DRC Miner Gecamines Set to Ship First Germanium Concentrates Amid Tight Global Supply

Gecamines

The Democratic Republic of Congo’s (DRC) state-owned mining company, Gécamines, is poised to make its first-ever shipment of germanium concentrates, marking a significant milestone in the global supply chain for this critical mineral. The shipment will be exported to Umicore, a Belgian metals processor, for refining into high-tech downstream products.

A Strategic Move Amid a Global Germanium Crunch

Gécamines’ germanium concentrates are sourced from the Big Hill tailings site in Lubumbashi, a location that holds approximately 10 million tonnes of metal slag. The tailings contain valuable recoverable metals such as zinc, silver, cobalt, and copper, alongside germanium.

The company’s subsidiary, STL, recently established a state-of-the-art hydrometallurgical plant at Lubumbashi to process these tailings. This partnership with Umicore, formalized in May, involves both technological collaboration and an offtake agreement, ensuring a streamlined supply of germanium for the Belgian company.

This development is particularly significant as global germanium availability has been constrained since China, the world’s leading producer, introduced export controls in August 2023. As a result, China’s germanium exports dropped by 56% year-on-year between January and July 2024, totaling just 15,277 kilograms.

Market Dynamics: Rising Demand and Tight Supply

Germanium, a vital mineral for high-tech industries such as semiconductors, fiber optics, and infrared optics, has seen skyrocketing demand. The supply restrictions, coupled with China’s national stockpiling efforts and reduced feedstock from domestic zinc and lead mines, have caused a global supply crunch. Prices for germanium surged dramatically during the summer of 2024, underscoring the urgency for alternative sources.

The shipment from Gécamines and its collaboration with Umicore signals a shift towards diversified germanium sourcing, which could help stabilize the market. By leveraging its Big Hill reserves, the DRC could emerge as a significant player in the critical minerals sector.