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Commodities trader Mercuria Energy has established a joint venture with Democratic Republic of Congo (DRC) state miner Gecamines as it deepens ties with African copper producers after setting up a similar arrangement in Zambia, it said in a statement on Friday December 5.
The joint venture with Gecamines is backed by the US International Development Finance Corporation (DFC) and will market copper, cobalt and other critical minerals from the DRC, Mercuria said.
Mercuria was already helping Gecamines trade some copper allocated from mines where it owns shareholding, including from Tenke Fungurume Mining, where the DRC state miner owns a 20% stake alongside China’s CMOC Group.
Mercuria said the joint venture would help Gecamines secure competitive pricing based on transparent international pricing benchmarks and the metals would be sold through a transparent process.
“By leveraging Mercuria’s global network and expertise, Gecamines gains greater control over its copper and cobalt destination, ensuring these critical resources are marketed to buyers aligned with the DRC’s long-term economic and industrial priorities,” Mercuria said.
Mercuria will provide operational support, including logistics, market access and expertise in trade execution.
“Additionally, Mercuria will provide financing facilities to Gecamines, including pre-financing and offtake funding, to enhance operational flexibility and accelerate commercialization,” it said.
In the DRC’s southern neighbor Zambia, Mercuria entered into an equally owned joint trading venture in 2024 with Zambia’s state-owned Industrial Development Corp (IDC) to buy locally produced copper concentrates.
Since its establishment, the joint venture has sold more than 200,000 tonnes of copper concentrates, Mulumba Lwatula, head of investments mining and energy at IDC, told Fastmarkets in October.
Mercuria’s forays into the central African Copperbelt come at a time when Africa’s two major copper-producing nations are ramping up output of the metal and as demand is forecast to outpace supply over the coming decades.
“This venture aims to ensure that Congolese copper and cobalt are traded with transparency, fairness and national benefit at the forefront,” Gecamines chairman Robert Lukama said.
The DRC produced 3.1 million tonnes of copper in 2024, ranking it as the world’s second-largest producer after Chile. Zambia produced about 824,000 tonnes of the metal in 2024 and output this year will likely reach about 1 million tonnes, IDC’s Lwatula said in October.
Fastmarkets calculated copper concentrates TC index, cif Asia Pacific at $(66.80) per tonne on Friday, up from $(66.40) per tonne a week earlier.
Mercuria said in October it agreed to a $100 million prepayment deal with Eurasian Resources Group (ERG) for copper produced from the company’s DRC mines.
Gecamines’ Lukama told Fastmarkets in October that the trading house is helping the state company build its trading profile.
The joint venture would help “redefine” how the DRC engages with global metals markets, Mercuria global head of metals and minerals Kostas Bintas said.
“It empowers Gecamines with greater control and visibility over its strategic resources while embedding commercial discipline and maximizing value for Congolese stakeholders,” Bintas said.
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