Miners Find Out the Hard Way Why Cobalt Is Called the Goblin
- Glencore has been burned by the collapse in cobalt prices
- The move to shutter production echoes zinc strategy in 2015
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Cobalt, a semi-rare metal that derives its name from the German word for goblin, was given its moniker by medieval miners who frequently came across its noxious ores in their hunt for silver and gold. After a 50% drop in prices this year, it’s turned toxic for Glencore Plc too.
After reporting the worst financial results in three years, the world’s biggest commodities trader is shutting its Mutanda copper and cobalt mine in the Democratic Republic of Congo. The move will remove about a fifth of global cobalt supply and send shockwaves through a market that’s awash with unsold metal, much of it in Glencore’s hands.