Copper Giant CMOC Bets on Congo’s Next Phase
CMOC allocates US$1.08 billion to expand its DRC copper operations as global demand rises; copper (CL=F) and gold (XAUUSD) signals underline how critical-minerals supply shapes frontier growth and fiscal stability.
CMOC Group Ltd. has approved a US$1.08 billion second-phase expansion of its KFM mine in the Democratic Republic of the Congo, targeting an additional 100,000 tonnes of copper a year from 2026. The move extends China’s strategic position in the global critical-minerals chain as the energy transition accelerates.
Congo’s copper output grew 7 % in 2024 to 1.9 million tonnes, while cobalt rose 11 % to 160,000 tonnes. Average prices hover near US$8,400 per tonne for copper and US$31,000 for cobalt. Fiscal revenues from mining reached US$5.6 billion, representing over 40 % of state income. The project reinforces Kinshasa’s plan to lift GDP growth to 6 % in 2026 by tightening export links and refining capacity.
Infrastructure deficits remain the main drag. Transport costs consume 15 % of mine-gate value; power blackouts curtail output. CMOC will finance on-site solar and grid connections to mitigate interruptions. Local content rules require 30 % of inputs from domestic suppliers by 2027, which could generate 1,500 jobs directly and boost non-tax revenues.
Global markets view the expansion as neutral for near-term supply but bullish for medium-term stability. The LME benchmark for copper (CL=F proxy for energy trend correlation) suggests tight inventory conditions through mid-2026. Congo’s macroeconomic risk premium remains elevated due to regulatory volatility, but state stakeholders are signalling predictability to keep foreign capital engaged.
