Mercuria, Zambia to ship first copper under new partnership
Mercuria Energy Group and a Zambian state-owned company are set to ship their first copper under a new trading partnership after obtaining a government waiver to export a semi-processed form of the metal.
The venture, working with mining companies, has secured copper concentrates to sell, according to the Industrial Development Corp.
The government on June 28 suspended a 10% duty on 255,357 metric tons of concentrates exported via the IDC, according to regulations issued the day before. The waiver ends Oct. 1, the regulations show.
“What we’re trying to do is move up the value chain,” Mainga Mukando, chief investments officer at the IDC, said in a live stream this week. “We have begun to market our minerals, and we are active in buying concentrates from the mining houses in Zambia.”
Zambia’s partnership with Mercuria is part of a broader continental drive to derive more benefits from its mineral wealth and retain a greater share of the proceeds.
The southern African nation has accused exporters of using “creative accounting” to shift profits offshore. At the same time, smelters are clamoring for concentrates globally, with expansions in recent years helping to drive spot market terms to their lowest levels ever. That makes for a potentially lucrative trade for the IDC and Mercuria.
Concentrates from the local unit of Abu Dhabi-based International Resources Holding made up the biggest part of the waiver, at 100,000 tons, First Quantum Minerals Ltd.’s operations accounted for 50,357 tons and Vedanta Resources Ltd.’s local mines 55,000 tons, the regulation showed.
Mercuria declined to comment. The company’s partnership with IDC unit Industrial Resources Ltd. is a 50-50 venture.
(By Matthew Hill)
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9 Comments
Kosam Zulu
I commend Government for this intiative.Many Zambians don’t know there is need to sensitive on this Mercuria good move.
Emmanuel Mulopoto
Please elaborate how commendable this initiative is my boss.
Kosam Zulu
I commend Government for this intiative.Many Zambians don’t know there is need to sensitise on this Mercuria good move.
Richard Malama
We can supply you copper concrete from Zambia 🇿🇲 and DRC..advise if u can interested
Sajo
ATI we have leaders even common sense isn’t there third nature it’s a pity
Kedrick mwila
At the moment the executive branch made a request to parliament to approve suplimentaly budget but at the same time the government is giving minerals free.
So what is the cabinet thinking,?
Failing to understand the logic..
Charles
That true brother man…I really wonder what kind of regime we have, You expect a tomato seller to pay tax but suspend tax on a multi million dollar company and at the same increase the taxes on the poor locals to fund their budgets, this is insane. Do these deals really helps poor Zambians or the elite?
Chimpandu M. Hangoma
We sell concentrates and yet we cannot even satisfy the yawning need of copper concentrates in our smelters. WE need this concentrate to be treated locally. I Hope I am not dreaming!
Jonam Mwansa
Reading this report without emotion we need to interrogate the benefits of this deal. On face value it looks like Zambia is losing more by suspending 10% duty but if the statement Zambia’s partnership with Mercuria is part of a broader continental drive to derive more benefits from its mineral wealth and retain a greater share of the proceeds.” Is true ,then getting 50% of the proceeds is without doubt a better deal.IDC has a 50% stake in Mercuria Zambia