Tag Archives: Eurasian Resources Group

ERG adds ARC Advisory and SAP to digital transformation program

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Eurasian Resources Group (ERG) says it has signed letters of intent (LOI) with ARC Advisory Group and SAP for the continuation of its large-scale digital transformation program, grounded in the principles of Industry 4.0.

Jointly with Oner Mind, ARC Advisory Group is to perform an independent technological audit of ERG’s entities in Kazakhstan, which includes power generation, aluminium and ferroalloy assets, and develop an action plan for business process optimisation, ERG said.

Commenting on the signing, Galymzhan Akhmetov, ERG’s Chief Information Officer, said: “ERG’s entities differ by industry and size; that’s why we need a world-class independent audit to maximise the effectiveness of production process management.”

Uwe Grundmann, General Manager of ARC Advisory Group’s European operations, said ERG’s digital transformation would benefit from the business’s knowledge base and experience.

In further support of the group’s ambitious programme, ERG also announced a new area of cooperation with SAP, which will see the implementation of a new system focusing on repair and maintenance management and ensuring equipment reliability.

Serik Shakhazhanov, Chairman of the Management Board at Eurasian Group LLP, which operates ERG’s entities in Kazakhstan, said the partnership would enable the group to enhance its competitive edge and develop the best industry practices of asset management.

The milestone was also welcomed by Eugene Teremov, Managing Director of SAP Kazakhstan, who said the signatories have a shared commitment to innovation.

ERG ties up electricity supply for Frontier copper mine in DRC

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Eurasian Resources Group has concluded power supply arrangements for its Frontier SA copper mine on the Democratic Republic of the Congo/Zambia border.

The contract was signed by the Société Nationale d’Électricité (SNEL), the national electricity company of the DRC, with power supply of 41 MW to be sourced from ZESCO, the national electricity company of the Republic of Zambia; and Rawbank, a commercial bank in the DRC.

Frontier, a cornerstone asset of ERG’s copper business, comprises an open-pit copper mine and processing facilities to produce copper sulphide concentrate, treating over 10 Mt/y of copper sulphide ore.

ERG also recently signed a supply agreement for Metalkol SA, a major cobalt and copper tailings reprocessing operation and hydro-metallurgical facility to secure its electricity supply for up to 10 years.

Benedikt Sobotka, CEO of Eurasian Resources Group, said: “This new agreement further demonstrates ERG’s commitment to the DRC and Zambia, and further cements our wider strategy on the continent as a whole. We are proud of the strong partnerships we have formed in Central Africa, such as with ZESCO, which is a well-respected and trustworthy power generation source.”

Jean-Bosco Kayombo Kayan, SNEL Director General, said: “We are happy with the current agreement as it guarantees the continuity of the electric power delivery through the arrangements between Frontier, SNEL SA, ZESCO and Rawbank. Eventually we are aiming to supply Frontier from only internal sources in the DRC where existing hydro-electric plants and power lines are currently being rehabilitated.”

Victor Mundende, Managing Director of ZESCO, said: “The signing of this new agreement showcases the growing partnership between ZESCO and ERG as well as a vote of confidence in ZESCO’s ability to provide power to operations at Frontier mine. This is also in line with our vision to be the hub of power trading in the Southern African region. In this regard, we remain committed to providing power supply to Frontier mine to the extent local power sources are unavailable.”

ERG’s Metalkol DRC copper-cobalt project to make use of Zambia power

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Eurasian Resources Group’s (ERG) cobalt and copper developer Metalkol SA has secured electricity supply for its operations in the Democratic Republic of the Congo for up to 10 years after signing a pact that will see some power transported from Zambia.

The Copperbelt Energy Corp (CEC), a Zambian incorporated power transmission, generation and distribution company that is a major developer of energy infrastructure in Africa, will supply up to 78 MW per year of power to the operation as part of an agreement signed between ERG, Société National d’Electricité (SNEL), the national electricity company of the DRC, and Rawbank, a commercial bank in the DRC.

The agreement to supply electricity is comprised of two phases: the first will run until the June quarter of 2019 with a total of 62 MW delivered. Following this, the power supply will ramp up to 78 MW per year during the second phase and for the remainder of the contract.

Metalkol’s RTR project, located near Kolwezi, involves the use of a low-cost hydro-metallurgical facility to reprocess the old tailings dumped into the environment from mining activities in the 1950s. It is expected to produce 77,000 tonnes per year of copper and 14,000 t/y of cobalt in the first stage, with stage two increasing this to 105,000 t/y and 20,000 t/y of copper and cobalt, respectively.

Benedikt Sobotka, CEO of ERG, said: “This is an important milestone in the progress of the Metalkol project, a unique development for the global battery industry. It is an example of sustainable and environmentally conscious treatment of the local environment, and of our wider strategic ambitions in Africa.”

Miners in southern DRC have had worries about sustainable power supply in the past few years, with these concerns often holding back expansion plans.

Owen Silavwe, Managing Director of CEC, said: “Supplying base-load power requirements to mining houses is CEC’s principal business. With many years’ experience successfully supplying reliable power for mining operations in both Zambia and the DRC, this agreement demonstrates CEC’s commitment and agility to meet the specific requirements of customers in the DRC market. It also reaffirms CEC’s partnership with SNEL and the mining community in the DRC.”

CEC has invested in transmission networks in Zambia, including the only interconnection of DRC’s SNEL network to the regional interconnected network.

Jean-Bosco Kayombo Kayan, SNEL Director General, said: “The trilateral agreement signed by Metalkol, CEC and SNEL demonstrates SNEL’s willingness to serve its customers by offering its expertise in the Southern African energy market.”