Kamoa Copper, owner of the Kamoa-Kakula copper complex, signed a sales contract with Swiss trader Trafigura to sell 20% of the copper anode output from its smelter. The smelter will begin operations in September 2025. Ivanhoe Mines, a major shareholder in Kamoa Copper, revealed this in its quarterly report on July 8.

The deal, finalized in June, spans three years. Trafigura also provided a $200 million advance loan to Kamoa Copper. The loan carries an interest rate based on the US dollar’s average monthly SOFR rate plus 3.75%. Kamoa Copper will repay this advance with copper anodes equal to the loan amount plus interest.

With this contract, Kamoa Copper secures pre-sales for 100% of its smelter’s production, which is expected to reach 500,000 tonnes of copper anodes per year. Earlier in January, Ivanhoe Mines announced agreements covering 80% of smelter output with Chinese firms CITIC Metal and Gold Mountains International Mining Company, affiliates of Zijin Mining. Zijin Mining also holds stakes in Kamoa Copper and Ivanhoe Mines. That deal included a $500 million advance loan on terms similar to Trafigura’s.

Since starting production in mid-2021, Kamoa Copper has favored pre-sale agreements backed by advance payments. However, the Congolese government, holding a 20% minority stake, has expressed concerns. Alongside Ivanhoe Mines (39.6%), Zijin Mining (39.6%), and Crystal River Global Limited (0.8%), Kamoa Copper operates under Kamoa Holding Limited.

Ivanhoe Mines insists these contracts reflect “competitive and independent commercial terms.” Yet, in December, Congo’s Portfolio Minister Jean-Lucien Bussa criticized Kamoa Copper for selling below market prices. He announced plans for the government to participate in selecting buyers to optimize copper revenues and ensure fair resource valuation. No recent updates have emerged on implementing this measure.

This article was initially published in French by Pierre Mukoko

Edited in English by Ange Jason Quenum