Mealtop, the largest shareholder of Korea Kosdaq, listed Melfas, has signed a three-year contract for US $ 945 million in cobalt and US $ 575 million in copper with DR Congo.
– President representing Keun-Young Kim
KOLWEZI, LUALABA, DEMOCRATIC REPUBLIC OF CONGO, September 15, 2021 /EINPresswire.com/ – Mealtop, which recently became the largest shareholder of Melfas Co., Ltd., an electronic component manufacturing company listed on Kosdaq, has embarked on a new chapter by precisely focusing on the overseas resource sourcing industry to prepare for the anticipated demand for mineral resources required for the long-awaited revolution in the electric vehicle industry . Unlike most of the overseas resource projects of domestic companies in Korea, which were previously viewed as failures as they focused primarily on processing minerals, the current contract with Mealtop is for the supply of cobalt and copper. 100% finished.
We can finally proudly announce today September 14, 2021 that Mealtop signed two large-scale resource supply contracts on September 11, 2021 with UBC (UNITED BUSINESS COMPANY SARL), a mining and construction company in the Democratic Republic of the Congo. for copper and for cobalt. on September 13, 2021, said Sung Moon Kim, senior board member.
Founded in 2014, UBC is a resource distributor in the Democratic Republic of Congo. It is a reputable company associated with the development and sale of state-owned resources and an agent of the mining giant Chemaf, a JV company with Gécamines, a state-owned company that manages all resources in the Democratic Republic of the Congo.
Under this current contract, Mealtop will receive a total of $ 1.52 billion (Cobalt $ 945 million, Copper $ 575 million) of finished cobalt and copper products from UBC over the next three years. The scale of finished copper products to be supplied by 2024 will be 6,000 tonnes of cobalt per year for a total of 18,000 tonnes over the 3-year period, and 20,000 tonnes of copper per year for a total of 60,000 tonnes over the 3-year period. Mealtop aims to receive finished cobalt and copper products from UBC by December 2021.
The contract between the two companies is a contract signed directly with a local distributor in the Democratic Republic of Congo, without any broker involved. Expectations are very high as this is a contract for the supply of finished products, not for the mining processing of the ore.
So far, most of the overseas resource projects of domestic Korean companies have focused on mining development, which requires large-scale investment. In the case of these overseas mining developments, they often ended in failure because their profitability was not high as they resulted in exorbitant mining costs and a long lead time. However, since this contract is a structure that supplies and sells finished mineral products that have been processed, it is expected that the risk is now relatively low and it will be possible to generate profits in a short period of time. In the case of cobalt and copper which are currently hot resources around the world, the fact that the market has been controlled primarily by sellers as demand exceeds supply is also in our favor since we are the seller! .
Mealtop is extremely confident as it has already received letters of intent to purchase from UK based mineral resource buyers, having signed a supply contract with UBC and secured buyers in the global market as well. Before the end of this year, Mealtop plans to supply finished copper, a raw material for various industries, and finished cobalt, a basic raw material for batteries, to domestic and overseas markets.
The rise in the price of cobalt due to the rapid increase in demand for electric vehicles and the price of copper, which is an essential raw material for electric motors, is clear this year. Additionally, as the global competition for securitization is fierce enough to qualify as a war, it is believed that securing the finished product currently under contract is very likely to lead to excellent business results.
“This contract between UBC and Mealtop is the result of efforts to establish a network of new businesses that have been pursued in major overseas countries such as DR Congo, Italy and the Middle East since 2019. ” said the president representing Keun-Young Kim. And “As a small and medium-sized enterprise in Korea which has entered into large-scale resource supply contracts overseas, we will continue to supply high-cost raw materials other than cobalt and copper through the pioneer network. abroad. He added: “As Melfas, a recently acquired KOSDAQ-listed company, has focused on the touchscreen sector, one should also expect sufficient synergies centered on its core competencies in the electrical fields and electronic. ”
Mealtop through its local partner WTIA RDC wisely secured this large-scale contract entirely through L / C financing, which is a major advantage as no significant cash flows or funds will be blocked besides being from the finished product, the product from DR Congo to the end buyer in Korea is quickly tackling the still painful cash flow problems that traditional mining companies still face.
Indeed, it is worth watching them closely to see if Mealtop’s efforts over the years will work with Melfas, a Kosdaq-listed company in which Mealtop has become a major shareholder to flourish and write a new story in which Large-scale sales and resource profits sales are just on the horizon.
The world has a viable path to build a global energy sector with net zero emissions by 2050, but it is narrow and requires an unprecedented transformation in the way energy is produced, transported and used around the world. mineral resources necessary for a “green economy”. According to forecasts by the International Energy Agency (IEA) at the end of April, the number of electric vehicles in the world will reach at least 145 million in a prudent but ambitious way with a target of 230 million units by 2030. The logic is also clear. This is a declaration of “carbon neutrality” by countries around the world, including the United States, Korea, Japan and the European Union (EU). In particular, in order to significantly reduce carbon emissions, it is necessary to promote the production, distribution and consumption of electric vehicles that do not emit carbon.
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