By: OrePulse

Commodity trader Mercuria Energy Group has agreed to pay up to $250 million in advance to two Congo-focused subsidiaries of China's Shanghai Jayson New Energy Materials Group for three years of copper supply, according to people familiar with the matter.

The prepayment arrangement covers copper from Hongkong Excellen Mining Investment Co. and Singapore Excellen, the people said, and includes output from the newly started Kinga Kila project in the Democratic Republic of Congo.

Mercuria declined to comment on the deal. Jayson and its two subsidiaries did not immediately respond to requests for comment, according to the people, who asked not to be identified because the transaction has not been made public.

An investment vehicle linked to Robin Zeng, chairman of Chinese battery manufacturer CATL, holds nearly 30% of Hongkong Excellen, with Jayson controlling the remaining stake, the people said.

Rabobank is expected to provide most of the financing behind the advance payment, according to the people familiar with the arrangement. The size of the bank's contribution was not disclosed.

Jayson's three copper projects in Congo produced about 56,000 tonnes of copper in the first half of 2026, according to government data cited by the people. The Kinga Kila project adds to that output as it ramps up.

The arrangement is the latest in a series of large prepayment deals struck by commodity traders in Congo's copper sector as global prices have climbed this year. Trafigura Group has paid Ivanhoe Mines $200 million in advance for anode output from the Kamoa-Kakula project, while Mercuria itself earlier paid Eurasian Resources Group $100 million under a comparable arrangement.

Prepayment financing allows mining companies to raise capital against future production without issuing new equity or taking on conventional bank debt, while giving trading houses a guaranteed claim on output over a fixed period. The structure has become increasingly common in Congo's copper and cobalt sector as producers look to fund expansion.

CATL's exposure to Congolese copper extends beyond its stake in Hongkong Excellen. The battery maker also holds a 25% interest in CMOC Group, one of Congo's largest copper producers, as well as a stake of the same size in CMOC's Kisanfu mine.

Mercuria is one of the world's larger independent energy and commodity trading houses, with activities spanning oil, metals and power markets, and has expanded its metals financing and supply-chain activity in recent years.

Congo has become one of the world's major sources of copper, drawing sustained interest from commodity traders, battery manufacturers and mining companies competing for long-term supply as global demand for the metal rises alongside its use in power grids, electric vehicles and renewable energy infrastructure.