Gecamines Pursues Enhanced Stake in DRC’s Mineral Trade
Congo’s state mining group, Gecamines, is striving to secure rights to purchase copper and cobalt from mines it holds stakes in. This move is part of its strategy to build up its own reserves and engage in the trading of these crucial metals.
To achieve this goal, Gecamines seeks to revise certain terms within its joint venture agreements in the Democratic Republic of Congo (DRC), known as the world’s primary supplier of battery-grade cobalt and the third-largest producer of copper after Peru and Chile.
According to Guy Robert Lukama, Gecamines’ chairman, the current off take agreements with joint venture partners need adjustment.
Gecamines aims to acquire copper and cobalt proportionate to its holdings in various Congo joint ventures, ranging from 20% to 49%, alongside partners such as Glencore and Chinese investors.
This strategy positions Gecamines to directly participate in supplying these metals vital for the global shift toward green energy. Lukama emphasized that this initiative, backed by President Felix Tshisekedi seeking re-election, aims to strengthen the state’s and Gecamines’ roles in providing critical minerals to the world.
The proposal, Lukama assured, should not unsettle investors. Tshisekedi’s government, prioritizing mining reform, aims for the mining sector to benefit Congo’s citizens and seeks a more equitable commercialization of its minerals.
Having already renegotiated a 2008 minerals-for-infrastructure deal with China, Tshisekedi’s government aims to assert more control over the commercialization of minerals, especially copper and cobalt.
Gecamines recently struck a deal with China’s CMOC Group, securing rights to acquire a proportionate share of copper and cobalt from Tenke Fungurume Mining, aligned with its stake in the operation.
Expanding this right to all joint ventures is a key focus for Gecamines. Talks are ongoing with Glencore to secure a share of metals produced at Kamoto Copper Co (KCC), while plans involve extending this approach to all joint ventures.
This shift allows Gecamines to mitigate potential losses when joint venture partners face setbacks. Lukama highlighted Gecamines’ intention to conclude negotiations across partnerships by the end of 2024, underlining Congo’s intent to play a more influential role in critical metal supplies.
The recent breakthrough with CMOC has emboldened Gecamines, marking a significant step forward in their pursuit of a more substantial role in Congo’s mineral trade.
