CAMEC Signs Cobalt Deal with Chinese Chemical Company

6 July 2009 (Last Updated July 6th, 2009 18:30)

Central African Mining & Exploration Company (CAMEC) has entered into a long-term sales agreement with Zhejiang Galico Cobalt & Nickel Materials, to deliver cobalt from its Mukondo Mountain operations in the Democratic Republic of the Congo. Under the agreement, CAMEC will sell it

Central African Mining & Exploration Company (CAMEC) has entered into a long-term sales agreement with Zhejiang Galico Cobalt & Nickel Materials, to deliver cobalt from its Mukondo Mountain operations in the Democratic Republic of the Congo.

Under the agreement, CAMEC will sell its entire annual production of 6,000-8,000t of cobalt in concentrate form at prevailing market prices to Galico, a major chemical salt producer in China.

The agreement gives CAMEC access to Galico’s global sales and distribution network and significant presence in one of the world's fastest-growing economies, the company said in a statement.

CAMEC CEO Andrew Groves said that CAMEC has three strong streams of revenue to provide a solid foundation for growth.

“This long-term sales agreement provides us with a guaranteed off-take and gives us direct access to the key Chinese market,” Groves said.