Congo's State Miner Expands Copper Trading with Glencore Mine Agreement
The Democratic Republic of Congo has solidified a significant agreement to tender copper from a major Glencore PLC operation within its borders, marking a strategic expansion of the state miner's involvement in trading this critical metal for the global energy transition.
Details of the Marketing Agreement
Gecamines, the Congolese state mining firm, has successfully negotiated the rights to market approximately half of Kamoto Copper Co.'s output for at least the next two years, with 30% of production thereafter. This arrangement was formalized last week in Cape Town, according to informed sources who requested anonymity due to the private nature of the discussions.
This deal follows similar patterns established with other large Congolese mines where Gecamines holds minority interests. The state miner is actively pursuing a more prominent role in copper trading by seeking to sell metal volumes equivalent to its joint-venture stakes across various operations.
Production Context and Market Position
Copper production in Congo has experienced remarkable growth in recent years, reaching 3.5 million tons in 2025 and establishing the country as the world's second-largest supplier after Chile. Prices have achieved record highs this year, with demand projected to surge as electric vehicles, renewable energy infrastructure, and data centers consume increasing amounts of the metal.
KCC produced approximately 190,000 tons of copper last year, with long-term targets aiming for annual output of 300,000 tons. On Wednesday, Glencore reached a separate agreement with Gecamines concerning a land package that would facilitate KCC achieving this ambitious production goal.
Ownership Structure and Trading Partnerships
Gecamines maintains a 25% interest in the Glencore unit, while Congo's government holds an additional 5% stake. Portfolio Minister Julie Shiku presided over the ceremony where the marketing agreement was officially signed.
The state miner may seek buyers for KCC's copper through its partnership with Mercuria Energy Group Ltd., which provides comprehensive financial, logistical, and technical support to Gecamines' newly established trading business. Glencore declined to comment on the arrangement, while Mercuria did not respond to requests for comment.
Broader Trading Ambitions and Industry Context
Gecamines has previously established agreements to trade copper produced at CMOC Group Ltd.'s extensive Tenke Fungurume mine and Sicomines, a project controlled by China Railway Group Ltd. and Power Construction Corp. of China. Over time, the state miner has articulated ambitions to trade up to 500,000 tons of copper and 40,000 tons of cobalt annually from assets where it holds shareholder positions.
Chinese-controlled projects accounted for more than 80% of Congo's copper output last year. Glencore's two mines – KCC and Mutanda Mining – represent some of the largest western-owned operations in the central African nation.
Compensation for Previous Shortfalls
While the Congolese state owns 30% of KCC, Gecamines can tender up to half of the mine's copper in both 2026 and 2027 – and potentially slightly longer if necessary – to compensate for volumes it was unable to market during the previous two years, according to sources familiar with the arrangement.
This strategic move comes as the United States International Development Finance Corp.-backed investment vehicle Orion CMC recently announced a preliminary deal to purchase stakes in both Glencore subsidiaries, reflecting the Trump administration's efforts to secure supplies of critical minerals.
