CMOC Group Plans to Double Copper Output in the DRC by 2028

CMOC Group plans to more than double its copper output from mines in the Democratic Republic of Congo (DRC) over the next four years, anticipating stronger future demand for the metal.

The Chinese producer aims to increase its copper production to between 800,000 and 1 million tons by 2028 by expanding operations at its flagship Tenke Fungurume and Kisanfu (KFM) mines in the DRC, according to a company spokesperson.

In 2023, CMOC produced approximately 420,000 tons of copper and is forecast to increase output to about 570,000 tons this year.

Copper and cobalt, crucial for green technologies like electric vehicles, are expected to see robust future demand, essential for global climate targets.

CMOC is currently undertaking a third-phase expansion at the Tenke Fungurume mine, with an investment of around $2.5 billion to date. The KFM mine, which began production last year, is also rapidly expanding.

The increase in copper output means CMOC will also produce more cobalt, despite current depressed prices for the battery metal. In the DRC, cobalt is produced as a byproduct of copper.

CMOC expects cobalt production to rise to between 90,000 and 100,000 tons by 2028. Last year, CMOC became the world’s leading cobalt mining company, with production of approximately 55,000 tons, and it could further outpace rivals like Glencore, with an output forecast of 60,000 to 70,000 tons this year.

The DRC is the world’s top cobalt supplier and third-largest copper producer. However, cobalt prices, currently around $27,000 per ton, have dropped 70% since early May 2022.

Analysts at Macquarie predict the cobalt market will remain oversupplied by about 28,000 tons this year and 24,000 tons in 2025. They noted that cobalt supply is primarily a byproduct of copper or nickel production, making it dependent on those markets rather than cobalt prices.