Due to oversupply, cobalt prices fell by 50% in the past two years. CMOC has significantly contributed to the excessive supply. The Chinese firm runs two major copper-cobalt mines in the Democratic Republic of Congo (DRC), Central Africa.

CMOC produced 114,165 tonnes of cobalt in 2024, against 55,526 tonnes in 2023 (more than double). The Chinese company disclosed the figure on January 6, 2025. Meanwhile, cobalt prices keep falling–from over $28,000 per tonne in January 2024 to less than $24,000 in December on the London Metal Exchange.

CMOC’s increased output contributed to the price slump recorded over the past two years. After an estimated surplus of 14,200 tonnes in 2023, the Cobalt Institute noted last October that the market would again be oversupplied in 2024. The Institute expects the largest contributor to be CMOC's Kisanfu mine in the DRC. Though aware of its actions’ impact on the market, CMOC, has announced no plan to cut cobalt production, so far.

Last August, CMOC said it expected global supply to slow down in the second half of 2024, but that did not happen. Regardless, the company exceeded its cobalt production target of 70,000 tonnes for 2024.

High copper prices during this period (peaking at over $10,000 per tonne in May 2024) may explain this situation since cobalt is usually a by-product of copper mining at CMOC's Kisanfu and Tenke Fungurume mines. Last year, CMOC produced over 650,000 tonnes of copper, up 55% year-on-year.

CMOC has not yet released its forecasts for 2025, leaving uncertainty about whether it will lower its cobalt production target. The Cobalt Institute is already predicting a surplus market for 2025, which could keep cobalt prices stable. On January 3, 2025, a tonne of cobalt traded at $24,300 on the London Metal Exchange, while copper was priced at $8,876 per tonne.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho