MMG Suspends Cobalt Production at Kinsevere Amid Market Downturn

Chinese state-controlled miner MMG has placed its Kinsevere cobalt project in the Democratic Republic of Congo on care and maintenance due to unfavorable cobalt market conditions, the company stated in its annual report.

MMG had previously approved a mine life extension in 2022, incorporating cobalt into its existing copper production. While the expansion was completed in September last year, the cobalt plant was idled in December in response to market pressures.

The company indicated that it will adopt a flexible production strategy, adjusting output based on cobalt prices, market conditions, and variations in cobalt content across different ore sources.

Cobalt prices have dropped more than two-thirds from their 2022 peak by late 2024, impacted by a surge in global supply and weakening demand. In response to the oversupply, the Democratic Republic of Congo, the world’s largest cobalt producer, temporarily halted cobalt exports last month to help stabilize the market.

MMG had initially projected that the Kinsevere expansion would raise annual cobalt output to between 4,000 and 6,000 tonnes. However, in 2023, the company sold only 1,617 tonnes of cobalt.

Meanwhile, the most active March electrolytic cobalt futures contract on China’s Wuxi Stainless Steel Exchange surged 7.45% on Thursday, reaching its highest level since May 2024.