LONDON (ShareCast) - Africa-focused diversified miner Central African Mining (CAMEC) has signed a long-term agreement for the sale of cobalt to Zhejiang Galico, one of the largest chemical salt producers in China.
CAMEC will deliver its entire
annual production of cobalt from its Mukondo Mountain operation in the Democratic Republic of the Congo. The estimated annual production of the operation is 6,000 to 8,000 tonnes of cobalt in concentrate form.
The company said it is on track to produce 8,000 tonnes of cobalt from Mukondo Mountain this financial year.
Additionally, commissioning of CAMEC's 3,200 tonnes per annum cobalt SX/EW line is on target to start production by September 2009, with full production expected to be achieved by March 2010.
CAMEC had previously proposed taking a 78% equity stake in Galico but abandoned this idea due to uncertainty in the commodities market and the generally downbeat economic environment. The sales agreement does not signify a revival of CAMEC’s interest in acquiring a stake in Galico.
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