1. Eursasian Resources Group (ERG) is committed to Africa with a number of projects across the continent. Group has invested billions of dollars in mining operations and associated social and infrastructure development initiatives.
2. ERG’s cobalt and copper assets represent our core business. Both metals are key priorities and drivers for the Group and its strategic participation in China’s Belt and Road initiative. These two key enablers of the Fourth Industrial Revolution are also testament to ERG’s role as a founding member of the Global Battery Alliance, a World Economic Forum initiative.
3. Metalkol RTR is ERG’s flagship development project and one of the largest and technologically advanced cobalt plants in the world. At the end of September 2018, four weeks ahead of schedule, we produced our first copper. The project is nearing completion and at full capacity, Metalkol RTR will be able to supply over 120ktpa of copper cathode and 24ktpa of cobalt to the global market. These volumes are sufficient to supply more than three million electric vehicles per year. We aim to have an approximate 15% share in the global cobalt market by 2021.
4. In December last year, ERG launched its Clean Cobalt Framework which underscores seven commitments: Compliance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals; Our cobalt is free of child labour; Our cobalt is traceable; Our cobalt does not come from artisanal and small-scale mining; We restore the environment; We collaborate to support sustainable community development; We support our industry towards more sustainable cobalt value chains. The Global Battery Alliance recognises the need for setting industry standards for traceable cobalt production. We are proud that ERG is heeding the call by establishing its Framework.
5. In 2018, we found an effective solution to securing reliable electricity supply to Metalkol RTR. ERG signed an agreement with Société National d’Electricité, Rawbank and the Copperbelt Energy Corporation to supply electricity in two phases. The first will run until Q2 2019 with a total of 62MW delivered. Following this, the power supply will ramp up to 78MW per year during the second phase and for the remainder of the contract.
6. In November 2018, Metalkol RTR had recorded thirteen million consecutive injury-free hours. Chambishi Metals was also awarded the 2017 Zambia Chamber of Mines Award for Occupational Health and Safety.
7. The deployment of ERG Africa’s new ERP tool – Microsoft Dynamics – is a crucial achievement. This has been the largest technology infrastructure investment in our history, and it means that now we have a singular system that manages the execution of our finance and procurement processes across the Group.
8. We are investing $5-6 million in CSR initiatives across Africa every year. ERG Africa is constructing solar-powered water supply installations for communities, bringing a sustainable source of clean water to around 8 000 people. The UCK township community near Metalkol RTR, which remained without access to potable water for more than 21 years, now has access to a water distribution system for cooking and drinking providing a minimum of 20 000 litres of clean water per day.
9. Last year alone ERG Africa supported over 10 000 children to attend school and provided medical service to over 30 000 patients. We pledged more than $1 million to support a three-year partnership with the Good Shepherd International Foundation in the Kolwezi area near our Metalkol RTR project. This partnership is helping approximately 1 000 vulnerable children to access basic education and other services such as counselling, healthcare and access to referral systems for physical abuse. In partnership with GSS, ERGA is also building a new school in Kolwezi, which is expected to be completed by mid-2019. ERG’s recent partnership with Pact, a leading international NGO, aims to develop a comprehensive plan for addressing child labour in the cobalt supply chain. Key work streams include vocational education programs to provide support to young miners.
10. Finally yet importantly, ERG Africa developed and implemented a new training programme for mine security services, in partnership with Pact, based on the UN Voluntary Principles on Security and Human Rights.