The CEO of Eurasian Resources Group (ERG) revealed on Monday that the mining company intends to sell its assets in Mozambique as part of a restructuring plan aimed at cutting costs for the cobalt and chrome producer.
“The market is very bad, depressed. I think it will remain this way for the next two to three years,” said Nicolas Treand in an interview with Bloomberg TV during the Mining Indaba conference in Cape Town, South Africa.
However, according to Treand, ERG’s priority is to review its licenses in the Democratic Republic of the Congo (DRC) due to the high costs of maintaining them.
The DRC is currently in armed conflict with the M23 group, which is supported by Rwandan troops. Treand expects the conflict to persist for some time but does not believe ERG’s operations will be affected. “We are very far away.”
As part of its restructuring, the mining company is also evaluating projects in South Africa and Zimbabwe, Treand added.
