U.S.Geological Survey (USGS): Cobalt

Statistics and Information: Cobalt (Co) is a strategic and critical metal used in many diverse commercial, industrial, and military applications. The largest use of cobalt is in superalloys, which are used to make parts for gas turbine aircraft engines. Cobalt is also used to make magnets; corrosion- and wear-resistant alloys; high-speed steels; cemented carbides (also called hardmetals) and diamond tools; catalysts for the petroleum and chemical industries; drying agents for paints, varnishes, and inks; ground coats for porcelain enamels; pigments; battery electrodes; steel-belted radial tires; and magnetic recording media.

Cobalt
(Data in thousand metric tons of cobalt content unless otherwise noted)

U.S. Domestic Production and Use: The United States did not mine or refine cobalt in 2008; however, negligible amounts of byproduct cobalt were produced as intermediate products from some mining operations. U.S. supply comprised imports, stock releases, and secondary materials, such as cemented carbide scrap, spent catalysts, and superalloy scrap. The sole U.S. producer of extra-fine cobalt powder used cemented carbide scrap as feed. Seven companies were known to produce cobalt compounds. More than 60 industrial consumers were surveyed on a monthly or annual basis. Data reported by these consumers indicate that 46% of the cobalt consumed in the United States was used in superalloys, mainly in aircraft gas turbine engines; 8% in cemented carbides for cutting and wear-resistant applications; 15% in various other metallic applications; and 31% in a variety of chemical applications. The total estimated value of cobalt consumed in 2008 was $850 million.

U.S. Recycling: In 2008, cobalt contained in purchased scrap represented an estimated 20% of cobalt reported consumption.

U.S. Import Sources (2004-07): Cobalt contained in metal, oxide, and salts: Norway, 20%; Russia, 18%; China, 11%; Canada, 10%; and other, 41%.

U.S. Tariff:

U.S. Depletion Allowance: 22% (Domestic), 14% (Foreign).

U.S. Government Stockpile: The disposal limit for cobalt in the fiscal year 2009 Annual Materials Plan was unchanged from that of fiscal year 2008.fiscal year 2007.

Events, Trends, and Issues: During the first half of 2008, the worldwide demand for cobalt reportedly was slightly higher than that of the first half of 2007, and world availability of refined cobalt (as measured by production and U.S. Government shipments) was 5% higher than that of the first half of 2007. During 2008, production from new operations or expansions of existing operations began in Australia, Canada, Congo (Kinshasa), Cuba, Finland, and Zambia. Numerous additional brownfield and greenfield projects that would add to future world cobalt supply were in the planning and development stages. The overall trend in the price of cobalt cathode was downward during the first 11 months of 2008. Low cobalt, copper, and nickel prices and the serious downturn in the global financial markets in late 2008 were expected, however, to delay financing, construction, and startup of some new production.

The London Metal Exchange announced a plan to launch a cobalt contract during the second half of 2009. The global contract would include delivery to warehouses in Baltimore, Rotterdam, and Singapore; would trade in 1-metric-ton lots of minimum 99.3% cobalt; and be priced in dollars per kilogram.

China was the world’s leading producer of refined cobalt, and much of its production was from cobalt-rich ore and partially refined cobalt imported from Congo (Kinshasa). As a result of restrictions on exports of unprocessed cobalt from Congo (Kinshasa), the Chinese cobalt industry was expected to develop more domestic and foreign sources of cobalt supply, to invest in African cobalt projects, to increase the recycling of cobalt scrap, to continue to shift its consumption towards more downstream materials, and to consolidate into fewer larger companies. Since 2005, China has been the third- or fourth-ranked supplier of cobalt imports to the United States.

World Mine Production, Reserves, and Reserve Base: Reserves and reserve base estimates for Australia were revised based on new information reported by the Australian Government.

World Resources: Identified cobalt resources of the United States are estimated to be about 1 million tons. Most of these resources are in Minnesota, but other important occurrences are in Alaska, California, Idaho, Missouri, Montana, and Oregon. With the exception of resources in Idaho and Missouri, any future cobalt production from these deposits would be as a byproduct of another metal. Identified world cobalt resources are about 15 million tons. The vast majority of these resources are in nickel-bearing laterite deposits, with most of the rest occurring in nickel-copper sulfide deposits hosted in mafic and ultramafic rocks in Australia, Canada, and Russia, and in the sedimentary copper deposits of Congo (Kinshasa) and Zambia. In addition, millions of tons of hypothetical and speculative cobalt resources exist in manganese nodules and crusts on the ocean floor.

Substitutes: In most applications, substitution of cobalt would result in a loss in product performance. Potential substitutes include barium or strontium ferrites, neodymium-iron-boron, or nickel-iron alloys in magnets; iron-cobalt-nickel, nickel, cermets, or ceramics in cutting and wear-resistant materials; nickel-base alloys or ceramics in jet engines; nickel in petroleum catalysts; rhodium in hydroformylation catalysts; cobalt-manganese-nickel in lithium-ion batteries; and cerium, iron, lead, manganese, or vanadium in paints.

(e) Estimated.
(NA) Not available. — Zero.
(1) No tariff for Canada or Mexico. Tariffs for other countries for some items may be eliminated under special trade agreements.
(2) Overseas territory of France.

U.S. Geological Survey, Mineral Commodity Summaries, January 2009