Gecamines to sell stake in cobalt amid shift in Congo's mineral policy
Date
7/15/2024 5:01:15 AM
(MENAFN) The Democratic Republic of Congo's state-owned mining company, Gecamines, is pursuing the sale of its cobalt stake from a joint venture, reflecting the country's efforts to gain more control over minerals crucial for its energy transition. Sources familiar with the matter revealed that Gecamines has initiated a bidding process to sell a portion of its cobalt output from the Tenke Fungurume mine, operated by the CMOC Group, in which Gecamines holds a 20 percent interest.
This marks the first instance where Gecamines is directly marketing its cobalt production, contrasting with previous arrangements where joint ventures handled all sales. The move underscores Congo's strategic shift towards asserting greater sovereignty over its mineral resources, particularly cobalt, a key component in electric vehicle batteries and renewable energy technologies.
Last year, the Tenke Fungurume mine, according to government data, exported 361,000 tonnes of copper and 23,000 tonnes of cobalt, solidifying its position as one of Congo's largest mining operations. CMOC has confirmed that Gecamines retains a contractual right to 20 percent of Tenke's production under an agreement signed recently.
This development reflects Congo's broader aim to enhance local beneficiation of its mineral wealth and maximize economic returns from its mining sector. As global demand for cobalt intensifies amid the global energy transition, Congo seeks to leverage its resource wealth to drive sustainable development and economic growth.
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