"The supply chain seems to have done enough for now to keep things balanced," Benmark's Rawles said.ĭemand for the silvery-blue metal has eased in recent months, helping shrink the gaping supply-demand imbalance analysts expected. China Molybdenum did not respond to a request for comment. Gécamines SA, a state-run company, holds the remaining 20% of the Tenke Fungurume mine. In 2020, the mine's cobalt output totaled 15,436 tonnes, according to Market Intelligence data. Glencore produced 27,400 tonnes of cobalt in 2020, according to the company, making it one of the world's leading producers of cobalt.Ĭhina Molybdenum, the second-largest cobalt producer in terms of volume, plans to pump $2.51 billion into its 80%-owned Tenke Fungurume copper-cobalt mine in the DRC by 2023, increasing cobalt production capacity by 17,000 tonnes. Glencore stopped operations at the Mutanda mine and placed the facilities on care and maintenance at the end of 2019 after cobalt prices crashed in response to increasing production from China and oversupply. "We will take our time with the ramp-up to ensure we can match the supply that comes from Mutanda with the demand growth that we see in the market." ![]() "We are starting the ramp-up, starting to come back into production ," Gary Nagle, Glencore CEO and director, said on the Aug. The company declined a request for comment, but it addressed the mine in a recent earnings call. Switzerland-based Glencore could revive production at its copper-cobalt Mutanda mine in the DRC Market Intelligence reported on May 26. About 68.6% of the world's 139,480 tonnes of cobalt supply last year came from the DRC, followed by 4.2% from Australia and 3.3% from the Philippines. are expected to boost production at mines in the DRC in the coming years. ![]() Leading cobalt producers Glencore PLC and China Molybdenum Co. Global refined cobalt production is expected to rise 38.5% between 20, reaching 223,000 tonnes, according to Market Intelligence, thanks to the expansion and restart of multiple production sites. "The supply chains have responded, and I think the cobalt picture does look a lot better." "The situation is not as dire as it was," Caspar Rawles, head of price assessments at Benchmark Mineral Intelligence, said in an interview. The market is expected to move into surplus in 2022 after suffering an estimated shortage of 1,800 tonnes of refined cobalt this year, according to S&P Global Market Intelligence's latest forecast published Sept. But the metal will likely continue to play a key role in rechargeable batteries in cars and on the grid, at least in the short term. Some battery- and EV-makers seek to find alternatives to cobalt, which can be costly or loaded with allegations of human rights abuses. Source: Per-Anders Pettersson/Getty Images News via Getty NewsĪ market deficit for cobalt is narrowing as the world's leading producers of the prized metal expand production to meet the spike in demand for batteries used in electric vehicles.Īmid the surge in EV sales this year, hunger for cobalt drove major producers to announce plans to increase output at multiple mine sites in the Democratic Republic of Congo and balance the market. Plans to expand cobalt mines in the DRC have helped narrow a forecast supply deficit for the metal used in rechargeable batteries. ![]() A copper and cobalt mine located in Kolwezi, Democratic Republic of Congo, is pictured above.
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