DR Congo and China’s SMOC Settle Royalties Dispute Over Cobalt Mine

CMOC Group, the Chinese miner has resolved the dispute with Gecamines, the Democratic Republic of Congo (DRC) state-owned mining company over royalties from the Tenke Fungurume Copper and Cobalt mine.

This settlement will help CMOC to start exporting its stockpile of at least 16,000 Tonnes of Cobalt Hydroxide accumulated during the Ten (10) month long dispute over royalty payments (sources Benchmark estimates).

China’s CMOC, the world’s second largest producer of Cobalt, covers nearly 15% of global output of Cobalt. Tenke’s mine monthly production of Copper and Cobalt is around 20,000 Tonnes, and 1500 Tonnes respectively, according to the Financial Times.

CMOC’S Cobalt ten-month old stockpile is set to enter the market. However, the stockpile release will put more downward pressure on the price of Cobalt which has dropped in the past year, and will further dampen prices this year.