Eurasian Resources Group (ERG) has refuted allegations of attempting to circumvent subcontracting laws in the Democratic Republic of Congo (DRC), aimed at promoting local ownership in the mining sector and fostering economic benefits.
In response to Congo government’s accusations of presenting nine subcontracting companies as majority partners with fictitious shares to evade the requirement of Congolese shareholders owning 50% of subcontracting shares, ERG issued a statement denying any involvement in illicit activities.
The Regulatory Authority for Subcontracting in the Private Sector revealed that over $535 million in sales had been incorrectly attributed to foreign-owned subcontractors in 2023, prompting plans for sanctions against proven cases of fraud within ERG’s assets, including Metalkol, Comide, Frontier, and Boss Mining, as well as associated subcontractors.
ERG clarified that the subcontractors implicated were not directly affiliated with the company and emphasized its cooperation with the regulatory authority to address the discrepancies.
The Luxembourg-based ERG, jointly owned by three private shareholders and the government of Kazakhstan, is committed to rectifying identified contractual inconsistencies with suppliers and actively seeking compliant alternatives.
Meanwhile, Congo state miner Gecamines expressed interest in purchasing three of ERG’s copper and cobalt assets in the country, indicating ongoing developments in the mining sector.
