Trafigura and three partners have agreed to back a $300 million power line linking Zambia's grid to Congo's Copperbelt. Trafigura says miners there could save about $1 billion a year by importing electricity instead of burning diesel.
At a glance
- The 200-kilometre Kalumbila-Kolwezi line could import up to 550 megawatts into Congo's mining region.
- Gridworks Development Partners will be the majority shareholder, and Trafigura will arrange much of the debt.
- Congo's Copperbelt faces a power shortfall of more than one gigawatt, according to Trafigura.
Background
The Copperbelt in southern Congo is one of the world's main sources of copper and cobalt. Mines and refineries there need large amounts of electricity, but the local grid cannot supply enough, so many run on diesel generators. A transmission line, or interconnector, lets one country's grid send power across a border to another.
What happened
Congo's Strategic Investment Fund (FIS-RDC), EnPower, Trafigura and Gridworks Development Partners announced on October 6 that they will co-finance the Kalumbila-Kolwezi Interconnector Project. The 200-kilometre high-voltage line will run from Kalumbila in Zambia to Kolwezi in Congo. It will cost about $300 million.
The line has a thermal capacity of 700 megawatts and can carry up to 550 megawatts into Congo's Copperbelt. It is designed to be expanded to more than one gigawatt. The partners say all concessions and licences have been secured, but they have not given a construction start date.
Who pays and why
Gridworks will be the lead equity investor and majority shareholder. FIS-RDC and EnPower, a licensed Congolese power trader that developed the project, will also take equity stakes. Trafigura, the commodity trader, will arrange a significant share of the debt.
The money case rests on diesel. Herve Otschudi, Trafigura's head for Congo, said miners could save about $1 billion a year by replacing diesel generation with imported electricity. "You cannot significantly expand copper and cobalt production, refining, or local beneficiation without reliable power," he said.
What it means
Power is one of the main limits on growth in Congo's mining region, which Trafigura says is short of more than one gigawatt. Cheaper, steadier electricity would lower costs for copper and cobalt producers and could make local refining more practical.
The line would draw power from the Southern African Power Pool, the regional grid that Zambia belongs to. Trafigura says the project complements its investment in the Lobito Corridor, the rail route that carries Copperbelt metals to Angola's Atlantic coast.
Our read
Outlook: neutral. The line has no construction date yet, so it changes nothing for copper or cobalt supply today. Over time, reliable power could support higher output from Congo.
What to watch
- A construction start date and financial close for the interconnector.
- Talks with Zambian investors about joining the project.
- Power contracts signed by Copperbelt miners to buy imported electricity.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-10-06: FIS-RDC, EnPower, Trafigura and Gridworks announce the $300 million interconnector.
- 2026-10-08: Trafigura's Congo head says miners could save about $1 billion a year.
Supply Drivers
A power shortfall of more than one gigawatt limits copper and cobalt growth in Congo's Copperbelt.
Mining Production
Imported power could replace costly diesel generation at mines and refineries once the line is built.
What could lift prices
- Until the line is built, Congo's power shortfall keeps constraining copper and cobalt growth.
- Diesel dependence keeps Copperbelt production costs high.
What could weigh on prices
- Reliable power could eventually allow Congo's miners to raise copper and cobalt output.
- Lower energy costs would reduce the cost floor for Copperbelt producers.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Democratic Republic of the Congo | High | Its mining region could import up to 550 MW to replace diesel power. |
| Zambia | Medium | Its grid becomes a supplier of power to Congo's Copperbelt. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Mining | Positive | Cheaper imported power could cut miners' energy costs. |
| Power Transmission | Positive | A privately financed cross-border line adds new regional capacity. |
Who gains, who loses
- Copperbelt miners: Trafigura estimates about $1 billion a year in savings from replacing diesel.
- Gridworks Development Partners: It becomes majority owner of a new cross-border transmission asset.
- Diesel suppliers to Congo's mines: Imported electricity would replace much of the diesel used for power.
Other ways this could play out
- If financing closes quickly, the line could ease the Copperbelt's power deficit within a few years.
- If Zambia's own supply runs short, the line may not deliver its full 550 MW.
Price risks
- Copper prices depend on global demand and mine disruptions far more than on this project.
- Delays to construction would leave Congo's power deficit unchanged.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
