Trafigura and EGC begin mineral shipments via Lobito Atlantic Railway

Entreprise Générale du Cobalt and Trafigura have finalised an agreement for the inaugural delivery of copper and cobalt to international markets using the Lobito Atlantic Railway. This development represents a significant step in establishing an efficient mineral supply chain originating from the Democratic Republic of Congo. By utilising this rail infrastructure, the companies aim to enhance the connectivity of mineral resources from the Copperbelt to customers across the globe. Trafigura reported that this initiative highlights the strategic importance of the rail corridor in facilitating the movement of critical metals and minerals from the region to international markets.

The Lobito Atlantic Railway spans a 1,300-kilometre rail line that connects the deep-water port of Lobito on the Angolan coast to the border of the Democratic Republic of Congo at Luau. The network includes an additional 450-kilometre extension reaching into Kolwezi, located within the heart of the Congolese Copperbelt. This route serves as the shortest path from Kolwezi to an African port, effectively shortening inland transit durations to approximately seven days. The railway operator manages the infrastructure under a 30-year concession, which includes the operation of a dedicated minerals terminal at the Port of Lobito.

The railway is owned by a consortium consisting of Trafigura, Mota-Engil, and Vecturis. To support the ongoing rehabilitation and expansion of the rail network, the operator recently secured USD 753 million in debt financing. This funding was provided by the International Development Finance Corporation and the Development Bank of Southern Africa. The rail line is positioned as a regional asset open to all users, intended to serve as a catalyst for Angola and the Democratic Republic of Congo to become primary suppliers of minerals essential for global industrialisation, digitisation, and decarbonisation efforts.

The initial shipment of copper is scheduled to be transported to customers in the United States. This move is described as a materialisation of the strategic partnership agreement between the United States and the Democratic Republic of Congo. Trafigura continues to market cobalt supplied by Entreprise Générale du Cobalt, which is the state-owned entity mandated to purchase cobalt from artisanal miners within the country. The collaboration between the producer and the trader is intended to foster resilience in the global supply chain for critical minerals while ensuring that sourcing remains transparent, traceable, and ethical.

The Lobito Atlantic Railway also maintains a track access agreement with the state-owned rail company of the Democratic Republic of Congo, Société Nationale des Chemins de Fer du Congo. This arrangement allows for the operation and upgrading of the section between Luau and Kolwezi. By integrating these logistics, the project aims to improve the efficiency and security of mineral exports. The initiative underscores the role of established producer-trader partnerships in managing the logistics of essential commodities from production sites to global destinations where these resources are required for various industrial applications.