DRC and Zambia Aim for Greater Gains in Copper Trade

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The Democratic Republic of Congo (DRC) and Zambia, Africa’s leading copper producers, are strategically positioning themselves to enhance control over copper trading in response to increasing demand fuelled by advancements in artificial intelligence (AI), electric vehicles, and the transition to green energy.

The Democratic Republic of Congo (DRC) and Zambia, Africa’s leading copper producers, are strategically positioning themselves to enhance control over copper trading in response to increasing demand fuelled by advancements in artificial intelligence (AI), electric vehicles, and the transition to green energy. Traditionally dominated by global trading companies like Glencore, these two nations—together responsible for over 13% of the world’s copper supply—are now striving for a larger market presence.

In the DRC, the state-owned mining company Gécamines is nearing an agreement with Glencore to acquire 51,000 metric tonnes of copper from the Kamoto Copper Company, reflecting its 25% ownership in the mine. Gécamines has also started trading 100,000 tonnes of copper, equivalent to its 20% stake in Tenke Fungurume Mining, following a July 2023 deal with CMOC Group. Furthermore, the Congolese government is pursuing greater oversight of metal sales in state-supported mining ventures, including its 20% share in Ivanhoe’s Kamoa-Kakula mine, projected to produce between 520,000 and 580,000 tonnes of copper in 2025.

On the other hand, Zambia is enhancing its role in copper trading through a joint venture with Swiss commodity trader Mercuria, launched in December 2024. This partnership, backed by an initial investment of $500 million, is actively engaging with local producers and exploring additional credit as more copper becomes available. Zambia’s state-owned firm, ZCCM-IH, which holds 10-20% stakes in companies like Vedanta Resources, First Quantum Minerals, and Barrick Gold, aims to shift from merely receiving dividends to directly trading its copper share.

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As global demand for copper escalates, Africa’s key producers are leveraging their natural resources to boost revenues and strengthen governmental control over trading. However, industry experts warn that increased state involvement in trading may lead to new challenges, such as disputes over metal distribution and the potential to discourage private investment. With the Mining Indaba conference in Cape Town set to address these issues, global stakeholders will closely observe how the DRC and Zambia adapt to this changing landscape. Given copper’s vital role in AI, electric vehicles, and sustainable energy, these developments could significantly alter Africa’s position in the global supply chain, creating new economic opportunities while challenging established industry practices.