{"id":1142431,"date":"2019-10-07T10:05:14","date_gmt":"2019-10-07T15:05:14","guid":{"rendered":"https:\/\/www.mining.com\/?p=1003787"},"modified":"2019-10-07T10:05:14","modified_gmt":"2019-10-07T15:05:14","slug":"glencore-inks-5-year-cobalt-supply-deal-with-chinas-gem","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1142431","title":{"rendered":"Glencore inks 5-year cobalt supply deal with China\u2019s GEM"},"content":{"rendered":"<p>Miner and commodities trader Glencore (LON:GLEN), the world\u2019s biggest producer of cobalt, has <a href=\"https:\/\/www.glencore.com\/media-and-insights\/news\/Chinas-Gem-Co-Ltd-and-Glencore-extend-their-long-term-strategic-cobalt-partnership\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">committed to sell about a quarter of its annual production<\/a> of the battery metal over the next five years to Chinese battery recycler GEM Co.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The Baar, Switzerland-based firm\u00a0will sell at least 61,200 tonnes of cobalt hydroxide to GEM between 2020 and 2024 as Beijing moves to secure supplies of the critical metal needed for the batteries that power electric vehicles (EVs).<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Deal will see the Swiss giant sending GEM 12,240 tonnes of cobalt per year or about a quarter of its expected total output, now mainly coming from the Katanga mine in the DRC. <\/p>\n<\/blockquote>\n<\/figure>\n<p>\u201cThis agreement represents a major cornerstone in GEM\u2019s cobalt sourcing strategy as it will support GEM\u2019s continued contribution to the Chinese New Energy Market,\u201d GEM\u2019s chairman, Kaihua Xu<a href=\"https:\/\/www.glencore.com\/media-and-insights\/news\/Chinas-Gem-Co-Ltd-and-Glencore-extend-their-long-term-strategic-cobalt-partnership\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">, said in the statement<\/a>.<\/p>\n<p>The deal comes less than a year after the Shenzhen-listed company walked away from a similar supply agreement due to <a href=\"https:\/\/www.mining.com\/falling-cobalt-prices-add-fresh-challenges-to-drcs-economy\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">a sudden slump in cobalt price<\/a>s triggered by oversupply from the Democratic Republic of Congo, the No. 1 cobalt producer.<\/p>\n<p>Glencore\u2019s decision to shut its Mutanda\u00a0mine, the world\u2019s largest cobalt source,\u00a0has breathed new life into the market since August. But prices have responded slowly, with the metal still trading at around $18 per pound, according to Fastmarkets, less than half the over $40 a pound it hit in early 2018. <\/p>\n<p>The supply deal will see the Swiss giant sending 12,240 tonnes of cobalt per year or about a quarter of its expected total output, now mainly coming from the Katanga mine in the DRC. <\/p>\n<p>Glencore, whose cobalt is mined as a by-product from its copper and nickel mines in the DRC, Canada and Australia,&nbsp;expects its cobalt production to hit to 65,000 tonnes this year and dip to 63,000 tonnes in 2020.<\/p>\n<p><em>More to come&#8230;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It will provide at least 61,200 tonnes of cobalt hydroxide, or about a quarter of its annual production, to the Chinese company.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1016,2849,949,369,2640],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1142431"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1142431"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1142431\/revisions"}],"predecessor-version":[{"id":1142625,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1142431\/revisions\/1142625"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1142431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1142431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1142431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}