Multinational commodity trader Trafigura and Kamoa-Kakula have forged a long-term agreement, signed in Cape Town last week, to transport minerals via Angola’s Lobito Atlantic Railway. The agreement spans a minimum term of six years.
Under the agreement, Trafigura will transport up to 450,000 tons per year from 2025, as part of the railway’s one-million-tons-per-year capacity. Kamoa-Kakula will transport between 120,000 – 240,000 tons per year of copper products from 2025, with an initial commitment of 10,000 tons in 2024.
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“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,” said Jeremy Weir, Executive Chairman and CEO of Trafigura.
Connecting Central Africa’s Copperbelt region to Angola’s Port of Lobito, the Lobito Atlantic Railway aims to provide a more efficient and lower-carbon route for bringing copper, cobalt and other transition metals to market.
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“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,” said Robert Friedland, Founder and Executive Co-Chairman of Ivanhoe Mines, joint venture partner in Kamoa-Kakula.