Chambishi suspension offers short-term relief to cobalt price slump – sources

The suspension of cobalt production at Chambishi could provide some respite to falling cobalt prices but it should not be confused with the eventual departure of Chambishi broken cathodes from the market, according to sources spoken to by Fastmarkets.

ERG has temporarily halted production at Chambishi in Zambia due to a lack of feedstock, which it sources from Boss Mining and Frontier Mine in the Democratic Republic of Congo. The suspension follows the introduction of a new 5% duty on cobalt and copper concentrates imported into Zambia that came into effect this year.
Chambishi’s nameplate production capacity is 6,800 tonnes per year of cobalt but production has been declining in recent years alongside dwindling output from Boss. Last year’s production was about 2,300 tonnes.
As a result, sources added that the impact of reduced or halted production at Chambishi has already been priced in, even ahead of the new suspension.

Published

Fleur Ritzema

Charlotte Radford

February 14, 2019

11:40 GMT

Munich, London