MMG Suspends Cobalt Operations at DRC Mine Following Price Slump
MMG suspended its cobalt operations at the Kinsevere mine in the DRC due to a price slump and an export ban. The facility was placed on care and maintenance shortly after launching. The DRC’s increased cobalt production and recent regulations aim to control cobalt pricing as MMG plans to increase copper production by 40% this year.
Chinese state-controlled mining company MMG has suspended operations at its cobalt processing plant in the Democratic Republic of Congo (DRC) shortly after its launch, attributing the decision to a significant slump in cobalt prices and a recent export ban. This suspension occurred at the Kinsevere mine facility, which had been expected to boost cobalt production but is now on care and maintenance due to unfavorable market conditions.
MMG, which is primarily owned by China Minmetals, had invested approximately $600 million into enhancing copper output and initiating cobalt production at the Kinsevere site. The cobalt facility commenced operations in September 2023 but was quickly halted in December 2024. The DRC, a leading cobalt producer, has experienced increased production levels, particularly from China’s CMOC Group, creating an oversupply that negatively impacted prices.
Recently, the Congolese Government implemented a four-month export ban to manage the oversupply and regulate cobalt pricing more effectively. A spokesperson for MMG has indicated that the company will operate under a “flexible production strategy,” resuming cobalt operations when market conditions improve, while also aiming to increase copper production by at least 40% this year. In the prior year, MMG produced 1,600 tonnes of cobalt and 380,000 tonnes of copper across its operations in Africa, Australia, and South America, with its most significant asset being the Las Bambas mine in Peru.
Additionally, the DRC has introduced a state monopoly for the oversight of artisanal cobalt production and export. Under the new regulations, the state-owned Entreprise Generale du Cobalt has been granted exclusive rights for the export of hand-dug cobalt, further impacting the market dynamics.
MMG’s suspension of cobalt operations at the Kinsevere mine highlights serious challenges in the cobalt market, driven by price slumps and regulatory changes in the DRC. The company’s significant investment has yet to yield results amid increased production and government export restrictions. The new regulations aimed at controlling cobalt supply further complicate the situation and highlight the DRC’s strategic moves to manage its resources better.
Original Source: www.mining-technology.com
