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Chinese in big cobalt deal

China Molybdenum Co (CMOC) has agreed to sell a 25% stake in its Kisanfu copper-cobalt mine in the Democratic Republic of Congo to Chinese battery maker Contemporary Amperex Technology Co (CATL) for US$137.5 million.
Chinese in big cobalt deal Chinese in big cobalt deal Chinese in big cobalt deal Chinese in big cobalt deal Chinese in big cobalt deal

CATL is a Chinese battery maker

Staff reporter

CMOC only acquired its 95% interest in the project in December from Freeport-McMoRan for $550 million.

DRC state-owned miner Gecamines owns the remaining 5% of Kisanfu.

In a translated statement, CMOC and CATL said they would also look to co-operate on nickel projects and further lithium opportunities.

Benchmark Mineral Intelligence head of price and data assessments Caspar Rawles said the deal represented a direct investment in cobalt from a tier one player and highlighted the long-term role of cobalt in batteries and ongoing supply concerns.

"This is a significant development, in that CATL, a China based global leader in the production of EV battery materials, is moving upstream in the supply chain to secure supply of battery materials," ASX-listed developer Sunrise Energy Metals (formerly Clean TeQ Holdings) said.

"It also supports the view that cobalt is likely to continue to be a very important component of EV batteries over the long-term."  

CMOC has a market value of about $17.8 billion, while CATL is capped at $113 billion.