China Molybdenum Co., Ltd. (the “Company” or “CMOC”) is pleased to announce that it signed a share purchase agreement and completed a transaction with Freeport-McMoRan Inc. (“Freeport”) to acquire Freeport’s indirect 95% interest in the Kisanfu copper-cobalt deposit (“Kisanfu”) in the Democratic Republic of Congo (“DRC”) for a total consideration of USD550 million (the “Transaction”).
Kisanfu, located in Lualaba Province in the DRC, is one of the world’s largest, highest-grade undeveloped cobalt and copper projects with a resource inventory of 365Mt grading 1.72% Cu and 0.85% Co and containing approximately 6.3Mt copper and 3.1Mt cobalt. Mineralisation continues at depth beyond current drilling, highlighting the potential to expand the resource and develop it into another long-life world class asset for CMOC’s portfolio. Kisanfu is located 33km southwest of CMOC’s copper-cobalt operations at Tenke-Fungurume Mine (TFM). CMOC expects significant synergies from its two operations in the DRC, Kisanfu and TFM.
REINFORCES POSITION AS LEADING PRODUCER OF RESPONSIBLE COBALT
The acquisition of Kisanfu is expected to further cement the Company’s position in the cobalt and the electric vehicles (“EV”) materials space. CMOC's current copper-cobalt operations at TFM following various international good practices in sustainability, assume a set of special responsibilities in the responsible supply of cobalt to the global markets. In addition, CMOC has been working with other major market participants applying blockchain technology on the cobalt supply chain. CMOC is committed to supplying more responsible cobalt to contribute to the transformation of the global energy sector.
SYNERGIES WITH EXISTING DRC OPERATIONS
CMOC is uniquely positioned to develop and operate Kisanfu. The Company’s operating expertise, infrastructure and strong focus in the DRC provides assurance to all stakeholders, including the DRC government and local community that Kisanfu will be developed and managed according to the highest international industry standards. CMOC is committed to developing this top tier copper-cobalt project in the most socially and environmentally responsible manner.
STRATEGIC ASSET WITH EXCEPTIONAL DEVELOPMENT OPTIONALITY
Kisanfu is a highly strategic deposit for CMOC with extensive geological potential, a large resource and deep mineralisation presenting multiple development strategies.
CEMENTS LONG TERM COMMITMENT TO THE DRC
CMOC is committed to being an important contributor and provider of employment in the region where Kisanfu is located. The development of Kisanfu is expected to bring material benefits to the DRC, including the creation of stable employment and the generation of local and state tax revenues.
CMOC Vice Chairman and Chief Investment Officer, Steele Li said, “We are very pleased to complete another major transaction with Freeport to acquire Kisanfu, a world class copper-cobalt asset. Kisanfu will further enhance the quality of our global asset portfolio and solidify our leading position in the cobalt and the EV materials space. This transaction further demonstrates our long-term commitment to the DRC. Based on our great track record, strong credibility and strict ethical conduct, we look forward to developing Kisanfu in the most responsible and disciplined manner. Kisanfu's success is in the best interests of all stakeholders and will bring significant value and economic benefits to the surrounding communities and the DRC.”