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Released July 26, 2022 | GALWAY, IRELAND
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GALWAY, IRELAND--July 26, 2022--Written by Martin Lynch, European News
Editor for Industrial Info (Galway, Ireland)--Chinese mining giant China Molybdenum Company Limited (CMOC) has been forced to suspend the export of cobalt and copper from its massive Tenke Fungurume mine in the Democratic Republic of Congo (DRC) in central Africa.
The move comes as the company remains locked in a bitter six-month dispute with a temporary government-appointed administrator, appointed in the wake of a lawsuit filed by Congo state-owned mining company, Gecamines, which is a minority stakeholder in Tenke Fungurume. Logistics companies were informed by the company in a letter seen by Reuters. The lawsuit brought by Gecamines alleges that CMOC has been under-reporting the mine's reserves to reduce the royalties it pays to Gecamines--which CMOC has denied and has refused to allow the administrator access to the mine. The DRC produces two-thirds of the global supply of cobalt--an essential component of electric vehicle (EV) batteries, among other things. Tenke Fungurume Mine (TFM) is one of the world's leading cobalt and copper mines. In 2021 it produced 18,501 tonnes of cobalt and 209,120 tonnes of copper.
In August 2021, CMOC announced plans to invest US$2.5 billion to double production of cobalt and copper at TFM. The goal, at the time, was to construct three ore production lines that would add a total of 12.4 million tonnes per year (Mpty) processing capacity of copper-cobalt ores, comprising of 3.3 Mtpy for oxidized ores and 9.1 Mtpy for mixed ores. This would expand the mine's average annual copper output by 200,000 Mtpy and cobalt output by 17,000 Mtpy.
Last month, Gecamines, which owns 20% of the mine, alleged that CMOC owes as much as US$5 billion in payments to the government and accused it of altering the mine's finances. Company executives have threatened to dissolve the partnership with CMOC and revoke its ownership of the mine. Gecamines Chief Executive Officer Leon Mwine Kabiena said: "Tactical arrangements can also be made at road level so that no Tenke Fungurume Mining production can go out. We have a lot of options on the table and if they continue with this game, things will get harder."
Industrial Info reported recently that Africa saw record copper production in 2021 of 2.87 million metric tons, led by DRC with 1.88 million metric tons. The DRC copper belt includes some of the highest-grade copper deposits in the world, and in some reserves the copper grades are above 5%.
Click on the image at right for a graph detailing the top 10 African nations for copper projects, by total investment value.
Industrial Info is tracking more than 130 copper-mining projects across Africa, totaling more than US$15 billion in investment value. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.
In related news, CMOC recently announced plans to invest up to US$1.8 billion in the development of a new copper-cobalt mine in DRC, called Kisanfu Mine (KFM). It acquired a 95% stake in the KFM project in December 2020 and has called it "one of the world's largest and highest-grade undeveloped copper-cobalt projects". The mine is expected to start production in the first half of 2023 and will add an average of 90,000 tons of copper metal and 30,000 tons of cobalt metal per year upon reaching full production. CMOC highlighted the surging demand for cobalt by the rapidly growing EV sector. "The industry has concern over the long-term clean and reliable cobalt supply," it stated. "Cobalt Institute, in its report released in May 2022, forecasted that cobalt demand will grow from 175,000 tons in 2021 to 320,000 tons over a five-year period. Cobalt metal supply in 2021 was less than 160,000 tons. The gap will remain wide even considering the projects that are still under construction globally. CMOC indicates that the construction of the KFM project and the expansion of TFM's production can partially meet the growing demand for cobalt metal from the EV sector."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The move comes as the company remains locked in a bitter six-month dispute with a temporary government-appointed administrator, appointed in the wake of a lawsuit filed by Congo state-owned mining company, Gecamines, which is a minority stakeholder in Tenke Fungurume. Logistics companies were informed by the company in a letter seen by Reuters. The lawsuit brought by Gecamines alleges that CMOC has been under-reporting the mine's reserves to reduce the royalties it pays to Gecamines--which CMOC has denied and has refused to allow the administrator access to the mine. The DRC produces two-thirds of the global supply of cobalt--an essential component of electric vehicle (EV) batteries, among other things. Tenke Fungurume Mine (TFM) is one of the world's leading cobalt and copper mines. In 2021 it produced 18,501 tonnes of cobalt and 209,120 tonnes of copper.
In August 2021, CMOC announced plans to invest US$2.5 billion to double production of cobalt and copper at TFM. The goal, at the time, was to construct three ore production lines that would add a total of 12.4 million tonnes per year (Mpty) processing capacity of copper-cobalt ores, comprising of 3.3 Mtpy for oxidized ores and 9.1 Mtpy for mixed ores. This would expand the mine's average annual copper output by 200,000 Mtpy and cobalt output by 17,000 Mtpy.
Last month, Gecamines, which owns 20% of the mine, alleged that CMOC owes as much as US$5 billion in payments to the government and accused it of altering the mine's finances. Company executives have threatened to dissolve the partnership with CMOC and revoke its ownership of the mine. Gecamines Chief Executive Officer Leon Mwine Kabiena said: "Tactical arrangements can also be made at road level so that no Tenke Fungurume Mining production can go out. We have a lot of options on the table and if they continue with this game, things will get harder."
Industrial Info reported recently that Africa saw record copper production in 2021 of 2.87 million metric tons, led by DRC with 1.88 million metric tons. The DRC copper belt includes some of the highest-grade copper deposits in the world, and in some reserves the copper grades are above 5%.
Click on the image at right for a graph detailing the top 10 African nations for copper projects, by total investment value.Industrial Info is tracking more than 130 copper-mining projects across Africa, totaling more than US$15 billion in investment value. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.
In related news, CMOC recently announced plans to invest up to US$1.8 billion in the development of a new copper-cobalt mine in DRC, called Kisanfu Mine (KFM). It acquired a 95% stake in the KFM project in December 2020 and has called it "one of the world's largest and highest-grade undeveloped copper-cobalt projects". The mine is expected to start production in the first half of 2023 and will add an average of 90,000 tons of copper metal and 30,000 tons of cobalt metal per year upon reaching full production. CMOC highlighted the surging demand for cobalt by the rapidly growing EV sector. "The industry has concern over the long-term clean and reliable cobalt supply," it stated. "Cobalt Institute, in its report released in May 2022, forecasted that cobalt demand will grow from 175,000 tons in 2021 to 320,000 tons over a five-year period. Cobalt metal supply in 2021 was less than 160,000 tons. The gap will remain wide even considering the projects that are still under construction globally. CMOC indicates that the construction of the KFM project and the expansion of TFM's production can partially meet the growing demand for cobalt metal from the EV sector."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
