TDB, syndicated banks join hands with Trafigura to develop DRC mines
The Eastern and Southern African Trade and Development Bank (TDB), acting as mandated lead arranger, has closed a syndicated $600-million copper and cobalt development financing facility with commodity trading company Trafigura to advance responsible copper and cobalt mining in the Democratic Republic of Congo (DRC).
This follows after Trafigura concluded an initial $600-million financing agreement with Chemaf Resources and Chemaf SA, a leading vertically integrated copper and cobalt producer in the DRC.
Trafigura subsequently invited other financial institutions to patriciate in a secondary syndicated transaction, with TDB as the lead arranger.
The facility will contribute substantial economic value and social impact for the country, with thousands of jobs created and sustained, and several service contracts for DRC-based companies.
In particular, the facility will enable the completion of the new mechanised Mutoshi mine and processing plant in Kolwezi and the expansion of the Etoile mine and processing plant in Lubumbashi.
The Mutoshi mine is expected to start production by the fourth quarter of 2023 at a capacity of 16 000 t/y of cobalt hydroxide and 48 000 t/y of copper cathode, placing it among the largest cobalt producing mines globally.
TDB CEO Michael Awori says the bank and Trafigura have been working together to meet the energy needs of TDB member States and that the $600-million facility should have an impactful effect in the DRC and lead to an increase in the supply of metals that are essential to the energy transition.
TDB has been active in the DRC in several sectors and opened a regional office in the country in 2019.
In turn, Trafigura nickel and cobalt trading head Socrates Economou comments that the company is delighted to welcome TDB and a syndicate of banks on board, and looks forward to welcoming more international and African banks to the syndicate in subsequent rounds of refinancing for these vital developments.
