Cobalt Supply Slides Down
The vast majority of cobalt, 66 percent in 2017, comes from the Congo. Glencore's announcement that its subsidiary Katanga Mining will no longer supply cobalt due to radioactive contamination could result in higher cobalt prices. After all, the Katanga mines are one of the most important suppliers of cobalt on earth.
To remove uranium from the ore in these mines, leading cobalt producer Glencore plans to build a US$25 million ion exchange system. As soon as the necessary approvals have been obtained, the system is to go into operation by the second quarter of 2019. Approximately 1,472 tons of finished product are to be affected. And that's not little.
In this day and age where electric mobility is gaining momentum and cobalt prices are predicted to rise, the debacle at the Katanga mines could further fuel prices for this coveted commodity. Companies with cobalt projects outside Congo, such as M2 Cobalt or First Cobalt, are getting ready.
M2 Cobalt - https://www.commodity-tv.net/c/search_adv/?v=298620 - owns a large land package in East Africa, in Uganda, a politically stable country. The mineral trend is similar to the large mines in neighbouring Congo. The Kilembe Project, which had previously produced, the Bujagali Project and the ownership rights to the Silverside Cobalt Project were intended to lead the Company to success. Only recently M2 Cobalt has added another adjacent 850 square kilometres of best cobalt land.
First Cobalt - https://www.commodity-tv.net/c/search_adv/?v=298478 - also has great ambitions to become the leading North American supplier of cobalt. First Cobalt's flagship project is located in the USA, in Idaho and is one of the rare primary cobalt properties. In addition, the company owns the only cobalt refinery in North America that can produce battery quality. The portfolio also includes 50 formerly producing small mines in the Canadian Cobalt Camp.
Current company information and press releases from First Cobalt (www.resource-capital.ch/en/companies/first-cobalt-corp.html).
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