NEWSBREAK: Collapse at Glencore’s Kamoto copper-cobalt mine kills 19, production unaffected

A gallery collapse at Glencore's Kamoto Copper Company in the Democratic Republic of Congo has killed 19 people, the company said in a filing on the London Stock Exchange on June 27.

The miners were working illegally at a project, which has had on average 2,000 illegal incursions onto its jurisdiction per day, the company said adding that further casualties were a possibility.

“The incident has no impact on production,” Glencore said in a statement.

Glencore owns a 75% stake in the Kamoto Copper Company through its subsidiary Katanga Mining.

Kamoto produced 57,175 tonnes of copper cathode in the first quarter of this year, according to a statement on the Katanga Mining website.

Richard Muyej, the governor of Lualaba province, Democratic Republic of Congo, told Reuters earlier on today that 36 people had been killed.

The deaths come at a time of increasing scrutiny over the fractious relationships between major mining companies, such as Glencore, and their activities in many areas of central Africa, where often illegal artisinal mining is common.

Copper futures on the London Metal Exchange remained unchanged at $5,980 per tonne in the afternoon on June 27 following the news.
Glencore partially resumed sales and exports of the cobalt hydroxide produced at Kamoto in April this year, after high uranium levels forced a suspension from November 2018.

Glencore expects to produce about 26,000 tonnes of cobalt at Katanga in 2019. The majority of material is still being stockpiled, pending the implementation of an ion exchange to treat the high-uranium material on a long-term basis.

Artisanal cobalt production is believed to have dwindled significantly this year, however, due to falling prices.

Fastmarkets’ price assessment for standard-grade cobalt stands at $13.75-15.35 per lb, in-warehouse as of June 27, down from highs of $43.70-44.45 per lb in April last year.

Cobalt hydroxide payables – the percentage of the standard-grade low paid to procure hydroxide – is at 62-63%, compared with 67-69% at the beginning of May

Additional reporting by Hassan Butt in London

What to read next
Fastmarkets proposes to amend the frequency of the publication of several US base metal price assessments to a monthly basis, including MB-PB-0006 lead 99.97% ingot premium, ddp Midwest US; MB-SN-0036 tin 99.85% premium, in-whs Baltimore; MB-SN-0011 tin 99.85% premium, ddp Midwest US; MB-NI-0240 nickel 4x4 cathode premium, delivered Midwest US and MB-NI-0241 nickel briquette premium, delivered Midwest US.
The news that President-elect Donald Trump is considering additional tariffs on goods from China as well as on all products from US trading partners Canada and Mexico has spurred alarm in the US aluminium market at a time that is usually known to be calm.
Unlike most other commodities, cobalt is primarily a by-product – with 60% derived from copper and 38% from nickel – so how will changes in those markets change the picture for cobalt in the coming months following a year of price weakness and oversupply in 2024?
Copper recycling will become increasingly critical as the world transitions to cleaner energy systems, the International Energy Agency (IEA) said in a special report published early this week.
Fastmarkets proposes to lower the frequency of its assessments for MB-AL-0389 aluminium low-carbon differential P1020A, US Midwest and MB-AL-0390 aluminium low-carbon differential value-added product US Midwest. Fastmarkets also proposes to extend the timing window of these same assessments to include any transaction data concluded within up to 18 months.
Fastmarkets invited feedback from the industry on its non-ferrous and industrial minerals methodologies, via an open consultation process between October 8 and November 6, 2024. This consultation was done as part of our published annual methodology review process.