CMOC Targets Sustained Cobalt Output in 2025 Amid Market Pressure
The world’s largest cobalt producer, China’s CMOC Group, is aiming to maintain record-high cobalt production levels in 2025 following a rapid ramp-up at its African mining operations.
The company has set a production target of 100,000 to 120,000 tons of cobalt for 2025, after achieving an impressive 114,165 tons in 2024, according to a statement on its WeChat account. Elevated production levels could add further pressure to cobalt prices, which are already at their lowest since 2016.
CMOC exceeded its full-year 2024 production guidance within the first nine months, causing market ripples and contributing to the decline in cobalt prices.
The increased output was largely driven by accelerated operations at its Tenke Fungurume Mining (TFM) and Kisanfu Mining (KFM) projects in the Democratic Republic of Congo (DRC). The company also conducted significant exploration work at TFM’s western area and KFM’s Phase II.
While cobalt is often a by-product of copper mining, CMOC remains optimistic about copper’s long-term prospects. It has set a 2025 copper production target of 600,000 to 660,000 tons, similar to the 650,000 tons produced in 2024.
Despite its achievements, CMOC has highlighted the diminishing role of cobalt in the electric vehicle (EV) transition as battery technologies evolve.
In financial terms, CMOC reported a preliminary net income increase for 2024, ranging from 55% to 72%, totaling between 12.8 billion yuan ($1.76 billion) and 14.2 billion yuan. The surge in earnings is attributed to higher output, increased sales, and stronger copper prices.
SOURCE:batterymetalsafrica.com
