Futures Edge Lower, End-Users on the Sidelines; At Month Start, Holding Prices Firm Keeps Spot Discounts Stable [SMM North China Spot Copper]

Commodity trader Trafigura has withdrawn from a proposed 2,000 MW electricity transmission project intended to supply surplus Angolan hydropower to copper and cobalt mining operations in the Democratic Republic of Congo (DRC) and Zambia, according to foreign media reports. The initiative originated in July 2024 when Trafigura signed a non-binding agreement with engineering firm ProMarks and the Angolan government to conduct feasibility studies for a high-voltage interconnector. According to foreign media reports, the line aimed to monetize Angola's northern hydropower capacity to help alleviate chronic electricity deficits affecting mining assets in the Central African Copperbelt. The withdrawal highlights the complex financing and risk dynamics associated with large-scale cross-border energy infrastructure in emerging markets, as reliable grid power remains a primary constraint for scaling up copper and cobalt production across Zambia and the DRC. According to foreign media reports, despite Trafigura's exit, other transmission ventures linking Angola to regional mining centers are progressing. These include Meridia Energy's planned Lauca–Kolwezi line (1,400 MW) and Soyo–Inga–Cabinda line (800 MW), targeted for commercial operation by 2030, as well as a separate $1.5 billion interconnector proposed by U.S.-based HYDRO-LINK aimed at Lualaba and Katanga provinces. While the delay of this specific 2,000 MW line creates a short-term hurdle for cross-border power sharing, broader efforts to connect Angola's surplus generation to the Southern African Power Pool (SAPP) and Copperbelt miners remain active under revised consortia, according to foreign media reports.

Data released by LME showed that on July 21, copper inventories stood at 284,175 mt, down 6,750 mt from the previous period, while cancelled warrants reached 177,025 mt, with the proportion rising to 62.29%. US tariffs remain unresolved, and the current LC nearby price spread has widened again to above $400/mt, while the far-end spread has widened to $700-900/mt. China's social inventory of copper cathode has fallen to a low level, and recently the CIF China spot copper cathode premium has continued to surge. The ratio of cancelled warrants in US and Asian warehouses has been rising continuously.

Barrick Mining will invest C$20.88 million (US$14.8 million) in Canadian explorer Kingfisher Metals through a non-brokered private placement, acquiring an initial 9.9% equity stake that could increase to 14.1% if all warrants are exercised. Barrick will subscribe for 15.47 million units at C$1.35 per unit, with each unit consisting of one common share and one-half warrant. At least 80% of the proceeds will be used to advance exploration and development at Kingfisher's HWY 37 copper-gold project in British Columbia's Golden Triangle, with the remaining funds allocated to working capital and general corporate purposes. Following the financing, Kingfisher expects to hold approximately C$47 million in cash to accelerate exploration at its Hank porphyry discovery and across its broader land package. Barrick said the investment is strategic and that it may adjust its ownership position depending on market conditions.