The move signals a potential shift in Glencore’s strategy in the Democratic Republic of Congo (DRC), a nation central to global copper and cobalt supply.
The talks come weeks after the group, the world’s second-largest cobalt producer, cautioned that a large share of its output may remain unsold this year, amid a cobalt market slump driven by falling prices, oversupply, and the DRC government’s suspension of cobalt exports in February, following a nine-year price low.
Kinshasa is now considering extending the export ban beyond its September 21 deadline, a decision that could further tighten global supply chains and weigh heavily on producers.
Potential Buyers
According to Bloomberg, potential bidders for the 75% stake in KCC include U.S.-based investment firm Orion Resource Partners and mining major Rio Tinto (RIO.L; RIO.AX). The U.S. International Development Finance Corp. (DFC) could also be involved through a partnership with Orion. While the companies declined to comment or did not immediately respond to requests, analysts note that recent signs of direct U.S. government involvement could increase the likelihood of a deal.
A Strategic Asset in Congo
KCC, jointly owned by the Swiss miner (75%) and Congo’s state-owned Gécamines (25%), operates two open-pit mines: KOV and Mashamba East, as well as the Kamoto underground mine. Together, these assets produce copper cathode and cobalt hydroxide, both critical to renewable energy technologies and electric vehicle batteries.
The DRC accounts for more than 70% of global cobalt output, much of it from unregulated artisanal miners who face poor working conditions and lack oversight. Earlier this year, cobalt’s plunge underscored the volatility of the market and the risks confronting companies with heavy exposure to Congolese supply.
Geopolitical Implications
A potential exit would carry major geopolitical implications, with Chinese companies already dominating Congo’s cobalt sector and securing supply for Beijing’s fast-growing battery industry. A deal involving Orion or Rio Tinto could mark a rare attempt by Western investors to regain influence in Africa’s critical minerals and counterbalance China’s hold.
The outcome could also determine how Africa’s resource wealth is managed and who ultimately benefits. Greater Western involvement may bring alternative financing models and stronger governance, although it could equally intensify competition over control of the continent’s mineral assets.
The Swiss miner faces mounting pressure to reassess its operations in the DRC, where price volatility, operational challenges, and royalty disputes with the government have weighed heavily. Whether through a complete exit or restructuring, the decision will influence not only the global cobalt market but also Africa’s position in the energy transition supply chain.
