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There was a time when gold was attracting prospectors to the old west of the United States. Today, there is another precious metal that causes a similar fever: cobalt .
Cobalt extraction is not yet widespread in the United States. But a number of mining companies claim rights in the Idaho, Montana and Alaska regions in search of bluish white ore.
According to the BBC, there are extraordinary examples of the growing interest in cobalt. lithium-ion batteries that power electronic devices and electric cars
In the past, the supply of cobalt depended on the markets for copper and nickel, which were more valuable metals and are generally operated with cobalt
But with the increase in cobalt prices and their consumption projections – which indicate an increase of 8 to 10 percent per year – their by-product status began to change, says George Heppel, Senior Analyst, CRU Group Consulting Co., London
Some 300 companies around the world are now searching for cobalt deposits calculates CRU.
Mining actors such as Glencore also increase production in the Democratic Republic of Congo (DRC), where most of the world's cobalt is found.
In the United States, limited production of cobalt began in 2014 for the first time in about four decades. The Canadian-based company First Cobalt purchased a mine in Idaho in March and is expected to begin production in March. operate in about three years.
Cobalt, more than copper or another metal, is the main focus of the mine, says CEO Trent Mell.
"Miners like us have never really been looking for cobalt," he says. "There is a lot of cobalt in the world, and as miners we are late."
Cobalt consumption is expected to exceed 122,000 tonnes this year, compared to about 75,000 tonnes in 2011, according to CRU.
The pound sterling (the measure used for cobalt) increased to more than $ 40 this year compared to about $ 20 in early 2011, and it is now $ 39. about $ 32. Although the increase in production should help meet demand in the coming years, analysts say that a shortage looms in 2022 .
Market dynamics helped boost confidence, says Fiona Grant Leydier of eCobalt, who resurrected plans for his own cobalt mine in Idaho that were discussed in the 1990s.
The company, previously called Metals Training, is expected to begin production by the end of next year
"The cobalt market fundamentals are extremely strong, as they do not Have never been before, "says Grant Leydier
" We are very interested in financiers, potential partners and potential employees. "
After extracting cobalt-containing ore with the aid of explosives, it is refined and processed into metal, mixtures or chemical concentrates for use in products such as marine engines. planes, drones and batteries.
More than 60% of the cobalt in the world is mined in the DRC but China is the world's leading producer of refined cobalt. But as demand for cobalt has increased, the United States is also concerned about reliance on imports.
In February the United States included cobalt in the list of 35 minerals deemed crucial for the economy
Active companies in this country say they expect it to be that their "manufactured in the United States" status helps them speed up the government's approval of their plans and differentiate their product from imports.
Corruption and child labor in the DRC's mines also pushed buyers to find new sources of supply.
"There are few places where we can extract cobalt ethically and we want to be part of it," says Michael Hollomon, CEO of Missouri Cobalt. "We would like to believe that it gives us an advantage."
According to the BBC, the company plans to start producing cobalt in an old lead mine in Madison County, Missouri this summer.
it is estimated at 35 million pounds of recoverable cobalt making it the largest reserve of its kind in North America.
However, the realities of where large deposits of high quality cobalt are found globally, This means that the United States will never stop completely the import of cobalt.
In fact, analysts expect the DRC's share of global production to increase as mining companies increase their activities. China is expected to remain the world's leading cobalt refiner even as new facilities begin to operate in Europe, North America and other parts of Asia [19659028]
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