Cobalt Mining in the DRC: Challenges and Achievements at Etoile Mine
A conveyor belt carries raw cobalt for processing at the Etoile mine, operated by Chemaf Sarl, located in Katanga province near Lubumbashi, in the Democratic Republic of Congo. Along a 250-mile highway cutting through central Africa, thousands of flatbed trucks haul sheets of copper and sacks of cobalt hydroxide—materials essential for electric cars and other 21st-century technologies. Drivers navigating this route face steep toll costs, which can amount to as much as \$900 for a round trip.
CMOC Group Ltd., the largest cobalt miner globally, reported that it surpassed its full-year output target last quarter, following an accelerated ramp-up in production. CMOC produced 84,722 tons of cobalt in Africa during the first nine months of 2024, exceeding the original yearly guidance, which was capped at 70,000 tons. This increase in production has contributed to a global cobalt surplus, which in turn has pushed prices to an eight-year low.
The Chinese firm overtook Glencore last year to become the world’s leading supplier of cobalt—a critical component for electric vehicle batteries, aerospace alloys, and other advanced technologies. CMOC’s success is attributed to the ongoing expansion of two major mines in the Democratic Republic of Congo, where cobalt is mined as a by-product of copper extraction. The company’s copper production rose by 78% in the first nine months of 2024 and could reach 600,000 tons by the end of the year, according to CMOC's official statements.
Financially, CMOC reported a 64% year-on-year increase in third-quarter net income, reaching 2.9 billion yuan (\$410 million). This growth was primarily driven by the higher copper output and relatively strong global copper prices. The company's revenues for the quarter climbed 16%, reaching 51.9 billion yuan.
In addition to its cobalt success, CMOC has started preliminary exploration for expanding its Tenke Fungurume mine and advancing phase two of its Kisanfu project. CMOC also signed a three-year supply and purchase agreement with Contemporary Amperex Technology Ltd. (CATL), the world’s largest battery manufacturer and CMOC’s second-biggest shareholder. CATL bought \$546 million worth of metals from CMOC during the first eight months of 2024—more than double the volume bought in all of 2023—primarily focusing on nickel products.
The oversupply of cobalt has continued to drive prices down. Despite this, CMOC is focused on increasing production, leveraging its substantial mining assets in Africa and maintaining long-term supply agreements with key industry players like CATL.
