Kazakhstan-backed Eurasian Resources Group is undertaking a sweeping review of its African operations, with CEO Nicolas Treand outlining plans to reexamine mining permits in the Democratic Republic of Congo and to consider divesting assets in Mozambique. Speaking on Bloomberg TV from the Mining Indaba in Cape Town on Monday, Treand noted that the overhaul is aimed squarely at slashing costs for the cobalt and chrome producer. The company, which has been grappling with a global cobalt glut that has driven prices to record lows, is prioritizing a cost-cutting “clean house” exercise in the DRC, where maintaining a multitude of licenses has become increasingly unsustainable in the current depressed market.
ERG, known for its extensive operations in Africa, is also reportedly scrutinizing projects in South Africa and Zimbabwe as part of this strategic revamp. The DRC remains a focal point, as it supplies a significant portion of the world’s cobalt—a critical component in electric vehicle batteries—despite the heavy regulatory burden imposed by the government. In recent years, the country’s mining permits have come under fire for their high costs and complex renewal processes, which ERG now seeks to simplify.
Market data from Bloomberg indicate that the oversupply of cobalt has not only suppressed prices but also forced many producers to reconsider their operational footprints in a bid to preserve margins. ERG’s review is consistent with a broader industry trend, where several major mining companies are recalibrating their investments amid volatile commodity prices and heightened regulatory scrutiny in key resource-rich regions. Treand’s comments underscore the challenges facing the cobalt market, even as the company eyes its next phase of growth in a sector marked by rapid technological change and evolving environmental standards. 
