EGC and Trafigura Ship Copper and Cobalt to Global Markets via the Lobito Atlantic Railway
Entreprise Générale du Cobalt and Trafigura have agreed the first delivery of copper and cobalt to global markets via the Lobito Atlantic Railway (LAR), marking a key milestone in the development of a fast and efficient mineral supply chain from the Democratic Republic of Congo (DRC).
The use of LAR highlights the strategic importance of the railway in connecting the DRC’s mineral resources to customers worldwide.
The Lobito Atlantic Railway comprises a 1,300-kilometre rail line linking the deep-water port of Lobito on Angola’s Atlantic coast to the DRC border at Luau, with a further 450-kilometre extension to Kolwezi in the heart of the DRC’s Copperbelt. The railway provides the shortest route from Kolwezi to an African port, reducing inland transit times to approximately seven days.
“This agreement demonstrates that progress toward ethical, traceable and transparent sourcing of artisanal cobalt and copper at scale is both achievable and sustainable, to the greater prosperity of the Congolese people, thanks to bold reforms led by ARECOMS and the Congolese government through the Ministry of Mines. We are delighted that the copper shipment will be sent initially to customers in the U.S., marking the concrete materialisation of the U.S.-DRC strategic partnership agreement, as envisioned by the Congolese government, with the support of Gécamines and FOMIN,” said Eric Kalala, Chief Executive Officer of EGC.
“We are delighted to be working with EGC to facilitate responsibly sourced shipments of copper and cobalt to global markets via the most efficient transport route from the DRC Copperbelt. This underscores the importance of strong producer-trader partnerships in building resilience across the global supply of critical metals and minerals,” said Franck Rogozin, Head of Metals and Minerals, Africa, at Trafigura.
“LAR is a true regional asset, open to all users, and a catalyst for positioning Angola and the DRC as key players in providing the metals and minerals needed for decarbonisation, digitisation, and industrialisation,” said Nicholas Fournier, Chief Executive Officer of LAR.
Owned solely by its shareholders, Trafigura, Mota-Engil and Vecturis, LAR has recently secured USD753 million in debt financing from the International Development Finance Corporation (DFC) and the Development Bank of Southern Africa (DBSA) to support the continued rehabilitation and expansion of the railway.
Under an existing agreement, Trafigura markets cobalt supplied by EGC, the state-owned entity mandated to purchase cobalt from artisanal producers in the DRC.
