TMC - Cobalt Miners News For The Month Of October 2023
2023-10-25 10:31:08 ET
Summary
- Cobalt spot prices were flat for the month. LME inventory was flat for the month. China plans to boost state cobalt reserves after prices drop.
- Cobalt market news - BMI and Morgan Stanley forecast global cobalt surpluses this year of 17,000t and 47,061t, respectively. BMI expects demand to overtake supply quite substantially in 2027.
- Cobalt miners news - ERG signs 5-year agreement with EVelution Energy to supply cobalt for their future U.S. processing facility, Umicore, confirms expansion of its battery materials facility in Canada.
- Jervois Global commences BFS for U.S. cobalt refinery. Giga Metals announces positive PFS for the Turnagain Nickel-Cobalt Project in BC, Canada.
Welcome to the October 2023 cobalt miners news.
The past month saw cobalt prices remain depressed. We saw some news from the cobalt juniors especially in regard to their USA plans.
Cobalt price news
As of October 24, the cobalt spot price was at US$14.85/lb , the same as US$14.85/lb last month. The LME cobalt price is US$32,480/tonne . LME Cobalt inventory is 92 tonnes, the same as the 92 level from last month. More details on cobalt pricing (in particular the more relevant cobalt sulphate), can be found here at Benchmark Mineral Intelligence or Fast Markets MB .
Cobalt spot prices - 5-year chart - USD 14.85 ( source )
Cobalt demand v supply forecasts
S&P Global Intelligence cobalt demand v supply forecast as of Aug. 2023 (deficit in 2027) ( source )
Cobalt supply and demand forecast - Deficits growing from ~2025/26 (forecast as of 2023 by Cobalt Blue, Benchmark Mineral Intelligence, & Rho Motion) ( source )
Benchmark Mineral Intelligence forecasts deficits for lithium, nickel & cobalt to increase from 2027 onwards ( source )
Trend Investing v IEA demand forecast for EV metals ( IEA )
2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x
2022 - BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand - 62 new 5,000tpa cobalt mines (drops to 38 if include recycling)
Cobalt market news
An article missed from last month - On September 6, Stockhead reported :
How are the other battery metal products faring as China's economy stutters? EV battery demand has chilled in China in August, with nickel, cobalt and graphite feeling the pinch...Cobalt hydroxide is facing its lowest prices since 2018... "We have already begun to see evidence of larger producers slowing down their cobalt production, with Glencore announcing in their 2023 half year earnings report that they would shift focus in the coming months towards stockpiling...Sentiment has also been challenged, BMI said, by a faster charging cobalt-free LFP battery developed by China's battery giant CATL. "Benchmark's view remains that NCM batteries will make up the majority of long- term EV demand, and this new battery is unlikely to destabilise that," analysts said. "For the time being LFP has a well-established presence in China, while NCM batteries still maintain their dominance in Europe and the US...
On September 25, Reuters reported :
Prices tumble for cobalt used for electric vehicle batteries...due to an upsurge of supplies from top producer Democratic Republic of Congo..."We're unlikely to see prices return to 2022 levels until demand is able to catch up with the huge volume of cobalt available at the moment," said BMI analyst Roman Aubry, who expects a cobalt market surplus of 17,000 tons this year. "However, the rate at which the EV industry is going, we expect demand to overtake supply quite substantially in 2027"...Morgan Stanley expects to see cobalt market surpluses of 47,061 tons this year, 74,800 in 2024 and 92,660 in 2025.
On October 23, Bloomberg reported :
China plans to boost state cobalt reserves after prices drop. Beijing to add about 3,000 tons to strategic stockpiles. Global price for the battery metal is down 60% from May 2022...China's fresh build-up of inventory comes not long after China's purchase of about 5,000 tons of cobalt for its strategic commodity reserves in July .
Cobalt company news
Glencore [HK:805] [LSE:GLEN] (GLCNF)
No cobalt related news for the month.
CMOC Group Limited [HKSE:3993] [SHE:603993] (CMCLF) (formerly China Molybdenum)
No news for the month.
Zheijiang Huayou Cobalt [SHA:603799]
On September 24, Reuters reported :
LG Chem with China's Huayou to make battery materials in Indonesia, Morocco...Partners with Huayou Group to build 4 facilities...South Korea's LG Chem Ltd has entered a partnership with China's Huayou Group's subsidiary Youshan, it said on Sunday, to build a joint electric vehicle (EV) battery material plant in Morocco to diversify its portfolio...In a separate statement, Huayou's listed unit Zhejiang Huayou Cobalt Co said it intended to build plants with LG Chem in Indonesia and Morocco under a strategic partnership to promote international growth. The Morocco plant, set to start production in 2026, aims to produce 50,000 tonnes of lithium-phosphate-iron (LFP) cathode materials annually.
Jinchuan Group International Resources [HK:2362]
On September 27, Jinchuan Group International Resources announced :
Interim reports 2023...Ruashi produces 1,244 tonnes of cobalt content included in cobalt hydroxide in 2023 1H which was 52% lower than that of 2,603 tonnes for 2022 1H...Cobalt recovery rate of 53.23% for 2023 1H was 26% lower as compared to 72.03% for 2022 1H, due to the lower cobalt solubility of feed ores and lower foreign ore grade, together with Ruashi Mine's self-mined ore...
Chemaf (subsidiary of Shalina Resources)
No news for the month.
GEM Co Ltd [SHE:002340]
No significant news for the month.
Eurasian Resources Group ("ERG") - private
ERG own the Metalkol facility in the DRC where ERG processes cobalt and copper tailings with a capacity of up to 24,000 tonnes of cobalt pa.
On October 11, Eurasian Resources Group announced :
Eurasian Resources Group signs a five-year agreement with EVelution Energy to supply cobalt for their future processing facility in the US. Eurasian Resources Group (ERG), a leading diversified natural resources group headquartered in Luxembourg, signed a preliminary five-year sales agreement with EVelution Energy (EVelution), the U.S. electric vehicle battery materials processing company. The agreement to supply ERG's cobalt hydroxide to the EVelution's cobalt processing facility in the US, the construction of which is expected to start in 2024, should account for almost half of the company's annual feedstock requirements...
On October 17, Eurasian Resources Group announced : "Eurasian Resources Group publishes its Sustainable Development Report..."
Umicore SA [Brussels:UMI] (UMICY)
On October 6, Umicore SA announced : "Umicore and PowerCo proudly present IONWAY." Highlights include:
- "Joint venture named IONWAY, a start-up with a head start, backed by Umicore and Volkswagen's battery maker PowerCo.
- Large-scale production of sustainable battery materials for electric vehicles (EVs): precursors (pCAM) and cathode active materials ((CAM)).
- CEO Thomas Jansseune of Umicore and CFO Achim Holzer of PowerCo to swiftly ramp-up industrialization of most valuable battery asset."
On October 7, Umicore SA announced : "IONWAY - the Umicore/PowerCo JV - to locate its first production plant in Nysa, Poland."
On October 16, Umicore SA announced :
Umicore and AESC enter into long-term supply agreement for EV battery materials in North America and strengthen technology partnership...The agreement secures an annual volume offtake equivalent to 50 Gigawatt hours of CAM by the end of the decade. The battery materials will power the EVs of AESC's customers in the region, including BMW Group[3]. AESC will begin receiving supplies in 2026 from Umicore's factory in Cheonan, Korea, complemented by supplies from the Loyalist plant once it starts production that same year...
On October 16, Umicore SA announced :
Umicore confirms expansion of its EV battery materials production footprint with CAM and pCAM plant in Ontario, Canada...The investment is part of Umicore's previously announced plans and amounts to € 1.27 billion (€ 0.69 billion after non-refundable capital expense grants) until 2026. The engineering and permitting process is ongoing and Umicore expects to begin construction on the 141-hectare/350-acre plot of land later this year. The plant is expected to be commissioned at the end of 2025 with production ramping up as from 2026...
On October 17, Umicore SA announced :
Umicore Battery Materials - from strategic plan to execution with global footprint in place. Umicore has, over the past 18 months, made strong progress in the execution of its "2030 RISE" strategy in Umicore Battery Materials, reaching key milestones in the build out of long-term value creative strategic customer contracts[1]. Following Umicore's recent entry in the North-American market , its order book in the Battery Materials business currently stands at 190 GWh contracted CAM volumes for 2027 and reaches already today 270 GWh for 2030. It is well diversified across several battery and car manufacturers in Asia, Europe and North America and covers entry, volume and premium platforms for a wide variety of brands and car models...
Sumitomo Metal Mining Co. (TYO:5713) ( Sumitomo Metal Mining Co., Ltd. ( STMNF ) Stock Price Today, Quote & News)
On September 25, Sumitomo Metal Mining Co. announced :
SMM to make strategic investment in battery cathode material technology developer Nano One. Collaboration on producing technology for electric vehicle battery material...The amount to be invested is 16.9 million Canadian dollars (approximately 1.9 billion JPY *), and Nano One will issue a total of 5,498,355 common shares (the "Shares"), representing approximately 5% of the current issued and outstanding Shares of Nano One on the closing of the investment. This is the first time that a producer of cathode active materials (the "CAM") has invested in Nano One...
MMC Norilsk Nickel [LSX:MNOD] [GR:NNIC] (NILSY)
No cobalt related news for the month.
Sherritt International [TSX:S] (SHERF)
No significant news for the month.
Nickel 28 [TSXV:NKL] [GR:3JC] (CONXF)
On September 26, Nickel 28 announced : "Nickel 28 files fiscal Q2 financial statements."
On October 10, Nickel 28 announced : "Ramu pauses operations following earthquake in Madang Province..."
Electra Battery Materials [TSXV:ELBM] (ELBM)
On October 2, Electra Battery Materials announced : "Electra extends processing of black mass material based on successes of its Battery Recycling Trial." Highlights include:
Black Mass Recycling Trial Highlights
- "Electra has processed 40 tonnes of black mass material to date in a plant scale setting, believed to be the first of its kind in North America.
- Recovery rates for all targeted metals have improved since the start of the trial in late December 2022.
- Recovery rates for manganese, in particular, have improved by more than 50% from results achieved in a lab setting.
- Metal content contained in the nickel-cobalt mixed hydroxide precipitate (MHP) produced from the recycling process has increased in the range of 5 to 10% since the start of the trial...
- Approximately 20 tonnes of nickel-cobalt MHP product has been shipped to customers to date.
- Reagent requirements have been reduced and in some cases alternative, less costly reagents have been used for improved overall metal recovery...
- Based on results achieved to date, Electra has elected to continue processing black mass material at its refinery complex, to further enhance its process and continue delivery of saleable products to customers.
- Electra anticipates providing a detailed summary report of its key findings from its black mass trial in the coming weeks."
Possible mid-term producers (2025 onwards)
Jervois Global Limited [ASX:JRV] [TSXV: JRV] (JRVMF) [FRA: IHS] (formerly Jervois Mining)
On October 3, Jervois Global Limited announced : "Jervois commences BFS for U.S. cobalt refinery.
- ....Cobalt refinery site selection in the U.S. is continuing; initial basic engineering and BFS to commence in parallel...
- Jervois Finland, Jervois's 100%-owned subsidiary, has successfully operated for 50+ years, producing advanced cobalt chemicals and powders, including sulphate and has historically also produced pCAMs (pre-cursor cathode materials for lithium-ion batteries)."
Upcoming catalysts include:
- Any announcements regarding Jervois Global's ATVM loan application to the U.S. Department of Energy.
- Restart of final construction at ICO. Any news regarding the refinancing of the restart of the São Miguel Paulista Refinery.
Sunrise Energy Metals Limited [ASX:SRL] ( SREMF ) (formerly Clean TeQ)
Sunrise Energy Metals has 132 kt contained cobalt at their Sunrise project.
On September 28, Sunrise Energy Metals Limited announced : "Sunrise to evaluate US location for nickel-cobalt refinery." Highlights include:
- "As part of recent and ongoing engagement with US auto manufacturers and various US government agencies, the Company is evaluating the option of locating the Sunrise Project's nickel and cobalt refinery in the United States.
- A US-based refinery will potentially open opportunities for grant funding pursuant to a number of US Government programs, as well as possible involvement by US-based strategic investors.
- The Company plans to undertake the evaluation in concert with US counterparties, and to that end has engaged a US-based advisor to assist with financing options."
Ardea Resources [ASX:ARL] ( ARRRF )
In total, Ardea has 6.1Mt of contained nickel and 386,000t of contained cobalt at their KNP Project near Kalgoorlie in Western Australia. Ardea is also exploring for gold and nickel sulphide on their >5,100 km2 of 100% controlled tenements in the Eastern Goldfields region of Western Australia.
On September 29, Ardea Resources announced : "Ardea and Japanese Consortium update on MOU." Highlights include:
- "Non-binding MOU with a consortium (Consortium) consisting of Sumitomo Metal Mining, Mitsubishi Corporation, and Mitsui & Co., Ltd amended to extend the timing for completion of Definitive Feasibility Study ((DFS)) scoping, due diligence and Final Agreement.
- In accordance with the MOU, positive engagement continues between Ardea and the Consortium to scope the Kalgoorlie Nickel Project - Goongarrie Hub DFS.
- Recent Ardea tenement consolidation1 at Goongarrie will facilitate an enhanced DFS development plan.
- As agreed in the MOU, the Consortium is to sole fund the DFS subject to agreeing on the scope and entering into a binding Final Agreement. In the interim, Ardea continues to advance time critical workstreams, such as season-dependent environmental surveys.
- Future work is aimed at completing the DFS, making a Final Investment Decision [FID] and securing project development funding for the Goongarrie Hub to become a globally significant producer of nickel-cobalt for the Lithium-Ion Battery sector."
Upcoming catalysts include:
- 2023/24 - Possible off-take partner agreement from Japanese consortium (MOU already signed) and funding for the GNCP Project. Further potential exploration results including also for lithium, rare earths, and nickel sulphide.
Cobalt Blue Holdings [ASX:COB] ( CBBHF )
Cobalt Blue has 81.1kt of contained cobalt at their 100% owned Broken Hill Cobalt Project [BHCP] (formerly Thackaringa Cobalt Project) in NSW, Australia. LG International is an equity strategic partner.
On September 27, Cobalt Blue Holdings announced : "Finalised Mining Lease application lodged." Highlights include:
- "Mining Lease Application 634 ('MLA634') has been submitted and complements our earlier application ('MLA614'). Collectively with existing Mining Leases, MLA614 and MLA634 cover the area required for development of the Broken Hill Cobalt Project ('BHCP').
- Mineral Resource update expected to be released in early November 2023.
- A geotechnical program has been completed considering both process and non-process infrastructure to inform the design of foundations and retaining structures.
- Environmental site investigations are now complete. Site disturbance footprint and no-go zones established to minimise or avoid impacts to biodiversity, Aboriginal heritage, and creek lines."
Australian Mines [ASX:AUZ] ( AMSLF )
On September 25, Australian Mines announced :
Appointment of Chief Executive Officer. Australian Mines Limited ("Australian Mines" or "the Company") is pleased to announce the appointment of Andrew Luke Nesbitt as Chief Executive Officer [CEO] of the Company, effective 2 October 2023. Mr Nesbitt holds a BSc ((ENG)) Mining and an MBA and has over 25 years of experience in the natural resources sector.
On October 20, Australian Mines announced :
Sconi Project update - Mining Leases...The Sconi project comprises three granted mining leases covering the main deposit located at Greenvale (ML 10368) together with two satellite deposits at Lucknow (ML 10366) and Kokomo (ML 10342). On detailed review of the project parameters, the environmental impacts and considering social and economic factors, Australian Mines has submitted extensions to the already granted mining licences. These expansions are expected to de risk the Sconi project development significantly and will add additional flexibility and optionality regarding the optimal and efficient extraction of the battery minerals contained within the deposits.
Upcoming catalysts include:
- End of 2025/early 2026 - FID for the Sconi Project.
Havilah Resources [ASX:HAV] [GR:FWL] ( HAVRF )
Havilah 100% own the Mutooroo copper-cobalt project about 60km west of Broken Hill in South Australia. They also have the nearby Kalkaroo copper-gold-cobalt project ( optioned to Oz Minerals - now owned by BHP Group), as well as a potentially large iron ore project at Grants. Havilah's 100% owned Kalkaroo copper-gold-cobalt deposit contains JORC Mineral Resources of 1.1 million tonnes of copper, 3.1 million ounces of gold and 23,200 tonnes of cobalt.
On October 17, Havilah Resources announced : "Wide sulphide drill intersection at Cockburn Prospect." Highlights include:
- "Wide mineralised quartz-sulphide lode intersected at Cockburn prospect, namely 70 metres of 0.33 g/t gold, 0.15% copper and 0.11% cobalt (0.89% CuEq or 1.14 g/t AuEq) from 68 metres downhole.
- Drilling confirms the quartz-sulphide lode extends over a strike length of at least 350 metres and remains open to the north and at depth.
- The combined metal values and width point to a promising new mineral discovery at Cockburn that could potentially provide an additional source of ore-feed to a conceptual sulphide ore processing hub at Mutooroo, which is located 15 km to the south."
Upcoming catalysts include:
- 2023 - Progress towards the OZ Minerals (now owned by BHP Group) option to buy Kalkaroo. Mutooroo exploration results.
Aeon Metals [ASX:AML] ( AEOMF )
Aeon Metals 100% own their Walford Creek copper-cobalt project in Queensland Australia.
For further details see:
Cobalt Miners News For The Month Of October 2023