The global distribution of cobalt resources is highly concentrated. According to statistics from the United States Geological Survey (USGS), the global proven cobalt ore reserves amount to 8.3 million mt. The distribution of cobalt resources is extremely uneven, with countries such as the Democratic Republic of Congo (DRC) and Australia being the most enriched. The DRC's share of cobalt resources is 47.93%, followed by Australia with 17.97% and Indonesia with 7.19%. The resources are distributed in small amounts in other countries.
Congo (DRC):
In 2022, the DRC had about 4 million mt of existing cobalt resource reserves, accounting for the largest share globally and making it the largest cobalt-producing country, accounting for over 70% of global cobalt production. The grade is mostly between 0.3%-0.5%, and the quality is comprehensively superior to other sources.
Australia:
In 2022, Australia had 1.5 million mt of existing cobalt resource reserves, ranking second in the world, accounting for 17.97% of the global total. However, it falls far behind the DRC in terms of cobalt development and supply. Australia is stepping up the development of cobalt mineral resources. Broken Hill, one of the oldest mining towns in the western part of New South Wales, is about to become one of the important cobalt production areas.
China:
In 2022, China had existing cobalt resource reserves of 140,000 mt, accounting for 1.68% of the global total. The vast majority of China's cobalt resources come from associated ores, which are importantly coexistent in copper, nickel, and iron ores. There are now 150 known cobalt ore production sites, distributed across 24 provinces (regions), with Gansu Province having the most reserves, accounting for approximately 30% of the national total. The quality of China's cobalt ore is relatively low, and cobalt is primarily recovered as a by-product. The recovery rate is low, the process is complex, the production cost is high, and there is a heavy reliance on imports.
According to SMM statistics, the total global supply of cobalt raw materials in 2023 is 246,500 mt in metal content, of which the total supply of primary materials is 217,000 mt in metal content, mainly concentrated in the Democratic Republic of Congo (DRC), Australia, Indonesia, Canada, and other regions. SMM predicts that the cobalt supply will remain relatively stable in the next five years. The DRC's copper-cobalt mine projects will gradually expand their production capacities in the coming years. The volume of cobalt raw material suppliers from foreign and Chinese capitals will continuously increase, leading to supply growth. China maintains a relatively stable import volume of cobalt resources. The domestic supply will not experience a shortage, and the country will persist in following a path that parallels foreign imports and domestic production. Additionally, the supply of cobalt from nickel-cobalt mines in Indonesia and other places, as well as from lithium battery recycling, will gradually increase over the next few years. Therefore, this also provides a part of the increment for the domestic supply of cobalt resources.
