Latest news with #cobalt
Reuters
3 days ago
- Business
- Reuters
Congo's cobalt dilemma unresolved by extended export ban
LONDON, June 27 (Reuters) - The Democratic Republic of Congo has extended its ban on exports of cobalt by three months as the world's dominant producer of the battery metal tries to convert its supply power into pricing power. After rallying sharply in February, when the market was caught out by news of the original ban, the price reaction this time has been more muted. Some sort of extension was widely expected. Moreover, it has become clear the physical supply chain has so much accumulated inventory, Congo's muscle-flexing has yet to faze buyers. Neither are investors buying into an imminent turnaround in the market. Cobalt Holdings, which planned to list a physical cobalt investment vehicle, pulled its initial public offering on the London Stock Exchange earlier this month. Congo's cobalt dilemma is how to restrict supply of a metal that is mined as a by-product of copper, an even bigger revenue earner for the resource-rich country. It might do better to focus on its own role in the supply chain. It takes around 90 days to ship Congo's intermediate cobalt product to China for refining, meaning the full impact of the February export ban is delayed. China's imports of Congolese cobalt remained robust at over 50,000 metric tons in both March and April. Moreover, the Chinese supply chain is still bloated from consecutive years of market surplus. Consultancy Benchmark Mineral Intelligence estimates stocks of cobalt outside Congo amounted to 8-10 months of global consumption in the second quarter of this year. Even with extended export controls by the world's largest producer, BMI reckons cobalt hydroxide stocks in China will only become physically low towards the end of next year. The shift by Chinese electric vehicle manufacturers away from cobalt chemistry is compounding over-supply. The country's consumption of cobalt sulphate by the battery cathode sector fell last year, according to analysis by Shanghai Metal Market compiled for the Cobalt Institute. And since DRC has only stopped exports not production, stocks of intermediate cobalt are also piling up in Congo. Cobalt's by-product status means Congo cannot easily follow the lead of Indonesia, which has started using mine quotas to limit production of nickel, another battery metal with bombed-out pricing. Any mining restrictions on Congo's cobalt producers would inevitably impact production of copper, which is currently in hot demand. The London Metal Exchange copper price is riding high at close to $9,900 per ton given tight markets for the raw material and refined metal. Chinese operators in Congo, such as CMOC Group ( opens new tab, have every incentive to keep digging as much copper out of the ground as possible. The cobalt comes free with it. Congo is the world's largest cobalt-producing country and CMOC is the largest producing company. With limited leeway to force companies such as CMOC or Glencore (GLEN.L), opens new tab to produce less cobalt without forfeiting copper revenues, the government has been considering an export quota system. Enforcing export quotas rather than the current blanket ban, however, would be operationally tricky and would not tackle the inventory accumulating in the country. The potential for a renewed flood of Congolese supply in the event of a policy change would weigh heavily on the cobalt price. The Congolese government looks set a long stand-off with the cobalt market and it is not even clear what price level it is targeting. If it aims too high, there is a risk it will accelerate cobalt's loss of market-share in the battery sector. Congo is finding out that controlling supply and controlling market price are two very different things, particularly when the other end of the cobalt supply chain is thousands of miles away in China. It could do worse than look at another Indonesian tactic, which is to link exports to commitments to build downstream processing capacity. Indonesia has successfully used this linkage in both the nickel and copper sectors, where two new smelters are firing up this year as a result of ever tighter controls over exports of copper concentrate. While Congo is likely to struggle to exert lasting control over the cobalt price, it can use its dominant supply position to determine where it sits in the supply chain. In itself, that will not solve the problem of over-production of what is a copper by-product, but it would mean more revenue for each pound of metal dug out of the country's rich resource base. The opinions expressed here are those of the author, a columnist for Reuters.
Yahoo
5 days ago
- Business
- Yahoo
Scott Lendrum appointed Chief Executive Officer of Giga Metals Corporation
VANCOUVER, British Columbia, June 24, 2025 (GLOBE NEWSWIRE) -- Giga Metals Corporation (TSX.V: GIGA, OTCQB: GIGGF, FSE: BRR2) (the "Company") is pleased to announce that Scott Lendrum has been appointed Chief Executive Officer of the Company, effective July 2, and will also join the board of directors of the Company (the "Board"). Mr. Lendrum has extensive experience as an investment banker specializing in the mining sector. He has a strong track record in executing cross-border mergers and acquisitions, equity financing, and capital market transactions, and has held leadership positions at several prominent financial institutions, most recently at Paradigm Capital from 2021 – 2024, where he was Director of Investment Banking (Mining). 'The appointment of Mr. Lendrum reflects our Company's commitment to advancing its long-term strategic objectives and enhancing shareholder value,' said Lyle Davis, Chairman of the Board. 'We are very excited to welcome him to the Board and to this leadership position.' 'This is the opportunity I have been looking for,' said Mr. Lendrum. 'I am extremely excited to join Giga Metals and continue the successful work carried out by Mark and the team. Turnagain is a significant project in a great jurisdiction, and it has exciting exploration upside in addition to its large nickel and cobalt deposit, described in a PFS dated October, 2023. I believe there is a lot of value to be unlocked here, and I look forward to the challenge.' In connection with this transition, Martin Vydra has stepped down from his roles as President and Director of the Company, effective today. Mr. Vydra will continue to play a key role with the Company, serving as a Strategic Advisor to support the Company's leadership and ongoing development. Additionally, Mark Jarvis, who has served as Chief Executive Office since 2005, will assume the role of President. This new structure ensures continuity and a strong foundation for the Company's next phase of growth. "We are thrilled to welcome Mr. Lendrum to the team. We believe that his leadership and vision will be invaluable as we pursue our strategic goals," said Mr. Jarvis. "We also thank Mr. Vydra for his significant contributions to the Company and look forward to his continued involvement in an advisory capacity." In connection with Mr. Lendrum's appointment, the Company has issued Mr. Lendrum 2,000,000 options (the "Options") exercisable into 2,000,000 common shares of the Company at an exercise price of $0.10 for a period of 5 years pursuant to the Company's stock option plan. The Options vest as to one quarter immediately, with an additional one quarter vesting annually. All options vest on a Change of Control. Mr. Jarvis and the Company have also agreed to cancel 1,900,000 options held by Mr. Jarvis, each of which was exercisable into a common share of the Company at a price of $0.52 until the end of 2025. For more details, please join President Mark Jarvis & CEO Scott Lendrum for a live corporate update on June 25 at 11 AM ET / 8 AM PT. CLICK HERE TO REGISTER. About Giga Metals Corporation Giga Metals Corporation's core asset is the Turnagain Project, located in northern British Columbia, which contains one of the few significant undeveloped sulphide nickel and cobalt resources in the world. Turnagain is held in Hard Creek Nickel, a subsidiary owned jointly by Giga Metals Corporation and Mitsubishi Corporation. The Pre-Feasibility Study was released in October 2023. Forward-looking Statements Certain statements in this news release are forward-looking statements, which reflect the expectations of the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements include, but are not limited to, the Company's strategic goals and future plans. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. On behalf of the Board of Directors of Giga Metals Corporation 'Lyle Davis' LYLE DAVIS Chairman of the Board Contact InformationOffice Phone: +1 (604) 681-2300Investor Inquiries: info@ Website: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Suite 604-700 West Pender Street, Vancouver, BC V6C 604 681 2300
Zawya
6 days ago
- Business
- Zawya
Africa: DRC's cobalt export ban extended by three months
The Democratic Republic of Congo (DRC) has extended its ban on exports of cobalt -- intended to curb oversupply of the electric vehicle battery material -- by three months, a regulatory agency said on Saturday, 21 June 2025. The world's top cobalt supplier imposed a four-month suspension on exports in February after prices had hit a nine-year low at just $10 a pound. The ban was due to expire on Sunday, 22 June 2025. "The decision has been taken to extend the temporary suspension due to the continued high level of stock on the market," the Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) said in a statement. ARECOMS said it expected to announce a subsequent decision to either modify, extend or terminate the suspension before the new three-month window closes in September. Reuters reported on Friday, 20 June 2025 that Congolese authorities were considering extending the ban as they explored how to distribute quotas for shipments of cobalt among mining companies. A proposal to implement quotas has backing from miners including Glencore, the world's second-largest cobalt-producing company. But Glencore's position differs from that of the number one producer, China's CMOC Group, which has lobbied for the ban to be lifted. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
6 days ago
- Business
- Yahoo
DRC extends cobalt export ban amid persistent market oversupply
The Democratic Republic of Congo (DRC), the world's leading cobalt supplier, has announced a three-month extension to its export ban on the metal, which is a key component in electric vehicle batteries. The Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) confirmed the decision on Saturday, citing persistent market oversupply, according to a report by Reuters. The ban was initially imposed in February for a four-month period after cobalt prices dropped to a nine-year low of $10 per pound (lb). ARECOMS stated that the high level of stock still present in the market necessitated the extension of the temporary suspension. The agency has indicated that before the conclusion of the new three-month period in September, it will make a further announcement on whether to modify, extend, or terminate the suspension. Congolese authorities are currently evaluating the implementation of quotas for cobalt shipments among mining companies. According to the report, Glencore, the world's second-largest cobalt producer, supports the proposal for quotas. However, this stance contrasts with that of CMOC Group, the leading cobalt producer, which is advocating for the ban to be lifted. In related news, a coltan mine collapse in the town of Rubaya in DRC's North Kivu province has claimed the lives of at least 12 people, according to a separate Reuters report, citing sources. The report stated that several people managed to escape the artisanal mine when it collapsed on Thursday, although the cause has yet to be determined. Rubaya's small artisanal mines contribute approximately one-sixth of the global supply of coltan, an essential metallic ore for the manufacture of smartphones and other electronic devices. Since mid-2024, the M23 rebels have controlled the area, imposing a 15% tax on coltan production, as confirmed by rebel officials. "DRC extends cobalt export ban amid persistent market oversupply" 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.
Yahoo
7 days ago
- Business
- Yahoo
DRC extends cobalt export ban amid persistent market oversupply
The Democratic Republic of Congo (DRC), the world's leading cobalt supplier, has announced a three-month extension to its export ban on the metal, which is a key component in electric vehicle batteries. The Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) confirmed the decision on Saturday, citing persistent market oversupply, according to a report by Reuters. The ban was initially imposed in February for a four-month period after cobalt prices dropped to a nine-year low of $10 per pound (lb). ARECOMS stated that the high level of stock still present in the market necessitated the extension of the temporary suspension. The agency has indicated that before the conclusion of the new three-month period in September, it will make a further announcement on whether to modify, extend, or terminate the suspension. Congolese authorities are currently evaluating the implementation of quotas for cobalt shipments among mining companies. According to the report, Glencore, the world's second-largest cobalt producer, supports the proposal for quotas. However, this stance contrasts with that of CMOC Group, the leading cobalt producer, which is advocating for the ban to be lifted. In related news, a coltan mine collapse in the town of Rubaya in DRC's North Kivu province has claimed the lives of at least 12 people, according to a separate Reuters report, citing sources. The report stated that several people managed to escape the artisanal mine when it collapsed on Thursday, although the cause has yet to be determined. Rubaya's small artisanal mines contribute approximately one-sixth of the global supply of coltan, an essential metallic ore for the manufacture of smartphones and other electronic devices. Since mid-2024, the M23 rebels have controlled the area, imposing a 15% tax on coltan production, as confirmed by rebel officials. "DRC extends cobalt export ban amid persistent market oversupply" 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. 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
