Africa’s biggest producers of copper, Zambia and the Democratic Republic of Congo (DRC) are making bold moves to gain a larger share of profits from copper trading. With global demand for the metal soaring—thanks to its use in artificial intelligence (AI), electric vehicles, and green energy—these nations are determined to take more control over how their copper is sold.
For years, transnational trading houses, such as Glencore, have dominated copper trade, leaving African governments with only a small fraction of the profits. But now, both Zambia and Congo are pushing their state-owned mining companies to play a bigger role in selling and trading the metal.
Congo’s state mining company, Gecamines is in talks with Glencore to obtain 51,000 metric tons of copper from KCC (Kamoto Copper Company), in line with its 25% ownership in the mine. This comes after a 2023 deal with CMOC Group, a Chinese mining firm, which allowed Gecamines to trade nearly 100,000 tons of the red metal from its Tenke Fungurume Mining stake.
The Congo government also seeks greater control over metal sales in projects in which it has shares. For example, Congo owns 20 percent of the massive Kamoa-Kakula copper mine, which aims to produce between 520,000 and 580,000 tons of copper in 2025.
Zambia is taking another approach. In December 2024, it partnered with Mercuria, a Switzerland-based commodity trader to set up a joint trading unit for copper. This unit has already started negotiations with local producers, supported by an initial $500 million budget.
Until now, Zambia has mainly relied on dividends from mining companies. But with this new strategy, the country aims to buy and sell physical copper, giving it more influence over pricing and profits. ZCCM-IH, Zambia’s state mining company, holds equity shares of 10% to 20% in projects with First Quantum Minerals, Vedanta Resources, as well as Barrick Gold.
Despite these efforts, analysts warn that government-led copper trading may not be a quick fix. In the past, disputes over dividend payments have caused tensions, and new conflicts could arise over who gets to trade the copper. Some experts also worry that private investors may pull back, fearing too much state intervention.
These issues are likely to be hot topics at the Mining Indaba conference in Cape Town (Feb. 3-6, 2025). African governments want more profits from their natural resources, but they also need to keep foreign investors engaged.
With copper prices rising and new supply hard to find, both Congo and Zambia have a unique opportunity to reshape the industry—but they must tread carefully to avoid scaring off key investors.
As more actors join the field of copper trading, segment players like Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) could offer better shareholder value as the copper market gets more competitive.
NOTE TO INVESTORS: The latest news and updates relating to Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) are available in the company’s newsroom at https://ibn.fm/AZMCF
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