In this brief article, we will explore the operations of the 5 biggest cobalt mining companies and their projects. If you want more details about the cobalt mining sector, read 10 Largest Cobalt Mining Companies and Their Mines in the World.
5. Eurasian Resources Group
Average Annual Revenue: $7.4 billion
Eurasian Resources Group (ERG) operates mining activities in the Democratic Republic of Congo (DRC). Its portfolio features the Metalkol RTR project, a significant cobalt production facility in the DRC. As one of the world’s largest cobalt projects, Metalkol RTR has the capacity to produce substantial amounts of cobalt annually, placing ERG among the top cobalt mining companies. In 2020, Metalkol RTR reached its full Phase 1 production capacity and completed the construction of Phase 2, thereby enhancing its production capabilities. By 2021, the facility had reached its designed cobalt production capacity, surpassing production targets. It produced 20,718 tonnes of cobalt and 94,807 tonnes of copper, exceeding the expected output for both commodities. In 2022, cobalt, copper, and other non-ferrous materials contributed $2392 million to the company’s total revenue.
To expand its operations, Eurasian Resources Group, with support from Kazakhstan, plans to rejuvenate its Comide copper and cobalt operation in the Democratic Republic of Congo through an $800 million investment, targeting the growing market for green-energy minerals. Eurasian Resources Group has announced plans to complete a new hydrometallurgical facility at Comide by 2025. The initial phases aim to produce 40,000 tons of copper cathode and 7,000 tons of cobalt hydroxide annually, with plans to double this output in the third phase.
Additionally, ERG recently entered a five-year agreement, starting in 2026, to supply cobalt to EVelution Energy, a US-based electric vehicle battery materials producer. Under this agreement, ERG will provide cobalt hydroxide feedstock, equivalent to around 3000 metric tons of contained cobalt to EVelution annually.
This deal is in line with the surge in investments in the US electric vehicle battery supply chain, significantly boosted by President Joe Biden’s Inflation Reduction Act (IRA). The IRA has invested billions of dollars in green energy tax credits to reduce carbon emissions in the United States.
4. CMOC Group Limited (SS:603993)
Average Annual Revenue: $21.3 billion
CMOC Group Limited, previously known as China Molybdenum Company Limited, is Mainland China’s largest molybdenum producer and ranks among the largest cobalt mining companies. Additionally, CMOC is a leading tungsten producer, the second-largest producer of cobalt and niobium, and a significant copper producer. In the Democratic Republic of Congo, CMOC holds an 80% stake in the Tenke Fungurume Mine, acquired in 2016 for $2.65 billion.
In 2020, the company purchased a 95% stake in the Kisanfu mine in the DRC from Freeport-McMoRan Inc (NYSE:FCX) for $550 million, which produces copper and cobalt. In 2022, CMOC Group Limited successfully maintained stable production and operations, largely meeting its production targets. Notably, in the DRC, the company achieved a significant increase in cobalt production, with volumes reaching 20,286 tonnes, marking a year-on-year growth of about 10%. CMOC Group has recently resolved a 10-month-long dispute at the Tenke Fungurume mine, which had halted exports due to royalty payment issues. The company has resumed exporting copper and cobalt from its TFM mine in the DRC, as confirmed in April 2023, following the resolution of the dispute with the state miner.
3. Vale S.A. (NYSE:VALE)
Average Annual Revenue: $47.8 billion
Vale S.A. (NYSE:VALE) is a major producer and exporter of various minerals, including iron ore, pellets, nickel, manganese ore, copper, ferroalloys, coal, and, notably, cobalt. The company also produces platinum-group metals (PGMs) and precious metals like gold and silver. In cobalt mining, Vale’s operations are particularly significant in Canada. In 2022, Vale S.A. produced a total of 2,434 metric tons of cobalt, primarily sourced from its nickel mines in Sudbury, Thompson, and Voisey’s Bay.
The Voisey’s Bay cobalt project in Labrador, which commenced operations in 2005, is noteworthy for its fly-in/fly-out operation model (used in remote mining locations where workers are flown into the mine site for their work period and then flown out to their home). Therefore, this model requires extensive infrastructure to support the mine and its workers. Vale S.A. (NYSE:VALE) has also established positive relationships with local Indigenous communities, implementing employment commitments. Employing around 500 people, Voisey’s Bay is currently undergoing an expansion to include underground mining, a development expected to increase employment.
2. Glencore plc (LSE:GLEN)
Average Annual Revenue: $200.6 billion
Glencore Plc (LSE:GLEN) is a global leader in both the production and marketing of cobalt, with its 2022 output of the metal totaling 43.8 kilotons. The company’s activities in cobalt extraction and processing span multiple continents, with operations in the Democratic Republic of the Congo (DRC), Australia, Canada, and Norway. In the DRC, Glencore’s significant operations include the Kamoto Copper Company (KCC) and Mutanda Mining, both situated in Lualaba Province and producing cobalt hydroxide and copper cathodes.
In Australia, Glencore plc (LSE:GLEN) operates the Murrin Murrin nickel-cobalt mine in Western Australia, noted for producing refined nickel and cobalt metal. Norway houses Glencore’s Nikkelverk, which also produces high-quality cobalt and copper cathodes. In Canada, the company runs the Raglan Mine in northern Quebec, one of the world’s richest base-metal mines, and the Sudbury Integrated Nickel Operations in northern Ontario, which include a smelter.
Regarding cobalt production, China’s CMOC Group Limited is poised to surpass Glencore Plc as the leading global cobalt producer this year, driven by the growing demand for critical metals in green energy. CMOC Group aims to challenge Glencore’s current leadership by planning to double its production by year’s end. This anticipated increase is due to the introduction of a new, large-scale mine in the Congo, expected to commence operation in the second quarter. As reported by Bloomberg, this development is likely to position CMOC above Glencore in cobalt production.
1. Norilsk Nickel (ME:GMKN)
Average Annual Revenue: $400 billion
Norilsk Nickel, also known as Nornickel, is a leading force in Russia’s metals and mining industry. It is renowned as the largest producer of high-grade nickel and palladium and is also one of the largest producers of platinum and copper. The company’s extensive product portfolio includes cobalt, rhodium, silver, gold, and other precious metals. Located in the Russian High Arctic, the Norilsk mining center encompasses a full production cycle from ore mining and concentration to refining. This center operates the Severny copper mine in Russia, where cobalt is a significant by-product of copper production. In 2022, the Norilsk Division produced a total of 18.4 million tons of ore.
Norilsk Nickel’s Siberian operations include two ore concentrators capable of treating 11Mt/y of ore and smelters with a combined capacity of 350,000t of copper and 160,000t of nickel. The company has invested significantly in its Kola plant, including constructing a facility for producing cobalt electrolytes, emphasizing its commitment to cobalt production. Nickel cathode production at Norilsk’s Tankhouse 1 and Tankhouse 2 results in primary cobalt cake, which is used in the cobalt section to produce saleable cobalt concentrate and cobalt cathodes. This underlines Norilsk Nickel’s key role in the cobalt industry.
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