2007 Minerals Yearbook COBALT U.S. Department of the Interior May 2010 U.S. Geological Survey COBALT By Kim B. Shedd Domestic survey data and tables were prepared by Ram C. Khatri, statistical assistant, and the world production tables were prepared by Linder Roberts and Glenn J. Wallace, international data coordinators. World production of refi ned cobalt in 2007 was slightly Production lower than that of 2006. The United States did not mine or refi ne cobalt in 2007. However, a small number of mining With the exception of negligible amounts of byproduct operations produced negligible amounts of byproduct cobalt as cobalt produced from lead and platinum-group metal (PGM) intermediate products. Since 1993, sales of excess cobalt from operations, the United States did not mine or refi ne cobalt in the National Defense Stockpile (NDS) have contributed to U.S. 2007. Cobalt-bearing nickel sulfate produced from Stillwater and world supplies. Mining Co.’s PGM mining and refi ning operations in According to the Cobalt Development Institute (2008b), southeastern Montana was sold to several companies. Some of world demand (consumption plus stock increases) for cobalt was southeastern Missouri’s lead ores contained minor amounts of slightly higher than that of 2006. European apparent demand cobalt. was slightly lower than that of 2006. Although Chinese apparent In 2007, there were three U.S. mine projects in the feasibility demand continued to be adversely affected by the limited and permitting stages of development that planned to produce availability of raw material, overall Asian apparent demand was cobalt—Formation Capital Corp.’s Idaho cobalt project, about 5% higher than that of 2006. U.S. apparent consumption Kennecott Minerals Co.’s Eagle project in Michigan, and of cobalt was lower than that of 2006, primarily because of a PolyMet Mining Corp.’s NorthMet project in Minnesota. decrease in net imports. Cobalt prices trended upward, and the Formation completed a bankable feasibility study on its U.S. spot price exceeded $40 per pound by yearend. The last Idaho cobalt project and was in the fi nal stages of permitting time that this price was more than $40 per pound was in 1979. for its development. The company planned to develop an Salient U.S. and world cobalt statistics for 2007 and the underground cobalt-copper-gold mine and mill complex in the previous 4 years are listed in table 1. Idaho Cobalt Belt in Lemhi County and retrofi t its Big Creek Cobalt is a strategic and critical metal used in many diverse hydrometallurgical refi nery near Kellogg, ID, to refi ne the commercial, industrial, and military applications. On a global cobalt concentrates. The project was expected to produce more basis, the leading use of cobalt is in rechargeable battery than 1,500 metric tons per year (t/yr) of cobalt as high-grade electrodes. Superalloys, which are used to make parts for gas cathode suitable for critical superalloy applications. Formation turbine engines, are another major use for cobalt. Cobalt is also anticipated that the fi nal mine permits would be granted in 2008. used to make airbags in automobiles; catalysts for the petroleum Once suffi cient fi nancing and bonding were in place, Formation and chemical industries; cemented carbides (also called would commence construction. Production of cobalt cathode hardmetals) and diamond tools; corrosion- and wear-resistant was expected to begin 15 months later (Formation Capital alloys; drying agents for paints, varnishes, and inks; dyes and Corp., 2008, p. 3, 5, 9). pigments; ground coats for porcelain enamels; high-speed steels; Kennecott completed feasibility studies and decided to magnetic recording media; magnets; and steel-belted radial tires. develop a small underground nickel-copper mine in the Eagle deposit in the Yellow Dog Plains area northwest of Marquette, Legislation and Government Programs MI. By early 2008, Kennecott had received all the State approvals needed to begin construction and was considering During fi scal year 2007 (October 1, 2006, through September rehabilitating part of an abandoned mill in Humboldt Township 30, 2007), the DNSC sold 388 metric tons (t) of cobalt metal to process crushed ore from Eagle and produce a concentrate valued at $19.8 million under a basic ordering agreement for export. At the proposed rate of 16,000 t/yr of nickel, an (BOA) (table 2). This represented 24% of the 1,590-metric- estimated 450 t/yr of cobalt would be produced during a 7-year ton (3.5-million-pound) maximum allowed for sale under the mine life, based on nickel and cobalt grades in the resource fi scal year 2007 Annual Materials Plan (AMP). At the end of (Kennecott Eagle Minerals Co., 2008; Peppin, 2008; Rio Tinto the fi scal year, 26 t of cobalt had been sold but not shipped plc, 2008, p. 18, 26). from the stockpile. The AMP for fi scal year 2008 (October 1, PolyMet provided information to State and Federal regulatory 2007, through September 30, 2008) maintained the maximum agencies for the preparation of the draft environmental impact allowable sale of cobalt at 1,590 t (U.S. Department of Defense, statement for its NorthMet project. The project entailed open 2008, p. 5, 7, 59). pit mining of the NorthMet polymetallic deposit in the Duluth During calendar year 2007, the DNSC sold 553 t of cobalt Complex of northeastern Minnesota. A bulk concentrate valued at $36.1 million under the BOA. On December 31, the produced at the nearby Cliffs-Erie mill and concentrator would total uncommitted cobalt inventory held by the DNSC was 676 t be processed in a new hydrometallurgical plant using the of cobalt cathode. company’s PlatSol technology. Products would include copper COBALT—2007 19.1 cathode, a nickel-cobalt mixed hydroxide, and a precipitate 99.6% cobalt) and Russian cobalt (minimum 99.3% cobalt) were of PGMs and gold. During the fi rst 5 years of a 20-year mine similar to those for U.S. spot cathode. The annual average of life, approximately 330 t/yr of cobalt would be produced. weekly prices for Zambian cobalt was $29.61 per pound, and the PolyMet hoped to arrange fi nancing and receive environmental annual average of weekly prices for Russian cobalt was $29.37. and operating permits in time to begin production in late Sales prices for 99.8% cobalt cathode reported by BHP Billiton 2009. The company was considering the sale of copper-nickel ranged from $24.00 to $43.00 per pound. concentrates during the construction and commissioning of the Financial services company Credit Suisse Group launched hydrometallurgical plant (PolyMet Mining Corp., 2008a, p. 14, a fi nancial product based on cobalt in a joint venture with 16, 21; 2008b, p. 2, 5–6). Swiss trading fi rm Glencore International AG. The product was U.S. processors made cobalt chemicals and cobalt metal intended to allow hedge funds and other interested parties to buy powders from refi ned cobalt materials and/or cobalt-bearing over-the-counter futures positions in cobalt settled against the scrap. U.S. Geological Survey (USGS) data on chemical Metal Bulletin price. The investors could take physical delivery and metal powder production, shipments, and stocks were of the cobalt if they chose, but would not be required to do so. derived from a monthly voluntary survey of eight U.S. cobalt The London Metal Exchange was also considering an over- processors. Information from this survey was used to prepare the-counter trading platform for minor metals, including cobalt the statistics on cobalt consumption and stocks in table 3. (Metal Bulletin, 2007b, c). Osram Sylvania Inc. produced extra-fi ne cobalt metal powder as a byproduct of tungsten recovered from cemented Foreign Trade carbide scrap in Towanda, PA. Allegheny Technologies Inc.’s Metalworking Products unit completed an expansion of the Net import reliance as a percentage of apparent consumption ammonium paratungstate production capacity at its Huntsville, is used to measure the adequacy of current domestic production AL, facility. The new plant, which became fully operational to meet U.S. demand. Net import reliance was defi ned as in 2007, could process tungsten ore concentrates and hard or imports minus exports plus adjustments for Government soft scrap, which can contain cobalt (Allegheny Technologies and industry stock changes. Releases from stocks, including Inc., 2008, p. 22, 32). Production and shipments of cobalt metal shipments from the NDS, were counted as part of import powder are withheld to avoid disclosing company proprietary reliance, regardless of whether they were imported or produced data. in the United States. In 2007, net import reliance as a percentage of apparent consumption was 82%. Because there was no Consumption measurable U.S. primary cobalt production in 2007, this indicates that 82% of U.S. cobalt supply was from imports and U.S. apparent consumption for 2007, as calculated from net stock releases of primary cobalt and 18% was from domestic or imports, consumption from purchased scrap, and changes in imported scrap. Government and industry stocks, was 13% lower than that of In 2007, the United States imported 11% less cobalt than it 2006 (table 1). The decrease was primarily because net imports did in 2006 (tables 4, 5). Ten countries supplied more than 90% in 2007 were signifi cantly lower than those of 2006. of U.S. imports. Norway was the leading supplier, followed by U.S. reported consumption of cobalt in 2007 was slightly Russia, Canada, China, Zambia, Finland, Belgium, Australia, higher than that of 2006. Compared with consumption in 2006, Morocco, and Brazil. metallurgical industries consumed slightly more cobalt, and The United States imported 41 t, gross weight, of unwrought the cobalt consumption for chemical uses was slightly lower.