Glencore commits to supply 150,000 tonnes of cobalt to Chinese GEM between 2020 and 2029
Diversified mining and marketing company Glencore has extended its partnership with GEM of China for the supply of cobalt hydroxide by five years. Under the terms of the deal, Glencore, led by CEO Ivan Glasenberg, will supply around 150,000 t of cobalt in the hydroxide for GEM between 2020 and 2029, reports Mining News Pro.
Glencore and GEM mutually commit to annual audits against standards aligned with the OECD, in particular, the cobalt refiner supply chain due diligence standard developed by the Responsible Minerals Initiative, the Responsible Cobalt Initiative and the Chinese Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters. This shared commitment will help demonstrate strong responsible sourcing practices and transparency across multiple points in the supply chain, the companies said in a press release to Mining Weekly.
The Cobalt Institute, of which Glencore is a member, has developed the Cobalt Industry Responsible Assessment Framework (CIRAF), an industry-wide risk management tool that helps actors in the cobalt supply chain identify production and supply risks. This long-term strategic cobalt partnership includes a commitment to use CIRAF to communicate publicly on environmental and social issues specific to the cobalt supply chain.
GEM Chairman Xu Kai Hua said that despite Covid-19, the adoption of new energy vehicles was accelerating: “There is no doubt that they are revolutionizing the global auto industry. “
As a result, cobalt, as a key raw material for electric vehicle batteries, would, he said, become a global strategic resource of extreme importance for the rapidly growing new energy vehicle market in China. and in the rest of the world.
“This ten-year cobalt supply agreement reflects a deepening of the strategic cooperation between cobalt resources and the market in the face of the changing competitive landscape and the booming trend of new energies around the world and will fundamentally stabilize the market. development of GEM cobalt products. There is a huge demand for cobalt resources in the world market, ”said Kai Hua.
“There is no doubt that this agreement provides a long-term guarantee for the supply of responsibly mined cobalt to help stabilize the global share of GEM cobalt products. The deal will also help meet demand for cobalt in China’s new energy market. After signing this agreement, GEM will no longer care about responsible cobalt sourcing. GEM can focus on manufacturing cobalt products to meet the global demand for quality and technological innovation.
“The partnership between Glencore and GEM is a prime example of focusing on responsible sourcing and sustainability throughout the supply chain,” he added.
Nico Paraskevas, Head of Copper and Cobalt Marketing at Glencore, welcomed the extension of the partnership and spoke about cobalt bringing thermal stability and longevity of battery performance and thus playing a key role in enabling the transition to a low carbon economy.
“The long-term security of cobalt supply and visibility of cobalt demand are essential to avoid supply shortages that could hamper the energy transition and ultimately the world’s ability to meet targets. of climate change. As the cobalt supply chain matures and places more emphasis on long-term partnerships, this contract is just one example of how Glencore and its customers work together to adopt industry-leading standards. responsible sourcing and environmental and social corporate governance, ”added Paraskevas.
Glencore is one of the world’s largest diversified natural resource companies and a major producer and distributor of more than 60 raw materials. Its Glencore operations include approximately 150 mining and metallurgical sites and petroleum production assets. Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and petroleum industries.
