CMOC Group Faces Hurdles in DRC Cobalt and Copper Expansion Amid Electricity Woes
Chinese mining giant CMOC Group foresees challenges in the expansion of its cobalt and copper production in the Democratic Republic of Congo (DRC) due to ongoing electricity supply issues in the region.
The DRC, a leading global supplier of cobalt and a prominent copper producer, faces persistent power shortages and logistical hurdles in exporting metals via ports in South Africa, Tanzania, and Namibia.
CMOC’s Tenke Fungurume mine was among those affected by recent disruptions caused by a wildcat strike among truckers, leading to stranded copper and cobalt shipments.
While the current electricity supply adequately sustains CMOC’s existing operations, the company sees power limitations as a significant barrier to scaling up its operations in the DRC.
Li Chaochun, CMOC’s Vice Chairman and Chief Investment Officer, highlighted this concern during an interview at the Asia Copper Week in Shanghai.
CMOC is exploring hydropower projects and alternative energy sources to address the power supply issue. However, Li cautioned that substantial improvements might take time due to the complexity and infrastructure constraints involved in such projects.
Although electricity imports from neighboring countries like Zambia could alleviate shortages, Li suggested that it might not substantially resolve the issue.
Regarding the upcoming presidential election in the DRC, Li expressed confidence that the company’s production and investment plans would remain unaffected, emphasizing the country’s need for economic development, with mineral investment playing a crucial role.
While eyeing expansion opportunities beyond Africa, CMOC has been exploring investments in South America and Southeast Asia.
The company has invested in nickel mining in Indonesia and lithium exploration in Bolivia. Li indicated a preference for investing in these regions and Africa over developed countries like Australia and Canada, citing potential challenges related to geopolitical relations that might complicate approvals in developed nations.
