Glencore in Talks to Sell Stake in DRC’s Kamoto Copper and Cobalt Mine
Glencore in Talks to Sell Stake in DRC’s Kamoto Copper and Cobalt Mine Amid US Interest
Glencore Plc has entered talks to sell a stake in its largest African copper operation, the Kamoto Copper Company (KCC) in the Democratic Republic of Congo (DRC), marking the clearest signal yet that the Swiss commodities giant may relinquish control of one of its flagship assets.
KCC oversees a major copper and cobalt project long touted as central to Glencore’s growth. However, the mine has been hampered by operational setbacks, weak cobalt prices, and a protracted royalties dispute with the Congolese government.
Glencore remains the only Western miner with large-scale cobalt operations in Congo, where most production is dominated by Chinese companies and Kazakhstan’s Eurasian Resources Group.
Overproduction has depressed cobalt prices, even as the US pushes to secure long-term supplies for industries ranging from defense to battery manufacturing.
Despite KCC producing 191,000 tonnes of copper and 27,000 tonnes of cobalt in 2024, its underperformance has frustrated investors. Glencore maintains the mine holds long-term potential as it seeks to reverse declining copper output.
At the end of last year, the company rejected an unsolicited approach by Orion Resource Partners, which explored buying the operation through a joint venture with Abu Dhabi’s ADQ. More recently, Glencore has resumed talks with Orion and has informally let others, including Rio Tinto, know it may consider selling a controlling stake.
No formal sale process has been launched, and there is no guarantee a deal will materialize. Still, the potential sale has been linked to ongoing discussions over a US-Congo minerals and infrastructure partnership, with the US International Development Finance Corporation (DFC) exploring a joint fund with Orion to invest in mining projects.
KCC’s future is complicated by its long-running dispute with Congolese authorities over billions in taxes and royalties, as well as royalty payments to sanctioned Israeli businessman Dan Gertler, who receives 2.5% of net revenues from KCC.
The arrangement has deterred some Western investors. Gertler, sanctioned in 2017 for alleged corrupt mining and oil deals, has denied wrongdoing and has not been charged. He has signaled willingness to sell or transfer his royalties, potentially to state-owned Gécamines, as part of a settlement backed by US authorities.
Glencore holds a 70% stake in KCC, with Gécamines and the Congolese state owning the remainder. Any restructuring of royalty obligations will be central to negotiations with potential buyers.
The talks come as Glencore faces broader challenges: falling copper production, declining coal prices, and a crisis in metals processing and refining have contributed to a 20% drop in its share price over the past year.
Whether Glencore ultimately sells KCC will depend on investor appetite, political considerations in Congo, and how royalty disputes are resolved.
