The price of battery metal – cobalt – could further increase as the Democratic Republic of Congo hikes up mining royalties by 500percent, at a time car makers are ramping up production of electric cars.
A new mining code, promulgated by President Joseph Kabila boosts royalties, paid by miners on their cobalt sales, fivefold, form 2percent to 10percent. Mine companies affected are mainly GLENCORE, CHINA MOLYBDENUM and AVANHOE
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This comes as major car makers like BMW. VOLKSWAGEN and TESLA, are trying to secure clean long-term supplies of cobalt used in electric batteries. Over the past year, the metal has more than doubled in price. Over 60percent of cobalt are mined in the Democratic Republic of Congo. Zimbabwe, reportedly, is also seeking to start up significant production.