CMOC's Cobalt and Copper Output Soars in 2024, Boosting China's Supply

CMOC's

Chinese mining giant CMOC has reported a significant surge in its copper and cobalt production for 2024, primarily fueled by increased output from its operations in the Democratic Republic of Congo (DRC).  This production boost has subsequently impacted China's imports of these critical metals.

DRC Operations Drive Record Production

CMOC's cobalt production more than doubled in 2024, reaching 114,165 tonnes (metal equivalent), compared to 55,526 tonnes in 2023. This dramatic increase is attributed to higher output from the company's Tenke Fungurume copper-cobalt mine (TFM) and the newly developed Kisanfu copper-cobalt mine (KFM) in the DRC. KFM commenced production in the first half of 2023.  CMOC acquired a 56% stake in TFM from Freeport-McMoRan in 2016, increasing its ownership to 80% in 2017. The acquisition of KFM was completed in December 2020.  KFM is jointly owned by CMOC (71.25%), Brunp, a subsidiary of Contemporary Amperex Technology (CATL), (23.75%), and DRC's state-owned Gecamines.

The company also saw a substantial rise in copper production, reaching 650,161 tonnes in 2024, a 55% increase year-on-year and 14% above its annual production guidance. This growth is partly due to the three new production lines at its mixed ore project at TFM reaching full capacity in the first half of 2024.  TFM now boasts five production lines with a combined capacity of 450,000 tonnes per year.  The KFM mine has achieved a copper capacity of 150,000 tonnes per year.

Impact on China's Metal Imports

The increased cobalt output from CMOC's DRC operations has significantly impacted China's feedstock imports.  Customs data reveals that China imported 172,580 tonnes of cobalt metal equivalent of intermediate products between January and November, a 74% surge compared to the same period the previous year.  Notably, approximately 98.7% of these imports originated from the DRC, a region where the world's two largest cobalt feedstock producers, CMOC and Glencore, operate copper and cobalt mines.  CMOC also holds a 30% stake in Huayue Nickel Cobalt, a joint venture with Huayou Cobalt and Tsingshan in Indonesia.

Looking ahead, CMOC is pursuing further production expansions as part of its five-year plan starting in 2025. These plans include the West Area project at TFM and the second phase of KFM, both of which are currently in the preliminary exploration stage.