Introduction
Cobalt is a critical mineral that has become essential for clean energy technologies like electric vehicles and lithium-ion batteries. As the world transitions towards renewable energy, demand for cobalt is projected to surge in the coming decades.
Most of the world‘s cobalt supply comes from the Democratic Republic of Congo (DRC), which holds over 50% of known global reserves. With rising demand, major mining companies have invested heavily in Congolese operations to secure steady cobalt production.
This article will provide an overview of the 10 largest cobalt mining companies globally, exploring where they source their cobalt, recent partnerships, and future outlook.
#10: Panoramic Resources Limited
Panoramic Resources Limited is an Australian nickel-copper-cobalt producer headquartered in Perth. Its main asset is the Savannah mine in Western Australia, which resumed operations in 2021 after being idle for a year.
The restart of Savannah provides Panoramic exposure to surging EV battery metals. In 2022, the company aims to produce between 1800-2000 tons of cobalt as a byproduct of its nickel operations. Panoramic has also made moves to capitalize on the cobalt market by acquiring the Thunder Bay North Project in Canada.
#9: Sherritt International
Sherritt is a Toronto-based mining and refining company focusing on nickel and cobalt production, as well as electricity generation. The company has operations in Canada and Cuba, through its Moa nickel-cobalt joint venture.
This 50/50 JV with General Nickel Company mines laterites and processes them into high-purity nickel and cobalt at a refinery in Fort Saskatchewan, Alberta. It produced 3,804 tons of finished cobalt in 2021.
With nickel reserves depleting, Sherritt plans to extend Moa’s mine life while expanding nickel-cobalt production in conjunction with rising demand from EVs.
#8: Jervois Global Limited
Jervois Global is an Australian mining corporation focusing on nickel and cobalt. Its primary asset is the Idaho Cobalt Operations (ICO) mine in the United States, which recently restarted production after being on care and maintenance.
In its first year since acquiring the mine, Jervois aims to produce 2000 tons of cobalt along with copper and gold byproducts. The company is also constructing São Miguel Paulista nickel-cobalt refinery in Brazil and exploring prospects in Uganda.
Jervois positioned itself to benefit from the EV revolution by acquiring ICO and investing in downstream processing. Its production is expected to grow substantially as its assets ramp up.
#7: Umicore
Belgium-based Umicore is involved in materials technology and recycling of battery metals. The company sources cobalt through recycling rather than mining, processing old electronics and EV batteries to regain usable metals.
Umicore operates smelting/refining plants globally, which recover cobalt, nickel, copper, and other precious metals. Its state-of-the-art facilities exclusively use clean energy and recover metals at high efficiency. With more lithium batteries reaching end-of-life, Umicore is looking to expand its recycling capacity.
#6: Zhejiang Huayou Cobalt
Huayou Cobalt is a major Chinese cobalt producer, involved in mining, smelting, and new energy materials. It owns copper-cobalt mines in DRC through subsidiary Congo DongFang Mining and processes much of its ore at the Huayou Cobalt plant in China.
However, Huayou has faced scrutiny over artisanal Congolese mines in its supply chain allegedly using child labor. The company has taken steps towards responsible practices by joining initiatives like the Responsible Minerals Initiative.
As China‘s largest cobalt refiner, Huayou also partners with EV battery makers like EVE Energy to ensure the cobalt supply. With reserves from its DRC mines, the company expects to produce over 8000 tons of cobalt annually in the coming years.
#5 China Molybdenum Co. Limited
China Moly is mainly a molybdenum producer but also among the top cobalt miners globally. The company owns 80% of Tenke Fungurume, one of the world‘s largest copper-cobalt mines located in DRC.
China Moly has been working to improve output and mine life at Tenke, targeting annual production above 30,000 tons of cobalt in the future. However, there have been disputes over royalties owed, with China Moly recently ordered to make payments of several billion dollars to DRC state miner Gécamines.
Regardless, China Moly‘s copper-cobalt assets position it well to benefit from clean energy trends driving demand.
#4 Eurasian Resources Group
Luxembourg-based Eurasian Resources develops mines and operates metals/mining facilities across Africa, Europe, and Asia. The company is a leading cobalt producer, mainly sourcing from the DRC.
Unlike conventional mining, Eurasian recycles tailings (mine waste) from historical operations through its subsidiary Metalkol RTR. This innovative process recovers cobalt and copper from old tailing dumps while remediating environmental damage.
By reprocessing tailings containing 110 million tons of cobalt, Eurasian has secured a low-cost, sustainable source outside of traditional mines. As the world‘s first commercial-scale tailings reprocessing facility, Metalkol RTR represents a new model for ethical extraction.
#3 Gécamines
Gécamines is the DRC’s state-owned mining company and central player in the country’s cobalt industry. It‘s involved in numerous joint ventures with international firms like China Molybdenum and Glencore, holding minority stakes in major mines like Tenke Fungurume.
Beyond mining, Gécamines aims to improve regulations around artisanal operations producing one-fifth of the world’s cobalt. Its new subsidiary Enterprise Generale du Cobalt will implement stricter due diligence to eliminate unethical practices.
As the overseer of DRC’s mining sector, Gécamines’ policies could significantly impact global cobalt supply. Efforts around formalizing artisanal mining are an encouraging step towards ensuring more responsible cobalt production.
#2 Vale S.A.
Though cobalt is a fractional part of its business, Brazilian mining giant Vale is among the sector’s largest producers. The company extracts cobalt from its Canadian nickel operations, including the Voisey‘s Bay mine in Newfoundland and Labrador.
However, Vale has looked to lessen future cobalt exposure amid volatility concerns. In 2018, it sold a majority stake in Voisey’s cobalt stream to Wheaton Precious Metals and Cobalt 27. This unlocked $690M in financing while removing risks.
Still, Vale’s Canadian mines give it sizeable cobalt output for now, supplemented by third-party feed to be processed at its Long Harbour Processing Plant. But the company seems keen to focus investment on core iron ore and base metals production going forward.
#1 Glencore
Switzerland-based Glencore is undisputedly the world‘s top cobalt miner, responsible for over 15% of global production. The company operates major copper-cobalt operations in the DRC, which also makes Glencore the largest supplier in the cobalt supply chain.
In recent years, Glencore has ramped up Congolese cobalt output amid accelerating demand from EVs. The company is investing nearly $1 billion to expand production at its Katanga mine complex to 45,000 tons per year.
Glencore is also looking downstream, recently announcing a nickel processing facility in Canada to provide battery materials for EV makers. With mining power and vertical integration, Glencore is positioned to shape the cobalt market in the energy transition.
Conclusion
Demand for electric vehicles and energy storage will continue rising, portending strong growth for the cobalt miners enabling these technologies. As the world decarbonizes, these companies controlling the majority of cobalt supply wield significant influence to ensure more ethical and sustainable production.
By formalizing artisanal mining and utilizing practices like tailings reprocessing, leading players in DRC seem to be taking steps towards more responsible cobalt mining. But the path ahead remains challenging, and miners must continue improving transparency and due diligence.
Ultimately, fulfilling soaring cobalt demand will require coordinated efforts between miners, regulators, and consumers to enable the vital role cobalt plays in clean energy, while minimizing environmental and social impacts.
