China Moly Announces Acquisition of Kisanfu Copper-Cobalt Mine in Congo

Chinese diversified metals producer China Molybdenum (China Moly) has acquired a 95pc share of the Kisanfu copper-cobalt mine in the Democratic Republic of Congo (DRC) from US-based base metals miner Freeport-McMoRan, for $550mn.

The Kisanfu project, located in the Democratic Republic of Congo, is a large, undeveloped cobalt and copper resource discovered by Freeport’s exploration team. Following Freeport’s sale of its interest in the adjacent Tenke Fungurume copper-cobalt mine (TFM) in 2016, the Kisanfu project was no longer strategic to Freeport’s long-term strategy. Kisanfu has an ore reserve of 365mn t, including 6.28mn t of copper with an average grade of 1.72pc and 3.1mn t of cobalt with an average grade of 0.85pc. The local government of DRC owns the remaining 5pc of Kisanfu.

There is still mineralization capacity below the current exploration depth, which highlights the huge potential and is expected to expand the amount of resources and become another world-class asset with lasting vitality in the investment portfolio of Luoyang Molybdenum. CMOC is operating the TFM in the same country and has a local business operation team that will help the firm integrate the Kisanfu mine, CMOC said.

The acquisition of the Kisanfu mine will further strengthen the company's position in the field of raw materials for cobalt and electric vehicles ("EV"). The TFM copper-cobalt mine currently in operation by the company follows international good practices in various sustainable development fields, and assumes a series of special responsibilities for responsible cobalt supply in the international market. Luoyang Molybdenum is currently working with other major market players to apply blockchain technology to the cobalt supply chain. The company is committed to supplying more responsible cobalt and contributing to the transformation of the global energy industry.

China Moly has unique advantages in the development and operation of the Kisanfu mine. The company's operating experience, infrastructure and dedication to Congo (DRC) provide protection for all stakeholders (including the Congolese government and local communities) to ensure that the company will develop and manage Kisanfu in accordance with the highest international industry standards. Luoyang Molybdenum is committed to developing this world's top copper-cobalt project in the most socially and environmentally responsible manner.

Kisanfu is a strategic asset of Luoyang Molybdenum. Its huge geological potential, huge resources and deep mineralization capabilities will provide diversified development strategies.

China Moly is committed to creating and providing employment opportunities for the Kisanfu mine site. The development of Kisanfu copper-cobalt mine will create substantial benefits for Congo (DRC), including creating stable employment opportunities and increasing local and national taxes.

Li Chaochun, vice chairman of the board of China Molybdenum, said a sound exploration of the Kisanfu copper-cobalt mine would bring great social value and economic benefits to the surrounding communities and the DRC. The company has pledged to develop the project "in the most responsible and self-disciplined way."

Headquartered in Luoyang City, central China's Henan Province, China Moly is the world's leading molybdenum and tungsten producer. It has been listed in both Hong Kong and Shanghai.

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