High-grade DRC Cobalt Deposit to Factor into Contract Negotiations

Metal Bulletin reported that a “particularly high-grade cobalt deposit” that is being exploited by artisanal miners in the Democratic Republic of the Congo (DRC) has “emerged as a significant factor in negotiations over next year’s contracts for supply of cobalt raw materials.”
The deposit is close to the DRC’s border with Zambia.
As quoted in the market news:

Although the mine is not in a conflict zone, ethical concerns mean some buyers will not use the material, but others are using the existence of the units as a bargaining chip. Discussions about 2016 contracts are about to begin between cobalt raw material and intermediate producers sourcing from the DRC and their customers, most of whom are Chinese cobalt salt producers. Rapidly changing fundamentals in the DRC, including the new deposit and reduced supplies elsewhere, along with the Chinese economy, will be the main topics of debate at this LME Week, sources have said.

Click here to read the full Metal Bulletin report.