First Cobalt signs supply deal with Glencore, eyes China Moly contract

Electra Battery Materials

12/01/2021 11:30

By Jeff Lewis
    TORONTO, Jan 12 (Reuters) - Canada's First Cobalt Corp
 FCC.V  said on Tuesday it signed a deal with Glencore  GLEN.L 
and has agreed a tentative pact with a unit of China Molybdenum
Ltd  603933.SS  for cobalt supplies from the Democratic Republic
of the Congo.
    The agreements come after First Cobalt last month secured 
C$10 million in government loans and grants to accelerate
startup and expansion of North America's first cobalt refinery
in the Canadian province of Ontario.  urn:newsml:reuters.com:*:nL1N2IW269  
    The DRC is the world's top producer of cobalt, a crucial
ingredient for the lithium-ion batteries that underpin the
fast-growing electric vehicle sector.
    Toronto-based First Cobalt said it will source cobalt
hydroxide at prevailing market prices from Glencore's Kamoto
Copper Co operation for five years starting in the fourth
quarter of 2022. 
    The Canadian company also said it aims to complete a
definitive contract with China Moly subsidiary IXM SA for cobalt
from CMOC’s massive Tenke Fungurume mining operation in the DRC
over the same time period.  
    It was not immediately clear how much supply would come from
each mine; First Cobalt did not disclose specific figures.
    The agreements represent 90% of the Canadian plant's
projected capacity, yielding 22,250 tonnes per year of battery
grade cobalt sulphate, the company said. 
    Construction at the C$77 million plant, about 600 kilometers
(373 miles) from the U.S. border, is slated to start in
mid-2021, the company said.

 (Reporting by Jeff Lewis; Editing by David Gregorio)
 ((Jeff.Lewis@thomsonreuters.com; +1 647 200 7236))