A multi-national copper and cobalt mining and metals company, with a mine portfolio encompassing the DRC, has entered into an offtake marketing agreement with one of the worlds leading independent commodity trading and logistics companies.
Shalina Resources, through its CDRC subsidiary CHEMAF has entered into an agreement with Trafigura Group until December 2020, in which it will supply cobalt hydroxide.
“We are one of the largest and most ambitious cobalt producers in the DRC – Trafigura is helping us fuel our ambition”, said Shiraz Virji, Chairman of Chemaf. “This offtake agreement will enable us to work together to transform DRC’s precious cobalt resources into jobs and fiscal revenues for the country, as well as to meet rapidly increasing international demand.”
Sebastien Ansel, Executive Director and Chief Financial Officer of Shalina Resources, added: “With demand for electric vehicles set to rise exponentially in the coming years, Chemaf is playing an increasingly important role in providing the market with high-grade cobalt hydroxide. The agreement announced today will enable Chemaf to accelerate production whilst also investing in our highly attractive exploration portfolio.
The agreement covers cobalt production from the company’s producing assets. Most of the bulk of Shalina’s cobalt production comes from its flagship Etoile mine and processing plant in Lubumbashi.
The company has outlined that production is set to rise to 7,000 tonnes in 2018.
Chemaf has one of the largest and “most promising” exploration portfolios in the DRC and through the agreement, Chemaf will significantly bolster its social and environmental stewardship through the support of Trafigura.