Key Minerals of the African Continent: ZCCM Considers Direct Copper Exports to Address Tightening Demand

¬ ZCCM is in talks with Mercuria, planning to market its share of copper production

¬ Gecamines in the Democratic Republic of the Congo has achieved direct exports, with a target output of 500,000 tons

¬ The International Energy Agency warns that global copper supply deficits could reach up to 30% by 2035

ZCCM Investment Holding Company (Zambian state-majority-owned mining company) plans to enter the copper mining trade sector.

The company's CEO, Kakenwa Muyangwa, told Bloomberg on February 17 that it is in discussions with Swiss trading firm Mercuria and other companies, planning to market the output share corresponding to ZCCM's stake in Zambian mines.

This shift will mark a strategic adjustment. As a shareholder of mines such as Chambishi, Kansanshi, and Konkola, ZCCM has primarily relied on dividend income so far. Muyangwa stated that shifting to direct sales of its production share is significant. No agreements have been reached with mining operators or target trading partners yet.

This move echoes previous measures taken by the Democratic Republic of the Congo. Since 2023, the state-owned enterprise Gecamines has begun exercising partial product sales rights. Earlier this year, the company announced its first direct sales in the international market.

In the 2026 fiscal year, Gecamines plans to commercialize its output share from the Tenke Fungurume mine, where it holds a 20% stake in a joint venture with China's CMOC. The allocated approximately 100,000 tons of copper ore is expected to be exported to the U.S. market with the support of Mercuria.

At the same time, this Congolese company plans to establish a subsidiary, Gecamines Trading, with the long-term goal of increasing the tradable copper volume to 500,000 tons.

Sought greater control in a tight market

Through these measures, Zambian and Congolese state companies aim to play a larger role in copper sales. This strategy goes beyond the sales level, enabling direct negotiations on export volume control, destination market selection, and transaction terms (especially pricing).

The current timing is crucial. Global copper demand is rising sharply. This metal, essential for modern electronic devices, energy systems, and emerging artificial intelligence technologies, may struggle to keep up with demand growth, partly due to the push for energy transition.

The International Energy Agency (IEA) warned that global copper supply could face a deficit of up to 30% by 2035. This gap will highlight the strategic importance of copper.

As Western countries, including the United States, increase their focus on securing copper supplies, Zambia and the Democratic Republic of the Congo (DRC) may gain more value from their production by strengthening marketing controls.

How quickly this shift can be realized remains unclear. Although this strategy indicates an intention to strengthen control, whether these entities can establish themselves in the competitive global copper trading market remains to be seen. Collaboration with traders like Mercuria suggests they are adopting a gradual approach. The coming months will determine whether this shift can solidify their market position and boost revenue.

Source: ecofinagency

Original: toutiao.com/article/1857452422848523/

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