SMM2 20-according to Bloomberg reported that Eurasian resources group (ERG) will suspend production of a copper and cobalt mine in the Democratic Republic of the Congo, the group is considering future investment in new production methods.
Tensions between the country and investors have been suspended after the country introduced new taxes last year, including a 10 per cent tax on cobalt exports.
ERG said in an email in response to questions on Tuesday that operations were being suspended and that a feasibility study was under way to build two ore processing facilities at the site.
Boss has run out of oxidized ore that can be processed and will have to invest in new treatments for remaining sulphide deposits, a person familiar with the matter said earlier.
ERG said Boss Mining would begin maintenance at the end of February.
Boss is a joint venture between ERG and Gecamines. ERG owns 51 per cent of the Lubumbashi-based company.
The company plans to fire 2700 employees and terms of departure are under negotiation, according to people familiar with the matter.
In the first nine months of last year, Boss exported about 24000 tons of copper and 33000 tons of cobalt concentrate, generating export revenues of about $310 million, according to the Ministry of Mines.
According to Darton Commodities Ltd. The company's concentrate production is equivalent to about 3300 tons of cobalt for the whole of 2018, or about 3.5 per cent of Congo's output. ERG owns three other mines in the Congo, including the Metalkol Roan Tailings Reclamation project, which has recently resumed operations and is likely to become one of the largest cobalt producers in the world.
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