Glencore Plc has opened talks to sell part of its stake in the Kamoto Copper Company (KCC), one of the largest copper and cobalt projects in the Democratic Republic of Congo (DRC), in what could mark a major shift for one of its flagship African assets.
Strategic Asset Under Pressure
KCC has long been central to Glencore’s growth narrative, but the mine has struggled with operational setbacks, falling cobalt prices, and a bitter royalties dispute with Congolese authorities. In 2024, KCC produced 191,000 tons of copper and 27,000 tons of cobalt, yet output remains below capacity.
Glencore, which owns 70% of KCC alongside state miner Gécamines and the DRC government, has signaled in recent months that it is willing to part with a controlling stake. While no formal sales process is under way, the company has sounded out potential buyers including Orion Resource Partners (backed by Abu Dhabi’s ADQ) and Rio Tinto Group, according to people familiar with the talks.
Geopolitics and Critical Minerals
The discussions align with a broader push by the United States to secure strategic supplies of copper and cobalt—both critical for clean energy technologies, defense applications, and electric vehicle batteries. The US International Development Finance Corporation (DFC) is weighing participation in a mining investment fund with Orion, which could include financing for a KCC transaction.
The talks also dovetail with negotiations on a minerals and infrastructure partnership between the US and DRC, aimed at reducing China’s dominance over the cobalt trade. Today, Chinese and Kazakh firms control most of Congo’s production, leaving Glencore as the only major Western operator in the sector.
The Royalties Hurdle
A key obstacle is the involvement of sanctioned Israeli businessman Dan Gertler, who holds a 2.5% royalty on KCC revenues. US sanctions, imposed in 2017 over alleged corruption, have deterred Western investors. Several proposals are being discussed to resolve the issue, including a buyout of Gertler’s royalties, a transfer to Gécamines, or a US-brokered settlement that could partially lift sanctions.
A Testing Moment for Glencore
The potential sale comes as Glencore grapples with declining copper output, a slump in its coal business, and broader headwinds in metal processing and refining, which have dragged its share price down nearly 20% in the past year.
While the outcome of the talks remains uncertain, a sale of KCC would reshape Glencore’s presence in Africa and play directly into global competition over critical minerals supply chains.