Trafigura, a commodity trading corporation, has signed a $600 million syndicated financing agreement with the Eastern and Southern African Trade and Development Bank (TDB) to develop cobalt and copper mines in the Democratic Republic of Congo.
Trafigura intends to use the funds to complete its new mechanized mine at Mutoshi, the processing plant in Kolwezi, and the expansion of the Etoile mine and processing plant in Lubumbashi.
TDB was the financing’s designated lead arranger.
Trafigura said in a statement: “Africa and the Democratic Republic of Congo in particular are endowed with some of the largest reserves of minerals required to catalyze the global energy transition towards a net-zero world.”
“An important component of this agreement involves the enhancement of ESG compliance and responsible sourcing awareness and implementation, in line with IFC Performance Standards and OECD Guidelines.”
The Mutoshi mine, which is planned to start production by the fourth quarter of 2023, is expected to become the world’s third-largest cobalt mine. It will have an annual production capacity of 16,000 tons of cobalt hydroxide and 48,000 tons of copper cathodes.
Michael Awori, TDB CEO, said TDB and Trafigura have been jointly working over the past few years to meet the energy needs of TDB member states.
“We look forward to inviting additional international and African banks to the syndicate in following rounds of refinancing for these key developments for the supply of critical minerals and the DRC economy,” Trafigura Nickel and Cobalt Trading Head Socrates Economou said.
Trafigura’s latest action comes on the heels of a $600 million finance arrangement with Chemaf Resources and integrated copper and cobalt producer Chemaf SA.
