Zambia, Mercuria ink partnership on metal industry
Mercuria Energy Group has announced a collaboration with Zambia’s Industrial Development Corporation (IDC) on a metals trading venture. The move marks a strategic effort to increase transparency and equity in the copper sector, while securing resources vital to the energy transition.
The joint venture will focus on buying and selling copper domestically and internationally. Over time, it aims to handle Zambia’s share of copper output from state-affiliated mines. The initiative aims to ensure fairer profit-sharing for Zambia, addressing long-standing concerns over reduced government earnings due to alleged “financial engineering” by foreign companies.
Global copper market
Mercuria will provide financing, potentially amounting to hundreds of millions of dollars, underscoring its commitment to the venture and Zambia’s mining sector. Copper is essential for renewable energy technologies and electrification, aligning the venture with global energy transition goals. For Mercuria, the partnership secures a strong foothold in Zambia, Africa’s second-largest copper producer.
If planned mine ramp-ups and expansions succeed, the venture could trade more than 250,000 tons of copper annually, significantly impacting the global copper market. IDC CEO Cornwell Muleya emphasized that the partnership would enhance Zambia’s influence in international copper markets, leveraging the country’s vast mineral wealth for economic growth.
The collaboration mirrors broader trends of commodity houses partnering with resource-rich nations to secure critical minerals, particularly in Africa’s Copperbelt region, a focal point for global energy transition initiatives.
