Big moves in the DRC copper market

Bloomberg reports that Mercuria Energy Group Ltd. and Glencore Plc have renewed their agreement to purchase copper from the Democratic Republic of Congo’s state mining company, Gécamines. This move supports Gécamines’ strategy to independently market its share of output from joint ventures, strengthening its control over pricing.

The Details

• The deal centers on the giant Tenke Fungurume mine, a key player in global copper and cobalt production.
• Mercuria secured 50% of Gécamines’ share of the copper, while Glencore won 25%. The final 25% remains unallocated.
• Last year, a similar distribution took place, with the remaining share awarded to Trafigura Group.

Key Figures

• In 2023, Tenke sold 409,410 tons of copper and 24,003 tons of cobalt, according to official data.
• Gécamines holds a 20% equity stake in the mine, which is majority-owned by China’s CMOC Group Ltd.

As Congo remains a critical supplier of minerals for global energy and tech industries, this renewal signals the continued importance of strategic partnerships in the evolving commodities market.