MMG Halts Cobalt Processing in DRC Amid Market Downturn

Chinese mining group MMG has suspended operations at its cobalt processing plant in the Democratic Republic of Congo (DRC) due to weakening demand and lower prices. Cobalt, a key battery metal used in electric vehicles (EVs), is one of the DRC’s major exports.

The decision comes just 15 months after MMG launched the plant at its Kinsevere mine in Haut-Katanga province, about 30 km from Lubumbashi. Operations were placed on care and maintenance in December 2024, Bloomberg reported, citing “unfavorable cobalt market conditions.”

The DRC government also imposed a temporary four-month ban on cobalt exports in February 2025 to address excess supply. Cobalt prices have fallen near historic lows as oversupply and declining EV demand continue to pressure the market.

The Kinsevere expansion project, which aimed to increase copper output while introducing cobalt production, is estimated to have cost around $600 million. MMG began commissioning the cobalt facility in September 2023, but by the end of 2024, it was idled.

MMG stated that it has adopted a “flexible production strategy” for its cobalt operations, adjusting output based on price conditions. In 2024, the company sold 1,600 tons of cobalt, according to its annual results released on March 5.

Despite the cobalt plant shutdown, MMG expects copper cathode production at Kinsevere to reach 63,000–69,000 tonnes in 2025, the highest level in about a decade. Chairman Xu Jiqing noted that the expansion project achieved mechanical completion on September 15, 2024, with efforts now focused on ramping up concentrator and roasting systems to maximize copper output. The expansion is expected to extend the mine’s lifespan until at least 2035.

Although higher copper sales and improved pricing have boosted earnings, MMG recorded a $53 million impairment due to weaker cobalt market conditions, reflecting the challenges facing the industry.