Africa’s big copper countries set their sights on profits of trade

Africa’s biggest copper producers, the Democratic Republic of Congo and Zambia, are working on deals to gain exposure to metal trading as a demand surge linked to artificial intelligence and the shift to greener energy promises hefty profits.

Metals trading has long been the preserve of international trading houses, such as Glencore.

Congo and Zambia, which together represent more than 13% of global copper supply, have over the last year increased their focus on securing a share of the mined metal that they too can trade for profit.

Congo state-owned miner Gecamines is close to finalising a deal with Glencore to secure an allocation of about 51 000 metric tons of metal from Kamoto Copper Company (KCC), two sources familiar with the details told Reuters. They did not indicate any date for finalising the agreement.
Glencore declined to comment.

Gecamines owns 25% of KCC and is negotiating for an allocation of the metal equivalent to its shareholding in the mine, the sources said.

Gecamines has already been trading almost 100 000 tons of copper, equal to its 20% shareholding in Tenke Fungurume Mining after reaching a deal with Chinese owner CMOC Group in July 2023.

Gecamines Chairman Robert Lukama did not immediately respond to Reuters’ questions.

The Congolese government is meanwhile seeking greater control over the sale of the metals in projects where it holds a stake, one of the sources said.

Congo owns 20% in Ivanhoe’s tab Kamoa-Kakula mine, which aims to produce 520,000-580,000 tons of copper this year.
Ivanhoe declined to comment.

Gecamines also aims to secure more metal from its shareholding in producers including Zijin Group, the source said.

All the sources asked not to be named because they were not authorised to speak publicly.