Latest news with #CMOC
Yahoo
2 days ago
- Business
- Yahoo
Court Grants Final Order to Lumina Gold Approving Arrangement with CMOC
VANCOUVER, BC, June 19, 2025 /CNW/ - Lumina Gold Corp. (TSXV: LUM) (OTCQB: LMGDF) (the "Company" or "Lumina") is pleased to announce that the Supreme Court of British Columbia (the "Court") has issued a final order approving the previously announced plan of arrangement (the "Arrangement") pursuant to which 1536188 B.C. Ltd. ("Acquireco"), a wholly-owned subsidiary of CMOC Singapore Pte. Ltd. (the "Purchaser") will acquire all of the issued and outstanding common shares of Lumina, as previously jointly announced on April 21, 2025. Subject to the satisfaction or waiver of the remaining conditions to closing contained in the arrangement agreement entered into among the Company, Acquireco and the Purchaser dated April 21, 2025 (the "Arrangement Agreement"), the Arrangement is expected to close in late June 2025. The Arrangement is subject to the final approval of the TSX Venture Exchange. About Lumina Gold Lumina Gold Corp. (TSXV: LUM) is a Vancouver, Canada based exploration company focused on the Cangrejos project located in El Oro Province, southwest Ecuador. In 2023, the Company completed a Pre-Feasibility Study for the Project, which is the largest primary gold deposit in Ecuador. Lumina has an experienced management team with a successful track record of advancing and monetizing exploration projects. Follow us on: Twitter, LinkedIn or Facebook. Further details are available on the Company's website at To receive future news releases please sign up at LUMINA GOLD CORP. Signed: "Marshall Koval" Marshall Koval, President & CEO, Director Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Cautionary Note Regarding Forward-Looking Information Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the terms and conditions of the Arrangement; receipt of final regulatory approval; the closing and expected timing of closing of the Arrangement. Often, but not always, forward-looking statements or information can be identified by the use of words such as "will" or "projected" or variations of those words or statements that certain actions, events or results "will", "could", "are proposed to", "are planned to", "are expected to" or "are anticipated to" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, metals prices, the timely receipt of necessary approvals, the Company's ability to comply with the terms and conditions of the Arrangement Agreement, no unplanned delays or interruptions, and expected Ecuador national, provincial and local government policies. The foregoing list of assumptions is not exhaustive. Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources); risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with Canadian securities administrators. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. View original content to download multimedia: SOURCE Lumina Gold Corp. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Lumina Gold Announces Securityholder Approval of Acquisition by CMOC
VANCOUVER, BC, June 16, 2025 /CNW/ - Lumina Gold Corp. (TSXV: LUM) (OTCQB: LMGDF) (the "Company" or "Lumina") is pleased to announce that, the holders ("Shareholders") of common shares of the Company ("Shares"), holders of options of the Company ("Optionholders") and holders of restricted share units of the Company (the "RSU Holders" and together with the Shareholders and Optionholders, the "Securityholders") have voted in favour of the previously announced acquisition of the Company with CMOC Singapore Pte. Ltd., a Singapore entity and a subsidiary of CMOC Group Limited (collectively "CMOC") pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement") at the Company's special meeting of Securityholders (the "Meeting") held earlier today. The completion of the Arrangement required the approval of: (i) at least two thirds (66 2/3%) of the votes cast by Shareholders present in person or by proxy and entitled to vote at the Meeting; (ii) at least two thirds (66 2/3%) of the votes cast by the Securityholders, voting as a single class, present in person or represented by proxy and entitled to vote at the Meeting; and (iii) a simple majority of the votes cast at the Meeting by Shareholders in person or represented by proxy and entitled to vote at the Meeting, excluding votes cast in respect of Shares beneficially owned or over which control or direction is exercised by any persons whose votes must be excluded in accordance with Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The matter voted upon at the Meeting and the results of the voting were as follows: Special Resolution: the full text of which is set forth in Appendix "A" to the management information circular of Lumina dated May 14, 2025 (the "Circular"), approving, among other things, a plan of arrangement under Division 5 of Part 9 of the Business Corporations Act (British Columbia) involving Lumina Gold Corp., CMOC Singapore Pte. Ltd., and 1536188 B.C. Ltd. ("Acquireco") Outcome of Vote For Against By Shareholders. Approved 319,473,072 (99.76%) 780,679 (0.24%) By Securityholders, voting as a single class. Approved 354,386,404 (99.78%) 780,679 (0.22%) By Shareholders (excluding votes attached to the Shares required to be excluded for the purposes of "minority approval" under MI 61-101). Approved 292,613,632 (99.73%) 780,679 (0.27%) Subject to receipt of a final order in respect of the Arrangement from the Supreme Court of British Columbia (the "Court"), and satisfaction or waiver of the other conditions to closing contained in the arrangement agreement entered into among the Company, CMOC, and Acquireco dated April 21, 2025 (the "Arrangement Agreement"), the Arrangement is expected to close in late June. Further to the Company's disclosure in the Circular, the Company determined that Martin Rip, Chief Financial Officer and a related party (as defined in MI 61-101) of Lumina, beneficially owns or exercises control or direction over greater than one percent (1%) of the total Shares. The special committee of independent members of the board of directors of Lumina did not determine that the value of the benefit, net of any offsetting costs to Mr. Rip, was less than 5% of the value of the consideration Mr. Rip expected he would be beneficially entitled to receive under the Arrangement in exchange for the securities of the Company he beneficially owned. As a result, Mr. Rip's votes in respect of the Shares he beneficially owned or over which he exercised control or direction were excluded from the vote for minority shareholder approval sought pursuant to MI 61-101 at the Meeting. Further details regarding the Arrangement are provided in the Circular which is available on SEDAR+ at under the Company's issuer profile. About Lumina Gold Lumina Gold Corp. (TSXV: LUM) is a Vancouver, Canada based exploration company focused on the Cangrejos project located in El Oro Province, southwest Ecuador. In 2023, the Company completed a Pre-Feasibility Study for the Project, which is the largest primary gold deposit in Ecuador. Lumina has an experienced management team with a successful track record of advancing and monetizing exploration projects. Follow us on: Twitter, LinkedIn or Facebook. Further details are available on the Company's website at To receive future news releases please sign up at LUMINA GOLD CORP.| Signed: "Marshall Koval" Marshall Koval, President & CEO, Director Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Cautionary Note Regarding Forward-Looking Information Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the terms and conditions of the Arrangement; receipt of regulatory and Court approval; the closing and expected timing of closing of the Arrangement. Often, but not always, forward-looking statements or information can be identified by the use of words such as "will" or "projected" or variations of those words or statements that certain actions, events or results "will", "could", "are proposed to", "are planned to", "are expected to" or "are anticipated to" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, metals prices, the timely receipt of necessary approvals, the Company's ability to comply with the terms and conditions of the Arrangement Agreement, no unplanned delays or interruptions, and expected Ecuador national, provincial and local government policies. The foregoing list of assumptions is not exhaustive. Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources); risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with Canadian securities administrators. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. View original content to download multimedia: SOURCE Lumina Gold Corp. View original content to download multimedia: Sign in to access your portfolio
Business Insider
25-05-2025
- Business
- Business Insider
Congo eyes U.S. minerals deal by June amid China competition
The Democratic Republic of Congo (DRC) is aiming to finalize a major minerals agreement with the United States by the end of June, according to senior Congolese officials. The Democratic Republic of Congo (DRC) is negotiating a minerals agreement with the United States aimed at finalizing by the end of June. This deal seeks to attract U.S. investments in critical minerals and garner support to address a Rwandan-backed rebellion in DRC's eastern region. The agreement could facilitate regional cooperation in exports and processing of critical metals, impacting DRC-Rwanda relations. The Democratic Republic of Congo (DRC) is aiming to finalize a major minerals agreement with the United States by the end of June, according to senior Congolese officials. The deal is expected to attract U.S. investment in critical minerals and secure American backing to help end a Rwandan-backed rebellion in the country's east, according to a Financial Times report. This development has been described as part of Washington's broader effort to regain a foothold in Congo's mining sector, which has long been dominated by China. China's deep grip on Congo's mining sector Congo holds vast reserves of cobalt, copper, coltan, and other strategic minerals essential to green technologies and global supply chains, making it a focal point of global interest. In less than two decades, China has entrenched itself at every level of the mining industry in Congo's copper belt, from roadside artisanal dealers to major players like Shanghai-based CMOC. In 2008, Beijing signed a multibillion-dollar minerals-for-infrastructure deal with Kinshasa, cementing its influence over the country's resource wealth. Congo's mining minister, Kizito Pakabomba, told the Financial Times that a U.S. partnership would 'diversify our partnerships' and reduce reliance on China for tapping into the country's vast mineral wealth. The agreement could also pave the way for collaboration between the DR Congo and neighbouring countries, including Rwanda, in the export and processing of critical metals. Rwanda has long faced accusations of exploiting security tensions along its border to facilitate the illicit extraction of Congolese resources such as coltan, a key mineral used in mobile phones, and gold. However, President Paul Kagame's government has consistently denied backing the M23 rebel group, insisting that Rwandan forces are acting in self-defence against hostile threats. People familiar with the negotiations said Rwanda views the talks as a chance to legitimise its access to Congolese resources and draw U.S. investment to boost its own metals processing sector.
Yahoo
21-05-2025
- Automotive
- Yahoo
China's CMOC Group calls on DRC to end cobalt export ban
China's cobalt mining company CMOC Group has requested that the Democratic Republic of Congo (DRC) lift its current ban on cobalt exports, which is set to expire next month, reported Reuters, citing three sources familiar with the matter. The ban was imposed in February for four months to manage surpluses as cobalt prices reached nine-year lows. CMOC's vice-president, Kenny Ives, during a private session at an industry conference in Singapore, urged the Congolese Government to remove restrictions on cobalt, a critical component of electric vehicle (EV) batteries. The appeal was made in the presence of the DRC's Mines Minister Kizito Pakabomba. The DRC, the leading cobalt producer, has left stakeholders uncertain about its plans post-ban, which could include an extension or the introduction of export quotas. Ives highlighted concerns over China's dwindling pipeline inventory, emphasising the need for the DRC to permit free cobalt exports. He warned that continued restrictions could hasten the automotive industry's shift to lithium iron phosphate (LFP) batteries, which do not require cobalt. This transition is already under way with Chinese EV manufacturers such as BYD adopting LFP batteries. Some attendees interpreted Ives' comments as a veiled threat, reinforcing fears that China aims to suppress cobalt prices to accumulate strategic reserves. CMOC anticipates its cobalt production to be between 100,000 tonnes (t) and 120,000t this year as it increases operations at its Tenke Fungurume and Kisanfu mines in the DRC. This projection aligns with last year's production and marks a significant increase from the 56,000t produced two years ago. Conversely, at the same event, representatives from Glencore supported the export curbs, suggesting that market stability is necessary before lifting the ban. They indicated willingness to accept a quota system if implemented by the Congolese Government. Shirley Wang, general manager at Shanghai Metals Market, noted that Chinese smelters have accumulated stockpiles lasting up to six months. Meanwhile, the DRC is examining the ban's impact and considering industry proposals, weighing the loss of tax revenue against market stability. Earlier this month, the country was reportedly evaluating the prospect of imposing stricter export curbs on cobalt after the current export ban concludes. "China's CMOC Group calls on DRC to end cobalt export ban" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Bloomberg
20-05-2025
- Business
- Bloomberg
Congo Gambles on Cobalt as US-China Metals Fight Heats Up
In the middle of a trade war, Congo is trying to woo Trump's White House without risking critical investment from Beijing. Photography by Arlette Bashizi Along the 63-mile highway between the towns of Kolwezi and Fungurume sit two towering symbols of China's stranglehold over resources in the southeast corner of the Democratic Republic of Congo: huge copper and cobalt mines owned by CMOC Group Ltd. But they only tell part of the story. A closer look reveals a road peppered with factories and warehouses for construction firms from Beijing, industrial equipment makers based in Shandong, and steel operators from the northern Chinese province of Hebei. State-owned behemoths rub shoulders with fortune-seekers from small-town China who have set up trading depots, casinos and hotels. In less than two decades, China has embedded itself at every level of the resources business in Congo's copper belt from the roadside artisanal-metal dealers to wholesalers and multinationals like Shanghai-headquartered CMOC, the biggest producer of cobalt in the world after usurping Glencore Plc in 2023. The country's politicians are now looking for new friends and have turned to an unlikely ally: Donald Trump's White House. Congo shocked commodity markets by banning all cobalt exports in February. CMOC executives in Shanghai only learned about the measure from a Bloomberg report, the company says. The four-month suspension was designed to resuscitate prices which had fallen toward record lows. It was also interpreted as a rebuke to CMOC — now an integral part of the Congolese economy — for far exceeding its already ambitious output targets and contributing to the freefall in prices. The move, authorized by President Felix Tshisekedi, reflected frustration that although Congo produces three-quarters of the world's cobalt, it is Chinese companies — not politicians in the capital Kinshasa — that shape global prices of a metal critical to the battery, defense and aerospace industries. The export ban, and the implicit criticism of Beijing, is a high-stakes gamble by Tshisekedi, say analysts and traders. 'The issue of African critical minerals has been a thorn in US-China relations,' says Yun Sun, director of the China program at the Stimson Center in Washington. 'The Trump Administration has made it a priority.' But China is decades ahead of the US when it comes to critical minerals. A potential White House deal for a stake in Congo's mineral output 'risks offending China,' adds Yun Sun. Without investment from China — CMOC alone has plowed about $9 billion into its mines since 2016 — Congo wouldn't have been able to triple its production of copper and boost cobalt output by almost as much in a decade. The two metals are extracted together in the country. Exports of copper and cobalt are equivalent to about 40% of Congo's GDP, according to the International Monetary Fund. The value of trade between the two countries stood at almost $27 billion in 2024, while Congo's trade with the US was just $820 million over the same period. Congo proposed a minerals-for-security deal to the US — inspired by a similar arrangement being discussed at the time with Ukraine — shortly before Washington unleashed its global trade war focused on Beijing in April. In theory, it would offer US companies access to Congo's minerals in exchange for unspecified support to end a conflict in the east of the country, where a rebel group backed by neighboring Rwanda has taken control of two major cities and multiple gold, tin and tantalum mining areas. The assault poses a serious threat to the Tshisekedi government. Congo's Soaring Production The foreign ministers of Congo and Rwanda travelled to Washington in late April to sign a 'declaration of principles' witnessed by Marco Rubio, the US Secretary of State, that committed both sides to working toward a peace agreement. Massad Boulos, Trump's senior adviser for Africa, said on April 17 that he and Tshisekedi had 'discussed a minerals deal and charted a path forward' that could see institutions like the US International Development Finance Corp. support private investments in Congo's mining sector and infrastructure. The US State Department was more blunt about the purpose of any deal, accusing Beijing of restricting access to key minerals and metals: 'China's control over critical mineral supply chains poses a significant threat to US industrial and technological capacity and cannot continue,' said a State Department spokesperson. The Chinese government disputes those claims. 'The international community can see clearly who is playing zero-sum games and who is profiting from conflict,' the country's foreign ministry said in a statement. It added that China's role in Congo has been 'open, transparent and lawful.' Dubbed the 'Saudi Arabia of cobalt', Congo is home to around 110 million people, and a vast array of mineral resources to power everything from wind turbines to next-generation weapons systems. In addition to cobalt, the country is the second-largest producer of copper, another critical ingredient in efforts to drive 21st century technologies. But concerns about conflict and corruption — amid grinding poverty and inadequate infrastructure — have often scared off Western companies. The country's leadership — which has improved relations with the West since Tshisekedi took office in 2019 — now see an opportunity to capitalize on Washington's open distrust of China's dominance in numerous metals markets. In March, with US support, Congo killed off the acquisition of a local copper-cobalt producer by a subsidiary of the Chinese weapons manufacturer Norinco Group, which already owns mines near Kolwezi. However a US-backed alternative bid is yet to materialize. CMOC's Congo Mines Dominate the Global Cobalt Market Any US push begins at a major disadvantage. China and its citizens have built an infrastructure of businesses, big and small, that have learned to thrive in Congo's challenging environment, which requires dealing with everything from corruption to rogue soldiers, potholed roads and political instability. Beijing's power over pricing also stems from the processing plants, battery facilities and electric vehicle factories it has spent decades building at home. More than 80% of global cobalt refining occurred in China last year, according to trading house Darton Commodities. This dominance has been cemented with cash. China extended $56.9 billion of credit and aid into 'transition mineral' projects worldwide between 2000 and 2021, according to AidData, a think-tank at William & Mary university in Virginia. 'Being dependent on one country puts you in a state of vulnerability,' says Christian-Geraud Neema Byamungu, an expert on Beijing's mining investments in Congo at the China-Global South Project, a research group. Belatedly, President Joe Biden's administration sought to counter China's grip amid escalating fears of supply shortages for some minerals. He introduced financial incentives to bolster domestic refining in the US, which doesn't possess the capacity to process cobalt. Investment for the Lobito Atlantic Railway, which links Kolwezi to the Angolan coast, was also pledged as Biden urged Western miners to reconsider getting involved in Congo's natural resources. Arizona-based EVelution Energy is vying to be one of the first US companies to open a domestic commercial-scale cobalt refining facility. It plans to begin in 2027 and expects to import from Congo. Gil Michel-Garcia, the firm's executive vice president, says a 'peace-for-minerals' deal would help 'secure vital critical minerals' for the US automotive, aerospace and defense industries, and 'derisk America's cobalt supply chain from China.' Boulos's emphasis on using the Development Finance Corp. echoes an approach that failed to spur any major US mining investments in Congo during Biden's term. Still, KoBold Metals, backed by Bill Gates, the Microsoft founder, and Amazon's Jeff Bezos — which had previously shown interest in Congo — says it now wants to invest more than $1 billion to develop a lithium deposit located 270 miles north east of Kolwezi. The government in Kinshasa is walking a tightrope. It wants to dilute the influence of Chinese companies over the nation's mining sector by attracting other outside investors, but without souring relations with its key trading partner. The talks with the US are part of Congo's wider push to diversify the economy, says Kizito Pakabomba, the country's mines minister, who wants to use any extra revenues from the sector to boost other areas including, 'agriculture, tourism and many other industries.' Cobalt and copper are exempt from the Trump tariffs but Moody's, the rating company, initially warned — before the cooling off in the US-China trade war last week — of the 'potential adverse effects' of the tariffs on demand for Congo's commodities if global growth is hit. Congo doesn't want to be in a position where it has to pick sides or swap one overmighty group of investors for another. 'The ultimate objective remains complete control of the cobalt value chain,' Tshisekedi told a meeting of his ministers in March. The country 'must cease to be a simple supplier of commodities and become a key actor in refining strategic minerals.' China's Stranglehold, From Pit to Processing That's easier said than done. For three decades until the 1990s, the US supported dictator Mobutu Sese Seko. Companies like General Motors Co., General Electric Co. and Citigroup Inc. all had operations or major projects in the country. Foreign investor interest waned as multilateral institutions turned away from Congo towards the end of the kleptocratic dictator's rule and the country veered towards civil conflict. After Mobutu was overthrown in 1997, Western companies flooded into Congo, trying to secure its mining assets on the cheap. Many eventually left, discouraged by the difficult business environment. Almost all that's left from the Mobutu era is a small Citibank branch in Kinshasa. During the 18-year presidency of Joseph Kabila, Tshisekedi's predecessor, this disengagement left the door open for Beijing, which has sought raw materials in its breakneck push for economic growth since the end of the twentieth century. China now dominates Congo's copper and cobalt sector both as miner and consumer. 'We have a good relationship with the Chinese,' says Angelo, a mining cooperative coordinator, who declines to provide his full name due to his involvement in illegal artisanal mining. He watches dozens of young men wearing sandals and broken plastic boots emerge from an illegal open-pit mine, close to CMOC's giant Kisanfu operation. On their backs, they carry dirty white sacks of raw copper and cobalt ore. 'We make a good living doing this,' he says of his workers who operate 24 hours a day, seven days a week. 'Our life is stable because of this.' The artisanal sector — which is loosely regulated and often generally in breach of Congolese laws that prohibit small scale mining on industrial sites — accounted for about 10% of Congo's cobalt output in 2018, but falling prices and attempts to formalize the sector mean that has shrunk to about 2%, according to Benchmark Mineral Intelligence. But it remains significant to the local economy. Angelo says he handles the logistics for 30,000 artisanal workers — who dig for ore using rudimentary tools. Some estimates suggest there could be well over 200,000 artisanal cobalt miners in the country. They often work in dangerous conditions for uncertain income, and the government has struggled to keep child laborers away from the sites. In front of Angelo, groups of women and men crush rocks with pickaxes before the material is transported to mainly Chinese wholesalers. At a makeshift metals depot outside Kolwezi, a hand-written sign on the wall lists the prices offered for the ore with copper grades from 1% to 20%. A neighboring rival depot — one of dozens — lists grades of up to 30%, a purity unheard of anywhere else in the world. 'Only in Congo,' one Chinese buyer says admiringly. A neighboring depot is owned by Kwanga — an adopted name for a wholesaler called Li who hails from the industrial city of Shijiazhuang, in northern China. He declines to give his full name to avoid attracting the attention of the authorities. Li sells the ore to one of the many Chinese-owned processing plants around Kolwezi with access to refiners at home. 'We weigh it, assess the quality and then offer a price,' says Li, as he paces around the depot, smoking and dictating instructions into his phone in Mandarin and Swahili. Gesturing toward a Chinese employee behind a mesh fence, he adds: 'If they don't accept the price, they go elsewhere.' Several artisanal miners point out that they have nowhere else to go to sell their cobalt and copper, other than the ubiquitous Chinese wholesalers. The illegal Shabara artisanal copper-cobalt mine near the Congolese town of Kolwezi. Workers assemble at the Shabara mine, preparing to dig on land where a Glencore subsidiary has the only official mining permit. The commodity trader has previously tried to stop the artisanal mining at the site. A Shabara miner holds a lump of raw copper and cobalt. More than 200,000 artisanal cobalt miners work in Congo, often in dangerous conditions for uncertain pay. Miners pack bags of ore in the Shabara mine which will later be broken up before being sold to wholesalers, likely in Kolwezi. Miners queue at a sales counter while staff negotiate a price for the ore they have brought in. The artisanal sector accounts for an estimated 2% of production. How CMOC Left Glencore Flatfooted No company has done more to supercharge the creation of the industrial side of this ecosystem than CMOC, which now dominates global cobalt production. It began life in 1969 as a state-owned producer of molybdenum, a steelmaking ingredient, in the central province of Henan. A steady expansion in the 2000s led to a listing on the Hong Kong Stock Exchange in 2007 which valued the company at around $1 billion. After buying mining assets in Australia and Brazil, it was investments in Congo that announced it as a global deal-maker. In 2016 it took over the Tenke Fungurume mine near Kolwezi in a deal with the American miner Freeport-McMoRan Inc. and Canada's Lundin Mining Corp. that totaled $3.8 billion. In 2020 it paid Freeport another $550 million for the Kisanfu license and last year became a top-10 copper producer. In an industry where turning promising geology into an actual mine can take decades, CMOC's progress in building Kisanfu shocked rivals. The facility — now the biggest cobalt mine in the world — was brought into production in little more than two years. The speed left competitors flatfooted. The deluge of cobalt worsened a slump in prices which fell by around 75% from a May 2022 peak, falling below $10 a pound in February. The financial hit for Congo was significant: mining royalties from cobalt hydroxide fell more than 40% to $409 million in 2023, according to Resource Matters, a research and advocacy group, even as production grew by almost one fifth. However, the lower prices were good news for Chinese battery makers. Contemporary Amperex Technology Co. Ltd., or CATL — the world's largest manufacturer of EV batteries — owns around a quarter of CMOC's shares and a separate 25% stake in the Kisanfu mine. Jose Fernandez, US under secretary for economic growth, energy, and the environment under Biden, accused CMOC last year of using 'predatory' tactics to depress cobalt prices and discourage Western companies from developing a rival supply-chain for the metal. Source of Cobalt Demand Glencore — which had been the top cobalt producer for at least 15 years — saw its power to dictate prices evaporate. The Swiss commodity trader cut output at one of its Congolese mines as the market weakened in an attempt to support prices. But the effort was futile. CMOC last year produced three times more cobalt in Congo than Glencore. Chinese miners were also left reeling: some slashed exports while state-backed MMG Ltd. mothballed a new cobalt plant in December. CMOC — which turned down a request for access to its Kisanfu mine for this story — denies deliberately crashing the price. It describes the glut as an unavoidable consequence of its push to produce more copper. "We develop the mine assets in the DRC for copper,' CMOC said in an emailed response to questions. 'Cobalt is only a byproduct.' The export ban is scheduled to be lifted in late June, although Tshisekedi has warned that it could be extended. Bloomberg Intelligence estimates that the suspension — if it is extended to the end of 2025 — could cost Congo as much as $400 million. More permanent options to exert greater control over prices, including export quotas, are being discussed. Around Kolwezi, miners continue to ship copper while storing cobalt on site. Congolese politicians — happy that the hydroxide price has doubled since the ban was introduced — know flooding the market the moment it's lifted would take them back to square one. While Congo says it simply wishes to restore balance between supply and demand, analysts have warned that overly stringent controls could hasten a shift by EV battery makers towards cobalt-free alternatives. Andre Wameso, Tshisekedi's powerful deputy chief of staff for economic affairs, told a cobalt industry conference in Singapore last week that the ban is part a 'broader strategy.' 'Congo is considered a land where one comes to source raw materials to build other economies,' the president's adviser said as he referenced the role played by the country's resources from rubber to diamonds in earlier periods of global change, which have not translated into prosperity for its people. 'We understand that a new revolution is coming. You've talked about it. It's the energy transition, the green revolution, and once again the raw materials that will serve this industrial revolution are in Congo.' 'We are thinking about how to implement the right policies,' he went on, 'so that not only can the mining industry develop and obviously recover capital, but also this time benefit the Congolese people.' Assist: Annie Lee, Jing Li Editor: Tom O'Sullivan Photo editor and production: Jody Megson More On Bloomberg Terms of Service Do Not Sell or Share My Personal Information Trademarks Privacy Policy Careers Made in NYC Advertise Ad Choices Help ©2025 Bloomberg L.P. All Rights Reserved.
