Cobalt is set to overtake copper as the most valuable mineral export from the Copperbelt. The mineral is an essential ingredient in electric batteries and other electronic components which run the modern world.
The Democratic Republic of Congo (DRC) has almost as many proven reserves of cobalt as the rest of the world combined. Zambia has the sixth-highest reserves.
Forecast demand for lithium-ion batteries from passenger electric vehicles, consumer electronics and stationary storage is expected to increase up to seven fold by 2024.
This will support cobalt prices for the foreseeable future, and prices have been rising steadily, increasing by 141% since April 2016.
While volumes are relatively small compared to copper, the high price will boost income for the mines and the region.
Cobalt is a by-product of copper extraction. In July cobalt was selling for US$50 000 a ton, compared to US$5 846 for copper. From a logistics perspective this makes it a high-value commodity, with syndicates likely to start targeting shipments.
CAPTION
Cobalt prices have increased 141% since April 2016.
