JOHANNESBURG, Dec 19 (Reuters) - Swiss-based commodities

trader Mercuria said on Thursday it had set up a metals trading

arm with Zambia, Africa's second-largest copper producer.

The trading unit is jointly owned by Mercuria and an arm of

Zambia's Industrial Development Company (IDC), the commodities

trader said in a statement. It's being set up to enable Zambia

to participate directly in minerals trading, Mercuria said.

The joint venture "envisages the establishment of a vehicle

to market and trade Zambian copper by mutual leverage", Cornwell

Muleya, IDC's chief executive, said in the statement.

The Zambian government said in June it would set up a

minerals trading unit as it seeks to boost revenues from the

mining industry. The southern African country aims to boost

copper output to about 3 million metric tons within the decade.

Zambia produced about 698,000 tons of copper in 2023, down

from 763,000 metric tons the previous year.

Investors including First Quantum Minerals ( FQVLF ) and

Barrick Gold ( GOLD ) are ramping up production, with output

expected to receive a further boost as Vedanta Resources'

Konkola Copper Mines resume activities.

"Our joint venture with IDC marks a significant milestone

for Zambia as it positions itself more strategically in the

global minerals market," Kostas Bintas, Mercuria's global head

of metals and minerals, said in the statement.