#China’s Supply-Chain Scramble Now Comes With Added Commodities

Posted on May 31, 2016 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Untitled #Freeport-#McMoRan Inc. agreed to sell its #Copper and #Cobalt mine in the Democratic Republic of #Congo to #China #Molybdenum Co. for $2.65 billion.

A new report from #Macquarie Capital Ltd. underscores the strategic nature of the proposed acquisition, with China’s interest in the second metal — cobalt, a key ingredient for rechargeable car batteries that China is leaning on both to reduce pollution and modernize its manufacturing sector, — lying at the heart of the deal. As the country seeks to modernize its economy and pivot away from traditional, pollution-heavy industries the need for niche materials becomes more pressing, and China is striking deals to take control of fragile commodity supply chains that stretch around the world.