MMG suspended cobalt processing at the Kinsevere mine in the DRC following a price slump and an export ban. The facility, which opened in September 2023, has been placed on care and maintenance due to unfavorable market conditions. The DRC’s government has also enforced a state monopoly over artisanal cobalt production to regulate exports.
China’s MMG has officially suspended its cobalt processing operations at the Kinsevere mine in the Democratic Republic of Congo (DRC) due to unfavorable market conditions and a recent export ban. Initially opened in September 2023, the processing plant has been placed on care and maintenance after only a few months of operations, as reported by Bloomberg.
The decision to halt operations came in December 2024, amid a slump in cobalt prices, which are essential for electric vehicle batteries. MMG, which is majority-owned by China Minmetals, had invested approximately $600 million into expanding copper production and initiating cobalt processing at this site.
The DRC has been experiencing increased cobalt production, particularly from companies like CMOC Group, leading to an oversupply in the market and declining prices. Subsequently, the Congolese government imposed a four-month export ban to help stabilize the situation and gain better control over cobalt pricing.
An MMG spokesperson mentioned their intent to utilize a “flexible production strategy,” indicating a willingness to resume cobalt operations contingent upon favorable price assessments. The company also aims to increase copper production by at least 40% this year. In 2022, MMG produced 1,600 tonnes of cobalt and 380,000 tonnes of copper from its operations in Africa, Australia, and South America.
Furthermore, the DRC initiated a state monopoly on artisanally produced cobalt. The new regulations grant the state-owned Entreprise Generale du Cobalt exclusive export rights for hand-dug cobalt, reflecting a shift towards more stringent oversight of cobalt production in the region.
MMG has suspended its cobalt operations in the DRC due to a market slump and government export restrictions. The investment in the Kinsevere mine has not met expectations, leading to a reevaluation of production strategies. The Congolese government’s measures aim to control oversupply and pricing, which could further impact the global cobalt market and MMG’s operations moving forward.
Original Source: www.mining-technology.com
