World’s Largest Cobalt Miner Ramps Up Output in African Mines
TLDR
- China's CMOC Group, the world’s largest cobalt producer, aims to maintain cobalt production at 100,000–120,000 tons in 2025
- This guidance follows a significant ramp-up at its TFM and KFM mines in the Democratic Republic of Congo
- The company exceeded its 2024 production target within nine months, shaking the market and underscoring concerns about oversupply
China's CMOC Group, the world’s largest cobalt producer, aims to maintain cobalt production at 100,000–120,000 tons in 2025 after achieving a record 114,165 tons in 2024. This guidance follows a significant ramp-up at its TFM and KFM mines in the Democratic Republic of Congo (DRC).
High output from CMOC has driven cobalt prices to their lowest levels since 2016. The company exceeded its 2024 production target within nine months, shaking the market and underscoring concerns about oversupply. CMOC has also expanded exploration at TFM’s western area and KFM Phase II to sustain output.
Cobalt, a by-product of copper mining, remains central to CMOC’s operations. The company forecasts copper production at 600,000–660,000 tons in 2025, after producing about 650,000 tons last year. CMOC’s preliminary 2024 net income surged 55%–72% year-over-year to $1.76 billion–$1.84 billion, driven by higher copper prices, increased output, and strong sales.
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Key Takeaways
CMOC’s record-breaking cobalt production highlights the metal’s critical role in batteries and alloys but also reflects shifting market dynamics. As the electric vehicle (EV) industry explores alternatives like lithium-iron-phosphate (LFP) batteries to reduce reliance on cobalt, demand may face long-term challenges. The company’s bullish copper outlook aligns with its diversification strategy, as copper remains vital to the EV and renewable energy sectors. However, oversupply concerns may continue to pressure cobalt prices, with CMOC’s output potentially exacerbating market imbalances. The DRC’s dominance in cobalt mining, coupled with CMOC’s strategic investments, reinforces the region’s importance in global supply chains. Still, evolving technologies and geopolitical risks could reshape the sector in the coming years.
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