DRC Poised to Surpass Peru as World’s Second Largest Copper Producer
The Democratic Republic of Congo (DRC) is on the cusp of a significant milestone in the global copper market, with forecasts indicating its imminent rise to become the world’s second-largest copper producer, surpassing Peru.
With an estimated mineral wealth exceeding $24 trillion, the DRC already holds the title of Africa’s leading copper producer. In 2023, the nation exported 2.84 million tonnes of copper, solidifying its position as the world’s third-largest copper exporter, just ahead of Peru, which exported 2.76 million tonnes.
Forecasts from Wood Mackenzie suggest that the DRC is on a trajectory to overtake Peru by 2026-2027. Ruben Arrieta, a manager at Wood Mackenzie, attributes this projection to the DRC’s abundance of high-grade ore mines, which outshine those of traditional copper powerhouses like Chile and Peru.
This surge in copper production holds significant promise for the Congolese economy, particularly in addressing the country’s current account deficit, which widened to 5.7% of GDP in the first half of 2023 due to declining international copper and cobalt prices. Analysts believe that a combination of rising copper prices and increased production could help mitigate this deficit.
The DRC’s copper-cobalt sector is primarily dominated by two industry giants: Chinese firm CMOC and Swiss company Glencore. CMOC’s Kisanfu copper-cobalt mine, inaugurated in 2023, has positioned the company as a key player in cobalt production, with an impressive volume totaling 55,526 tonnes in the same year.
However, Glencore faced challenges at its Mutanda mine, leading to a decline in production. The global cobalt market experienced a surplus, further exacerbated by CMOC’s increased output, resulting in a significant price decline.
Nevertheless, the DRC’s copper mining industry remains robust, with approximately twenty companies, including Ivanhoe Mines, actively contributing to the country’s mining sector. This ongoing momentum underscores the DRC’s pivotal role in the global copper market and its potential to reshape the dynamics of the industry in the coming years.
Additional source: CopperbeltKatangaMining
