African Copper Producers Enhance Strategies to Boost Profits and Trade
In response to the escalating global demand for copper, African nations, particularly the Democratic Republic of Congo (DRC) and Zambia, are intensifying efforts to enhance their mining sectors and capitalize on the lucrative market. These strategic initiatives aim to boost national revenues, attract foreign investments, and solidify their positions in the global copper trade.
Democratic Republic of Congo’s Initiatives
The DRC, currently the world’s second-largest copper producer, is actively seeking to increase its stake in the metal trading arena. State-owned mining company Gécamines is negotiating with international partners to secure substantial allocations of copper for direct trade. Notably, discussions are underway with Glencore to obtain approximately 51,000 metric tons of copper from the Kamoto Copper Company, aligning with Gécamines’ 25% ownership stake in the venture. This move follows a successful agreement with CMOC Group in 2023, which granted Gécamines trading rights to nearly 100,000 tons of copper, reflecting its 20% shareholding in Tenke Fungurume Mining.
Zambia’s Strategic Developments
Zambia, Africa’s second-largest copper producer, is implementing measures to revitalize its mining industry. In 2024, the country experienced a 12% increase in copper output, reaching approximately 820,670 metric tons, up from 732,580 tons the previous year. This growth is attributed to the recovery of key mines, including Barrick Gold’s Lumwana mine and Vedanta Resources’ Konkola Copper Mines. Additionally, the recent acquisition of Mopani Copper Mines by UAE-based International Resources Holding has contributed to the uptick in production.
To further enhance its presence in the global copper market, Zambia has established a joint venture with Swiss-based commodities trader Mercuria. This partnership aims to enable Zambia to participate directly in minerals trading, thereby increasing national revenues and strengthening its position in the global supply chain.
Regional Collaborations and Future Outlook
Recognizing the potential of collaborative efforts, the DRC and Zambia have signed agreements to develop electric vehicle battery value chains, leveraging their abundant reserves of copper and cobalt. This initiative is poised to position both countries as key players in the burgeoning electric vehicle industry, which heavily relies on these critical minerals.
The global shift towards renewable energy and electric transportation has significantly increased the demand for copper, a vital component in electrical wiring and infrastructure. By implementing strategic partnerships, enhancing production capacities, and engaging directly in the trading of minerals, African copper-producing nations are well-positioned to capitalize on this demand, thereby boosting profits and fostering sustainable economic growth.
