CMOC Group Limited explained

CMOC
Type:Public
partly state-owned
Foundation:1969 [1]
Location City:Luanchuan, Luoyang, Henan
Location Country:People's Republic of China
Key People:Yuan Honglin (Chairman)
Sun Ruiwen (CEO)[2]
Area Served:Worldwide
Industry:Metal and Phosphate mining
Products:Copper, Molybdenum, Tungsten, Cobalt, Niobium and Phosphate related products
Revenue: (2023)[3]
Operating Income: (2023)[4]
Net Income: (2023)[5]
Subsid:IXM
Owner:Cathay Fortune (30.19%)[6]
CATL (24.68%)

CMOC or CMOC Group Limited, 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. Later that year, the company was included at 74 on the Fortune China 500 list.

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, in Luanchuan County, the Donggebi molybdenum mine in Hami, and the molybdenum-iron Shangfanggou mine, 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. 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

Notes and References

  1. Web site: CMOC overview . CMOC . 2022-12-01.
  2. Web site: Nyabiage . Jevans . CEO of Chinese mining giant back in DRC as cobalt supplies face biggest test yet . South China Morning Post . 2022-03-14 . 2022-06-05 . 2022-06-05 . https://web.archive.org/web/20220605071234/https://www.scmp.com/news/china/diplomacy/article/3170317/ceo-chinese-mining-giant-back-drc-cobalt-supplies-face-biggest . live .
  3. Web site: ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 . HKEXnews . 22 March 2024 . 24 April 2024 . 24 April 2024 . https://web.archive.org/web/20240424103158/https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0322/2024032201879.pdf . live .
  4. Web site: ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 . HKEXnews . 22 March 2024 . 24 April 2024 . 24 April 2024 . https://web.archive.org/web/20240424103158/https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0322/2024032201879.pdf . live .
  5. Web site: ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 . HKEXnews . 22 March 2024 . 24 April 2024 . 24 April 2024 . https://web.archive.org/web/20240424103158/https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0322/2024032201879.pdf . live .
  6. Web site: China's CATL to take near 25% stake in CMOC . Reuters . 2022-10-01 . 2023-10-19 . 2023-07-11 . https://web.archive.org/web/20230711124304/https://www.reuters.com/article/china-catl-cmoc-idUKL4N31X1ZS . live .
  7. Web site: MarketScreener . China Molybdenum Co., Ltd. has Changed its Name to CMOC Group Limited MarketScreener . 2022-09-21 . www.marketscreener.com . 10 June 2022 . en . 2022-09-22 . https://web.archive.org/web/20220922161452/https://www.marketscreener.com/quote/stock/CMOC-GROUP-LIMITED-1412662/news/China-Molybdenum-Co-Ltd-has-Changed-its-Name-to-CMOC-Group-Limited-40875910/ . live .
  8. News: October 31, 2024 . China is tightening its grip on the world's minerals . subscription . 2024-11-10 . . 0013-0613 . 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. News: Hoyle . Rhiannon . Jie . Yang . October 10, 2024 . This Chinese Miner Dominates Global Cobalt Supply. The U.S. Is Crying Foul. . subscription . October 15, 2024 . The Wall Street Journal.
  10. Web site: 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 . 2022-09-21 . finance.sina.com.cn . 2022-09-21 . https://web.archive.org/web/20220921113910/https://finance.sina.com.cn/money/future/roll/2022-07-14/doc-imizmscv1481035.shtml . live .
  11. Book: United States. Bureau of Mines . Geological Survey (U.S.) . Minerals Yearbook . Bureau of Mines . 2004 . de . 2022-06-18 . 9-PA8.
  12. WANG . Xu . QIN . Wen-qing . JIAO . Fen . YANG . Cong-ren . LI . Wei . ZHANG . Zheng-quan . ZHOU . Jin-min . GUO . Jian-gen . ZHANG . Jian . 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 . Elsevier BV . 32 . 3 . 2022 . 1003-6326 . 10.1016/s1003-6326(22)65848-5 . 980–998.
  13. Web site: Luoyang Luanchuan plans US$600m share sale . South China Morning Post . 2007-01-16 . 2022-06-13 . 2022-06-13 . https://web.archive.org/web/20220613080924/https://www.scmp.com/article/578800/luoyang-luanchuan-plans-us600m-share-sale . live .
  14. Web site: Luoyang Luanchuan plans share sale . South China Morning Post . 2006-09-25 . 2022-06-13.
  15. Web site: Molybdenum firm to boost tungsten output . South China Morning Post . 2007-03-27 . 2022-06-17 . 2022-06-17 . https://web.archive.org/web/20220617000513/https://www.scmp.com/article/586613/molybdenum-firm-boost-tungsten-output . live .
  16. News: Onstad . Eric . December 6, 2023 . China turbo-charges cobalt mine output despite price crash . November 14, 2024 . . CMOC is listed in Hong Kong, but according to its LinkedIn profile has "state-owned capital participation". . June 6, 2024 . https://web.archive.org/web/20240606161409/https://www.reuters.com/markets/commodities/china-turbo-charges-cobalt-mine-output-despite-price-crash-2023-12-06/ . live .
  17. Web site: 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 . . 2022-06-12 . 2022-10-23 . https://web.archive.org/web/20221023130453/https://www.hkex.com.hk/News/Regulatory-Announcements/2013/130207news?sc_lang=en . live .
  18. Web site: China Molybdenum raises less-than-expected $95 mln in share sale . U.S. . 2012-09-20 . 2022-06-12 . 2022-06-12 . https://web.archive.org/web/20220612220958/https://www.reuters.com/article/china-molybdenum-share-idUSL4E8KK1XZ20120920 . live .
  19. Web site: Shen . Samuel . Takada . Kazunori . UPDATE 3-China Molybdenum triples on Shanghai debut; stock deemed undervalued . Reuters . 2012-10-09 . 2022-06-12 . 2022-06-12 . https://web.archive.org/web/20220612220052/https://www.reuters.com/article/china-molybdenum-ipo-idAFL3E8L90CI20121009 . live .
  20. News: 2013-07-29 . Rio Tinto Agrees to Sell Copper Mine to Chinese Company . 2023-12-21 . . en-US . 0362-4331.
  21. Web site: Thomson . Olivia . 2023-12-18 . Evolution officially acquires Northparkes majority . 2023-12-21 . Australian Mining . en-AU . 2024-01-01 . https://web.archive.org/web/20240101111725/https://www.australianmining.com.au/evolution-officially-acquires-northparkes-majority/ . live .
  22. Web site: Randazzo . Ryan . Mining company to move international headquarters to Phoenix, bringing 100 jobs . azcentral.com . 2017-10-19 . 2022-06-16 . 2022-01-27 . https://web.archive.org/web/20220127185303/https://www.azcentral.com/story/money/business/economy/2017/10/19/mining-company-move-international-headquarters-phoenix-bringing-100-jobs/776773001/ . live .
  23. Web site: Lewis . Barbara . Daly . Tom . CMOC Intl CEO Madhavpeddi leaves mining giant . Reuters . 2018-04-13 . 2022-06-16 . 2023-02-27 . https://web.archive.org/web/20230227111056/https://www.reuters.com/article/cmoc-ceo-idUSL8N1RQ3KO . live .
  24. Web site: Louis Dreyfus Company sells metals business to Chinese fund . Financial Times . 2022-06-16 . Neil Hume . 2017-12-22 . 2022-12-07 . https://web.archive.org/web/20221207221302/https://www.ft.com/content/9297ef3d-fe75-3fcb-9ee0-53e4e3b4ed7a . live .
  25. Web site: Ex-Louis Dreyfus metal unit changes name to IXM . Reuters . 2018-05-29 . 2022-06-16 . 2022-10-23 . https://web.archive.org/web/20221023130452/https://www.reuters.com/article/us-louisdreyfus-metals-ixm-idUSKCN1IU10S . live .
  26. Web site: China Moly takes full control of ex-Dreyfus metals unit for $518 million . Reuters . 2019-07-25 . 2022-06-16 . 2022-10-23 . https://web.archive.org/web/20221023130457/https://www.reuters.com/article/us-cmoc-acquisition-idUSKCN1UK23V . live .
  27. Web site: Directors and Supervisors - CMOC Group Limited . 2022-09-21 . CMOC . en . 2022-09-21 . https://web.archive.org/web/20220921115213/https://en.cmoc.com/ . live .
  28. News: 2020-06-13 . China Moly chairman steps down, takes M&A role in reshuffle . en . Reuters . 2022-09-21 . 2022-09-21 . https://web.archive.org/web/20220921115212/https://www.reuters.com/article/us-cmoc-reshuffle-idUSKBN23K01Y . live .
  29. Web site: Gold and Copper Summit 2022: Overview of Global Gold Markets in 2022 and Beyond . 2022-09-21 . www.spglobal.com . en-us . 2022-09-21 . https://web.archive.org/web/20220921115805/https://www.spglobal.com/marketintelligence/en/news-insights/videos/gold-and-copper-summit-2022 . live .
  30. News: 2022-11-01 . China's CATL to take near 25% stake in CMOC . en . Reuters . 2023-10-19 . 2023-07-11 . https://web.archive.org/web/20230711124304/https://www.reuters.com/article/china-catl-cmoc-idUKL4N31X1ZS . live .
  31. Web site: Zou . Heather . October 5, 2022 . CATL to Become the Second Largest Shareholder of Mining Company . 2024-11-14 . TMTPost . 2022-10-08 . https://web.archive.org/web/20221008154115/https://en.tmtpost.com/post/6273330 . live .
  32. Web site: Kotze . Chantelle . 2016-04-28 . Anglo American sells niobium, phosphates assets for $1.5Bn . 2022-06-04 . Miningreview.com . 2021-10-24 . https://web.archive.org/web/20211024150620/https://www.miningreview.com/international/anglo-american-sells-niobium-and-phosphates-assets-for-1-5-billion/ . dead .
  33. Web site: Jani . Ayurvedacharya Dr.Hitesh . Leader of China's Molybdenum and Tungsten Industry is Poised to Return to the A Share Market . APN News . 2012-09-14 . 2022-06-05.
  34. Web site: 25 August 2023 . INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2023 . hkexnews . 19 April 2024 . 19 April 2024 . https://web.archive.org/web/20240419092239/https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0825/2023082501575.pdf . live .
  35. Web site: Luoyang Molybdenum Brochure (洛阳钼业宣传册英文版) . CMOC.
  36. Web site: PROPOSED RE-ELECTION AND ELECTION OF THE DIRECTORS AND THE SUPERVISORS. CMOC. 2022-06-12. 2022-11-08. https://web.archive.org/web/20221108211539/https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0322/2021032201222.pdf. live.
  37. Web site: Searcey . Dionne . A Power Struggle Over Cobalt Rattles the Clean Energy Revolution . The New York Times . 2021-11-20 . 2022-06-05.
  38. https://www.ft.com/content/054bbb3a-1e8b-11e6-a7bc-ee846770ec15 China plays long game on cobalt and electric batteries
  39. Web site: O'Brien . Garrett . 2022-08-07 . The Congo Standoff . 2024-11-14 . . en-US . CMOC, which is 25 percent state-owned... . 2024-09-10 . https://web.archive.org/web/20240910060353/https://www.thewirechina.com/2022/08/07/china-drc-mine/ . live .
  40. News: 2021-04-11 . CATL takes stake in China Moly cobalt mine for $137.5 mln . en . Reuters . 2022-09-21 . 2022-09-22 . https://web.archive.org/web/20220922130832/https://www.reuters.com/article/cmoc-catl-mine-idAFL1N2M406J . live .
  41. News: 2023-04-25 . Congo state miner and China's CMOC reach agreement on royalties . en . Reuters . 2023-10-19 . 2023-11-25 . https://web.archive.org/web/20231125010746/https://www.reuters.com/markets/commodities/congo-state-miner-chinas-cmoc-reach-agreement-royalties-2023-04-25/ . live .
  42. Web site: China Moly buys 95% of DRC copper-cobalt mine from Freeport for $550 million . Reuters . 2020-12-13 . 2022-06-05 . 2023-04-09 . https://web.archive.org/web/20230409132822/https://www.reuters.com/article/cmoc-congo-m-a-idINKBN28N0D9 . live .
  43. Web site: CMOC Transfers 25% Stake in KFM Holding to CATL . 2022-09-21 . AASTOCKS.COM . 2022-09-22 . https://web.archive.org/web/20220922161618/https://www.aastocks.com/share/news/aafn/NOW.1199035?lang=eng . live .
  44. Web site: Rani . Archana . CATL to acquire stake in DRC's Kisanfu copper-cobalt mine in $137m deal . Mining Technology . 2021-04-12 . 2022-06-12 . 2023-06-04 . https://web.archive.org/web/20230604095014/https://www.mining-technology.com/news/catl-acquire-stake-drcs-kisanfu-copper-cobalt-mine-137m-deal/ . live .
  45. Web site: 2022-07-01 . China's CMOC plans $1.8bn investment in Congo copper-cobalt mine . 2022-09-21 . Mining Technology . en-US . 2023-06-08 . https://web.archive.org/web/20230608141206/https://www.mining-technology.com/news/cmoc-congo-copper/ . live .
  46. News: 2019-07-26 . China Moly takes full control of ex-Dreyfus metals unit for $518 mln . en-GB . Reuters . 2023-11-24.
  47. News: 2023-10-08 . Metal Trader Misery Undercuts Supercycle Hype as Losses Pile Up . en . Bloomberg.com . 2023-11-24 . 2023-10-29 . https://web.archive.org/web/20231029103741/https://www.bloomberg.com/news/articles/2023-10-08/metal-trader-misery-undercuts-supercycle-hype-as-losses-pile-up . live .
  48. Web site: 2022 . Environmental, Social and Governance Report 2022 . 24 November 2023 . IX Metals . 24 November 2023 . https://web.archive.org/web/20231124092749/https://www.ixmetals.com/files/2022-ESG-report.pdf . live .