Mercuria Energy Group Ltd. and Glencore Plc have renewed an agreement to purchase copper from Gécamines, in response to Gécamines’ desire to sell its share of production from the joint ventures independently.
The two trading companies won the tender to buy copper from the giant Tenke Fungurume mine, which is majority-owned by the Chinese group CMOC Ltd, according to sources close to the matter.
Mercuria was awarded 50% of Gécamines’ share, while Glencore won 25%, said the sources, who requested anonymity. The remaining 25% has not yet been allocated.
These are the same proportions as those won by the two traders last year, when Gécamines marketed its share of production for the first time in a bid to gain greater visibility over the pricing of Congolese ores. At the time of the sale, the remaining 25% was awarded to the Trafigura group.
The Tenke mine sold 409,410 tonnes of copper and 24,003 tonnes of cobalt last year, according to government figures. Gécamines holds a 20% stake in the mine.
Source : Bloomberg
