-
Home＞
- Investor relations and media＞
- News releases
CMOC enters into strategic partnership with CATL to jointly develop KFM in the DRC
2021-04-11 16:45:00
(Shanghai) 11 April 2021, China Molybdenum Co., Ltd. ("CMOC") announced its strategic partnership in the area of new energy metals with Contemporary Amperex Technology Co., Ltd. ("CATL"). As part of the deal, CATL will make an equity investment in CMOC Kisanfu project through its subsidiary and join CMOC in developing this world-class copper and cobalt mine in the DRC.
CMOC Limited, a wholly owned subsidiary of CMOC, entered into a Strategic Partnership Agreement with Ningbo Brunp CATL New Energy Co., Ltd. ("Brunp"), an indirect subsidiary of CATL. Brunp acquired 25% stake through its wholly owned subsidiary in KFM Holding Limited ("KFM Holding"), a wholly owned subsidiary of CMOC Limited, for a consideration of USD137.5 million. Upon completion of the transaction, CMOC Limited and Brunp will respectively have 75% and 25% ownership in KFM Holding, which holds 95% stake in the Kisanfu copper and cobalt mine ("KFM project") in the DRC.
On 13 December 2020, CMOC acquired from Freeport 95% stake in the Kisanfu project, one of the world's largest, highest-grade undeveloped cobalt and copper deposit. Kisanfu, with 365 million tons of ore resources which translate into over 6.2 million tons of copper metal and 3.1 million tons of cobalt metal, adds another world-class long life asset to CMOC's portfolio.
According to the Strategic Partnership Agreement, CMOC and CATL will fund the project capex in proportion to their ownership in KFM to jointly build a world-class copper and cobalt producer. Offtake arrangement of future copper and cobalt products between the two parties will also be proportionate to their respective ownership. The two parties also established a broad strategic partnership in the field of new energy mineral resources, targeting at comprehensive and in-depth cooperation in nickel resources development and smelting and processing in Indonesia and other countries, as well as global acquisition, investment, and development of lithium resources.
Contribution to development of KFM
KFM is one of the world's largest, highest-grade undeveloped cobalt and copper deposit. The participation of a strong partner will contribute to developing KFM in even more responsible and sustainable manner.
A win-win cooperation delivering mutual benefits
Through this partnership, CMOC becomes a long-term cobalt supplier to the world's largest power battery manufacturer and forges compelling long-term synergies with a world-class customer of battery raw materials. In turn, CATL has secured a long-term reliable, clean, and responsible source of cobalt raw material.
Continuous contribution to global energy transformation
The development of KFM copper and cobalt project will further enhance CMOC’s leading position as a premier supplier of battery metals and EV raw materials. CMOC is committed to the growth of global EV industry, supplying long-term stable, reliable, and clean raw materials to secure the sustainable growth of the industry.
"The lithium-ion battery industry has embraced the TWh era. Stable raw materials supply with full compliance is a critical step towards high-quality delivery. CATL has long been committed to responsible cobalt supply chain. CMOC advocates international ESG standards and is a leader supplying raw materials for battery metals and electric vehicles. This partnership will allow both parties to leverage our respective advantages in new energy metals resources such as lithium, cobalt, nickel, and copper, and contribute to the development of the new energy vehicle industry as well as the realization of carbon emissions peak and carbon neutrality. " said Mr. Zeng Yuqun, Chairman of CATL.
"Endorsed by CMOC’s high sustainability standards and great ESG reputation, our products are highly recognized by downstream manufacturers of precursors, cathode materials and battery, as well as automakers. CATL as a global leading power battery maker plays an important role in the global new energy industry value chain. We are very pleased to form this strategic partnership. With both parties’ significant presence in key resources, we will expand our cooperation in greater depth and breadth," said Mr. Sun Ruiwen, CEO of CMOC.
CMOC Limited, a wholly owned subsidiary of CMOC, entered into a Strategic Partnership Agreement with Ningbo Brunp CATL New Energy Co., Ltd. ("Brunp"), an indirect subsidiary of CATL. Brunp acquired 25% stake through its wholly owned subsidiary in KFM Holding Limited ("KFM Holding"), a wholly owned subsidiary of CMOC Limited, for a consideration of USD137.5 million. Upon completion of the transaction, CMOC Limited and Brunp will respectively have 75% and 25% ownership in KFM Holding, which holds 95% stake in the Kisanfu copper and cobalt mine ("KFM project") in the DRC.
On 13 December 2020, CMOC acquired from Freeport 95% stake in the Kisanfu project, one of the world's largest, highest-grade undeveloped cobalt and copper deposit. Kisanfu, with 365 million tons of ore resources which translate into over 6.2 million tons of copper metal and 3.1 million tons of cobalt metal, adds another world-class long life asset to CMOC's portfolio.
According to the Strategic Partnership Agreement, CMOC and CATL will fund the project capex in proportion to their ownership in KFM to jointly build a world-class copper and cobalt producer. Offtake arrangement of future copper and cobalt products between the two parties will also be proportionate to their respective ownership. The two parties also established a broad strategic partnership in the field of new energy mineral resources, targeting at comprehensive and in-depth cooperation in nickel resources development and smelting and processing in Indonesia and other countries, as well as global acquisition, investment, and development of lithium resources.
Contribution to development of KFM
KFM is one of the world's largest, highest-grade undeveloped cobalt and copper deposit. The participation of a strong partner will contribute to developing KFM in even more responsible and sustainable manner.
A win-win cooperation delivering mutual benefits
Through this partnership, CMOC becomes a long-term cobalt supplier to the world's largest power battery manufacturer and forges compelling long-term synergies with a world-class customer of battery raw materials. In turn, CATL has secured a long-term reliable, clean, and responsible source of cobalt raw material.
Continuous contribution to global energy transformation
The development of KFM copper and cobalt project will further enhance CMOC’s leading position as a premier supplier of battery metals and EV raw materials. CMOC is committed to the growth of global EV industry, supplying long-term stable, reliable, and clean raw materials to secure the sustainable growth of the industry.
"The lithium-ion battery industry has embraced the TWh era. Stable raw materials supply with full compliance is a critical step towards high-quality delivery. CATL has long been committed to responsible cobalt supply chain. CMOC advocates international ESG standards and is a leader supplying raw materials for battery metals and electric vehicles. This partnership will allow both parties to leverage our respective advantages in new energy metals resources such as lithium, cobalt, nickel, and copper, and contribute to the development of the new energy vehicle industry as well as the realization of carbon emissions peak and carbon neutrality. " said Mr. Zeng Yuqun, Chairman of CATL.
"Endorsed by CMOC’s high sustainability standards and great ESG reputation, our products are highly recognized by downstream manufacturers of precursors, cathode materials and battery, as well as automakers. CATL as a global leading power battery maker plays an important role in the global new energy industry value chain. We are very pleased to form this strategic partnership. With both parties’ significant presence in key resources, we will expand our cooperation in greater depth and breadth," said Mr. Sun Ruiwen, CEO of CMOC.
About us
Business operations
Sustainable development
Investor relations and media
