Mercuria, Gécamines Form Metal-Trading JV for Congo's Copper, Cobalt

According to media reports, Mercuria Energy Trading has formed a metal-trading joint venture with Gécamines SA of the Democratic Republic of Congo. The JV will be responsible for selling the copper and cobalt that Gécamines receives from its equity stakes in local mines.

Kostas Bintas, head of metals at Mercuria Energy Group Ltd., said in an interview last Friday that, in addition to significant volumes of cobalt, the joint venture could eventually sell more than 500,000 tonnes of copper cathodes per year.This move is part of a peace agreement between the DRC and its neighbor Rwanda, brokered by the United States. The U.S. International Development Finance Corporation (DFC) has also signed a letter of intent to explore taking an equity stake in the joint venture. Under the arrangement, U.S. end-users would receive priority access to the materials sold through the JV.