Congo (Gold) state mining company sells copper stake for the first time, with Glencore, Trafigura Group, and MMG successfully bidding.

According to sources, Glencore (GLNCY.US), Trafigura Group, and Mercuria Energy Group have successfully bid for the copper stake held by the state-owned mining company in the joint venture project in the Democratic Republic of the Congo (DRC), marking the first time the latter has started selling its copper stake in the joint venture project. It is reported that the state-owned mining company Gecamines holds minority stakes in large mines operated by companies such as CMOC Group and Glencore. So far, the joint venture company has already sold all its products. However, according to sources, this state-owned mining company is now playing a more active role in selling its stake, with the total amount reaching hundreds of thousands of tons per year. Sources said that the copper provided by Gecamines comes from the massive Tenke Fungurume copper mine owned by CMOC, in which Gecamines holds a 20% interest. It was previously reported that Gecamines was evaluating bids from Glencore, Trafigura Group, and Mercuria Energy Group for 90,000 tons of the project, equivalent to one-fifth of the mine's production in 2023. Sources indicate that Mercuria Energy Group will receive 50% of the copper stake tendered by Gecamines, while Glencore and Trafigura Group will share the remaining portion. Mercuria Energy Group has hired Kostas Bintas, the former Co-Head of Metals at Trafigura Group, to facilitate its entry into the metal trading sector. Gecamines' move presents an opportunity for traders to compete for sizable new contracts in the copper trading market. Since 2016, the copper exports from the DRC have nearly doubled. However, many expect the global demand for copper to exceed new supply investments, driven by the growth in electric vehicles, grid infrastructure, and data centers.