Shalina partners with Trafigura to secure financing for DRC copper/cobalt mine
Dubai-headquartered copper and cobalt miner Shalina Resources and its subsidiary Chemaf have signed a financing and marketing agreement with commodity trader Trafigura.
The deal will facilitate new supply of high-grade cobalt hydroxide and copper cathode at a time of growing global demand.
Trafigura will syndicate about $600-million of financing to international banks, as well as market all of the cobalt hydroxide produced from the companies’ assets in the Democratic Republic of Congo (DRC).
The financing will enable Shalina to complete the construction of its fully mechanised Mutoshi mine and solvent extraction and electrowinning processing plant, in Kolwezi, as well as progress the expansion of the Etoile solvent extraction and electrowinning processing plant, in Lubumbashi.
An important component of the transaction involves Trafigura working with Shalina and Chemaf to enhance the management of social and environmental impacts of the operations, in line with international standards – including the Organisation for Economic Cooperation and Development’s ‘Due Diligence Guidance for Responsible Supply Chains’ and Trafigura’s own responsible sourcing programme.
The Mutoshi mine is set to be one of the largest copper and cobalt mines in the DRC with significant resource upside. The mine is expected to start production by the third quarter of 2023.
