Hanrui Cobalt Confirms Production Operations Remain Unaffected

Nanjing Hanrui Cobalt, a leading cobalt producer in China, has dispelled market rumors about a production halt at its Jiangxi plant, affirming that operations continue as normal. Amidst speculation that an incident had disrupted production, Huang Yunyue, the company's general counsel and operations manager, clarified to Reuters that Hanrui maintains a steady monthly output of 480 to 500 metric tons of cobalt metal. This clarification comes in the wake of the April cobalt contract on the Zhonglianjin exchange reaching a near four-month peak, driven by market talks of a production interruption.

Addressing concerns, Huang emphasized, "There has been no safety incident," and provided insights into the company's expansion plans. Hanrui is set to commence the second phase of its Jiangxi project on March 25, adding 500 tons to its monthly production capacity. Furthermore, the completion of a third phase by mid-May is expected to boost the plant's total output to 1,500 tons of cobalt metal starting June. This announcement follows a fluctuation in cobalt prices, with the April contract experiencing its most significant drop since October, settling at 203,500 yuan per ton. Hanrui's reassurances and expansion endeavors underscore its commitment to maintaining robust production capabilities amidst the dynamic cobalt market.