China’s CMOC and other miners of Congolese copper seek LME listing

China's CMOC and other miners seek LME approval for DRC copper, opening financing opportunities in an oversupplied market.

China’s CMOC and other miners have applied for copper from the Democratic Republic of Congo (DRC) to be registered for delivery against London Metal Exchange (LME) contracts, four sources with knowledge of the matter said.

If they succeed, large amounts of copper from DRC, the world’s second biggest copper producer, could arrive in LME-approved warehouses as soon as next year, the sources said, taking account of the time required to process the applications.

For producers, LME brand status opens up financing opportunities in an oversupplied market. For an exchange that has been unable to accept new Russian metal since April because of sanctions, it provides income from registration and warranting fees.

CMOC’s Tenke Fungurume (TFM), one of the rapidly expanding copper producers in the DRC with annual capacity of 450,000 metric tons, is having its copper tested at rod mills to ensure it meets LME requirements, the sources said.

One said a lot of paperwork needed to be done to meet LME standards, while another said other “brands of DRC-origin” were also being tested but refused to name them because their applications had not yet been filed.

An LME spokesperson said the LME welcomed applications from the world over to help ensure the price of LME copper futures reflects the diversity of supplies.

“A brand list representing global production is a crucial component in ensuring globally relevant pricing for LME contracts,” an LME spokesperson told Reuters, adding two new African copper brands had been listed since January last year without naming them.