Mercuria sets up jointly-owned metals trading unit with Zambia's IDC
JOHANNESBURG, Dec 19 (Reuters) -Swiss-based commodities trader Mercuria said on Thursday it had set up a metals trading arm with Zambia, Africa's second-largest copper producer.
The trading unit is jointly owned by Mercuria and an arm of Zambia's Industrial Development Company (IDC), the commodities trader said in a statement. It's being set up to enable Zambia to participate directly in minerals trading, Mercuria said.
The joint venture "envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage", Cornwell Muleya, IDC's chief executive, said in the statement.
The Zambian government said in June it would set up a minerals trading unit as it seeks to boost revenues from the mining industry. The southern African country aims to boost copper output to about 3 million metric tons within the decade.
Zambia produced about 698,000 tons of copper in 2023, down from 763,000 metric tons the previous year.
Investors including First Quantum Minerals FM.TO and Barrick Gold ABX.TO are ramping up production, with output expected to receive a further boost as Vedanta Resources' Konkola Copper Mines resume activities.
"Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market," Kostas Bintas, Mercuria's global head of metals and minerals, said in the statement.
Reporting by Felix Njini in Johannesburg. Editing by Mark Potter
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