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Direct: Glencore plans to stop producing the largest cobalt mine in the world by the end of the year, following a sharp drop in the price of metal used in battery manufacturing.
The Swiss mining company announced Tuesday in a letter to the employees of the channel "Financial Times" that it was going to close the mine "Motanda" in the Democratic Republic of Congo, which is also a major producer of copper, because it is not Is more economically feasible.
This decision comes as Glencore rejected a new mining law in the Democratic Republic of Congo, which had significantly increased the taxes of international mining companies last year.
"Unfortunately, due to the significant decline in cobalt prices, cost-related inflation of key inputs (mainly sulfuric acid) and additional taxes imposed by the mining law, the mine is Is more economically viable in the long run, "says the company in a letter to employees.
The price of cobalt has fallen more than 40% this year due to the increased supply from the world's largest producer, the Democratic Republic of Congo.
The mine will continue to produce cobalt until the end of this year, after which it is expected that it will be put on what is called "maintenance. and maintenance "and could be reproduced later.
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