Revolutionary rail deal opens new trade route for copper from Africa to global markets
Kamoa Copper S.A., a subsidiary of Ivanhoe Mines, is pioneering a new trade route for African copper, connecting the heart of the continent to global shores. A freshly inked memorandum of understanding (MOU) with the Lobito Atlantic International SARL Consortium, a heavyweight trio including commodities magnate Trafigura Pte Ltd, infrastructure giant Mota-Engil, and rail titan Vecturis SA, will see the famed copper of Kamoa-Kakula traverse the expansive Lobito Atlantic Railway Corridor, aiming straight for the Atlantic Ocean port of Lobito in Angola.
The Corridor, a staggering 1,739 kilometres of railway, strategically aligns the mineral-rich Democratic Republic of Congo (DRC) with Angola’s port of Lobito, bringing a logistics revolution to Africa’s Copperbelt. The benefits? Quicker turnaround times, slashed transportation costs, and a massive leap towards a greener footprint for the copper industry.
The buzz around this partnership can’t be ignored. Earlier in 2022, the Consortium secured a 30-year reign over railway services in Angola. They’re not just in for the glory; they’re in for the long haul. With a planned infusion of over $555 million to revamp the Lobito Corridor, they’re gearing up for a transportation game-changer, ushering in a new era of efficiency and eco-friendly logistics.
President Felix Tshisekedi of the DRC applauded the venture, emphasizing the immense potential of the Lobito Corridor to catalyze national integration and invigorate trade among regions. His sentiments were echoed by Robert Friedland, Ivanhoe Mines’ Founder and Executive Co-Chairman, who hailed the Corridor as the “shortest and most direct export and import route” and a symbol of “international cooperation” in our climate-conscious age.
The first trial shipment, set for Q4 2023, will be a testament to this transformative venture. Kamoa-Kakula’s copper concentrates, once primarily transported by road to distant ports, now have a direct and efficient rail path to the global market. The reduced carbon footprint and logistical cost-savings promise a brighter, more sustainable future for the Copperbelt and beyond.
This MOU is only the beginning. International stakeholders, from the US’s International Development Finance Corporation contemplating a whopping $250-million investment to multiple African governments, are already betting big on the Lobito Corridor as the next major trade artery in Africa.
With high-profile endorsements, substantial investments, and a united vision, the Lobito Atlantic Railway Corridor is poised to reshape Africa’s trade landscape, bolstering economies and fortifying global supply chains.