Glencore, Trafigura, and Mercuria Secure Copper Deals from DRC’s Gecamines

Glencore Plc, Mercuria Energy Group, and Trafigura Group have successfully secured copper purchases from the Democratic Republic of Congo’s (DRC) state-owned mining company, Gecamines. This marks the first time Gecamines has marketed copper from its joint-venture projects.

The three major commodity trading firms won bids to purchase copper from the Tenke Fungurume mine, a vast operation owned by China’s CMOC Group Ltd. and Gecamines.

According to sources familiar with the deal, the Tenke Fungurume mine is one of the DRC’s largest copper and cobalt producers, with exports of 361,000 tons of copper and 23,000 tons of cobalt in 2023.

Gecamines, a minority shareholder with a 20% stake in Tenke Fungurume, had previously sold all production from its joint ventures.

However, rising competition in the copper market has created new opportunities for traders like Glencore, Mercuria, and Trafigura. Gecamines is also exploring the possibility of selling its share of output from other DRC mines.

In July, Bloomberg reported that Gecamines was evaluating offers for 90,000 tons of copper from the Tenke mine, which is roughly one-fifth of the mine’s total copper production for 2023. According to sources, Mercuria secured 50% of the tender, while Glencore and Trafigura shared the remaining portion.

The DRC, the world’s second-largest copper producer and the top producer of cobalt, continues to play a pivotal role in the global supply of both metals.

However, cobalt prices have dropped by more than 70% since early 2022 due to increased production, particularly from CMOC’s operations in the DRC.

Despite this, Gecamines is reportedly preparing to sell its share of cobalt from Tenke Fungurume, although that sale is still pending.

Neither CMOC, Glencore, Trafigura, nor Mercuria have commented on the transactions, and Gecamines has not responded to requests for information.