Gecamines Seeks Bids for Cobalt Stake in Tenke Fungurume Mine

The Democratic Republic of Congo’s (DRC) state miner, Gecamines, is looking to sell its share of cobalt from a joint venture project as the country aims to assert greater control over metals crucial to the energy transition.

Gecamines has invited bids for its portion of cobalt output from CMOC Group’s Tenke Fungurume mine, where it holds a 20% interest, according to sources familiar with the matter.

This marks the first time the state-owned company is marketing its cobalt share, previously managed by joint ventures, one of the sources disclosed, requesting anonymity due to the private nature of the negotiations.

Commodity traders Trafigura Group and Mercuria Energy Group are among the bidders for Gecamines’ cobalt from Tenke, the sources indicated.

Last year, Tenke exported 361,000 tons of copper and 23,000 tons of cobalt, making it one of Congo’s largest mines, according to government data.

Gecamines, Mercuria, and Trafigura declined to comment, while CMOC did not immediately respond to requests for comment. IXM, a trader owned by CMOC, confirmed that Gecamines has the right to market 20% of Tenke’s production.

In addition to cobalt, Gecamines is also selling its copper output. Last month, Bloomberg News reported that the firm was evaluating bids for 90,000 tons of copper mined at Tenke. Earlier this year, Gecamines successfully tendered a smaller amount of copper production from another joint venture.

Cobalt is extracted as a byproduct of copper mining in the DRC. However, cobalt prices have dropped by more than two-thirds since early 2022 due to a supply glut. Gecamines has received significantly more bids for Tenke’s copper than its cobalt, one source noted.

The DRC, which accounted for approximately three-quarters of global cobalt production last year, is exploring measures to boost cobalt prices, including potential export quotas, Bloomberg reported in April.

SOURCE:batterymetalsafrica.com