China Molybdenum Raises January-September Cobalt Output

Chinese diversified minerals producer China Molybdenum (CMOC) has reported an increase in cobalt production for the January to September period.

The company is engaged in the non-ferrous metal mining and processing industry, mainly in the mining and processing of base metals and rare metals, as well as the mineral trading business. The Company is a leading global producer of tungsten, cobalt, niobium and molybdenum and an important copper producer.

China Molybdenum (CMOC) produced 11,100 tonnes of cobalt metal equivalent between January and September, an increase of 5.65% compared to the same period last year, in line with the steady increase in output from its Tenke Fungurume copper-cobalt mine (TFM) in the Democratic Republic of Congo (DRC).

On 26 October, Argus assessed a minimum price of US$23.50-24/lb for 30% cobalt hydroxide, up 85% from US$12.50-13.20/lb at the start of the year, mainly due to slower than expected expansion of feedstock output capacity and delays in shipments from the South African port of Durban due to the Covid-19 pandemic.

The Durban port in South Africa is the main transshipment port from the cobalt production hub in the Democratic Republic of Congo to major cobalt feedstock-consuming countries such as China and Finland.

CMOC produced 15,436 tonnes of metal equivalent cobalt from TFM in 2020, down 4.11% from 16,098 tonnes in 2019. The company increased its cobalt production guidance for 2021 to 16,500-20,100 tonnes metal equivalent in February from 14,000-17,000 tonnes metal equivalent in 2020, with the reason for this being that the planned increase in TFM production this year was delayed by the 2020 pandemic.

The company unveiled a plan in August to invest US$2.51 billion in a new mixed ore processing project at its TFM copper-cobalt mine. The project will increase TFM's production capacity by 200,000 tonnes per annum metal equivalent of copper and 17,000 tonnes per annum metal equivalent of cobalt when production begins in 2023, compared to the current capacity of more than 200,000 tonnes per annum of copper and 20,000 tonnes per annum of cobalt.

CMOC is a major cobalt, copper, tungsten, molybdenum, and niobium mining company with mines in China, the Democratic Republic of Congo, Australia, and Brazil. The company acquired a 56% stake in TFM from US base metals miner Freeport-McMoRan in 2016 and increased its stake in the mine to 80% in 2017.

CMOC's other copper and cobalt assets include the Kisanfu copper-cobalt mine (KFM) in the Democratic Republic of Congo. Last December, CMOC acquired a 95% stake in KFM from Freeport-McMoRan by paying US$550 million. The company is working with Ningde Times New Energy Technology Co Ltd, a major Chinese battery manufacturer, to develop the KFM mine.

CMOC also owns a 30% stake in Huayue Nickel & Cobalt, a joint venture with major Chinese cobalt producer Huayou Cobalt and stainless steel producer Qinshan in Sulawesi Island, Indonesia.

Huayue is building a high-pressure acid leach plant in Indonesia to produce mixed hydroxide precipitates with a capacity of 60,000 tonnes/year of nickel-metal equivalent and 5,000 tonnes/year of cobalt metal equivalent. It is scheduled to be operational by the end of this year.

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