By: Creamer media

Prepayments are an advance made by buyers to producers, often used in commodity trading to secure future supplies and provide working capital.

Luxembourg-based ERG will supply Mercuria with copper from ERG’s operations in the Democratic Republic of the Congo, where it currently produces nearly 140 000 metric tons of the metal used in power and construction.

"(The agreement) marks an important step in deepening our collaboration with global partners as we work to realise the full potential of our core operations in the DRC," said ERG CE Shukhrat Ibragimov.

ERG and Mercuria did not disclose how much copper would be delivered annually to the Swiss-based commodity trader.

"The facility will strengthen ERG’s asset development in the Democratic Republic of the Congo - a region of growing strategic relevance to Mercuria," said Kostas Bintas, Global Head of Metals & Minerals at Mercuria Energy Trading.