China’s CMOC (China Molybdenum Co.) and several other miners are applying to have copper from the Democratic Republic of Congo (DRC) registered for delivery against London Metal Exchange (LME) contracts. If successful, this could lead to significant quantities of DRC copper, the world’s second-largest producer, being available in LME-approved warehouses as early as next year.
Achieving LME brand status would provide producers with enhanced financing options in a currently oversupplied market, while the LME would benefit from registration and warranting fees, especially since it has not accepted new Russian metal since April due to sanctions.
CMOC’s Tenke Fungurume Mine (TFM), which has an annual capacity of 450,000 metric tons, is currently testing its copper at rod mills to ensure compliance with LME standards. While the application process involves extensive paperwork, other DRC-origin brands are also undergoing testing, although details remain undisclosed.
The DRC produced 2.7 million tonnes of copper last year, accounting for 12% of global supplies. However, among over 100 LME-registered copper brands, only one is from the DRC—SCM, a product of a joint venture between China Railway, Sinohydro Group, and the DRC mining authority. As of June, no DRC copper had been deposited into LME stocks.