Eurasian Resources Group Sàrl renewed efforts to sell its Frontier copper mine in the Democratic Republic of the Congo even as the asset's value has dropped to US$400 million, Reuters reported March 7, citing two banking sources.
The group is said to be working with VTB Capital and Rothschild to spin off and eventually list some of its assets as it looks to cut its US$6 billion debt. It tried to off-load its foreign operations in 2014 but failed due in part to weak commodity prices.
"Chinese companies already operating in the country are going to take a look ... they are the most likely buyers," the sources added.
Another source said the Kazakh miner is targeting exiting the DRC within two years.
The company owns Boss and Comide copper-cobalt mines, as well as some development and near-production assets in the DRC.
"It doesn't seem the right time to sell Congolese copper mines — as there still uncertainty on the change in the mining charter — unless you are being forced into it by your creditors," said one of the sources.
In January, the country's parliament approved a revised mining code that will increase royalties on metals including copper, cobalt and gold.
Eurasian Resources did not respond to the newswire's requests for comment.
