“The world’s cobalt resources are concentrated, and after the existing supply is released, it is expected that there will be no new resources for a long time,” CMOC said in announcing record first-half profits. “The medium and long-term price will rise in a healthy and effective manner over the long term.”
The Chinese mining giant, whose shareholders include the world’s largest battery maker Contemporary Amperex Technology Co., reported a seven-fold jump in profits to 5.4 billion yuan ($757 million) from the same period last year.
CMOC doubled its cobalt production to 54,024 tonnes in the first half of the year after it brought two huge mines online in the Democratic Republic of Congo, where it produces the metal as a byproduct of copper mining. The Chinese company overtook Glencore Plc to become the largest cobalt producer last year.
The company also doubled its copper production to 313,788 tonnes in the first half of the year. Prices are being “strongly supported” by a gradual recovery in the Chinese economy and real estate market, as well as an easy monetary environment, CMOC said. The energy transition, AI and the expansion of the power grid are also boosting demand.
CMOC’s metal trading arm IXM reported a profit of 664 million yuan in the first half of the year on operating income of 93.9 billion yuan.
