A new miner in Congo has stepped up the development of cobalt ore.

ChemafSarl Cobalt company, as a new and unknown small companies, is now in the accelerating cobalt ore mining, production capacity in the future or will catch up with glencore energy companies.

Headquarters is located in Lubumbashi ChemafSarl mining company is using the surge in demand of cobalt and other several companies, small copper miner Congo to move into a cobalt producer, to preempt the refiners and new energy automobile manufacturers supply market.

The large-scale development of Congo's cobalt means in the next few years, cobalt supply may be desired. Metal traders Darton commodities commodity co., LTD., said in a report in February, after 2020, the electric car sales are expected to surge leading to market deficit, because at that time, have no new cobalt assets can continue to production.

Chemaf company chairman ShirazVirji said in an E-mail, the company is now in the Lualaba province Mutoshi mining area to build a processing factory, the factory will be in September 2019 formally put into production, is expected to produce 20000 tonnes of cobalt per year. The company's existing Etoile cobalt mine output last year of about 5000 tons last year. ChemafSarl company that a development project will help the company improve productivity greatly, even is expected to become the world's second largest cobalt ore producers.

Congo's position in the world

Congo is also a copper producer. DartonCommodities company statistics show that last year, the central African countries produced 81000 tons of copper, accounts for about two-thirds of the global supply.

Glencore IvanGlasenberg in December last year, the chief executive, said predicts 2030, the growth of the electric car production will require cobalt production capacity of 314000 tons.

With the development of new projects and the upgrade of original project expansion, Congo's market share will rise sharply in the coming years. Glencore, of course, the company will also be eyes locked on the cobalt development gradually, the company will continue to invest in the construction headquarters is located in Congo's cobalt KatangaMining katanga copper mining company. The company had earlier after two years of production, and in December last year to start production. Glencore said, starting in 2019, its Katanga cobalt production will reach 34000 tons per year, become the world's largest producer of cobalt.

Cobalt will gradually become the core metal goods

Other global miners are expected to soon start into the tide of cobalt production. Eurasian resource group, based in Luxembourg MetalkolRoan tailing reclamation may later this year and put into production, will eventually reach annual production capacity of 21000 tonnes of cobalt. Headquartered in Shanghai, Peng Xin international mining co., LTD., said the end of this year will also open a factory, cobalt production capacity will reach 7000 tons.

Congo ChemafSarl company with SomikaSarl companies have been looking for ways to expand business. The two companies are from India, founder of the more than 20 years ago, they came to the Congo. At the beginning of the 21st century, with the civil war to a close, they won the copper and cobalt mining license. In recent years, the two companies are gradually increasing focus on cobalt ore mining and production.

The challenge of the new mining method

Chairman ChetanChug SomikaSarl mining company said in an interview that the group's goal from 2020, the annual production of more than 60000 tons of copper and 6000 tonnes of cobalt.

WoodMackenzie data show that due to the excess oil production of the new production by 2020 and 2021, the price of the cobalt may fell to a low of $44000 per ton.

Metal market research director GavinMontgomery said in an E-mail: "now we can clearly see the electric car sales volume will increase gradually, and push the market demand for cobalt, sharply at the same time also will push the price higher to a higher level".

Congo is facing one of the biggest potential adverse factors is Congo's President Kabila march to sign new mining method could lead to a cobalt export tax rate five times this year to 10%.

Business development director of Somika Geoffrey Levy said, "this for all of us is a challenge. But I think the fundamentals of cobalt is strong, the price also will continue to remain in the high ".

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