CMOC Group Limited

CMOC
洛阳钼业
Company typePublic; partly state-owned
IndustryMetal and Phosphate mining
Founded1969 [1]
Headquarters
Luanchuan, Luoyang, Henan
,
People's Republic of China
Area served
Worldwide
Key people
Yuan Honglin (Chairman)
Sun Ruiwen (CEO)[2]
ProductsCopper, Molybdenum, Tungsten, Cobalt, Niobium and Phosphate related products
RevenueIncrease CN¥186.3 billion (2023)[3]
Increase CN¥15.5 billion (2023)[4]
Increase CN¥8.2 billion (2023)[5]
Total assets172,975,000,000 renminbi (2023) Edit this on Wikidata
OwnerCathay Fortune (30.19%)[6]
CATL (24.68%)[6]
SubsidiariesIXM
Websiteen.cmoc.com Edit this at Wikidata

CMOC or CMOC Group Limited (simplified Chinese: 洛阳钼业; traditional Chinese: 洛陽鉬業; pinyin: Luòyáng mù yè), previously known as China Molybdenum Company Limited,[7] is a Chinese partly state-owned mining company. It is listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange.

The company is the world's largest cobalt producer and controls approximately one third of global supply.[8][9] The company's headquarters are located in Luanchuan County, close to the city of Luoyang City in Henan. As of 2022, they are ranked 74th in the Fortune China Top 500.[10]

History

The original company was originally founded in 1969 under the name Luoyang Luanchuan Molybdenum, with the Sandaozhuang mine being established the next year. By the early 2000s, Luoyang Luanchuan was researching ways to extract Scheelite from its main molybdenum mine. Together with Ximen Tungsten Co Ltd, it founded a joint venture, Luoyang Yulu Mining Co. Ltd. to process the ore.[11][12]

In August 2006, the company began planning an initial public offering, and, in preparation for the move, changed its name to China Molybdenum in 2007.[13][14][15] The company is listed on the Hong Kong Stock Exchange.[16]

In 2010, CMOC acquired 55% of the Shangfanggou mine from the Luoyang Mining Group by buying 50% of Xuzhou Huanyu Molybdenum Co., Ltd and 100% of Luanchuan Huqi Mining Company Limited. The Hong Kong Stock Exchange sanctioned the group for not publicly disclosing the Huqi acquisition in a timely manner.[17]

Shares were first offered on the Shanghai Stock Exchange in 2012. On September 20, CMOC reported raising 600 million yuan selling shares, significantly less than the 3.65 billion yuan initially planned.[18] The scope of the offering was cut back from initial plans due to intervention from the China Securities Regulatory Commission. However, the stock then performed well, quickly tripling in value.[19]

In 2013, CMOC acquired an 80% stake in the Northparkes copper-gold mine in Australia from Rio Tinto.[20] The company sold the entirety of its stake in Northparkes to Australian gold mining company Evolution Mining in December 2023.[21]

A fully owned subsidiary, CMOC International, moved its headquarters to Phoenix, Arizona in 2017.[22] The CEO of this international subsidiary, Kalidas Madhavpeddi, left the company in 2018.[23]

In 2017, the Louis Dreyfus Company announced it was selling its metals trading business, LDC Metals, for $466 million to several Chinese companies, including CMOC and AXAM Asset Management.[24] LDC Metals was then renamed IXM.[25] CMOC took full control of IXM in 2019.[26]

In June 2022, the company officially changed its name from China Molybdenum Company Limited to CMOC Group Limited.[7] Later that year, the company was included at 74 on the Fortune China 500 list.[10]

Leadership

The current chairman of CMOC is Yuan Honglin (袁宏林), having been elected in June 2020.[27] He replaced Li Chaochun (李朝春), who held the position from 2014 to 2020.[28][29] The two largest shareholders of the company are the Cathay Fortune Group and Chinese battery manufacturer CATL.[30][31]

Holdings and subsidiary

Holdings

Brazil

In 2016, CMOC acquired phosphate and niobium mines in the Brazilian states of Goiás and São Paulo from Anglo American plc, including the Boa Vista mine.[32]

China

In China, the company controls three major mines: the molybdenum-tungsten Sandaozhuang mine (Chinese: 三道莊鉬鎢礦), in Luanchuan County, the Donggebi molybdenum mine in Hami, and the molybdenum-iron Shangfanggou mine (Chinese: 上房溝鉬鐵礦), directly adjacent to the Sandaozhuang mine.[33][34][35] The Sandaozhuang mine is owned fully by CMOC, while the Shangfanggou mine is a joint venture with 45% equity controlled by Luoyang Mining Group.[36]

Democratic Republic of Congo

In the Democratic Republic of Congo, the company holds an 80% stake in the Tenke Fungurume Mine. This mine was purchased from Freeport-McMoRan in 2016 for $2.65 billion, supported by at least $1.59 billion in loans from Chinese state-backed banks.[37] The deal was facilitated by BHR Partners, which bought out Lundin Mining's minority stake in the mine for $1.14 billion.[37] The mine holds copper, as well as cobalt for lithium-ion batteries.[38] In 2022, the Tenke Fungurume mine became the subject of a dispute between CMOC and the DRC government over the amount of royalties paid to the mine's minority partner, Congolese state-owned company Gécamines.[39][40] An agreement was reached in April 2023 that opened the way for the resumption of minerals exports.[41]

Similarly, through its subsidiary KFM Holding Limited, the company also acquired a 95% stake in the Kisanfu mine from Freeport-McMoRan in 2020 for a price of $550 million, which also produces copper and cobalt.[42] In 2021, the group sold 25% of KFM Holdings to Contemporary Amperex Technology for $137.5 million, leaving it with a 71.25% stake in the Kisanfu project.[43][44] CMOC announced plans in July 2022 to be investing $1.8 billion into the Kisanfu project.[45]

Subsidiary

IXM

In 2019, CMOC fully acquired IXM, currently the world's third-largest metals trader.[46][47] The company specializes in the trade of copper, zinc, aluminium, nickel, cobalt, niobium and lithium. Its corporate headquarters is based in Geneva, Switzerland.[48]

See also

References

  1. ^ "CMOC overview". CMOC. Retrieved 2022-12-01.
  2. ^ Nyabiage, Jevans (2022-03-14). "CEO of Chinese mining giant back in DRC as cobalt supplies face biggest test yet". South China Morning Post. Archived from the original on 2022-06-05. Retrieved 2022-06-05.
  3. ^ "ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023" (PDF). HKEXnews. 22 March 2024. Archived (PDF) from the original on 24 April 2024. Retrieved 24 April 2024.
  4. ^ "ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023" (PDF). HKEXnews. 22 March 2024. Archived (PDF) from the original on 24 April 2024. Retrieved 24 April 2024.
  5. ^ "ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023" (PDF). HKEXnews. 22 March 2024. Archived (PDF) from the original on 24 April 2024. Retrieved 24 April 2024.
  6. ^ a b "China's CATL to take near 25% stake in CMOC". Reuters. 2022-10-01. Archived from the original on 2023-07-11. Retrieved 2023-10-19.
  7. ^ a b MarketScreener (10 June 2022). "China Molybdenum Co., Ltd. has Changed its Name to CMOC Group Limited | MarketScreener". www.marketscreener.com. Archived from the original on 2022-09-22. Retrieved 2022-09-21.
  8. ^ "China is tightening its grip on the world's minerals". The Economist. October 31, 2024. ISSN 0013-0613. Retrieved 2024-11-10. CMOC, a Chinese state-backed miner that has been acquiring large cobalt projects in the Democratic Republic of Congo, is now the world's biggest producer of the metal.
  9. ^ Hoyle, Rhiannon; Jie, Yang (October 10, 2024). "This Chinese Miner Dominates Global Cobalt Supply. The U.S. Is Crying Foul". The Wall Street Journal. Retrieved October 15, 2024.
  10. ^ a b 市场资讯 (2022-07-14). "2022年《财富》中国500强排行榜揭晓 多家有色企业上榜". finance.sina.com.cn. Archived from the original on 2022-09-21. Retrieved 2022-09-21.
  11. ^ United States. Bureau of Mines; Geological Survey (U.S.) (2004). Minerals Yearbook (in German). Bureau of Mines. p. 9-PA8. Retrieved 2022-06-18.
  12. ^ WANG, Xu; QIN, Wen-qing; JIAO, Fen; YANG, Cong-ren; LI, Wei; ZHANG, Zheng-quan; ZHOU, Jin-min; GUO, Jian-gen; ZHANG, Jian (2022). "Review on development of low-grade scheelite recovery from molybdenum tailings in Luanchuan, China: A case study of Luoyang Yulu Mining Company". Transactions of Nonferrous Metals Society of China. 32 (3). Elsevier BV: 980–998. doi:10.1016/s1003-6326(22)65848-5. ISSN 1003-6326.
  13. ^ "Luoyang Luanchuan plans US$600m share sale". South China Morning Post. 2007-01-16. Archived from the original on 2022-06-13. Retrieved 2022-06-13.
  14. ^ "Luoyang Luanchuan plans share sale". South China Morning Post. 2006-09-25. Retrieved 2022-06-13.
  15. ^ "Molybdenum firm to boost tungsten output". South China Morning Post. 2007-03-27. Archived from the original on 2022-06-17. Retrieved 2022-06-17.
  16. ^ Onstad, Eric (December 6, 2023). "China turbo-charges cobalt mine output despite price crash". Reuters. Archived from the original on June 6, 2024. Retrieved November 14, 2024. CMOC is listed in Hong Kong, but according to its LinkedIn profile has "state-owned capital participation".
  17. ^ "The Listing Committee criticises China Molybdenum Co., Ltd. (stock code: 3993) for breaching the Listing Rules and some former and current directors for breaching the Director's Undertaking". HKEX. 2021-11-05. Archived from the original on 2022-10-23. Retrieved 2022-06-12.
  18. ^ "China Molybdenum raises less-than-expected $95 mln in share sale". U.S. 2012-09-20. Archived from the original on 2022-06-12. Retrieved 2022-06-12.
  19. ^ Shen, Samuel; Takada, Kazunori (2012-10-09). "UPDATE 3-China Molybdenum triples on Shanghai debut; stock deemed undervalued". Reuters. Archived from the original on 2022-06-12. Retrieved 2022-06-12.
  20. ^ "Rio Tinto Agrees to Sell Copper Mine to Chinese Company". The New York Times. 2013-07-29. ISSN 0362-4331. Retrieved 2023-12-21.
  21. ^ Thomson, Olivia (2023-12-18). "Evolution officially acquires Northparkes majority". Australian Mining. Archived from the original on 2024-01-01. Retrieved 2023-12-21.
  22. ^ Randazzo, Ryan (2017-10-19). "Mining company to move international headquarters to Phoenix, bringing 100 jobs". azcentral.com. Archived from the original on 2022-01-27. Retrieved 2022-06-16.
  23. ^ Lewis, Barbara; Daly, Tom (2018-04-13). "CMOC Intl CEO Madhavpeddi leaves mining giant". Reuters. Archived from the original on 2023-02-27. Retrieved 2022-06-16.
  24. ^ Neil Hume (2017-12-22). "Louis Dreyfus Company sells metals business to Chinese fund". Financial Times. Archived from the original on 2022-12-07. Retrieved 2022-06-16.
  25. ^ "Ex-Louis Dreyfus metal unit changes name to IXM". Reuters. 2018-05-29. Archived from the original on 2022-10-23. Retrieved 2022-06-16.
  26. ^ "China Moly takes full control of ex-Dreyfus metals unit for $518 million". Reuters. 2019-07-25. Archived from the original on 2022-10-23. Retrieved 2022-06-16.
  27. ^ "Directors and Supervisors - CMOC Group Limited". CMOC. Archived from the original on 2022-09-21. Retrieved 2022-09-21.
  28. ^ "China Moly chairman steps down, takes M&A role in reshuffle". Reuters. 2020-06-13. Archived from the original on 2022-09-21. Retrieved 2022-09-21.
  29. ^ "Gold and Copper Summit 2022: Overview of Global Gold Markets in 2022 and Beyond". www.spglobal.com. Archived from the original on 2022-09-21. Retrieved 2022-09-21.
  30. ^ "China's CATL to take near 25% stake in CMOC". Reuters. 2022-11-01. Archived from the original on 2023-07-11. Retrieved 2023-10-19.
  31. ^ Zou, Heather (October 5, 2022). "CATL to Become the Second Largest Shareholder of Mining Company". TMTPost. Archived from the original on 2022-10-08. Retrieved 2024-11-14.
  32. ^ Kotze, Chantelle (2016-04-28). "Anglo American sells niobium, phosphates assets for $1.5Bn". Miningreview.com. Archived from the original on 2021-10-24. Retrieved 2022-06-04.
  33. ^ Jani, Ayurvedacharya Dr.Hitesh (2012-09-14). "Leader of China's Molybdenum and Tungsten Industry is Poised to Return to the A Share Market". APN News. Retrieved 2022-06-05.
  34. ^ "INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023" (PDF). hkexnews. 25 August 2023. Archived (PDF) from the original on 19 April 2024. Retrieved 19 April 2024.
  35. ^ "Luoyang Molybdenum Brochure (洛阳钼业宣传册英文版)" (PDF). CMOC.
  36. ^ CMOC. "PROPOSED RE-ELECTION AND ELECTION OF THE DIRECTORS AND THE SUPERVISORS" (PDF). Archived (PDF) from the original on 2022-11-08. Retrieved 2022-06-12.
  37. ^ a b Searcey, Dionne (2021-11-20). "A Power Struggle Over Cobalt Rattles the Clean Energy Revolution". The New York Times. Retrieved 2022-06-05.
  38. ^ China plays long game on cobalt and electric batteries Archived 2016-10-18 at the Wayback Machine FT
  39. ^ O'Brien, Garrett (2022-08-07). "The Congo Standoff". The Wire China. Archived from the original on 2024-09-10. Retrieved 2024-11-14. CMOC, which is 25 percent state-owned...
  40. ^ "CATL takes stake in China Moly cobalt mine for $137.5 mln". Reuters. 2021-04-11. Archived from the original on 2022-09-22. Retrieved 2022-09-21.
  41. ^ "Congo state miner and China's CMOC reach agreement on royalties". Reuters. 2023-04-25. Archived from the original on 2023-11-25. Retrieved 2023-10-19.
  42. ^ "China Moly buys 95% of DRC copper-cobalt mine from Freeport for $550 million". Reuters. 2020-12-13. Archived from the original on 2023-04-09. Retrieved 2022-06-05.
  43. ^ "CMOC Transfers 25% Stake in KFM Holding to CATL". AASTOCKS.COM. Archived from the original on 2022-09-22. Retrieved 2022-09-21.
  44. ^ Rani, Archana (2021-04-12). "CATL to acquire stake in DRC's Kisanfu copper-cobalt mine in $137m deal". Mining Technology. Archived from the original on 2023-06-04. Retrieved 2022-06-12.
  45. ^ "China's CMOC plans $1.8bn investment in Congo copper-cobalt mine". Mining Technology. 2022-07-01. Archived from the original on 2023-06-08. Retrieved 2022-09-21.
  46. ^ "China Moly takes full control of ex-Dreyfus metals unit for $518 mln". Reuters. 2019-07-26. Retrieved 2023-11-24.
  47. ^ "Metal Trader Misery Undercuts Supercycle Hype as Losses Pile Up". Bloomberg.com. 2023-10-08. Archived from the original on 2023-10-29. Retrieved 2023-11-24.
  48. ^ "Environmental, Social and Governance Report 2022" (PDF). IX Metals. 2022. Archived (PDF) from the original on 24 November 2023. Retrieved 24 November 2023.