Korea taps Glencore for copper supply with $1B loan deal

South Korea’s export credit agency will lend $1 billion to Glencore (LON: GLEN) in exchange for copper supplies to Korean companies, securing access to a metal increasingly vital to artificial intelligence (AI) and power infrastructure.The Export-Import Bank of Korea will provide the financing to Glencore International AG, a wholly owned subsidiary of the miner and commodities giant, the state-run lender said Monday. Glencore will use the proceeds for general working capital and supply copper to South Korean companies during the loan period, though the bank did not disclose volumes or other terms.“Through this financing and our partnership with a company that has established a unique position in the global commodities market, we will be able to secure a stable supply of key materials for Korea’s advanced-industry supply chains,” an Eximbank official said in the statement.The agreement underscores South Korea’s push to strengthen economic security as rising investment in data centres, power grids and renewable energy equipment drives demand for copper. The country relies on imports of the industrial metal, leaving its advanced manufacturing industries exposed to supply disruptions and tightening global markets.Prices on the riseCopper prices have climbed about 15% this year and are trading near record highs as electricity demand and the expansion of AI-related infrastructure add pressure to consumption.Glencore is one of the world’s largest copper miners and commodity traders, giving South Korea access to a major participant across both production and global metal flows. The financing arrangement links state-backed capital directly to physical supply at a time when governments are increasingly treating critical raw materials as an economic-security priority.The Eximbank official described the agreement as a “preemptive” move from an economic-security perspective.(With files form Bloomberg)Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com