Gecamines, a wholly-owned subsidiary of the national mining organization of the Democratic Republic of the Congo, announced on Tuesday that it had raised $75 million to construct a new hydro-metallurgical complex to produce minerals for the semiconductor industry.
Lubumbashi is the capital of the southern Congo mining region of Katanga, and STL, a company focused on commercializing slag waste there, has stated that the additional financing will also extend the life of its existing facilities by 30 years.
According to STL, the new facility will begin producing copper cathodes, cobalt hydroxide, germanium precipitate, silver concentrate, and zinc oxides in August of this year.
It was stated that alloy processing would be performed for the first time on the African continent by an African company in order to derive added value.
Germanium is a crucial metal in the production of semiconductors, and “STL will also become a vital participant in the global production of germanium.”
STL is the French acronym for the company’s full name, Company for the Treatment of the Lubumbashi Slag Landfill.
STL stated that a portion of the new financial package was financed by the company’s own funds, while the remainder was provided by a loan from Rawbank SA in the Congo.
Rawbank’s general manager, Mustafa Rawji, asserts that the DRC adds value to the minerals it sells to foreign markets and that the resources will have “complete traceability.”
In addition, according to STL, the major commodities trader Trafigura has renewed an exclusive commercial relationship for the acquisition of zinc oxides in exchange for a $20 million prepayment agreement.
Trafigura’s Global Co-Head of Metals and Minerals, Gonzalo de Olazaval, said, “We are delighted to assist STL in expanding its metallurgical concentrate processing capabilities.”
