Korea Eximbank to lend $1bn to Glencore for copper supply
Export-Import Bank of Korea will lend $1-billion to commodities giant Glencore in exchange for copper supply to South Korean companies, as the country seeks to secure raw materials needed for the artificial intelligence boom.
The loan will be provided to Switzerland-based Glencore International AG, a wholly-owned subsidiary of Glencore, and the proceeds will be used for general working capital, the State-run Korean lender said in a statement on Monday. The bank said Glencore has agreed to supply copper to Korean companies during the loan period, without providing details.
South Korea is reliant on imports of the industrial material, which is used in power grids, data centers and for renewable energy equipment. The AI data boom and rising electricity demand has boosted demand for copper, which has jumped around 15% this year and is near a record high.
“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, describing the move as “preemptive” from an economic-security perspective.
Glencore, one of the world’s biggest copper miners and commodity traders, didn’t immediately respond to a request for comment outside of regular business hours.
