings. ERG estimates that if these volumes are removed, Metalkol's lifespan as a major cobalt and copper supplier could be reduced from about nine years to three years. This could result in Metalkol missing out on sales exceeding $10 billion at current copper and cobalt prices. General Gabriel Amisi Kumba, the inspector general of Congo’s armed forces, has reportedly commended Etumba’s “initiative” and urged government bodies to support it.
