Battery maker Contemporary Amperex Technology (CATL) subsidiary Ningbo Brunp CATL New Energy will be acquiring a stake in the Kisanfu copper-cobalt mine in the Democratic Republic of Congo (DRC) for $137.5m.
According to the agreement, Ningbo Brunp CATL New Energy will purchase 25% in China Molybdenum (CMOC) unit KFM Holding, reported Reuters.
KFM Holding owns a 95% interest in the Kisanfu mine while the remaining 5% stake is held by the DRC Government.
The deal is expected to provide CATL with access to what is claimed to be one of the world’s largest, highest-grade undeveloped cobalt and copper projects.
In order to secure supply, CATL earlier invested in lithium and nickel mining companies, the news agency reported.
China Molybdenum was cited by the news agency as saying that the company, together with CATL, ‘will fund the project CAPEX in proportion to their ownership in KFM to jointly build a world-class copper and cobalt producer’.
CMOC will retain the remaining 75% of KFM.
With the partnership, Moly is expected to become ‘a long-term cobalt supplier to the world’s largest power battery manufacturer’, CMOC noted.
With the latest deal, CMOC’s and CATL’s actual interests in the Kisanfu mine will respectively be 71.25% and 23.75%. The DRC Government will continue to hold a 5% stake.
Located near CMOC’s Tenke Fungurume copper-cobalt mine, the Kisanfu mine is estimated to hold 3.1Mt of cobalt and 6.3Mt of copper.