Stratton Metals signs deal to sell Ambatovy cobalt in Europe, North America: source

London-based Stratton Metal Resources has signed a three-year marketing deal with Madagascan nickel and cobalt producer Ambatovy to sell its cobalt into Europe and North America between 2022 and 2024, a source with knowledge of the deal told S&P Global Platts Aug. 17.

Ambatovy has a capacity to produce 5,600 mt/year of cobalt, according to Darton Commodities' website. Darton previously held the contract to market Ambatovy's cobalt, although this expired a few years ago.

Ambatovy, which is a joint venture between Japan's Sumitomo Corp., at 54%, and Korea Resources Corp., at 46%, announced in March it had restarted nickel production after a one-year stoppage, with cobalt production also having restarted since.

Sumitomo Corp. had taken on the marketing responsibility in the last few years, and it will continue to market Ambatovy's cobalt briquettes outside of North America and Europe, the source confirmed.

S&P Global Platts tried contacting Stratton but did not get a response at the time of publication. Calls made to Ambatovy and Sumitomo were not answered outside local business hours.

The Platts cobalt metal assessment for 99.8% material was at $24.10/lb on Aug. 17, surging 51.6% since the start of 2021.

Prices rose at the start of the year off strong demand for cobalt metal from China, given the tightness in cobalt hydroxide. Briquettes were particularly sought after by China-based chemical producers.

Stratton previously signed a five-year deal with First Cobalt in March to sell cobalt sulfate produced at its Canadian refinery.