Swiss commodities trader Mercuria is ramping up its presence in the copper sector, aiming to grow its recently launched metals division to rival the scale of its oil trading business. The Geneva-based firm has outlined plans to acquire stakes in mines, enhance logistics, and expand its role across the broader metals supply chain, with copper positioned as a cornerstone of its strategy.
Mercuria entered the metals market in December 2023 by partnering with Zambia’s Industrial Development Corporation to establish a metals trading arm. This venture secured access to Zambia’s copper resources, which are critical for the global energy transition. The partnership includes a $500 million pre-financing deal aimed at bolstering Zambia’s copper mining infrastructure. Copper is increasingly vital for renewable energy systems and electric vehicles, with demand expected to grow 6% annually through 2030.
At the FT Commodities Global Summit this week, Mercuria CEO Marco Dunand highlighted the company’s aggressive investment plans. “There’s lots of opportunity to pre-finance and co-invest,” Dunand noted, emphasizing the firm’s commitment to scaling its metals division rapidly. Kostas Bintas, head of metals and minerals at Mercuria, revealed that the company expects to handle approximately 750,000 tonnes of copper cathode and one million tonnes of copper concentrate annually by 2025. This volume positions Mercuria as a significant player in the global copper market.
In addition to securing supply through partnerships, Mercuria has renewed a deal with Glencore to purchase copper from Gécamines, the Democratic Republic of Congo’s state miner. The agreement also includes access to copper from the Tenke Fungurume mine, one of the largest deposits globally and majority-owned by China’s CMOC Group. These moves reflect Mercuria’s strategy to diversify its supply sources while reducing reliance on spot markets.
The expansion comes amid a broader trend of energy traders entering the metals market. Competitors like Vitol Group are focusing on aluminum, while Mercuria has prioritized copper due to its critical role in electrification and renewable energy technologies. This shift challenges smaller metals traders who face profitability issues amid high energy prices and supply chain disruptions.
Mercuria’s rapid scaling—growing its metals team to 70 employees within nine months—underscores its ambition to disrupt a market long dominated by Glencore and Trafigura. Analysts suggest this aggressive approach could reshape competition in the sector while supporting global efforts to secure critical materials for the energy transition.
