<article><p class="lead">Chinese copper producer Wanbao Mining has produced the first batch of cobalt hydroxide at its Pumpi copper-cobalt mine in the Democratic Republic of Congo (DRC).</p><p>The Pumpi mine has a designed capacity of 45,000 t/yr for cathode copper and 5,000 t/yr of cobalt hydroxide in metal equivalent. The first batch of cathode copper from the mine was produced in September.</p><p>Wanbao also operates the <a href="https://metals.argusmedia.com/newsandanalysis/article/2162364">Kamoya</a> copper-cobalt mine in the DRC, the Monywa copper mine in Myanmar and a platinum mine in Zimbabwe. </p><p>Demand for cobalt, which is a key feedstock to make <a href="https://metals.argusmedia.com/newsandanalysis/article/2194927">power batteries</a>, has been increasing in recent years, bolstered by rising demand from the new energy vehicle (NEV) industry. </p><p>Cobalt hydroxide supplies have tightened since the end of 2020 when the Covid-19 pandemic disrupted the DRC-South Africa-China shipping line, particularly with South Africa's lockdown restrictions <a href="https://metals.argusmedia.com/newsandanalysis/article/2176002">impacting ports</a>.</p><p><i>Argus </i>last assessed cobalt hydroxide at $22.80-24.20/lb cif China on 9 March, up from $9.60-10.40/lb on 7 July 2020. A hydroxide producer said that the price relationship between cobalt hydroxide and metal is now at a "new normal". Buyers will have to accept higher prices in relation to cobalt metal prices, the producer said.</p></article>
