In the mining landscape of the Democratic Republic of Congo, two giants of the sector are engaged in a fierce battle for competitiveness. These are the Chinese group CMOC and the Swiss group Glencore, both engaged in the exploitation of copper-cobalt, strategic resources in the context of the current energy transition.
CMOC recently took the lead in the ranking of world cobalt producers thanks to its Kisanfu mine located in the Haut-Katanga province. With a production capacity of 30,009 tonnes, the mine was inaugurated in 2023, allowing CMOC to total 55,526 tonnes of cobalt that year, an increase of 174% compared to 2022.
For its part, Glencore, the Swiss giant, is yet to release its production results for the 2023 financial year. However, it is expected that they will not be able to compete with CMOC’s impressive numbers. Glencore’s forecast was for 42,000 tonnes of cobalt, but the 55,526 tonnes delivered by CMOC have already exceeded these expectations.
According to information reported by the British agency Reuters, Glencore produced 20,400 tonnes of cobalt in the first half of 2023. The Mutanda mine, which only delivered 5,800 tonnes, experienced difficulties, offset by an improvement in recoveries at the Katanga Copper Company (14,600 tonnes). However, at the end of the year, Glencore faced a fall in ore grades at the Mutanda mine, leading to a drop in production of up to 15% per year.
The global cobalt market was already facing a large surplus at the start of the year, and additional CMOC production contributed to a 30% price decline during the year. According to analysts at Macquarie, the surplus is expected to reach 17,000 tonnes in 2024, increasing further thereafter.
CMOC, formerly China Molybdenum Company Limited, is one of the world’s largest molybdenum producers. Their $1.8 billion Kisanfu project began in 2021 and quickly propelled the Chinese group to the top of the cobalt hierarchy.
This battle between CMOC and Glencore for supremacy in the mining sector of the Democratic Republic of Congo demonstrates the growing importance of these strategic resources in the context of the global energy transition. As demand for cobalt continues to increase, mining companies are seeking to position themselves to fully exploit these opportunities and ensure their competitiveness in the global market.