CHINA’S CMOC Group has emerged as the primary cobalt producer globally, surpassing industry giant Glencore, thanks to its robust operations at the Kisanfu mine in the Democratic Republic of Congo (DRC).
With a remarkable 174 percent year-on-year increase, CMOC’s cobalt output surged to 55,526 metric tonnes, accounting for over a quarter of the world’s total demand, which stands at 213,000 tons.
The influx of cobalt from Kisanfu, a venture partially owned by Chinese battery heavyweight CATL, has led to a surplus in the market, estimated at 12,500 tonnes for 2023 by the Cobalt Institute.
Despite a sharp decline in cobalt prices, dropping from $40 per lb in May 2022 to the current $13, CMOC remains bullish, expressing plans to further expand production this year.
However, this shift in global cobalt dynamics has raised concerns among Western nations, prompting a renewed interest in Africa’s mineral-rich territories, particularly the Copperbelt region spanning Zambia and the DRC.
Western entities, including KoBold Metals, backed by notable figures like Bill Gates and Jeff Bezos, are venturing into projects like Mingomba in Zambia, attracted by its high copper grades.
While Western involvement historically faced hurdles due to political risks and infrastructural challenges, efforts to mitigate these obstacles are underway. The US International Development Finance Corporation (DFC) is doubling its commitments to de-risk mining activities in the region, with projects such as the Lobito Corridor receiving significant attention.
Further initiatives, like the United States Trade and Development Agency-funded feasibility study for a solar power plant in Solwezi, Zambia, underscore a broader strategy to address infrastructure and energy needs.
Meanwhile, the DRC’s efforts to reform its mining sector are gaining momentum, with Gecamines taking a more active role, reflecting the government’s push to assert control over mineral resources.
The establishment of Entreprise Generale du Cobalt (EGC) aims to formalise artisanal mining, a significant source of cobalt, potentially reshaping global cobalt dynamics and reducing reliance on Chinese buyers.
As Western powers intensify efforts to secure critical minerals and reduce dependency on China, Africa’s mineral-rich landscapes are poised to play a pivotal role in reshaping global supply chains and geopolitical dynamics.