Eurasian Resources Group (ERG) has rebuffed accusations of attempting to bypass subcontracting laws in the Democratic Republic of Congo (DRC), aimed at bolstering local participation in the mining sector and fostering economic growth.
Responding to claims by the Congo government that it misrepresented nine subcontracting companies as majority partners with fabricated shares to evade the requirement for Congolese shareholders to own 50% of subcontracting shares, ERG issued a statement vehemently denying any involvement in illicit activities.
The Regulatory Authority for Subcontracting in the Private Sector disclosed that over $535 million in sales had been wrongly 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, along with associated subcontractors.
ERG clarified that the implicated subcontractors were not directly linked to the company and emphasized its collaboration 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 acquiring three of ERG’s copper and cobalt assets in the country, indicating ongoing developments in the mining sector.
