The joint venture (JV) will focus on the commercialisation of copper and cobalt, which Mercuria Energy Trading will source from the Democratic Republic of the Congo’s (DRC) state-owned mining company, Gécamines SA.

The partnership aims to ensure that Gécamines’ copper and cobalt material sourced from the DRC is priced transparently and competitively, avoiding below-market pricing and sale arrangements.

Under the agreement, cobalt hydroxide produced at mining operations in which Gécamines holds a stake will be shipped to end-users designated by the company, whilst leveraging Mercuria’s network and expertise in logistics and trading.

Mercuria will also provide pre-financing and offtake funding, supporting Gécamines’ capital requirements to maintain production, in return, securing a larger volume of material than it would otherwise obtain.

The JV has also received strategic support from the US International Development Finance Corporation (DFC), through a Letter of Intent for an equity stake in the arrangement. The DFC’s potential investment will allow US customers a right of first refusal; however, as the USA has no operating refineries, it is unclear how this cobalt hydroxide will be used.

The USA does, however, have an interest in cobalt metal, evident through the Defence Logistics Agency’s intent to stockpile 7.5ktpy of cobalt cathode over the next five years. The JV reflects continued efforts by the USA to secure access to critical materials for its energy, semiconductor, and defence sectors.

The DFC’s support of Gécamines could position the USA favourably ahead of the 2026/7 export quota, which includes a 9.6ktpy strategic reserve retained by the DRC’s Authority for the Regulation and Control of Strategic Mineral Substances (ARECOMS).

In addition, the DRC has tightened export controls, requiring cobalt producers to pay a 10% royalty fee within 48 hours of receiving an invoice, with penalties for non-compliance.

These measures come as the DRC government allocates quotas with delayed export permit approvals, potentially prioritising state-owned material.