DRC Mining Newsletter 19-02-24 | Key announcements (funding, partnerships, production)

RAPID GROWTH IN MINED COBALT SUPPLY: DRC LEADS WITH 80% CONTRIBUTION IN 2023

According to Cobalt institute, mined cobalt supply increased by 23% in 2023, with the DRC accounting for 80% of the growth in mined supply, supplying ≈ 37kt of additional cobalt to the market. Learn more.

LOBITO ATLANTIC RAILWAY CONCLUDE STRATEGIC AGREEMENT FOR MINERAL TRANSPORTATION WITH KAMOA-KAKULA COPPER COMPLEX AND TRAFIGURA

The Kamoa-Kakula Copper Complex and commodities trader Trafigura have both signed a term sheet outlining the key terms for a reserve capacity agreement for transporting mineral products from the mine along the Lobito Atlantic railway corridor, a new export trade route between the African copper belt and Angola's Atlantic coast.

The Lobito Atlantic railroad is expected to increase annual export capacity to one million tonnes by the end of the decade, with Trafigura's allocation rising to 450,000 tonnes. As for the Kamoa-Kakula copper complex, it has agreed to transport between 120,000 t/y and 240,000 t/y of blister-anode or concentrate by rail along the Lobito corridor. The contract will run for a minimum of five years from 2025, after a start-up year in 2024. Learn more.

KAMOA-KAKULA SECURES $200M FROM RAWBANK FOR EXPANSION

Kamoa-Kakula has successfully secured $200 million in financing from Rawbank for its third phase of expansion, which is set to be operational ahead of schedule in the third quarter of 2024. This phase entails the incorporation of Africa's largest direct flash smelter, with a capacity of producing 500,000 tonnes of 99+% pure blister copper anodes annually, marking a significant step as the project nears 62% completion. Learn more.

GECAMINES AND EGC SIGN EXCLUSIVE MINING RIGHTS AGREEMENT IN CONGO’S COBALT INDUSTRY

Gecamines and its subsidiary Entreprise Generale du Cobalt (EGC), a state-owned company entitled to all hand-dug cobalt in the Congo, have signed an agreement granting EGC exclusive mining rights over five mining zones. Learn more.

For the record, artisanal and small-scale cobalt mining in the DRC account for almost 12% of the country's cobalt production in 2021.

GECAMINES MAKES BOLD BID TO RECLAIM CONTROL OVER STRATEGIC COPPER AND COBALT ASSETS FROM ERG

DRC State miner Gecamines has made a firm proposal to buy back some of the country's copper and cobalt assets held by Eurasian Resources Group (ERG) as it tries to restore its control over the materials needed for the energy transition. Learn more.

ERG assets in DRC include Frontier mine, Comide, Metalkol, Boss Mining and some development and near-production assets.

U.S. AS MSP CHAIR ANNOUNCES MOU BETWEEN GECAMINES AND JOGMEC FOR MINERAL COORDINATION

The United States, as the chair of the Partnership for Mineral Security (MSP), has announced the signing of a Memorandum of Understanding (MOU) between LA GENERALE DES CARRIERES ET DES MINES (GECAMINES) and the Japan Organization for Metal and Energy Security (JOGMEC). This collaboration aims to coordinate activities related to mineral exploration, production, and processing, in line with their shared commitment to the development of the Lobito Corridor of the Global Infrastructure and Investment Partnership (GIIP).

The MOU will create a framework for cooperation to expand business opportunities. This collaboration showcases the MSP's efforts to ensure and diversify supply chains for strategic minerals, which will bring economic benefits to local communities. Additionally, GECAMINES will play a significant role in?

the Lobito Corridor project through its notable copper and cobalt production initiatives. Learn more.