Jean-Lucien Bussa, Portfolio Minister of the Democratic Republic of Congo (DRC) accused Kamoa Copper of selling its copper concentrate output below market prices. Kamoa Copper operates the country’s largest copper mine, Kamoa-Kakula. The official stated this in Kinshasa, during the General Assembly of State Companies, held from December 9 to 14.

According to Agence Congolaise de Presse, which reported Minister Bussa’s claims, Kamoa Copper sells below market prices due to the dominant position of one of the buyers, Zijin Mining Group. Indeed, Zijin Mining Group owns 39.6% of Kamoa Copper, alongside Ivanhoe Mines (39.6%), Crystal River (0.8%), and the Congolese State (20%). Zijin is also one of Ivanhoe’s top shareholders. 

Zijin Mining buys the Kamoa-Kakula copper through a subsidiary, Gold Mountains (H.K.) International Mining Company Limited. The other firm buying copper concentrate from this project is CITIC Metal (HK). This was known via a communiqué issued in June 2021. According to this source, the two Hong Kong-based companies buy the production of the first concentrator set up at Kamoa-Kakula. Since June 21, no details filtered regarding new buyers. Meanwhile, two more concentrators have been commissioned over the period.

Although the price of copper concentrate cannot be directly compared to pure copper prices on the global market, the year-on-year percentage increase raises concerns, particularly given that copper prices have surged more significantly this year. After remaining below $9,000 per tonne throughout 2023 and the first two months of 2024, copper prices soared to a record high of over $11,000 in May. Despite some corrections and fluctuations since then, copper continues to trade above the $9,000 mark.

The discrepancy between Kamoa Copper's concentrate pricing and market trends prompts scrutiny. While Ivanhoe Mines reported that Kamoa-Kakula generated $2.263 billion in revenue from 303,328 tonnes of copper concentrate at an average realized price of approximately $7,461 per tonne for the first nine months of 2024—up 7.8% from the previous year—this figure does not reflect the broader market dynamics.

Regarding Minister Bussa’s assertion about Kamoa selling below market prices, the official said the State would now get involved in the sales process: "From now on, the buyer selection process will be carried out with the involvement of the State shareholder. This will enable us to sell at the market price and optimize sales,” he declared. 

The goal is to maximize the DRC's mining revenues and profits. However, Bussa did not specify what the State’s involvement would encompass and how they would proceed. For now, Kamoa Copper has not commented on the government’s accusations or its decision to get involved in sales operations.

This article was initially published in French by Louis-Nino Kansoun

Edited in English by Ola S. Akinocho