Zhejiang Huayou Cobalt Co. Ltd.'s overseas unit. Huayou International Mining. decided to terminate a 2017 deal to invest US$66.3 million for a 51% stake in Lucky Resources Holdings Co. Ltd., Reuters reported Aug. 16.
The decision came due to a sharp fall in cobalt prices; Lucky Resources' main asset is a cobalt mining license in the Democratic Republic of the Congo held by unit New Minerals Investment.
Cobalt prices have slumped to US$32,600 per tonne on the London Metal Exchange, from a peak of nearly US$100,000/t in April 2018, according to the report.
Huayou International has paid about US$10 million so far, half of which will be returned by September 2020. The remainder will be returned by June 2021.
In December 2018, the company was planning to invest US$147.2 million in a new copper project in the Democratic Republic of the Congo.