DRC Cobalt Levy to Impact Global Battery Sector, Benchmark Says
Plans by Democratic Republic of Congo to impose a “super-tax on cobalt will have whole-world implications” as the top producer of the battery metal extends its dominance in mine output, Benchmark Mineral Intelligence analyst Caspar Rawles says Wednesday in Melbourne.
Une batterie
* The DRC accounted for ~66% of global output in 2017 and is likely to extend share to 75% by 2021 as producers, including Glencore Plc, bring on new projects in the nation; China dominates refined production, with ~58% in 2017
* NOTE: The Congo’s government has said it’s preparing to categorize cobalt and other metals as strategic, imposing a 10% royalty tax of producers
* Prices could rise in Q4 on stronger seasonal demand from electric vehicle production in China; remains unknown what
impact lower prices in 2018 may have on existing producers’ plans to boost mine output
* NOTE: Cobalt has declined 16% this year on the London Metal Exchange
* Existing cobalt supply should meet rising demand through to ~2023, when there’s potential bottlenecks in supply chain,
including as a result of lack of new refinery capacity outside of China
