DRC-based copper and cobalt producers Shalina Resources and Chemaf have concluded a financing and marketing transaction with commodity trader Trafigura to facilitate a new high-grade cobalt hydroxide and copper cathode supply.

The deal, worth $60 million, will enable the completion of the fully mechanised Mutoshi Mine and SX-EW processing plant in Kolwezi, DRC, and the expansion of the Etoile SX-EW processing Lubumbashi, DRC.

Trafigura said the Mutoshi mine is set to be one of the largest cobalt and copper mines in the DRC with "significant resource development" benefits. The company said the mine would begin producing by Q3 2023.

Consequently, the new production would make Chemaf one of the largest cobalt producers globally when demand for batteries for electric vehicles is growing due to the global energy transition.

"The development of these operations in the DRC will provide substantial economic value for the country and create significant local employment during the construction phase of the Mutoshi mine as well as during the operation phase of up to 1,000 jobs," Trafigura said.

The DRC is one of the most mineral-rich nations on Earth, and its resources are in heavy demand due to their use in electric vehicle batteries. However, experts recently warned that it would need to improve its mobile network to meet customer demand.