Gonzalo de Olazaval, Global Co-Head of Metals and Minerals
at Trafigura said he was "pleased to support STL in the
development of its metallurgical concentrate processing
capabilities".
(Reporting by Bate Felix; Writing by Anait Miridzhanian;
Editing by Estelle Shirbon and Alexander Smith)
DAKAR, April 11 (Reuters) - A subsidiary of the
Democratic Republic of Congo's state mining company Gecamines
said on Tuesday it had secured $75 million in funding to build a
new hydro-metallurgical unit to produce materials used in the
manufacturing of semiconductors.
STL, a company focused on making commercial use of a slag
heap in Lubumbashi, capital city of the mining region of Katanga
in southeastern Congo, said the new funding would also extend
the life of its existing facilities by 30 years.
The new unit, projected to be operational from August this
year, will produce copper cathodes, cobalt hydroxide, a
germanium precipitate, silver concentrate and zinc oxides, STL
said in a statement.
"For the first time, the processing of alloys will be
carried out on the African continent ... by an African player,
to extract the added value," it said.
"STL will also become a major player in the production of
germanium worldwide, an essential metal to produce
semiconductors."
STL is the French language acronym of the firm's full name,
which translates as Company for the Treatment of the Lubumbashi
Slag Heap.
Part of the new financing package came from its own funds,
while Congo-based Rawbank SA provided a loan, STL said.
Mustafa Rawji, general manager of Rawbank, said the venture
would add value locally to the minerals that the DRC exports
into global markets, while ensuring "perfect traceability".
In addition, multinational commodity trader Trafigura
renewed an existing $20 million prepayment agreement in return
for the extension of an exclusive commercial contract for the
purchase of zinc oxides, STL added.
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