Eurasian Resources Group Signs MoU to Formalise Artisanal Cobalt Mining

Luxembourg-headquartered mining company Eurasian Resources Group (ERG) reported that its African subsidiary, ERG Africa, has signed a Memorandum of Understanding (MoU) with Entreprise Générale du Cobalt (EGC) on the sidelines of the Mining Indaba in Cape Town on 10 February 2026, aimed at strengthening sustainable and responsible artisanal cobalt mining in the Democratic Republic of the Congo (DRC).

According to ERG, the MoU was signed in the presence of Louis Watum, DRC's Minister of Mines. The agreement forms part of a public-private partnership intended to enhance the formalisation, professionalisation and accountability of artisanal and small-scale mining (ASM). It provides EGC with mining rights over an exploitation area owned by ERG Africa and located in Lualaba Province.

The company stated that none of ERG Africa’s production originates from artisanal and small-scale mining (ASM), nor will it do so in the future. However, it added that it is committed, alongside EGC, the Cobalt for Development programme implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and local communities, to supporting the formalisation of the ASM sector, which it described as important for the country’s economic development and supply chain transparency.

According to ERG, the pilot project under the MoU seeks to establish a structured model aimed at improving the working conditions of artisanal miners and reducing risks associated with informal mining, including human rights risks. The initiative is also intended to strengthen social cohesion in surrounding mining communities, enhance environmental protection and ensure the traceability and security of the cobalt supply chain, in line with the objectives of the Congolese government.

ERG added that the signing ceremony was attended by Louis Watum, DRC's Minister of Mines, Gino Buhendwa Ntale, Chairman of EGC’s Board of Directors, Eric Kalala, Chief Executive Officer of EGC and Davron Vakhabov, Chief Executive Officer of ERG Africa.

Implementation of the project will be carried out in coordination with the Ministry of Mines, the Authority for the Regulation and Control of Markets and Strategic Substances (ARECOMS), SEAMAPE and the CEEC, with the support of Gécamines. EGC will provide operational leadership, while ERG Africa will act as an enabling partner and GIZ as a technical partner. A third-party operator is expected to oversee day-to-day operations, and public consultations will be held with local communities and civil society.

Speaking at the ceremony, Davron Vakhabov, Chief Executive Officer of ERG Africa, stated: “At ERG Africa, we believe that legitimate artisanal mining plays an important socio-economic role in the DRC. Supporting the formalisation of ASM activities within the legal framework is essential to improving safety, transparency and community well-being.”

Eric Kalala, Chief Executive Officer of EGC, emphasised: “By regulating and supervising artisanal mining on a defined site, we can ensure responsible operations that comply with both national and international standards, with the aim of developing a replicable, long-term model. I welcome ERG Africa’s initiative to advance our efforts to formalise ethical artisanal mining, and I am confident that, with the commitment of all stakeholders, this initiative will succeed and serve as an example.”

In his address, Louis Watum, DRC's Minister of Mines, said: “For the DRC, the solution is formalisation, not exclusion. Our approach is grounded in OECD-aligned due diligence, traceability, and responsible sourcing, while responding to the practical needs of battery manufacturers and OEMs for secure, ethical supply.” He added: “A central pillar of this strategy is Entreprise Générale du Cobalt (EGC), which has been mandated to organise artisanal cobalt production through designated ASM zones, structured cooperatives, controlled buying points, and compliance with safety and labour standards. This creates the conditions for traceable, verifiable supply that downstream buyers can trust.”

ERG also stated that the initiative aligns with the priorities of the President of the Democratic Republic of the Congo, Félix Tshisekedi, the Government of the DRC and the Ministry of Mines, in support of a more formalised and transparent mining sector aimed at delivering sustainable and inclusive growth.