Mercuria Partners with Zambia for Copper Trading Venture

AFRICAN BUSINESS AND ECONOMYDecember 20, 2024 at 8:52 AM UTC

TLDR

Mercuria Energy Group has partnered with Zambia’s Industrial Development Corp
The deal aims to launch a metals trading venture focused on copper, the country’s key export
The joint venture will handle domestic copper trading and exports

Mercuria Energy Group has partnered with Zambia’s Industrial Development Corp. (IDC) to launch a metals trading venture focused on copper, the country’s key export. The Geneva-based commodity trader will provide financing, likely in the hundreds of millions of dollars, to support the venture.

The joint venture will handle domestic copper trading and exports, eventually managing Zambia’s share of copper output from state-controlled mining interests. This could amount to over 250,000 tons annually, depending on mine expansions.

The partnership aims to enhance transparency in copper trading profits, addressing government concerns about foreign firms capturing a disproportionate share of gains through creative accounting practices.

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Key Takeaways

Mercuria’s move highlights the growing push by global trading houses to secure access to resources critical for the energy transition, with Africa’s Copperbelt region playing a pivotal role. Zambia, the continent’s second-largest copper producer, is leveraging partnerships like this to strengthen its position in international markets and gain greater control over its resource revenues. IDC, which owns a majority stake in ZCCM Investments Holdings Plc, sees the partnership as a step toward boosting Zambia’s influence in the global copper trade. For Mercuria, it underscores a broader strategy of investing in resource-rich regions to ensure supply security amid surging demand for energy-transition metals.

Zambia

Mercuria Energy Group

Business

Mining

Exports

Economy

Copper