KEY POINTS
- Mercuria and Zambia’s IDC launch a joint copper trading unit.
- Zambia targets 3 million metric tons of copper production annually.
- Mercuria partnership strengthens Zambia’s position in global copper trade.
Swiss-based commodities giant Mercuria has announced a partnership with Zambia’s Industrial Development Corporation (IDC) to establish a jointly owned copper trading unit.
This venture marks Zambia’s move to take a more active role in the global copper trade as the country aims to increase copper production and revenues.
According to a joint statement released on Thursday, the new unit will serve as a vehicle to market and trade Zambian copper, leveraging the combined expertise of Mercuria and the IDC.
The development is part of Zambia’s broader strategy to assert greater control over its mineral resources.
Cornwell Muleya, CEO of Zambia’s IDC, emphasized that the initiative would create a more strategic position for Zambia in the international minerals market.
“This joint venture envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” he said.
According to Reuters, the creation of this trading unit aligns with the Zambian government’s plan, announced in June, to boost the country’s revenue from copper and other minerals.
Zambia’s copper ambitions aim for 3 million metric tons
Zambia, Africa’s second-largest copper producer, has set a bold target to increase copper production to 3 million metric tons annually within the next decade.
This is part of the government’s broader effort to diversify revenue streams and increase returns from its rich natural resources.
The nation produced about 698,000 metric tons of copper in 2023, down from 763,000 metric tons the previous year. To meet its production goal, Zambia has ramped up support for mining firms operating within its borders.
Major investors like First Quantum Minerals and Barrick Gold have increased production, with more support expected as Vedanta Resources’ Konkola Copper Mines resume operations.
This renewed focus on copper production is crucial for Zambia, as copper accounts for a significant share of its export earnings.
Mercuria’s partnership with the IDC provides a much-needed boost to this strategy.
The joint venture allows Zambia to participate directly in the trading of its copper, helping to control prices, stabilize supply chains, and increase national revenues.
Mercuria partnership marks milestone in copper trading strategy
Mercuria’s involvement in Zambia’s copper trading strategy is seen as a game-changer.
The global commodities trader brings vast experience and a strong market presence, offering Zambia a chance to strengthen its position in the international copper market.
Kostas Bintas, Mercuria’s Global Head of Metals and Minerals, described the venture as a “significant milestone” for Zambia.
“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” he said in a statement.
This move is not just about revenue; it’s about Zambia taking control of its future. By controlling the sale and trade of copper, Zambia can reduce its reliance on intermediaries and negotiate better deals.
The partnership also provides a platform for Zambia to benefit from global copper price fluctuations, enhancing its overall trade competitiveness.
With the copper market facing increased global demand due to the energy transition and electric vehicle boom, Zambia is positioning itself as a key player.
By establishing its own trading unit, the country aims to control its copper production pipeline from extraction to export.
