DRC: CMOC dethrones Glencore as the world’s leading cobalt producer
At a time of energy transition, there is a real rush towards the mining sector of the Democratic Republic of Congo, whose contribution to the national economy is no less.
However, in this copper-cobalt El Dorado, two giants of the sector, namely the Chinese CMOC and the Swiss Glencore, are waging a merciless battle, centered on competitiveness.
Thanks to its Kisanfu copper-cobalt mine based in the Democratic Republic of Congo in the Haut-Katanga province, with a capacity of 30,009 tonnes, inaugurated in 2023, the giant
Chinese group CMOC thus becomes the world’s leading producer of Cobalt with a volume of cobalt totaling 55,526 tonnes in 2023, compared to 20,286 in 2023, an increase of 174%.
To date, the Swiss giant Glencore has not yet published its production results for the 2023 financial year.
However, there is no room for suspense, especially since the 55,526 tonnes of cobalt delivered by the operations of the Chinese CMOC are well above Glencore’s forecasts of 42,000 tonnes.
According to an analysis by the British agency Reuters published on this subject, it appears that Glencore produced 20,400 tonnes of cobalt (+7%) in the first half of 2023, dependent on its Mutanda mine not in good enough shape, delivering only 5,800 tonnes , a situation offset by the improvement in cobalt recoveries at Katanga Cooper Company (14,600 tonnes).
However, at the end of November 2023, the Swiss giant suffered a significant deficit linked to the fall in ore grades in the Mutanda mine deposits which should lead to a drop in production of up to 15% per year.
According to Bloomberg, the global cobalt market was already facing one of its largest surpluses in early 2023, and additional CMOC production contributed to a 30% drop in prices during the year. .
In the same vein, analysts from Macquarie firm predict that the surplus should total 17,000 tonnes in 2023 and increase in 2024 to 18,000 tonnes.
It should be noted that CMOC or CMOC Group Limited, formerly China Molybdenum Company Limited, is a mining company. It is listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange.
The company is one of the largest producers of molybdenum globally. Estimated at $1.8 billion, the Kinsanfu project began in 2021.
