
First reported on MINING.com
30 Second Briefing
Glencore has signed a life-of-mine offtake agreement with Chilean Cobalt for all cobalt and copper from the La Cobaltera and El Cofre projects in northern Chile. The partnership will see intermediate products processed at US Strategic Metals' facility in Missouri, aiming to produce 3,000–5,000 tonnes of cobalt annually, addressing the US's current import levels of 8,000–10,000 tonnes. This deal comes amid a cobalt export ban from the Democratic Republic of Congo and China's dominance in processing, potentially shifting the market towards a deficit.
Technical Brief
- Glencore has secured a life-of-mine offtake agreement with Chilean Cobalt for cobalt and copper from the La Cobaltera and El Cofre projects in northern Chile.
- US Strategic Metals' facility in Missouri will process intermediate products, targeting an annual cobalt output of 3,000–5,000 tonnes.
- The US currently imports 8,000–10,000 tonnes of cobalt annually, highlighting the strategic importance of this agreement.
- The La Cobaltera–El Cofre projects are situated in Chile’s San Juan cobalt-copper district, known for high-grade cobalt veins historically above 6%.
- A cobalt export ban from the Democratic Republic of Congo and China's processing dominance could lead to a market deficit, increasing the significance of this US supply chain.
- Chilean Cobalt's shares surged 39% following the announcement, reflecting market confidence in the project's potential.
Context From Recent Coverage
- The recent offtake agreement between Glencore and Chilean Cobalt highlights the strategic importance of the Atacama Fault Zone, a region known for its significant cobalt and copper reserves, which are critical for battery production and renewable energy technologies.
- With the US EXIM Bank expressing interest in financing up to $317 million, this project could significantly enhance the financial viability of Chilean Cobalt's operations, potentially increasing its market presence in the Americas over the next decade.
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