The Conversation (0)
Following a two-year study, Glencore to scale the use of Ceibo's sulfide leaching technology that significantly improves copper recovery
- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Top Stocks
Top Resource Stocks
Top Tech Stocks
Top Life Science Stocks
Trending
Trending Articles
Trending Press Releases
Trending Companies
Trending Reports
Resource
Popular Lists
Investing Ideas
Outlook Reports
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
Investing Guides
Tech
Popular Lists
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
Investing Ideas
Outlook Reports
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
Investing Guides
Life Science
Popular Lists
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
Outlook Reports
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Investing Guides
Quarterly Activities/Appendix 5B Cash Flow Report
July 27, 2023
High-Tech Metals Limited (ASX: HTM) (High-Tech, or the Company) technical and geological consultants successfully progressed field work and sampling within the key target areas at its Werner Lake Cobalt Project located in north-western Ontario during the June quarter. This follows the successful orientation ground geophysical program, (Refer to ASX Release dated 20th April 2023 and 26th May 2023) which was pivotal in identifying potential mineral deposits and improving our understanding of the geological structure of the area.
HIGHLIGHTS
HTM successful completed ground magnetic and electromagnetic surveys at its Werner Lake Cobalt Project to identify high priority electrical conductors and/or magnetic anomalies for follow- up Drilling.
Results are being refined for Phase II exploration including mapping and sampling over geophysical targets.
The Company had received valid applications for 12,307,964 Loyalty Options, raising a total of $12,308.12 (before costs) under the Offer and a total of 4,112,041 Loyalty Options (Shortfall Options) were placed through a non-renounceable entitlement issue of Loyalty Options to eligible shareholders. The Company has the Loyalty Options listed on the ASX under the ASX code HTMO.
SUBSEQUENT EVENTS
The HTM field team collected approximately 209 rock samples over the course of June which will be used to delineate targets for potential additional sampling, detailed ground geophysics and drilling.
The Company has received several new project opportunities in the vicinity of Werner Lake and continues to conduct high-level internal assessments on projects that fit the Company’s objective of becoming a battery metal focused Company.
HTM EXPLORATION ROADMAP
Finalisation of targeting for Phase II has been completed with results from the sampling program providing additional data for HTM’s planned maiden drilling program.
The field program was conducted by APEX Geoscience’s team who collected 209 rock samples over the course of June which will be used to delineate targets for potential follow-up sampling and drilling testing. The field program was overseen by the Company’s professional geologist, Toby Hughes, P. Geo, who has extensive experience in the region.
Figure 1 - Werner Lake Ground Geophysical Survey: Residual Magnetic Intensity Gridded Images.
Click here for the full ASX Release
This article includes content from High-Tech Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
HTM:AU
12 January
Appointment of Chief Executive Officer
09 January
Cobalt Market 2024 Year-End Review
Cobalt prices started 2024 trading at the US$29,151.50 per metric ton level, the highest price point the battery metal achieved in 2024. By the end of the year prices had contracted by 16.68 percent to US$24,287.90.
Prices remained under pressure due to oversupply, with the Democratic Republic of Congo (DRC) maintaining its dominant position as the world’s largest producer.
Meanwhile, efforts to diversify supply chains and reduce reliance on the DRC gained momentum, with new projects and funding infusions announced throughout the year in Canada, and the US.
On the demand side, the rise of battery chemistries utilizing less cobalt, particularly in electric vehicles (EVs), weighed heavily on consumption. Lithium-iron-phosphate (LFP) batteries continued gaining market share globally, further pressuring cobalt’s role in the EV sector.
However, cobalt’s use in high-performance batteries for smartphones and other electronics remained resilient, offering a counterbalance to declines elsewhere.
Geopolitics and policy added another layer of complexity, with China expanding its influence in African mining regions and Western nations pursuing stricter supply chain transparency laws.
These dynamics are expected to shape cobalt’s role in the critical metals market into 2025 and beyond, as stakeholders grapple with the metal’s evolving importance in a decarbonized economy.
2024 cobalt supply and demand trends
Residual oversupply from 2023 prevented any price positivity in the cobalt market through 2024.
According to the US Geological Survey's annual commodity report, mine supply of the battery metal ballooned in 2023, growing 16.75 percent year-over-year, from 197,000 metric tons in 2022 to 230,000 metric tons in 2023.
Over the last three years annual mined supply has soared, from 142,000 metric tons to 230,000 metric tons, a 61 percent increase.
170,000 metric tons of 2023’s total was mined in the DRC; the African nation is home to the five largest cobalt mines in the world. These high-grade areas have attracted the attention of Chinese mining companies, particularly China Molybdenum (SHA:603993,OTC Pink:CMCLF), which is one of the largest cobalt producers in the DRC and the world.
In recent years cobalt mining practices in the DRC have come under fire by international rights groups concerned that artisanal and small-scale cobalt mining operations are using child labour.
In October 2024 the US Department of International Labour concluded a six year program entitled Combatting Child Labor in the Democratic Republic of the Congo’s Cobalt Industry (COTECCO).
Key achievements include supporting the creation of an Interministerial Commission to monitor child labor and a provincial commission in Lualaba.
Since its inception in 2018, the project has trained 458 stakeholders from government, civil society, and private sectors on combating child labor and introduced tools like ILAB’s Comply Chain to 28 mining entities in Lualaba and Haut-Katanga.
Additionally, COTECCO collaborated with the DRC government to establish a Child Labor Monitoring and Remediation System (CLRMS), training 110 officials to operate it. By March 2024, the CLRMS database registered 5,346 children and was officially handed over to the Ministry of Mines for sustained management.
Cobalt fundamentals tightly tied to EV growth
Combatting child exploitation in the cobalt supply chain will be paramount as demand from the electric vehicle sector alone is expected to increase by 60 to 70 percent by 2040.
The DRC is projected to play a vital role in supplying the majority of the 214,000 metric tons of cobalt demand expected by 2030.
“It’s hard to understate just how much demand will be added to the cobalt market by the EV industry,” said Roman Aubry, Benchmark Mineral Intelligence Pricing Analyst in an April email. “Already it has become the largest demand sector, and its dominance is only set to grow.”
In 2024, global electric vehicle (EV) sales reached a third consecutive record high, with China leading the surge. The China Association of Automobile Manufacturers reported a 5.3 percent increase in passenger vehicle sales, totaling 23.1 million units, with EVs and hybrids accounting for 47.2 percent of the market—a 40.7 percent rise from the previous year.
Tesla (NASDAQ:TSLA), a dominant player in the EV sector, experienced a 1.1 percent decline in worldwide sales, delivering 1.79 million vehicles compared to 1.81 million in 2023.
This downturn was attributed to increased competition and market saturation. However, other automakers reported significant growth. General Motors (TSX:LAC,NYSE:LAC), for instance, achieved a 50 percent increase in Q4 EV sales, driven by models like the Chevrolet Equinox EV SUV.
Analysts suggest that while Tesla's sales dip impacted overall market perceptions, the broader EV market remained robust, with traditional manufacturers gaining traction.
Other notable developments in the EV sector through 2024 was the April announcement from Honda (NYSE:HMC) that it would invest C$15 billion to build a comprehensiveEV value chain in Ontario, Canada.
The plans include an EV assembly plant and a standalone battery manufacturing facility. Joint ventures will add a cathode active material processing plant and a separator plant.
The assembly plant aims to produce 240,000 vehicles annually, while the battery facility will have a 36 gigawatt hour capacity.
Government funding supports sector growth
Due to its critical mineral designation the cobalt sector has also been the recipient of government funding.
In May, the US and Canada partnered for a co-investment to enhance the North American critical minerals supply chain. The collaboration will benefit Fortune Minerals (TSX:FT,OTCQB:FTMDF) and Lomiko Metals (TSXV:LMR,OTCQB:LMRMF), with the latter set to receive up to C$7.5 million from the Canadian government, matched by an additional US$6.4 million from the US Department of Defense’s Defense Production Act Investments Office.
The funding is part of the Canada-US Energy Transformation Task Force.
“Canada is positioning itself as a global leader in the supply of responsibly sourced critical minerals for the green and digital economy,” said Jonathan Wilkinson, Canada's minister of energy and natural resources.
“Through our work with the United States and other allies, we are developing secure critical minerals value chains that will power a prosperous and sustainable future," he added.
In August Electra Battery Materials (TSXV:ELBM,NASDAQ:ELBM)secureda US$20 million grant from the US Department of Defense to aid in the construction and commissioning of “North America’s only cobalt sulfate refinery,” located in Ontario.
“Electra is committed to strengthening the resiliency of the North American battery supply chain,” said Electra CEO, Trent Mell. “We are grateful to the US Department of Defense for its support. On issues of national security, there are no borders between Canada and the United States. We are proud to partner with the US Government to build a strong North American supply chain for critical minerals.”
Factors to watch for cobalt in 2025
Despite having several positive catalysts on the horizon, the cobalt market is facing immense pressure from substitution.
The shift toward LFP batteries, which omit cobalt, has drastically reduced demand for the metal in EV battery production. By Q3 2024, LFP batteries dominated 75.2 percent of the market, while nickel-manganese-cobalt (NMC) batteries fell to 24.6 percent, according to S&P Global.
The declining role of cobalt in EV batteries was further highlighted in a correspondence between China's CMOC (OTC Pink:CMCLF,SHA:603993), the world’s largest cobalt-mining company and Bloomberg in late 2024.
“We predict that EV batteries will never return to the era that relies on cobalt,” said Zhou Xing, a spokesperson for CMOC. “Cobalt is far less important than imagined.”
As coblt's future in the EV space begins to be clouded with uncertainty, demand persists in consumer electronics segment, which rely on lithium-cobalt-oxide batteries, and in superalloys for aerospace and military applications.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Fortune Minerals is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Keep reading...Show less
02 January
AI Mining Startup KoBold Metals Secures US$537 Million in Equity Funding Round
KoBold Metals, a mining company that's powered by artificial intelligence (AI) and backed by Bill Gates and Jeff Bezos, has raised US$537 million in equity funding to accelerate its search for critical minerals.
The firm is looking to position itself as a key player in efforts to diversify global supply chains dominated by China.
The latest investment round values the Silicon Valley-based company at US$2.96 billion.
It also brings new support to KoBold from Durable Capital Partners and two T. Rowe Price funds; they join existing backers like Andreessen Horowitz and Gates’ Breakthrough Energy Ventures.
The capital infusion will support KoBold’s efforts to locate and develop deposits of minerals like copper, lithium and nickel, which are vital for electric vehicles, renewable energy technology and data infrastructure. Its exploration projects focus on regions with high potential for minerals needed to meet increasing demand for clean energy resources.
Founded in 2018, KoBold operates by integrating machine-learning algorithms with geological data to enhance the accuracy and efficiency of mineral discovery. Its proprietary platforms, TerraShed and Machine Prospector, analyze historical and current geological data to identify and prioritize drilling targets.
This approach aims to reduce the time and costs associated with traditional mineral exploration.
“KoBold’s mission is to expand and diversify the global supply of critical resources essential for prosperity, energy technology, AI, and security,” KoBold CEO Kurt House told Fortune on Thursday (January 2).
The funding comes amid growing global competition for control over critical minerals supply chains.
Currently, China dominates the processing and supply of materials like lithium and copper, both essential for battery production and renewable energy storage. Over the past year, the US government has responded by introducing policies to counterbalance China’s market share, such as tariffs and incentives for domestic critical minerals production.
As mentioned, KoBold’s investors include prominent figures from technology and finance sectors.
Breakthrough Energy Ventures, founded by Gates, aims to support technologies that drive the transition to sustainable energy. Michael Bloomberg and Ray Dalio are also among the venture’s backers, along with Bezos.
New investor Durable Capital Partners joined the Series C funding round, with managing partner Henry Ellenbogen expressing confidence in KoBold’s technology-driven exploration model.
KoBold’s recent discoveries are seen propelling the potential of AI-driven exploration.
Last February, the company announced the discovery of a significant copper deposit at its Mingomba project in Zambia.
The deposit is considered one of the largest high-grade copper discoveries in recent years, signaling the effectiveness of KoBold’s machine-learning techniques in mineral exploration.
The new capital raised this week will be allocated in part toward further exploration and development at Mingomba, where KoBold plans to advance drilling and feasibility studies.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
05 December 2024
ASX Cobalt Stocks: 4 Biggest Companies in 2024
Strong electric vehicle (EV) sales have been driving up demand for key battery raw materials in recent years. EVs require lithium-ion batteries to run, and each battery could contain up to 15 kilograms of cobalt.
This means that as demand for EVs increases, so too will demand for cobalt — and, as one of the top four cobalt-producing countries in the world, Australia finds itself in a position to capitalise on this demand.
About 74 percent of global cobalt output comes from the Democratic Republic of Congo (DRC). However, Australia is proving to be a solid contender; though it is only responsible for 2 percent of the world’s cobalt production, it holds about 15.5 percent of global reserves. Moreover, while the DRC’s labour and mining practices have often been labeled unethical and unsustainable, Australian miners are focused on safer, more environmentally friendly practices.
While cobalt prices haven't recovered from their fall in early 2023, EV demand is expected to be strong in the long term.
When it comes to getting exposure to the Australian market, large players may be a good place to start. Read on for a look at the biggest cobalt stocks on the ASX sorted by market cap. All market cap and share price data was obtained on November 29, 2024, using TradingView's stock screener.
1. Ardea Resources (ASX:ARL)
Market cap: AU$69.89 million
Share price: AU$0.34
Ardea Resources' primary focus is developing its wholly owned Kalgoorlie nickel project, which the company says “hosts the largest nickel-cobalt resource in the developed world.” Located in Western Australia, the project includes the Goongarrie Hub deposit.
A 2023 prefeasibility study shows that the Goongarrie Hub has an ore reserve of 194.1 million tonnes at 0.05 percent cobalt and 0.7 percent nickel, resulting in 99,000 tonnes of contained cobalt and 1.36 million tonnes of contained nickel. The study indicates that this resource would support an open-pit mining operation with a 40 year mine life and annual output of 2,000 tonnes of cobalt and 30,000 tonnes of nickel.
In late March, the company shared that a detailed hydrogeology drilling program had commenced to quantify long-term water supply.
Ardea is now working on a definitive feasibility study (DFS), with funding from its strategic partners Sumitomo Metal Mining Co. (TSE:5713) and Mitsubishi (TSE:8058). The DFS is slated for completion in the second half of 2025.
2. Cobalt Blue Holdings (ASX:COB)
Market cap: AU$34.37 million
Share price: AU$0.069
Cobalt Blue Holdings focuses solely on cobalt and is enthusiastic about the metal’s ethical and environmental potential within the renewable energy market. The company owns the New South Wales-based Broken Hill project, a cobalt asset that it says adheres to Australian labour and sustainability standards, and is planning the Kwinana cobalt-nickel refinery.
In November 2023, Cobalt Blue released the results of its cobalt-nickel refinery study. During Stage 1, the proposed refinery would process third-party feedstock and have a capacity of 3,000 tonnes of cobalt sulphate per year, along with 1,000 tonnes of nickel sulphate annually. Stage 2 would have the option to include potential feedstock from Broken Hill. The study projects stable margins throughout potential cobalt price fluctuations.
A few days later, the company announced that its potential partner for the refinery is Iwatani (TSE:8088), a battery minerals trader. According to Cobalt Blue, if everything goes through as planned, the refinery will be constructed on Iwatani's property in Western Australia's Kwinana industrial area.
Cobalt Blue provided another update on the refinery in early October, reporting that construction is set to commence in the first half of 2025, with completion expected within 12 months.
3. Jervois Global (ASX:JRV)
Market cap: AU$29.73 million
Share price: AU$0.011
Jervois Global is focused on producing battery minerals, with a specific emphasis on cobalt. Jervois boasts operations worldwide and hopes to become the only cobalt miner in the US at its Idaho Cobalt Operation (ICO).
In mid-2023, the company won US$15 million from the US Department of Defense (DoD) to fund drilling at ICO as well as a bankable feasibility study for construction of a US cobalt refinery. Resource drilling began at the Sunshine deposit at the ICO project shortly after, while work on a bankable feasibility study for the cobalt refinery was launched last October. The company hopes to complete the study in Q4 2024.
DoD-funded resource-extension drilling at the RAM deposit kicked off in March of this year. The following month, Jervois completed its maiden JORC-compliant resource estimate for the Sunshine deposit as part of its deliverables under the DoD funding agreement.
The deposit hosts inferred resources of 520,000 tonnes at 0.5 percent cobalt, 0.68 percent copper and 0.49 grams per tonne gold at a cut-off-grade of 0.25 percent cobalt, for 5.75 million pounds of contained cobalt.The company hopes to complete a bankable feasibility study in Q4 2024.
In June, Jervois inked a memorandum of understanding with current customer Global Tungsten & Powders to evaluate the latter potentially making a minority equity investment in Jervois’ proposed US cobalt refinery. The company announced in October that it is on track to complete the bankable feasibility study for the refinery in Q4 2024.
4. Kuniko (ASX:KNI)
Market cap: AU$18.22 million
Share price: AU$0.225
Norway-focused Kuniko is targeting three metals key for the EV industry: cobalt, nickel and copper. The majority of its assets are in Norway, including its Skuterud cobalt project, Undal-Nyberget copper project and Ringerike battery metals project. Ringerike hosts the past-producing Ertelien nickel-copper-cobalt target.
In its quarterly report for September 2023, Kuniko highlighted significant developments, including an investment of AU$7.8 million by Stellantis (NYSE:STLA), which acquired a 19.99 percent interest in Kuniko and secured a 35 percent offtake for future production of nickel and cobalt sulphate from Kuniko's Norwegian projects for nine years.
In April, the company released a maiden resource estimate for Ertelien showing 23.3 million tonnes of inferred resources containing 49,700 tonnes of nickel, 37,300 tonnes of copper and 3,300 tonnes of cobalt, including high-grade sulphide resources of 4.59 million tonnes at 0.03 percent cobalt and disseminated sulphide resources of 18.68 million tonnes of 0.01 percent cobalt.
Kuniko undertook a second phase expansion drill program over the summer at Ertelien. “Our aim is to demonstrate progress towards developing a Voisey Bay style resource as a potential new source of critical battery metals for European industries,” Kuniko CEO Antony Beckmand stated. The assay results were published in September, and will be incorporated into an updated resource estimate to be published in Q4 2024.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Melissa Pistilli, currently hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
19 November 2024
Glencore's Lomas Bayas Partners with Ceibo to Accelerate Access to Clean Copper
Ceibo , a clean copper extraction technology company, and Glencore ‘s (GB:GLEN) Lomas Bayas Mining Company have entered into a partnership to deploy Ceibo's proprietary leaching technologies that enable a more effective extraction of copper from low-grade sulfides at one of Chile's leading mines. Lomas Bayas has validated Ceibo's technology and is moving toward scaling up to assess this as an alternative to extend the life of their mining operations. This partnership follows two years of testing by Glencore, an important contributor to Chile's position as the world's largest copper producer.
Under the terms of the memorandum of understanding, Ceibo's technology will scale up with on-site testing through the Lomas Lab, a Glencore world-scale test site, and the company's research and development branch. This agreement opens a significant commercial avenue for Ceibo, demonstrating its unique approach with a major mining company and affirming the value that Ceibo's advanced leaching technologies bring to copper assets globally.
Lomas Bayas is known for its focus on innovative and efficient new solutions. Through this partnership, they will be able to further capitalize on their copper reserves by increasing and optimizing extraction. It also positions Lomas Bayas at the vanguard of sustainable mining by increasing the volume of copper while simultaneously minimizing the impact. Lomas Bayas strives to maximize technologies that allow the production of copper cathodes from sulfide species containing chalcopyrite, with the goal of extending the life cycle of their mine.
Ceibo's leaching processes extract copper in all sulfides using existing leaching plants. This process more quickly and effectively catalyzes the oxidation in the ore through electrochemical reactions, resulting in higher recovery rates in shorter operational cycles. In recent industrial testing on over 20 chalcopyrite-rich ores, the technology has recovered over 75% of copper, a significant increase compared to traditional leaching. Ceibo's technologies can be used in many ways, including increasing the output of existing operations, extending the life of a mine, and enabling new brownfield and greenfield projects.
"We are excited to expand our partnership with Ceibo to scale an innovative technology that can transform the copper industry. Ceibo's ability to produce copper from sulfide-rich ores brings a huge value for assets like Lomas Bayas to sustain production while transitioning from oxides to sulfides," said Pablo Carvallo, General Manager of Lomas Bayas. "This increase will help us maximize our production to service growing worldwide demand."
"The copper industry is facing increased demand alongside environmental standards," said Cristobal Undurraga, co-founder and CEO of Ceibo. "We are thrilled to have such an innovative partner in Glencore's Lomas Bayas, who is at the forefront of adopting new technologies. Together, we are proving that our advanced leaching technologies are allowing the extraction of even more copper from the existing operation while significantly improving sustainability – all while we meet the urgent global need for copper in the clean energy transition."
With demand for copper surging worldwide, this partnership provides a mining industry template for how to immediately increase copper production by significantly extending the life and capacity of mine operations. Ceibo's technologies greatly reduce the implementation time and resource consumption of traditional production methods such as concentrators and smelting, which require many years to build and secure permit approvals and are burdened by an extreme reliance on water and energy.
About Ceibo
Ceibo is accelerating access to copper with its clean, innovative technologies that bridge the supply-demand gap to further the energy transition. Founded in 2021, with dual headquarters in the US and Chile, Ceibo brings together a diverse team of scientists, metallurgists, engineers, and operators with a common passion for using technology to advance net zero goals. For more information, please visit www.ceibo.tech . Media enquiries: ceibo@consortpartners.com
About Glencore in Chile
Glencore is engaged in the production and marketing of raw materials such as copper, sulfuric acid, and molybdenum. In Chile, it operates in the Antofagasta region, including Compañía Minera Lomas Bayas and the Altonorte Metallurgical Complex, and holds a 44% stake in Compañía Minera Doña Inés de Collahuasi.
About Glencore
Glencore is one of the world's largest diversified natural resource companies, with more than 150,000 employees and contractors in over 35 countries. The company produces, processes, recycles, and markets more than 60 commodities that support decarbonization and meet current energy needs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120482815/en/
Media Contact
Consort Partners for Ceibo
ceibo@consortpartners.com
News Provided by Business Wire via QuoteMedia
Keep reading...Show less
15 November 2024
Cobalt Price Recovery Uncertain as Battery Chemistry Shifts Erode Demand
Cobalt market watchers are warning that a near-term resurgence in prices and demand may not occur.
Cobalt prices have spent most of 2024 on the decline, falling to lows not seen since 2016. Values for the electric vehicle (EV) battery metal have fallen 74 percent from highs set in 2022 (US$81,969.70 per metric ton).
Prices are now sitting at the US$23,383.80 per metric ton level, an eight year low.
The primary factor weighing on cobalt prices is softening demand from the battery sector.
Cobalt usage has declined as the industry shifts away from previously popular nickel-manganese-cobalt (NMC) batteries and toward lithium-iron-phosphate (LFP) batteries, which don’t require any cobalt.
The issue has been further compounded by robust mining output from producers.
While some cobalt market segments may fare better than others, overall the sector's contraction is seen continuing.
“Cobalt hydroxide, a key raw material for cobalt sulfate and a byproduct of copper production, may experience temporary support from higher miner offers during Q4 term contract negotiations, though consistent oversupply driven by elevated copper prices in 2024 is likely to limit price gains,” reads a report from S&P Global Commodity Insights.
LFP batteries dominate as cobalt-rich chemistries decline
According to S&P Global, during the third quarter, the market share for NMC batteries stood at 24.6 percent, while competing chemistry LFP dominated with a 75.2 percent share of the market.
Unlike platinum and palladium, where substitution is relatively common as prices fluctuate, the firm believes the focus on cobalt-free battery chemistries will likely prevail. That's because they “are preferred for their safety, longer lifespan, and lower costs, and have gained traction, especially in China, in recent years.”
Rising plug-in hybrid electric vehicle (PHEV) production and sales are also causing shifts in demand, as PHEVs require smaller batteries than fully battery electric vehicles.
Now industry participants are starting to realize the sobering reality that cobalt may be phased out completely.
This possibility has been affirmed in correspondence between Bloomberg and China's CMOC (OTC Pink:CMCLF,SHA:603993), the world’s largest cobalt-mining company.
“We predict that EV batteries will never return to the era that relies on cobalt,” said Zhou Xing, a spokesperson for CMOC. “Cobalt is far less important than imagined.”
Other segments supporting cobalt demand
Despite its shrinking market share in the auto sector, cobalt demand from the consumer electronics segment remains steady, largely driven by lithium-cobalt-oxide batteries that are approximately 55 percent cobalt.
Citing data from China's Ministry of Industry and Information Technology and China Customs, S&P Global notes that in July and August, China's mobile phone production rose 9.3 percent year-on-year, while exports grew 4.8 percent.
Cobalt demand will also be propped up by its use in superalloys, a niche that is expected to quadruple its cobalt demand by 2050, reaching 55,000 metric tons due to increased military, aerospace and satellite applications.
However, support from consumer electronics and superalloys likely won't be enough to absorb current oversupply.
“The cobalt market is currently expected to be in surplus through 2028, with the surplus peaking at 27,000 metric tons in 2024 and gradually decreasing to 3,000 metric tons by 2028," said Alice Yu, principal analyst at S&P Global.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
07 November 2024
Top 10 Cobalt Producers by Country
Battery metal cobalt has been in focus in recent years for its role in lithium-ion batteries, bringing attention to the top cobalt producing countries.
One of the metal’s main catalysts is the electric vehicle roll out. The lithium-ion batteries that power electric vehicles and energy storage require lithium, graphite and cobalt, among other raw materials, and demand for these important commodities is expected to keep rising as the shift toward clean technologies continues at a global scale.
Additionally, the metal is predominantly produced as a by-product of copper and nickel, two other metals that are important for the green transition.
However, supply growth in many of the battery metals has out scaled near-term demand, leading to a price pullback over the last two years. The cobalt market has trended downwards in 2024, with prices falling 10 percent from July to September.
As Roman Aubry, cobalt pricing analyst at Benchmark Mineral Intelligence, pointed out, Q3 cobalt values across all grades tracked by Benchmark Mineral Intelligence hit record lows unseen since 2017. The retraction was driven by prolonged weak demand and mounting surplus supply.
Investors interested in the sector should learn the top cobalt producers by country. According to the US Geological Survey, world production has increased significantly over the past two years. In 2023 total cobalt output topped 230,000 metric tons (MT), a large increase from 2022’s 190,000 MT, and a big jump from 2021's 165,000 MT.
Read on for a closer look at where cobalt is mined and which countries lead in production.
1. Democratic Republic of the Congo
Mine production: 170,000 metric tons
The Democratic Republic of the Congo (DRC) is by far the world’s largest producer of cobalt, with 170,000 metric tons of cobalt mined in 2023, accounting for roughly 73 percent of global production. The country has been the top producer of the metal for some time, and is likely to remain crucial to the cobalt market for the foreseeable future.
However, cobalt mining in the DRC is associated with rampant human rights abuses and child labor, due in part to the large presence of unregulated artisanal mining. Attempts have been made to regulate the DRC's artisanal mining sector. But with hundreds of thousands of people relying on artisanal mining for income, eliminating it completely isn't possible.
Efforts to date include the creation of a new state company, Entreprise Générale du Cobalt, to buy and market all artisanal cobalt mined in the DRC; it was set up in 2019 and struggled to make progress. However, in February 2024, it signed an agreement with state miner Gecamines for exclusive mining rights to five mining areas.
Aside from that, the Responsible Minerals Initiative, in cooperation with the Global Battery Alliance, has drafted a framework for a regulated artisanal mining sector. The DRC's mines minister formally approved the ASM Cobalt Standard in 2022, and plans for assessing its effectiveness at pilot sites are being developed.
Outside the DRC's artisanal mining sphere, cobalt is largely produced as a by-product of copper mines, including the Tenke Fungurume mine, owned by the CMOC Group (OTC Pink:CMCLF,HKEX:3993); Metalkol RTR, owned by Eurasian Resources Group and the KOV; and the Mutanda and Mashamba East mines, owned by Glencore (LSE:GLEN,OTC Pink:GLCNF). While the CMOC Group has ramped up cobalt production at Tenke Fungurume, Glencore has dialed back its production.
2. Indonesia
Mine production: 17,000 metric tons
Indonesia has ramped up production to become the second largest producer of the EV metal, with 17,000 metric tons of cobalt in 2023 compared to only 2,700 MT of cobalt in 2021. This rapid change was the result of an increase in investment in Indonesia's battery metals supply chain, predominantly from Chinese companies, which moved in after Indonesia banned nickel ore exports in 2019. The country's higher cobalt production has come from four new high-pressure acid leaching (HPAL) facilities that process ore to produce both nickel and cobalt in mixed hydroxide precipitate, which can then be exported.
The first two HPAL operations came online in 2021 as part of the existing Indonesia Morowali Industrial Park. The facilities were developed by QMB New Materials, a joint venture between Tsingshan Holding Group, GEM (SZSE:002340), CATL (SZSE:300750) and Hanwa (TSE:8078). As of late 2023, two others are also operating in the country — one run by Huayue, owned by Tsingshan and CMOC Group, and one run by Halmahera Persada Lygend, owned by Lygend Resources (HKEX:2245) and Trimegah Bangun Persada (IDX:NCKL).
In mid-2024, partners Eramet (EPA:ERA) and chemical producer BASF (OTCQX:BFFAF,FWB:BASF) decided against executing the planned US$2.6 billion Sonic Bay nickel-cobalt hydrometallurgical complex due to nickel market dynamics, including low prices and oversupply. Sonic Bay would have processed ore from the Weda Bay nickel mine to produce 7,500 MT of cobalt and 67,000 MT of nickel per year.
According to a market report released in May 2023 from the Cobalt Institute, Indonesia has the potential to increase its cobalt output 10 fold by 2030. In the same vein, data from Benchmark Mineral Intelligence indicates that Indonesia's 2030 cobalt output will make up 20 percent of global production compared to 1 percent in 2021 and 5 percent in 2022.
While the market has been searching for an alternative to the DRC for its cobalt, both Indonesia's nickel industry and this rapid build out come with their own environmental concerns.
3. Russia
Mine production: 8,800 metric tons
After rising in 2022, Russia’s cobalt production declined in 2023, falling from 9,200 metric tons to 8,800 metric tons. While the country's cobalt reserves stand at 250,000 MT, Russia is still well behind the DRC in terms of production. Large Russian miner Norilsk Nickel produces cobalt and is among the world’s top five producers of the mineral.
With concerns about DRC cobalt running high, some automakers have been calling for increased electric vehicle battery production in Europe. There was hope that this push could boost Russia's future cobalt production — however, that may now be out of the question while the country wages war against Ukraine.
In April 2022, the US hit Russian cobalt with a 45 percent duty that was set to expire on January 1, 2024. The sanctions on Russian and Belarusian cobalt were extended in June 2024, and in September the US imposed a 25 percent tariff on Chinese cobalt.
4. Australia
Mine production: 4,600 metric tons
As the DRC becomes increasingly challenging for miners and as investors try to divert their interests away from Africa, Australia is another country that’s receiving more attention — the island nation's cobalt reserves are the second largest in the world at 1,700,000 MT.
Despite holding a large amount in reserves, Australian cobalt production contracted year-over-year from 2022 to 2023. After output spiked to 5,900 metric tons in 2022, cobalt production declined to 4,600 metric tons in 2023.
As is the case for many other countries on this list, cobalt is produced in Australia as a by-product of copper and nickel mining. The country’s nickel mines are located in the western part of the country, mostly around the Kalgoorlie and Leonora regions.
Additionally, the Australian government has been sending geologists to search for cobalt in mine waste, an effort that bore fruit when Queensland geologist Anita Parbhakar-Fox tested a copper mine waste sample that graded 7,000 parts per million cobalt.
The CEO of Australian company Cobalt Blue Holdings (ASX:COB,OTC Pink:CBBHF) described the discovery as a game changer to the Financial Times, estimating there could be up to 300,000 MT of cobalt in Australian mine waste.
Another important cobalt project in the country under Cobalt Blue is the Broken Hill project, which will allow for cobalt production on-site, rather than extracted as a by-product of nickel.
Broken Hill is planned to begin production in 2026, and is anticipated to have an output of around 4,000 metric tons of cobalt annually over a 20 year mine lifespan.
5. Madagascar
Mine production: 4,000 metric tons
Madagascar’s cobalt-mining industry produced 4,000 metric tons in 2023, up significantly from the 3,500 MT in 2022rebounded through 2021, putting out 3,500 MT in 2022, and 4,000 MT in 2023.
Much of the country’s cobalt production comes from the Ambatovy nickel-cobalt mine, owned through a joint venture by Japanese company Sumitomo (TSE:8053) and a Korean state-owned entity. The mine has faced production and profitability issues.
In August 2024, the companies submitted a debt restructuring plan to a London court. According to media reports, Sumitomo, the project's major shareholder, has accumulated 410 billion yen in losses stemming from the project, including a 265.5 billion yen total impairment loss.
Most recently, in October, a pipeline moving ore from the mine to a processing and refining plant had to be shut down due to damage. While production began slowly ramping up at the end of the month, Ambatovy's future remains uncertain.
6. The Philippines
Mine production: 3,800 metric tons
The Philippines is the sixth largest cobalt producer in the world. The country’s cobalt production has remained steady over the last two years, coming in at 3,800 metric tons. The Asian country is also a top nickel producer.
The fate of mining in the Philippines was up in the air for a while as former President Rodrigo Duterte and former Environment Secretary Roy Cimatu called for a shutdown of all mines in the country based on environmental concerns. However, Duterte seemed to have a change of heart in early 2021, lifting a ban on new mine permits in an effort to boost revenues.
His successor, President Bongbong Marcos, has ordered the country's Department of Environment and Natural Resources to enforce stricter guidelines and safety protocols on both small- and large-scale mines. He hopes to bring illegal mining operations into compliance so they can operate legally and with safer conditions for employees.
7. Cuba
Mine production: 3,200 metric tons
Cuban cobalt production fell in 2023 to 3,200 metric tons, down from 3,700 MT in the year prior.
The country’s Moa region is home to the Moa joint venture nickel-cobalt operation held by Canadian firm Sherritt International (TSX:S,OTC Pink:SHERF) and the General Nickel Company of Cuba.
Moa uses an open-pit mining system to produce lateritic ore, which is processed into mixed sulfides containing nickel and cobalt using HPAL. The country’s state-owned nickel miner is the sole operator of the Che Guevara processing plant at Moa.
8. New Caledonia
Mine production: 3,000 metric tons
New Caledonia, a French overseas territory in the Pacific Ocean east of Australia, is known for its mineral industry, primarily focused on nickel and cobalt mining. According to a 2019 USGS Mineral Yearbook report, nickel mining contributes roughly 7 percent of the country’s annual GDP.
Although cobalt production in New Caledonia has increased year-over-year, climbing from 2,000 MT in 2022 to 3,000 metric tons in 2023, the island nation’s primary cobalt producing mine has been embroiled in controversy.
The Goro nickel and cobalt mine, which was brought into operation by Vale (NYSE:VALE), has been impacted by weak nickel prices and electoral reform unrest. In 2020, Vale opted to sell the project as part of a broader company restructuring. The following year, Goro was acquired by Prony Resources New Caledonia consortium, a joint venture owned by New Caledonian entities and international commodities trader Trafigura.
Earlier in 2024, the mine was again making headlines when Trafigura Group declined to provide additional funding for Prony Resources Nouvelle-Calédonie, as part of a French government rescue plan for New Caledonia's struggling mining sector.
9. Papua New Guinea
Mine production: 2,900 metric tons
Papua New Guinea has made the list of top cobalt producers by country for the sixth year in a row. In 2023, the small country off the coast of Australia produced 2,900 MT of cobalt as a by-product of nickel production, staying nearly flat with the previous year's output of 3,000 MT.
The country’s main cobalt producer is the Ramu nickel mine near Madang, a joint venture between private company MCC Ramu NiCo, Nickel 28 Capital (TSXV:NKL,OTC Pink:CONXF) and the Papua New Guinea government.
A mid-October report from Benchmark noted that by 2030, Chinese companies are expected to control 85 percent of cobalt output from Papua New Guinea, enhancing China’s global share of mined cobalt supply to 46 percent.
10. Turkey
Mine production: 2,800 metric tons
Taking the tenth spot on the list is Turkey, which has seen its annual cobalt output rise from 2,100 MT in 2022 to 2,800 metric tons in 2023. The nation also boasts large reserves totaling 91,000 MT.
A 2021 report from the British Geological Survey, underscored the importance of Turkey's cobalt potential amid the energy transition, noting “the greatest cobalt resource potential lies in laterite deposits in the Balkans and Turkey and in magmatic and black shale-hosted deposits in Fennoscandia.”
It went on to point out that in the Balkans and Turkey, 27 nickel laterite deposits are known to contain cobalt in significant quantities, with several deposits holding over 10,000 MT of cobalt metal. Currently, only nickel is extracted from these deposits, but advancements in processing technologies like high-pressure acid leaching may allow for cobalt recovery in the future.
In September 2024, the planned expansion of the Meta nickel-cobalt mine in Gördes sparked local resistance. Community members raised concerns that the project was destroying forests, draining water and harming agriculture. The mine is one of only a few nickel mines in Europe, making it important to the EU's ability to meet European demand for electric vehicle battery materials.
FAQs for cobalt production
What is the most common source of cobalt?
As cobalt is only found in a chemically combined form, it must be separated from mined ore. Most commonly, cobalt is produced as a by-product at copper or nickel mines. According to Benchmark Minerals, currently three-quarters of cobalt is produced from copper-primary mines and 25 percent is produced from nickel-primary mines. The agency forecasts that by 2030, cobalt production from copper-primary mines will fall to 57 percent, while that from nickel-primary mines will rise to 41 percent.
How rare is cobalt on Earth?
Cobalt is the 32nd most common element on Earth, according to the Cobalt Institute, meaning it isn't particularly rare. However, only a handful of countries have cobalt reserves over 300,000 MT, with the DRC coming in first place at 4 million MT, Australia in second at 1.5 million MT and Indonesia coming in third place with 600,000 MT. In fact, the DRC has higher cobalt reserves than the rest of the world combined.
How many years of cobalt are left?
How long it will take to deplete cobalt reserves and resources depends on the approach and speed with which electrification and a fully renewable society is approached, according to a 2019 study. Another factor is whether or not lithium-ion battery formulas that require cobalt will continue to be the norm in the future. If widespread cobalt substitution does take place, that will ease demand pressures on the metal.
Why is cobalt so valuable?
Cobalt has risen in recent years due to supply chain difficulties and the metal's necessity in many lithium-ion battery cathodes, with prices peaking in March and April 2022 at over US$80,000 per MT. However, prices have fallen since then, and sat around the US$33,000 mark as of November 2023. The EV story has led to increased cobalt supply, meaning that there will be short-term price pressures due to oversupply as demand continues to rise in the coming years.
What is the problem with cobalt mining?
Most cobalt production takes place in the DRC, which is known for artisanal mining. Artisanal miners are adults and children who are not employed by mining companies, but mine independently using their own tools or just their hands.
A 2023 ABC news report on the country's artisanal mining industry estimates that 200,000 artisanal miners are working on cobalt deposits; unfortunately, a lack of oversight and safety measures means injuries and death are more frequent than in regulated mining. While organizations are working to keep the supply chain transparent, it is hard to fully avoid cobalt that is sourced through child labor and human rights abuses.
Other countries are not exempt from concerns related to mining cobalt — Indonesia's burgeoning cobalt production comes with the vast environmental concerns that plague the nation's nickel industry.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Keep reading...Show less
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.