(Ecofin Agency) - Citibank's forecast suggests copper prices could soar to $15,000 per ton by 2025. Meanwhile, production at Zjinn’s copper mine in the Democratic Republic of Congo was halted amidst concerns over supply meeting demand.

The Democratic Republic of Congo (DRC) has paused the mining license for the COMMUS copper and cobalt project, operated by Zijin Mining. The decision was driven by reports of elevated radioactivity levels in mining product shipments to South Africa, leading to rejections.

An investigation is underway to ensure compliance with export procedures and evaluate the risks associated with radioactive materials in the export chain. While official statements from the DRC and Zijin Mining are pending, this situation unfolds as copper prices soar. Recently, they hit $9,988 per ton, passing March 15’s peak of $9,000.

The suspension of Zijin Mining's license adds to concerns about supply availability, with analysts predicting a potential copper market deficit in 2024 due to recent global supply disruptions. Actions like the closure of the Cobre Panama mine in Panama and production forecast reductions by major producers like Anglo American and Vale Base Metals, alongside power supply disruptions in Zambian copper mines, further compound these worries.

The COMMUS mine, with an annual production capacity of 120,000 tons of copper and 3,000 tons of cobalt, contributed around 129,000 tons last year, representing 4.5% of Congo's 2023 production. Zijin Mining holds a 72% stake in COMMUS.

Louis-Nino Kansoun