SMM News: according to Bloomberg, one of the world's largest cobalt projects has begun operation, marking a significant progress in the production of key battery materials. Production of the Eurasian Resources Group's nearly $1 billion cobalt project in the Democratic Republic of the Congo will begin in November, according to people familiar with the matter.
It is reported that the first piece of copper in the Metalkol Roan Tailings Reclamation project for the disposal of old mining waste was produced last week and was requested not to be identified because the matter was not made public. Cobalt is a by-product of copper mining in the Congo.
Since the end of 2015, cobalt prices have almost tripled as refineries and carmakers scramble for a long-term supply of metals (cobalt) used to make rechargeable batteries for electric vehicles. Luxembourg-based ERG will join Glencore Plc and China Molybdenum Co., as one of the world's largest cobalt producers because it has resources in the Congo and accounts for about 2/3 of the global supply.
ERG's investment in the Congo has been controversial. The Office of serious Fraud is investigating Eurasian Natural Resources (later renamed ERG) for buying some of its Congolese mines from Israeli billionaire Dangetler between 2010 and 2012.
In the first phase, Metalkol plans to produce 14000 metric tons of cobalt and 77000 tons of copper annually from tailings in the town of Kolwezi, near the Katanga copper belt, according to the ERG website. Subsequently, the expansion plan will increase production to 20000 tons and 105000 tons, respectively.
