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Congo Begins Selling Copper from Joint Ventures
for the First Time

For the first time, the Democratic Republic of Congo's state miner, Gecamines, has started selling its share of copper from joint-venture projects. This move comes as the country aims to exert more control over a metal that is crucial for the energy transition.

Gecamines holds minority stakes in major mines operated by companies such as China’s CMOC Group and Glencore Plc. Traditionally, the joint ventures have managed all copper sales. However, Gecamines is now actively marketing its share, which amounts to hundreds of thousands of tons annually, according to sources familiar with the matter.

Currently, Gecamines is offering copper from CMOC’s massive Tenke Fungurume mine, where it holds a 20% interest. The state miner is evaluating bids for 90,000 tons from this project, with potential buyers including Glencore, Trafigura Group, and Mercuria Energy Group, according to two sources.

The three trading companies declined to comment, and neither the Tenke joint venture nor Gecamines responded to inquiries.

This initiative by Gecamines presents new opportunities for traders to secure significant contracts amidst intense competition for copper deals. Congo, now the world's second-largest copper producer, has seen its exports nearly triple since 2016. Despite this growth, many analysts anticipate that global demand—driven by the expansion of electric vehicles, grid infrastructure, and data centers—will surpass the investment in new supplies.

Earlier this year, Gecamines conducted a smaller tender, with CMOC metals trader IXM purchasing copper from the Kambove mine, another joint venture with China Nonferrous Metal Mining Group, according to sources. IXM did not respond to questions regarding the Kambove tender.

Looking ahead, Gecamines plans to organize similar tenders for its share of copper from Glencore’s Kamoto operation and the Chinese-owned Sicomines project, which collectively produced over 400,000 tons of copper last year, one source noted.

By managing these tenders, Gecamines aims to gain better insights into whether its partners—who are both miners and traders—are securing the best possible prices for their larger shares, according to two sources.

Benchmark copper prices hit a record high above $11,000 a ton in May before easing due to a softening market in China, the top consumer.

While Gecamines has not yet sold any cobalt, a copper byproduct essential for EV batteries, sources indicate that the state miner might explore this avenue in the future. Despite Congo accounting for about three-quarters of global cobalt production last year, prices have dropped due to an oversupply.
 

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