Sources say that Turkish trader BGN is looking at Congo cobalt to expand its metals business.

People with knowledge of the matter said that BGN, a Turkish energy and commodities trading company, is interested in buying 'battery materials cobalt' from the Democratic Republic if?Congo to help boost its new metals business.

The Congo produces about 70% of all cobalt in the world and is home to major mines, including China's CMOC as well as Glencore, a London-listed company. Although its government has prohibited exports of concentrated cobalt, it still allows the exports under quotas.

BGN has begun early stage?talks? with mining companies for offtake agreements. One source, who declined to identify the companies, said that BGN was in early-stage talks?with miners.

A buyer will agree in advance to purchase a certain amount of future production from a producer, typically at a pre-determined price. This gives the producer a guaranteed income and the buyer a secured supply.

BGN didn't?respond to an?ask for comment.

One of the sources also said that BGN was likely in talks with Congo's Government about purchasing artisanal supplies through the state-owned EGC miner, which is pushing to integrate the unorganized sector into established supply chain. The cobalt mined by artisanal miners accounts for between 15% and 25% of Congo's total output, but is plagued with concerns about child labour and traceability.

The sources asked not to be identified as they weren't authorised to speak to the media and the discussions were private.

BGN, an privately-owned group better known for its trading of?liquefied gas and chemicals?, has expanded its portfolio into metals?last year.

According to two sources, BGN's metals department focuses on minerals that are essential for energy transition and electric vehicles, such as cobalt, nickel, copper, and aluminium.

Metals traders are located in Geneva, Singapore, and Shanghai.

(source: Reuters)