commodity research

S&P Global analyses the Kamoa-Kakula smelter's impact on the global concentrate market: at full 500,000 tpa capacity, the smelter absorbs all Kamoa-Kakula concentrate domestically, removing approximately 1.7-1.8 million dry metric tonnes of copper concentrate from the seaborne market annually, equivalent to roughly 3-4% of global seaborne copper concentrate trade. At current TC/RC levels (near zero), this further tightens the concentrate market for Asian and European smelters. Notes that the DRC government's 20% stake in Kamoa-Kakula gives it a direct interest in smelter output economics.

“At full capacity, Kamoa-Kakula's smelter removes 3-4% of global seaborne copper concentrate from the market, tightening an already tight TC/RC environment.”