Cape Lambert Resources Ltd. abandoned its Kipushi cobalt-copper tailings joint venture with Paragon Mining SARL in the Democratic Republic of the Congo after failing to secure project funding.
Banks from Africa and China had been interested to invest in the project, but the company said Aug. 14 that low cobalt prices coupled with the challenging security situation and the impact of an Ebola outbreak in the country may have prompted them not to proceed.
With no more extensions given to secure project financing, Cape Lambert said the joint venture was terminated.
Instead, Cape Lambert will shift its focus to the Marampa iron ore project in Sierra Leone to take advantage of high prices. The company said the government is urging it to merge the project with the Marampa mine and use the Pepel port and rail for exports.
Marampa was put under care and maintenance in 2015 following a possible mine sabotage.