Swiss-based multinational commodity trader Trafigura Pte. Ltd. secured a large mid-term contract in the Democratic Republic of Congo for a material essential for electric car batteries, which indicates its determination to strengthen the position against the largest rivals. Chemaf Sarl, controlled by Shalina Resources Ltd., said on Wednesday that it agreed to supply all its cobalt hydroxide until December 2020.
The African producer's output came in at 5,000 tons last year, mostly from the Etoile mine in Katanga in the country's southeast, while the manufacturing facility is in nearby Lumumbashi, the statement adds. The firm expressed the intention to lift the volume to 7,000 tons in 2018. Shalina said the offtake contract with Trafigura, incorporated in Singapore, would allow it to invest in exploration and production.
"Part of Chemaf’s portfolio includes the giant Mutoshi concession in Kolwezi, a property containing approximately 300,000 tons of cobalt resource. Chemaf is currently developing a leach SXEW processing plant at the site, due for completion in 2019, with capacity to produce 20,000 tonnes of copper and 16,000 tonnes of cobalt hydroxide per annum," the press release adds.
