Trafigura, a multinational commodity trader, and Kamoa-Kakula have recently signed a long-term agreement in Cape Town to utilize Angola’s Lobito Atlantic Railway for mineral transportation. The agreement, effective for a minimum of six years, outlines significant transportation volumes.
Starting from 2025, Trafigura plans to transport up to 450,000 tons annually, contributing to the railway’s total capacity of one million tons per year. Meanwhile, Kamoa-Kakula intends to transport between 120,000 and 240,000 tons of copper products per year from 2025 onwards, with an initial commitment of 10,000 tons in 2024.
Jeremy Weir, Executive Chairman and CEO of Trafigura, stated, “These commitments announced today support the consortium’s aim to grow the volumes on the corridor so that it becomes the leading rail transport link in sub-Saharan Africa.”
The Lobito Atlantic Railway serves as a crucial connection between Central Africa’s Copperbelt region and Angola’s Port of Lobito, offering a more efficient and environmentally friendly route for transporting copper, cobalt, and other transition metals to market.
Robert Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, a joint venture partner in Kamoa-Kakula, emphasized the economic significance of this corridor, stating, “The transformative economic corridor will unlock more copper projects due to the lower logistical costs. Cheaper logistics increase the amount of economically recoverable copper across the Copperbelt, as cut-off grades can be lowered.
What do you think?
The financing deal is a significant milestone in the project’s progress, and it is a credit to the company’s leadership and team for their tireless efforts in making this vision a reality. The company’s dedication to sustainability and environmental consciousness is a shining example for others in the industry to follow.