Luoyang Molybdenum Will Become The World's Largest Cobalt Producer With Its $1.826bn KFM Copper And Cobalt Project in The Democratic Republic Of Congo

On the evening of June 30, Luoyang Molybdenum announced that its "proposal on investment and construction of KFM development project in Congo" was approved by the sixth provisional meeting of the sixth board of directors of the company. The company will invest in the construction of the first phase of KFM development project in Congo, which is expected to be put into production in the first half of 2023. In the future, it is expected to add 90,000 tons of copper metal and 30,000 tons of cobalt metal annually on average.

KFM copper and Cobalt mine is one of the largest and highest grade copper and cobalt projects in the world. The mine is located in Congo's central African copper and cobalt belt. In December 2020, Luoyang Molybdenum acquired 95% interest in the Kisanfu copper and Cobalt mine (later formally named KFM) in Congo from Freeport Group (FCX) of the United States for us $550 million. On April 11, 2021, Luoyang Molybdenum Industry and Ningde Times jointly announced that Ningde Times officially invested in KFM through its subsidiary Bangpu Times.

At present, Luoyang Molybdenum industry ranks the first in the world with 5.55 million tons of cobalt resources, accounting for 22% of the global share. The development of KFM copper and cobalt deposit is an important support for the molybdenum industry in Luoyang to realize the three-step development path of "laying the foundation - stepping up - great leap forward". At present, Luoyang Molybdenum industry is in a critical stage from the first step of "laying the foundation" to the second step of "stepping up". In 2022, it will fully promote the construction of two world-class mines in Congo TFM mixed mine and KFM mine. On May 17, Luoyang Molybdenum industry announced that the INVESTMENT of $2.51 billion TFM copper and cobalt mixed mine project has obtained the project filing and approval documents issued by the National Development and Reform Commission and the Ministry of Commerce. The construction project is progressing smoothly according to the milestone node plan and is planned to be completed and put into operation in 2023. In 2023, two new projects, THE TFM mixed mine and KFM, will come into production.

刚果的机构丰富coppe加速发展r and cobalt resources is conducive to better meet the growing demand for cobalt in the development of global new energy industry and maintain the sustainable development of industrial chain. In recent years, with the rapid development of new energy vehicles and strong demand for new energy metals, cobalt metal has been in a tight balance for a long time. The scarcity of resources has made the industry concerned about the serious shortage of cobalt metal supply for a long time. According to a May 2022 report by the CobaltInstitute, demand for cobalt will rise to 320,000 tons over the next five years from 175,000 tons in 2021, when global supply was 160,000 tons, and there is still a large gap between supply and demand based on projects under construction.

In response, Luoyang Molybdenum said that the construction of the KFM project and the expansion of TFM production can ease the new energy industry development for the continuous growth of cobalt demand tension, reduce battery manufacturers and automobile manufacturers on cobalt supply concerns. In the future, the company will adjust production schedule appropriately according to market supply and demand to maintain a relatively balanced market.

Industry insiders point out that 2023 with the KFM, TFM mixed mine production, Luoyang Molybdenum industry Congo copper and cobalt minerals can further release, will greatly enhance the company's profitability, strengthen the company's new energy metal advantages, consolidate the company's international mining leading position, to make greater contributions to the global response to climate change and energy transformation.