Glencore-Orion: Reshaping Critical Minerals Procurement

A major deal between Glencore and the Orion Critical Mineral Consortium could reshape how organisations procure critical minerals, as geopolitical partnerships increasingly influence supply chain access.

The Memorandum of Understanding positions procurement teams to benefit from more stable sourcing routes while navigating ongoing market volatility.

An emerging partnership

Glencore's assets in Kamoto Copper Company (KCC) and Mutanda Mining (Mumi) in the Democratic Republic of Congo produced 247.8 kilotonnes copper and 33.5kt cobalt as of April 2025. The proposed agreement would see Orion CMC gain a 40% stake in these operations, with a combined enterprise value of approximately US$9bn.

For procurement professionals, this deal could mean more predictable access to copper and cobalt supplies, particularly for US-based organisations and their partners. The arrangement aligns with the US-DRC Strategic Partnership Agreement, potentially creating preferential procurement channels for critical minerals needed in technology, defence and infrastructure projects.

"This proposed partnership between Orion CMC and Glencore has the potential to bring significant returns for both the United States and the DRC," says Ben Black, Chief Executive Officer of US International Development Finance Corporation (DFC).

"Orion CMC's potential investment would reflect the growing relationship between the US and the DRC, help secure a reliable source of critical minerals for the United States and our partners and drive economic opportunity and regional stability for the DRC."

Procurement oversight and governance

The acquisition structure gives Orion CMC the ability to appoint non-executive directors and influence where its portion of output is sold. This governance model could mean procurement teams working with US-aligned supply chains may gain priority access to these materials.

Gary Nagle, Chief Executive Officer of Glencore, says: "We are pleased that the US government and Orion CMC have recognised Glencore's role as the only major Western producer of copper and cobalt in the DRC, through our high-quality assets, Mumi and KCC.

"Through this partnership, we would be able to support the ambitions of the US government and private sector with the supply of two critical minerals."

Oskar Lewnowski, Founder and CEO of Orion Resource Partners LP, adds: "This proposed transaction is exactly what Orion CMC was established to achieve – securing long-life, high-quality production of critical minerals while supporting resilient supply chains for the United States and its allies.

"It underscores both the scale of the opportunity and the strategic importance of the Consortium's mission, and this partnership will create a strong platform from which Orion CMC can further develop critical mineral assets and pursue additional investment opportunities."

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Navigating volatile markets

The agreement still requires due diligence, regulatory approvals and documentation.

However, US Deputy Secretary of State, Christopher Landau, says: "This proposed transaction between Glencore and the US-backed Orion Critical Minerals Consortium reflects the core objectives of the US-DRC Strategic Partnership Agreement by encouraging greater US investment in the DRC's mining sector and promoting secure, reliable, and mutually beneficial flows of critical minerals between our two countries."

For procurement teams managing critical mineral sourcing, this development signals a shift towards geopolitically-aligned supply chains, offering opportunities for securing stable supplies whilst presenting challenges in navigating evolving market structures.

The deal represents a significant milestone in US efforts to diversify critical mineral supply chains. As regulatory approvals progress, organisations reliant on copper and cobalt should evaluate how this partnership might affect their existing supplier relationships and long-term procurement strategies.