Congo state firm strikes deal to sell copper from Glencore mine

The Democratic Republic of Congo struck a deal to tender copper from a major Glencore Plc operation in the country, expanding the state miner’s trading of a metal that’s key to the energy transition.

Gecamines has negotiated the rights to market about half of Kamoto Copper Co.’s output for at least the next two years and 30% of production thereafter, according to people familiar with the matter.

The agreement signed last week in Cape Town follows similar arrangements concluded with other large Congolese mines in which Gecamines owns a minority interest. The state miner is taking a more active role in copper trading by pushing to sell metal volumes equivalent to its joint-venture stakes.

Gecamines could seek buyers for KCC’s copper through its partnership with Mercuria Energy Group Ltd., the people said, asking not to be identified discussing matters that aren’t public. The commodity trading house provides financial, logistical and technical support to Gecamines’ newly created trading business.

Glencore declined to comment, while Mercuria didn’t respond to a request for comment.

Copper production in Congo has boomed in recent years, rising to 3.5 million tons in 2025 and establishing the country as the world’s No. 2 supplier after Chile. Prices have hit record highs this year, while demand is expected to soar as electric vehicles, renewable energy and data centers consume more of the metal.

Chinese-controlled projects accounted for more than 80% of Congo’s copper output last year. Glencore’s two mines – KCC and Mutanda Mining – are among the biggest western-owned operations in the central African nation.

Orion CMC — an investment vehicle with backing from the state-owned US International Development Finance Corp. — this month announced a preliminary deal to buy stakes in both Glencore subsidiaries, as President Donald Trump’s administration looks to shore up supplies of critical minerals.

While the Congolese state owns 30% of KCC, Gecamines can tender up to half of the mine’s copper in each of 2026 and 2027 — and if necessary a little longer — to make up for shortfalls in volumes it wasn’t able to market in the past two years, the people said.

KCC produced about 190,000 tons of copper last year but in the longer term it’s targeting annual output of 300,000 tons. On Wednesday, Glencore reached a separate agreement with Gecamines over a land package that would allow KCC to achieve that goal.

Gecamines has a 25% interest in the Glencore unit, while Congo’s government holds an additional 5% stake. Portfolio Minister Julie Shiku presided over the ceremony at which the marketing deal was signed.

The state miner already has agreements to trade copper produced at CMOC Group Ltd.’s vast Tenke Fungurume mine and Sicomines, a project controlled by China Railway Group Ltd. and Power Construction Corp. of China.

Over time, Gecamines has said it’s aiming to trade as much as 500,000 tons of copper and 40,000 tons of cobalt a year from assets in which it’s a shareholder. The two metals are often extracted together from Congolese mines.

(By William Clowes and Jack Farchy)