Cobalt at $56,000 Per Tonne!
ECONOMIST CHISANGA SEES OPPORTUNITY IN COBALT SURGE
Economist Kelvin Chisanga has observed that the recent 130 percent surge in global cobalt prices presents a timely opportunity for Zambia.
Chisanga explained that the price rally, which has pushed cobalt to over US$56,200 per tonne, is largely a result of supply-side constraints.
He attributed the spike to policy and regulatory actions in major producing countries that have tightened global supply.
According to Chisanga, such administrative restrictions often lead to sharp and short-term price escalations.
He noted that while demand remains strong due to the global energy transition, it is no longer growing at previously projected rates.
Chisanga emphasised that the shift towards cobalt-reduced and cobalt-free battery technologies may cap long-term price gains.
He pointed out that for Zambia, the price increase is economically significant, especially given cobalt’s role as a by-product of copper mining.
Chisanga highlighted that higher prices could enhance mine profitability, job creation, and investment in the mining sector.
He further remarked that the country stands to gain from increased export earnings and stronger foreign exchange inflows.
Chisanga believes this could also support the kwacha and improve fiscal revenues in the short term.
He stressed that the current rally strengthens Zambia’s case for value addition and regional supply chain integration.
Chisanga urged policymakers to use this window to build resilience through diversification and prudent fiscal planning.