The transaction will enable new supply of high-grade cobalt hydroxide and copper cathode amid rising global demand


Shalina, Trafigura conclude financing and marketing transaction for Mutoshi cobalt and copper mine. (Credit: Khusen Rustamov from Pixabay)

Shalina Resources and its subsidiary Chemaf have closed a $600m financing and marketing transaction with Trafigura, which is aimed at enabling the completion of the Mutoshi cobalt and copper mine in the Democratic Republic of the Congo (DRC).

According to the parties, the transaction will facilitate new supply of high-grade cobalt hydroxide and copper cathode amid rising global demand.

Apart from the Mutoshi mine, the financing will enable the completion of the SX-EW processing plant in Kolwezi as well as the expansion of the Etoile SX-EW processing plant in Lubumbashi to move ahead without delay.

Trafigura said that it plans to syndicate the majority of the $600m financing to global banks. The commodity trading group stated that the agreements also allow it to undertake marketing of all the cobalt hydroxide coming from the assets operated by Chemaf, which is likely to continue until the end of 2027.

The Mutoshi mine is anticipated to be producing by Q3 2023, said the parties.

Furthermore, Trafigura stated that the new production will position Chemaf among the largest cobalt producers in the world. This will be at a time when demand for batteries for electric vehicles and copper for increased electrification as part of the energy transition is exponentially growing from customers around the world.

The transaction will also give considerable fiscal revenues for the DRC in royalties, duties and income tax. Besides, it will generate significant local employment during the construction stage of the Mutoshi mine and during the operation phase with up to 1,000 jobs, said Trafigura.

Additionally, the current jobs of nearly 1,000 Congolese at the Etoile mine will be secured for an additional period of 10-12 years.