The Democratic Republic of Congo – DRC remains Africa’s top copper producer after it widened the gap with Zambia with a 12.9% higher output for 2018 at 1.2million metric tons. This compares to Zambia’s estimated 0.81million metric tones (7% higher than 2017 levels). DRC scored a hat-trick in the base metals market when it produced 43.8% higher cobalt to 106,439 metric tons to remain the worlds largest blue metal producer. Gold production rose 22.6% to 28,539kg. Statistics provided by the DRC chamber of commerce at the 25 mining indaba in Cape Town.
The electric and car battery era has given an adrenaline boost to most African copper and cobalt miners as demand for the red and blue metal swells in readiness.
Suppressed blue and red metal prices on metal exchanges
Despite the hype around the base metals used in battery and electric wires, prices on the London Metal Exchange have been suppressed to levels reflecting the recent macro backdrop especially with china’s economy slowing down coupled with uncertainty around Britains divorce deal from the EU.
Cobalt is now trading for US$34,213/MT from levels of US$94,550/MT (early 2018) while copper is around US$6,241/MT as demand for risker assets reverberates as dollar strength varies.
