CMOC Group to More Than Double Copper Output in Congo by 2028
CMOC Group has announced plans to significantly increase its copper production from mines in the Democratic Republic of Congo, aiming to boost output to between 800,000 and 1 million tons by 2028. This ambitious target comes in response to anticipated strong demand for copper, driven by its essential role in green technologies.
The Chinese producer intends to achieve this growth by expanding operations at its flagship Tenke Fungurume mine and the Kisanfu mine (KFM). A CMOC spokesperson revealed via email that the company produced approximately 420,000 tons of copper in 2023 and is expected to increase output to around 570,000 tons this year.
Copper, along with cobalt, is crucial for green technologies such as electric vehicles, which are integral to global climate targets. CMOC is investing heavily in the third-phase expansion of the Tenke Fungurume mine, with an investment of about $2.5 billion to date. Additionally, the company is rapidly developing the KFM mine, which began production last year.
The planned increase in copper production will also lead to higher cobalt output, despite current low prices for the battery metal. In Congo, cobalt is typically a byproduct of copper mining. CMOC projects its cobalt production to rise to between 90,000 and 100,000 tons by 2028. Last year, the company became the world's largest cobalt producer with a yield of around 55,000 tons and is set to further outpace competitors like Glencore, with a forecast of 60,000 to 70,000 tons for this year.
Congo holds the title of the world's leading cobalt supplier and the third-largest copper producer. However, cobalt prices have dropped significantly, currently at around $27,000 per ton, a 70% decrease since early May 2022. Analysts at Macquarie predict the cobalt market could remain oversupplied by about 28,000 tons this year and 24,000 tons in 2025.
