Mercuria Energy Group Ltd. and Glencore Plc have renewed their deals to purchase Copper from the Democratic Republic of Congo (DRC) state-owned mining company, Gecamines. In a significant development within the global commodities. With the aim of seeking greater transparency and control over the pricing of its mineral resources, Gecamine intensifies efforts to independently sell its share of production over joint ventures.
To buy Copper from the Tenke Fungurume mine, the two trading giants successfully secured contracts. Additionally, the mine is mostly owned by China’s CMMOC Group Ltd. Gecamines owns a 20% equity stake. According to people familiar with the matter, Mercuria has been allotted 50% of Gecamines’ share of the mine’s Copper output. Meanwhile, Glencore secured 25%. However, the rest remains unallocated at the moment.
Surprisingly, these proportions are exactly the same as last year, when Gecamines independently marketed its share of the mine’s output for the first time. Meanwhile, the remaining 25% was awarded to another major player in the commodities trading space, notably, Trafigura Group. Moreover, the deal highlights Gecamines’ ongoing push to gain deeper insights into the pricing mechanism of Congo’s mineral exports. This ensures that the state benefits more equitably from its mineral wealth.
In order to guarantee access to such a critical source of Copper is an achievement for Mercuria and Glencore. This reinforces their role in the mining industry as key players in the global metals trade. While Gecamine did not respond to requests for comment, spokespeople declined to comment on the specifics of the deal for both Mercuria and Glencore.
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