Turkish trader BGN eyes Congo cobalt in push to grow metals business, sources say

Turkish energy and commodities trader BGN is looking to buy battery material cobalt from the Democratic Republic of Congo as part of efforts to boost its new metals business, people with knowledge of the matter said.

Congo produces about 70% of the world’s cobalt and hosts major miners including China’s CMOC 603993.SS and London-listed miner Glencore (LON: GLEN). While its government has banned exports of cobalt concentrate, processed cobalt hydroxide is still exported under quotas.

BGN is in early-stage talks with miners for offtake agreements, according to one of the sources, who declined to name the companies.

Under an offtake deal, a buyer agrees in advance to purchase a set amount of a producer’s future output, usually at an agreed price, giving the producer guaranteed revenue and the buyer secured supply.

BGN did not respond to a request for comment.

Another of the sources said BGN is likely also talking with Congo’s government about buying artisanal supplies from state-owned miner EGC, which has been pushing to integrate the informal sector into established supply chains. Artisanally mined cobalt accounts for some 15% to 25% of Congo’s output but has been dogged by concerns over child labour and traceability.

All of the sources asked not to be named as they were not authorised to speak to media and the discussions are private.

BGN, a privately owned group that is better known for trading liquefied petroleum gas and chemicals, expanded its portfolio into metals last year.

BGN’s metals team focuses on minerals essential to energy transition and electric vehicles such as copper, aluminium, cobalt and nickel, according to two of the sources.

It has metals traders in Geneva, Singapore and Shanghai.

(Reporting by Amy Lv, Pratima Desai and Solomon Cefai; Additional reporting by Florence Tan; Editing by Joe Bavier)