Congo's Gecamines partners with Mercuria to market critical minerals

DAKAR, Dec 5 (Reuters) - Congo's state miner Gecamines is partnering with Swiss commodities group Mercuria to market copper, cobalt and other critical minerals, aiming to boost transparency and revenues for the world's top cobalt producer, the companies said on Friday.

Democratic Republic of Congo, also a major copper supplier, is carrying out reforms aimed at gaining more control over its mining output and boosting its global influence. It introduced an export quota system for cobalt in October to curb oversupply and launched its first batch of traceable artisanal cobalt last month.

Under the new partnership, which is based on a memorandum signed earlier this year, Gecamines will gain direct control over selling its production volumes from joint ventures and compete in tenders, according to a statement.

"This collaboration marks a pivotal step in Gecamines' journey to strengthen its role in the global metals market," said Guy Robert Lukama, Gecamines' chairman.

US PUSH FOR MINERAL SECURITY

Mercuria will provide logistics, financing and trading expertise under the deal and supply training in risk management and operations.

The venture also plans investments in export infrastructure to ease mineral bottlenecks, the statement said.

Kostas Bintas, Mercuria's global head of metals and minerals, called the partnership "a redefinition of how Congo interacts with global metals markets."

Western countries are increasingly looking to secure critical mineral supplies to reduce their reliance on China, with Washington taking a particular interest in Congo.

The U.S. this week brokered a peace deal between Congo and Rwanda aimed at ending a drawn-out conflict in Congo's mineral-rich east and stabilising supply chains, though renewed fighting erupted on Friday.

That peace agreement links security commitments to an economic framework opening up Congo's copper, cobalt, lithium and gold reserves to Western investors seeking critical minerals for EVs and clean energy.

The U.S. International Development Finance Corporation has expressed interest in taking a strategic stake in the new minerals partnership, Gecamines and Mercuria said.

Under a potential deal, U.S. end-users would gain a right of first refusal on copper and cobalt supplies, they said.

The partnership could also expand to minerals including germanium and gallium - vital for semiconductors and solar panels - the statement said.

Mercuria is sizing up additional deals in Congo, which is home to about 72% of global cobalt reserves and accounts for over 74% of supply, much of it from artisanal mines.