ERG Mercuria copper supply agreement tightens grip on DRC copper flows

ERG

The new ERG Mercuria copper supply agreement deepens trading control over Democratic Republic of Congo copper flows. Under the deal, Mercuria will prepay up to $100mn to ERG in return for a three-year secured copper supply stream. This ERG Mercuria copper supply agreement reinforces trade-finance links between miners and global commodity traders at a time of tightening credit conditions.

Prepayment structure anchors ERG Mercuria copper supply agreement

The agreement centres on structured prepayments that lock in volumes from ERG’s DRC assets. Frontier remains ERG’s main copper site in the country, providing primary concentrates and metal to back the ERG Mercuria copper supply agreement. Meanwhile, Metalkol reprocesses legacy tailings, supplying both copper and cobalt into global battery and alloy markets.

Mercuria’s prepayment reduces ERG’s funding risk and secures long-term offtake. As a result, the ERG Mercuria copper supply agreement strengthens both sides’ balance sheets by matching upstream production visibility with downstream marketing reach. The structure follows a proven model in commodity trade finance, where traders exchange early capital for future physical flows.

DRC copper, cobalt and ferrochrome in a strategic portfolio

ERG already ranks as a major producer of cobalt and ferrochrome, alongside its copper and iron ore businesses. Therefore the new deal gives Mercuria broader optionality across critical minerals and base metals exposure, starting with copper from the DRC. Frontier and Metalkol sit within a wider African portfolio that feeds global smelting, refining and battery precursor capacity.

However, growing reliance on DRC output keeps ESG, logistics and regulatory risk firmly in focus for both partners. Supply security, community relations and power availability will remain key constraints on how far the ERG Mercuria copper supply agreement can scale. Still, the deal underlines ongoing appetite from traders to tie up strategic volumes at the mine gate.

Focus keyphrases: ERG Mercuria copper supply agreement, DRC copper supply, Frontier copper mine, Metalkol cobalt and copper, commodity trade finance

The Metalnomist Commentary

This agreement highlights how prepay-backed copper offtakes remain central to funding DRC assets in a higher-rate world. By tightening links between ERG and Mercuria, the deal concentrates marketing power over high-grade African copper at a time of structural energy transition demand. For OEMs and smelters, it is another reminder that access to units increasingly runs through a handful of well-capitalised traders.