MMG suspended cobalt processing at the Kinsevere mine in the DRC due to slumping prices and an export ban. Despite investing $600 million to boost production, the facility was placed on care and maintenance shortly after opening. The DRC’s export ban and oversupply issues have impacted the cobalt market, prompting MMG to adopt a flexible production strategy while planning to increase copper output.
Chinese state-owned mining enterprise MMG has suspended operations at its cobalt processing facility at the Kinsevere mine in the Democratic Republic of Congo (DRC) shortly after its commissioning. This decision was made in response to a prolonged decline in cobalt prices and a recent export ban, as reported by Bloomberg.
Commencing operations in September 2023, the Kinsevere cobalt facility was placed on care and maintenance in December 2024 due to adverse market conditions. MMG’s investment of up to $600 million aimed to enhance copper production and initiate cobalt processing at the site.
The oversupply issue in the DRC, largely attributed to increased output by companies such as the Chinese CMOC Group, has severely impacted cobalt prices. Moreover, the Congolese Government has introduced a four-month export ban targeting this oversupply to better control cobalt pricing.
As part of its operational strategy, MMG has stated its commitment to a flexible production approach. The company plans to resume cobalt production contingent on pricing assessments while also targeting a 40% increase in copper production this year.
In 2023, MMG reported a production of 1,600 tonnes of cobalt and 380,000 tonnes of copper from its operations spanning across Africa, Australia, and South America. Additionally, the DRC has initiated a state monopoly to manage the production and export of artisanal cobalt, empowering state-owned Entreprise Generale du Cobalt with exclusive export rights for hand-dug cobalt.
In summary, MMG’s suspension of cobalt operations at the Kinsevere mine is a significant response to the declining cobalt prices and new export regulations aimed at controlling oversupply. While the company reassesses its production strategies, it remains committed to increasing copper output significantly. The DRC’s regulatory changes reflect a broader effort to manage its cobalt resources effectively, ensuring greater control over the market.
Original Source: www.mining-technology.com
