California-based mining unicorn KoBold, backed by some of the world’s richest men, Bill Gates and Amazon founder Jeff Bezos, has made a significant copper discovery in Mingomba, northern Zambia, following a year of mining operations.
The company, led by CEO Kurt House, achieved unicorn status last summer with a $1 billion valuation, attracting investments from prominent figures such as Bill Gates and Jeff Bezos. KoBold leverages artificial intelligence to identify new deposits of critical minerals, including copper, lithium, nickel, and cobalt, which are essential for battery metal production.
Mingomba’s copper deposit is described as “extraordinary” by KoBold’s president, Josh Goldman, who likened it to the Kakula mine in the Democratic Republic of Congo. The Kakula mine, developed with contributions from Canada’s Ivanhoe Mines and China’s Zijin Mining Group, reported 393,551 tonnes of concentrated copper production in 2023, with an expected year-on-year increase of 18%.
What you should know
KoBold initiated mining operations in Mingomba over 12 months ago, investing $150 million in exploration. The company expanded its infrastructure from one drilling rig to six and conducted extensive deep drilling, reaching depths of 1,800 to 2,000 meters. The drilling program demonstrated a highly continuous ore body with consistently high-grade mineralization, positioning Mingomba as a potential large underground mine.
The company’s pursuit of scarce battery materials aligns with the increasing demand in the electric vehicle market.
- Despite recent volatility in commodity prices, particularly lithium and copper, KoBold remains focused on the long term.
- Goldman emphasized that the company is capitalized for long-term investments, caring about the prices of commodities in 2035 rather than short-term fluctuations in 2024.
More insight
While feasibility studies are ongoing, KoBold is already considering the construction of a $2 billion facility at the Mingomba site, reflecting its commitment to future production.
The company’s investment estimates indicate a substantial commitment, with $100 million spent on exploration in the previous year and expectations to exceed that amount in 2024. This level of investment is in line with other major industry players like Rio Tinto and BHP Group.
KoBold’s breakthrough in Mingomba not only signifies a crucial discovery for the company but also contributes to addressing the global supply gap in critical minerals, particularly those essential for advancing the electric vehicle industry. The deployment of AI technology in mineral exploration positions KoBold as a significant player in ensuring a sustainable and resilient supply chain for battery materials.
