ENRC to spend half a billion dollars on DRC expansion

Mining titan Eurasian Natural Resources Corporation (ENRC), is to buy the remaining stake in Democratic Republic of the Congo (DRC) focused group Camrose Resources for over half a billion dollars, the firm announced on Monday.

ENRC Congo BV, which already owns 50.5% of Camrose, has proposed to buy the remaining 49.5% interest for $550m in cash.

The acquisition is an attempt to simplify its organisational structure and consolidate its position within the DRC.

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Camrose holds interests in a variety of copper and cobalt licences in the country, including a 70% indirect interest in Metalkol, 64% of Toronto-listed Africo Resources and a 55% indirect interest in La Congolaise des Mines et de Dveloppement Sprl (otherwise known as Comide).

ENRC said the takeover, while generating "significant profits and positive cash flows", will also help it to increase operational synergies across its regional copper and cobalt operations.

ENRC Chief Executive Felix J Vulis said: "Consolidating our ownership of Camrose will be an important step forward for the group, enabling us to gain maximum benefit from the development of these assets and to continue to support our strategy and ambition of becoming a material African copper producer."

The proposed deal will require the approval of ENRC shareholders at a meeting at the end of the month.