Glencore’s Kazzinc said to open up metal sales to rival traders

Kazzinc Ltd., a Kazakh miner majority-owned by Glencore Plc, will open up its metal sales to rival traders, a move that comes as governments seek greater control and revenue from their natural resources.

The miner — in which Kazakhstan’s sovereign wealth fund has a minority stake — has issued a tender for the entirety of its 2026 copper production, according to people familiar with the matter, who asked not to be identified commenting on a private matter. It’s planning additional tenders for zinc and other metals under a new marketing model launching next year, the people said.

Glencore has the right to match the best bid from its rivals, the people said, but the tenders underscore how an influx of capital into the metals trading world has driven up competition for highly prized supply deals. Kazzinc is one of the world’s biggest zinc and lead miners, and also a sizable producer of copper, gold and silver.

Glencore has for years marketed all of the output from Kazzinc as its main shareholder and operator, helping to cement its position as the world’s top zinc and lead trader.

It’s faced growing competition from Trafigura Group in those markets in recent years, and it’s now considering a potential sale of Kazzinc that could reduce its presence further. Kazakh construction tycoon Shakhmurat Mutalip is in talks to acquire Glencore’s 70% stake in the company, Bloomberg reported last month.

As the jostling intensifies between incoming energy traders, including Mercuria Energy Group and Vitol Group, and incumbents like Glencore and Trafigura, some resource-rich nations have also been taking a more direct role in sales of their metals and minerals.

Major copper producer Zambia entered a trading partnership with Mercuria earlier this year, after accusing exporters of using “creative accounting” to shift profits offshore. The Democratic Republic of Congo also this month entered into a similar partnership with Mercuria to market copper and cobalt that it gets from equity stakes in local mines.

Glencore declined to comment. A representative for Tau-Ken Samruk NMC, a unit of Kazakhstan’s sovereign wealth fund, did not respond to requests for comment.

(By Archie Hunter, Jack Farchy and Thomas Biesheuvel)