Mercuria, Zambia set for first copper shipment under new trade partnership
Mercuria Energy Group and Zambia’s state-owned Industrial Development Corporation (IDC) are preparing to ship their first copper concentrates under a newly formed trading partnership, following a government-issued waiver on export duties.
The waiver, announced through regulations issued on June 27 and effective from June 28, temporarily suspends a 10% duty on the export of 255,357 metric tons of copper concentrates through the IDC. This exemption is set to expire on October 1. The partnership, structured as a 50-50 joint venture between Mercuria and the IDC’s subsidiary Industrial Resources Ltd., aims to strengthen Zambia’s role in the marketing and trading of its mineral resources.
National strategy
IDC’s Chief Investments Officer, Mainga Mukando, noted in a recent livestream that the initiative is part of a broader national strategy to advance up the mineral value chain and capture more revenue from resource exports.
The concentrates set for export have been sourced from various mining firms operating in Zambia, including 100,000 tons from the local unit of International Resources Holding, 55,000 tons from Vedanta Resources’ Zambian operations, and 50,357 tons from First Quantum Minerals Ltd. This move comes at a time when global demand for copper concentrates is high, and smelters are facing limited supply, creating favorable market conditions for sellers.
The Zambian government, aiming to curb profit shifting and enhance economic benefits from the mining sector, has criticized exporters for employing questionable accounting practices to move profits offshore. By directly engaging in the copper trade, Zambia hopes to ensure greater transparency and value retention from its mineral wealth. Although Mercuria declined to comment on the partnership, the venture reflects a wider continental push for African countries to increase participation in the commercialization and processing of their natural resources.
