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The precious metal that is creating a new 'gold fever'

If gold was once the great magnet of prospectors in the American West, now it is cobalt who plays that role.Cobalt gold mining has not been happening for decades in the United States. But now a group of mining companies is in the American states of Idaho, Montana and Alaska in search of the silver blue ore.They are examples of the growing interest in cobalt - a key component in lithium-ion batteries, much used in portable electronics and electric cars.In the past, the supply of cobalt depended on the copper and nickel markets, the most valuable metals typically extracted along with cobalt.But cobalt price growth and forecasting consumer growth of 8 to 10 percent a year have made its status change, says George Heppel, senior analyst at CRU Group research firm in London.About 300 companies worldwide are now hunting for cobalt deposits, the CRU estimates.Mining giants like Glencore are also boosting production in the Democratic Republic of Congo, where most of the world's cobalt is found.In the United States, small cobalt production began in 2014 for the first time in about four decades.First Cobalt, a Canadian company, has bought a mine in Idaho, USA, and says it expects production to be advanced in about three years.The focus is cobalt, according to company chief executive Trent Mell, not copper or other metal."Miners like us never went looking for cobalt, in fact," he says. "There's a lot of cobalt in the world. As miners, we're behind

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Cobalt consumption is expected to exceed 122,000 tons this year, up from 75,000 tons in 2011, according to the CRU.The price of cobalt has tripled. Although more production will be able to respond to demand in the coming years, analysts say there may be shortages as early as 2022."There is a lot of interest from potential partners," says Fiona Grant Leydier, a company that has renamed its Formation Metals name to eCobalt, reviving old plans.After cobalt is extracted with the help of explosives, it is taken to be refined and processed into metal, mixtures or chemical concentrates used in products such as drones, motors or batteries.More than 60% of the world's cobalt is mined in the Democratic Republic of Congo, while China is the leading producer of refined cobalt.But along with rising demand, there is also growing concern from the United States over import dependency.In February, the US added cobalt to the list of 35 minerals critical to the economy.Active companies in the United States say they expect their "made in the USA" status will help accelerate government approval and differentiate their products from imports.
They say that concerns about corruption and child labor in DRC mines also pressure buyers to find new sources."There are some places where you can conduct mining ethically and we want to be one of them," says Michael Hollomon, chief executive of the Missouri Cobalt. "That gives us an advantage."The company plans to start producing cobalt at an old lead mine in Missouri, where there are 15 million pounds of cobalt, the largest reserve in North America.However, as there are other areas of the world with a lot of quality cobalt, the United States will never be able to stop importing it completely.Experts hope that the Democratic Republic of Congo's participation in global production will increase, as miners expand their activities there.It is also expected that China will continue to dominate the refined cobalt market, expanding its operation in Europe, North America and other parts of Asia.



bbc.com