By The Rio Times | Created at 2024-10-30 21:53:29 | Updated at 2024-10-31 17:40:57
20 hours ago
CMOC Group Ltd. transforms the global cobalt landscape by producing 84,722 tons in the first nine months of 2024. This output exceeds their annual target of 70,000 tons, pushing cobalt prices to eight-year lows.
The Chinese mining giant’s success stems from expanded operations in the Democratic Republic of Congo DRC. CMOC extracts cobalt alongside copper, with copper production rising 78% during the same period.
The company expects annual copper output to reach 600,000 tons. Strong copper prices boosted CMOC‘s quarterly profits to 2.9 billion yuan ($410 million).
In addition, revenue grew to 51.9 billion yuan, marking a 16% increase. The company’s expansion at the Tenke Fungurume mine and Kisanfu project strengthens its market position.
A strategic partnership with Contemporary Amperex Technology Ltd. (CATL), the world’s largest battery manufacturer, reinforces CMOC’s influence.
Chinese Cobalt Giant’s Record Production Drives Global Prices to 8-Year Low. (Photo Internet reproduction)CATL doubled its metal purchases, spending $546 million in the first eight months of 2024. This production surge creates significant market ripples.
Western nations observe Chinese companies’ growing control over critical minerals with concern. The DRC’s dominant role in global cobalt production adds complexity to international supply chains.
Lower cobalt prices benefit battery manufacturers working to reduce electric vehicle costs. However, smaller mining operations struggle to compete with CMOC’s scale.
Shifting Dynamics in the Mining Industry
Industry consolidation appears likely as market pressures increase. The transformation highlights shifting global industrial power dynamics.
Chinese companies strengthen their grip on critical mineral supplies while traditional Western mining companies face increased competition. This change occurs as electric vehicle adoption accelerates worldwide.
In addition, CMOC’s expanding influence shapes future battery material supply chains. Their production decisions affect electric vehicle manufacturers globally.
Market analysts expect continued price pressure as supply outpaces current demand growth. The cobalt market’s evolution reflects broader changes in global industrial relationships.
Resource-rich nations like the DRC gain strategic importance, while traditional power structures adapt to new market realities driven by green technology demands.
