Mercuria, Glencore renew deal for Congo’s share of Tenke copper
Mercuria Energy Group Ltd. and Glencore Plc renewed a deal to buy copper from the Democratic Republic of Congo’s state miner, responding to a push by the company to sell its share of output from joint ventures independently.
The two trading houses successfully bid to buy copper from the giant Tenke Fungurume mine, which is majority-owned by China’s CMOC Group Ltd., according to people familiar with the matter.
Mercuria was allotted 50% of state-held Gecamines’ share of the volume, while Glencore won 25%, the people said, asking not to be identified as the matter isn’t public. The remaining 25% has yet to be allocated.
Those are the same proportions the two traders won when Gecamines last year marketed its share of output for the first time in an effort to gain more insight into the pricing of Congo’s minerals. In that sale, the final 25% went to Trafigura Group.
Spokespeople for Mercuria and Glencore declined to comment. Gecamines didn’t respond to a request for comment.
Tenke sold 409,410 tons of copper and 24,003 tons of cobalt last year, according to Congolese government data. Gecamines holds a 20% equity share of the mine.
