London-listed Red Rock Resources has reached a key milestone in its joint venture (JV) with Koto DRC in the Democratic Republic of Congo (DRC), signing a memorandum of understanding (MoU) with the country’s Ministry of Rural Development to fund and begin work on three factories for social housing.

Each factory is expected to produce at least 3 000 housing units a year, marking the first tangible step in the venture’s broader plan to eventually establish 142 factories across the country.

The Koto JV, initially outlined in framework agreements signed in November 2024, was designed to create the conditions for Red Rock and its partners to be granted copper and cobalt mining licences, while also contributing to the government’s social objectives, including the provision of low-cost housing.

Under the terms of the framework, the company was to receive sufficient tax and royalty relief under the Public-Private Partnership Act of 2014 to enable meaningful contributions to social development programmes.

"The implementation of the structures planned under the framework Koto JV has reached an important milestone with the signing of the MoU. The initial financial cost of the social housing programme is now secured from external sources.

“An initial three factories for the production of housing units will be built, assembled on site and commissioned, a process in which Koto will assist the Ministry,” Red Rock chairperson Andrew Bell said on October 23.

He said that the Ministry's objective is to eventually build 142 factories across the DRC.

“Creating this visibility for the social aspect of the plan, where Red Rock acts in an advisory capacity, allows us to start the process of visiting and identifying copper, cobalt and gold mining projects from our short list which could support the detailed implementation plans and future growth of the JV. Expert advisers will ensure that we select sites ready for production,” Bell added.

The company had previously been cautious in advancing the Koto JV while awaiting a judgment on a separate financial claim related to the sale of its Vumilia Pendeza JV assets. Bell explained that this delayed action did not involve the Koto project directly.

"We had, therefore, been cautious in advancing the Koto JV, despite the fact that it is an entirely separate project with different partners. It was also anticipated that although we might obtain licences without immediate cost, financing might be required for the establishment of the initial housing sites and factories.

“However the progress we have recently made in structuring and advancing the Koto JV has been achieved without recourse to additional funding or commitments from the company, which changes the calculus entirely," he said.

With the signing of the MoU, Red Rock is now preparing to visit some of the short-listed mining licences in the coming days as part of the process to implement the JV’s strategic plans.