https://www.engineeringnews.co.za

CATL takes stake in DRC cobalt mine for $137.5m

CATL takes stake in DRC cobalt mine for $137.5m

Photo by Bloomberg

12th April 2021

By: Reuters

  

Font size: - +

Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL) said on Sunday its subsidiary would take a stake in China Molybdenum Co's Kisanfu copper/cobalt mine in the Democratic Republic of Congo (DRC) for $137.5-million.

The investment gives CATL access to one of the world's largest undeveloped sources of cobalt, an ingredient in electric vehicle (EV) batteries. Cobalt prices are up more than 50% this year on surging EV demand and concerns of a supply squeeze.

Under a strategic partnership agreement, Ningbo Brunp CATL New Energy Co will take 25% in Moly unit KFM Holding Limited, which holds 95% of the Kisanfu mine, CATL said in a statement. CATL has already invested in companies mining other battery metals such as lithium and nickel in a bid to secure supply.

Moly, which bought its stake in Kisanfu in December, said in a separate statement it and CATL "will fund the project capex in proportion to their ownership in KFM to jointly build a world-class copper and cobalt producer."

Moly will retain 75% of KFM and future production will also be split 75:25.

The partnership sees Moly become "a long-term cobalt supplier to the world's largest power battery manufacturer," it added.

Kisanfu, located near Moly's giant Tenke Fungurume copper-cobalt mine in the DRC, the world's biggest cobalt-producing country, contains an estimated 3.1 million tonnes of cobalt metal as well as 6.2 million tonnes of copper.

The DRC government has a 5% stake, meaning Moly's actual holding in Kisanfu will be 71.25% and CATL's 23.75%.

A broad strategic partnership between the two companies will see them cooperate in nickel, including in Indonesia where they both have projects, as well as in global acquisitions, investments and development of lithium, Moly's statement said.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.073 1.368s - 140pq - 2rq
Subscribe Now