---
title: "Analyzing the Development History of CMOC: How It Became a World-Class Mining Giant | In-Depth"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280067587.md"
description: "CMOC was established in 1997 and faced losses and operational difficulties during the Asian financial crisis. Through market-oriented reforms and the introduction of strategic investors, CMOC achieved a counter-trend rise, becoming a global mining giant, particularly leading in the cobalt mining sector. The company's revenue exceeded 200 billion, and its total market value surpassed 400 billion, demonstrating strong development momentum and becoming a model of successful mining reform in China"
datetime: "2026-03-22T23:02:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280067587.md)
  - [en](https://longbridge.com/en/news/280067587.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280067587.md)
---

# Analyzing the Development History of CMOC: How It Became a World-Class Mining Giant | In-Depth

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OSzPz3qyap6QRo3XAnrcxM5CoX97J-mVEfYIcHR2U1zyIAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

In 1997, the ancient capital of Luoyang, the municipal government officially established Luoyang Molybdenum Co., Ltd. (603993.SH), focusing on molybdenum, tungsten, and gold mining.

However, the Asian financial crisis soon broke out, causing global molybdenum prices to plummet to historical lows, falling below $8,000 per ton, and molybdenum oxide even dropped to below $4 per pound at one point.

Combined with a rigid operational mechanism and outdated technology, Luoyang Molybdenum fell into a negative cycle of "the more it mined, the more it lost," with production capacity stagnating and wages being owed for as long as six months, becoming a "hot potato" for the local government.

No pain, no gain. After several rounds of market-oriented equity reforms, Hongshang Group, led by Eric Wu, and CATL (300750.SZ) were introduced, forming a golden combination of "private mechanism + industrial resources." It can be said that Luoyang Molybdenum is one of the companies with the most in-depth and successful governance mechanism reforms in China's mining sector.

Through counter-cyclical global mergers and acquisitions, Luoyang Molybdenum gradually became the number one player in the global copper-cobalt, molybdenum-tungsten, and niobium-phosphorus sectors, especially holding the world's largest cobalt ore reserves and production, firmly grasping the global lifeline of this strategic resource for new energy. The company also became a world-class "trade-mining integrated" giant through capital acquisitions.

Riding the wave of soaring commodity prices in recent years, the company has refreshed its historical performance for the fifth consecutive year, now growing into a world-class mining player with revenue exceeding 200 billion and a total market value of over 400 billion.

In less than 30 years, Luoyang Molybdenum has completed a historic leap from an obscure local small factory to a global mining giant, and its transformation trajectory is one of the most thought-provoking business cases in the history of China's mining industry.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/O6-4BwIfAFjWGzjpUv4_zyYha47bFuM_Lssv3SmBwWyFcAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The leapfrog development of Luoyang Molybdenum is inseparable from the magic of market-oriented reform. Three major turning points not only demonstrate the determination of reform but also unleash strong development momentum.

The predecessor of Luoyang Molybdenum can be traced back to the small molybdenum selection plant established in 1969 in Luoyang's Luan County, which laid the groundwork for the company's rise due to its unique molybdenum resource endowment.

However, the subsequent development of Luoyang Molybdenum was particularly bumpy, especially after the outbreak of the Asian financial crisis in 1997, when international molybdenum prices plummeted, and the company fell into losses. Data shows that at that time, half of the employees were on leave, and over 50 million yuan in wages and pensions were owed, putting the company on the brink of collapse.

In 2004, Luoyang Molybdenum welcomed a historic turning point. As the saying goes, "No pain, no gain," Luan County decisively initiated reforms, introducing Hongshang Industrial Holding Group as a strategic investor, which invested nearly 180 million yuan to acquire 49% of Luoyang Molybdenum's shares, becoming the second-largest shareholder. This investment, valued at less than PE 1.3 times at the time, became the starting point for this "resource empire." Introducing private capital injects fresh blood into the company and revitalizes market competition. Private capital not only brings funds to address urgent needs but, more importantly, introduces market-oriented management concepts.

After the restructuring, CMOC quickly entered a virtuous development track. With the rebound in molybdenum prices, by 2006, the company achieved sales revenue of 3.82 billion yuan and profits of 1.515 billion yuan, completely reversing its performance. In April 2007, the company successfully went public in Hong Kong.

However, in the second year after the listing, the global financial crisis broke out, and the mining market was once again hit. Although the company completed its first mixed-ownership reform, issues such as slow decision-making and bloated institutions still persisted.

In October 2012, CMOC was listed on the A-share market, becoming one of the few domestic companies listed in both A and H shares. Two years later, Hongshang Industry replaced Luokang Group as the largest shareholder through capital increase. This move marked the formal establishment of the equity structure of "state-owned capital participating, private capital controlling," significantly improving the efficiency of corporate decision-making and market competitiveness, laying the foundation for subsequent international mergers and acquisitions.

Its "capital marriage" with CATL further propelled it to become a leader in the global mineral industry.

The cooperation between the two can be traced back to 2016 when Hongshang invested 800 million yuan in CATL. After CATL went public, it continuously reduced its holdings, cashing out all in the first half of 2025, recovering over 20 billion yuan in total over nine years, with a profit of more than 50 times.

"King Ning" also reciprocated; in 2021, CATL's subsidiary, Bangpu Times, spent 137.5 million USD to acquire a 23.75% stake in CMOC's KFM copper-cobalt mine. This investment allowed CATL to secure priority procurement rights for 20% of global cobalt resources and bound CMOC to this super client.

By 2022, CMOC, which had already emerged in the international market and the new energy materials sector, received attention from King Ning, as Luoyang Guohong Investment Group transferred all of its 100% stake in Luoyang Mining to Sichuan Times (a subsidiary of CATL).

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OZJS4wb-MznZQKkI_YTdGDrpzCHDTLWhNyPKlktITw34sAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Currently, CATL indirectly holds 24.91% of CMOC's shares through Luoyang Mining Group (2025Q3). CATL and CMOC have formed a "golden symbiotic" relationship characterized by "cross-shareholding + industrial synergy."

Moreover, senior executives from both sides hold positions in each other's companies. Lin Jiuxin, deputy director of CATL's safety production committee, currently serves as vice chairman of CMOC, while Jiang Li, secretary of the board of CATL, serves as an executive director of CMOC, ensuring seamless alignment in strategic decision-making and operational aspects.

Three major transformations have completely reshaped CMOC, leading it from a local small factory focused on a single mineral to a world-class giant.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OHlvdBPU47Z_LDNwxW2787sSmY4vxgBzEFQrZ-5CmupgsAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) CMOC operates in the "resource is king" sector, and bulk resources are a highly cyclical industry. Those who can accurately grasp the cyclical fluctuations will be able to ride the waves of these cycles.

After completing listings on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange in 2007 and 2012, the company gained sufficient capital ammunition, modernized and expanded the domestic San Dao Zhuang molybdenum-tungsten mine, laying the foundation for future international acquisitions.

In 2013, CMOC took its first step overseas by acquiring 80% of the Australian NPM copper-gold mine for USD 820 million. However, considering its low contribution to performance, the company sold it for USD 756 million in 2023 to focus on high-quality resources. While the buy-sell price alone may not seem profitable, the mine was operated by the company for a decade, achieving a 15% annualized ROI and accumulating rich experience in overseas expansion.

Subsequently, CMOC's overseas resource integration entered an accelerated phase.

In 2015, international mineral resources fell into a historic winter, with Vale suffering a massive loss of USD 12.1 billion, Glencore losing USD 4.964 billion, Barrick losing USD 3.1 billion, and Rio Tinto bleeding USD 1.719 billion.

At this time, CMOC maintained a robust and healthy balance sheet, with a debt-to-asset ratio controlled below 50%. In 2015, it also achieved a net profit of RMB 761 million, retaining ample ammunition during the industry's low point.

In 2016, CMOC embarked on an international hunting journey. It first acquired the Brazilian NML niobium mine (the second-largest niobium mine in the world) and the CIL phosphate mine (the second-largest phosphate mine in Brazil) from Anglo American, securing the foundation for its niobium and phosphate business.

From 2016 to 2020, CMOC invested a total of USD 3.15 billion to acquire major interests in the world-class copper-cobalt mines TFM and KFM in the Democratic Republic of the Congo from Freeport-McMoRan, making a significant entry into the new energy metal (cobalt) sector.

It is worth noting that TFM is one of the highest-grade copper-cobalt mines globally, currently the fifth-largest copper mine and the second-largest cobalt mine in the world, with enormous resource exploration prospects. It has a copper resource of 30.14 million tons, with an average grade of 2.24%, far exceeding the global average level of around 0.5% for copper mines.

The KFM copper-cobalt mine was acquired during the low copper price era in 2020 and is now jointly developed with CATL. In April 2021, CMOC transferred 25% of its equity for USD 13.8 million to Ningbo Bangpu Times, indirectly controlled by CATL. CMOC and Bangpu Times jointly develop KFM at a ratio of 75%:25% and underwrite copper-cobalt products according to their shareholding ratio.

In 2017, CMOC turned its attention to the mining trade sector and ultimately completed the acquisition of IXM, the world's third-largest base metals trader, in July 2019, transforming the company into an international resource group that integrates mining and trading.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OYrWTrCMGdqoY2tclGm0f6Usbx1OprcEDvW9Q-ck8IWf8AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)! Although the scale of the trading business is enormous, its profitability is weak. However, with the help of IXM, CMOC can obtain real-time market intelligence through its sales network covering 62 countries worldwide, generating value synergies. For example, relying on IXM's trading platform, the company can enter the new energy metals market at a low cost, including lithium resources in Bolivia and nickel operations in Indonesia. In 2024, IXM contributed a net profit of 1.35 billion, a year-on-year increase of 48%, setting a historical high.

Starting in 2025, CMOC will also enter the gold sector. In June of that year, the company completed the acquisition of the Cangrejos gold mine from Ecuador's Odin Mining, planning to start production before 2029. In January 2026, it spent 1 billion USD to take over three gold mines (Aurizona, RDM, Bahia) in Brazil owned by Equinox Gold, marking CMOC's formal implementation of the "copper-cobalt-gold triad" strategy, with an additional annual gold production of about 8 tons.

According to statistics from the 24 Trend Industry Research Institute (TTIR), from 2007 to September 2025, CMOC's total foreign investment (cash flow) reached 257.629 billion yuan, making it a true king of mergers and acquisitions in the global mining industry.

"Counter-cyclical mergers and acquisitions, low-cost development" are the secrets to CMOC's success in the mineral sector.

Mineral resources are accounted for using the historical cost method, meaning that regardless of current market prices, the book cost is calculated based on the acquisition time. CMOC proactively accumulated over 40 million tons of copper resources for about 4.3 billion USD during the copper price trough from 2016 to 2020.

Driven by new energy and grid investments, along with geopolitical conflicts, international copper prices have continued to rise, with LME copper futures currently reaching 13,000 USD/ton. CMOC's costs are low, and its two large mines can still be mined for another 10-12 years, allowing the company to achieve a classic Davis double hit amid cyclical resonance.

In 2024, CMOC produced 650,200 tons of copper, making its debut in the world's top ten, ranking 9th globally; in 2025, copper production is expected to reach 741,000 tons, maintaining its position in the global top 10.

Driven by copper and cobalt, CMOC has set new historical profit records for six consecutive years, with net profit expected to exceed 20 billion in 2025, a year-on-year increase of 47.80% to 53.71%. Since 2025, the stock price has soared by 186%, with a total market value exceeding 430 billion yuan, approaching the world's top ten ![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OdnzWTiUWhyvO2oxI31xSNybvBCt6xdvXdciI7dBAI6u0AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OMklWQ-zza0UirB_NQN-tEzseFJz7fBGEdxCH6cwKP3i0AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Cobalt is known as the "industrial tooth" and is a "great contributor" in new energy materials.

As a key component of cathode materials for power batteries, cobalt plays an irreplaceable role in stabilizing the structure of ternary lithium batteries, enhancing energy density, and extending service life. Despite the trend towards high nickel and low cobalt in recent years, cobalt remains indispensable in high-end power batteries.

Currently, the Democratic Republic of the Congo (DRC) accounts for about 75% of global cobalt supply, meaning the world must heed its influence. Among the top 10 mines globally, 8 are located within the DRC.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/O_IvzzzrlS_p1LBMiMGjDbAscnetHJZnb-leuUJI7oF3YAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Cobalt is often closely associated with metals such as nickel and copper, and through the early acquisition of the TFM and KFM giant mines, CMOC firmly controls the lifeblood of global cobalt mining.

In 2024, the company's cobalt production is expected to soar to 114,200 tons, a year-on-year increase of 106%, with an anticipated rise to 117,500 tons in 2025, maintaining its position as the world's largest producer; its reserves also reach 5.4 million tons, ranking first globally and accounting for about 23% of the world's total.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/O4lsh66vs87MUxJiXeWo0te42U3XSy-waEencF3f-OAMMAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

The TFM copper-cobalt mine has copper resources of approximately 30 million tons and cobalt resources of about 3.31 million tons, with grades ranking among the highest in the world. In 2023, the TFM mixed ore project commenced production, with an annual cobalt capacity of about 17,000 tons. In 2024, TFM's capacity will be significantly released, and TFM's cash costs are among the lowest globally, creating a strong competitive moat.

The other mine, KFM, officially commenced production in 2023, with cobalt metal content of about 2.1 million tons and a cobalt grade of 0.85%, making it one of the highest-grade copper-cobalt mines in the world. In 2024, KFM's cobalt capacity will exceed 50,000 tons, creating a synergistic effect with TFM, supporting CMOC's position as the world's largest cobalt producer.

At the same time, the KFM Phase II project, with an investment of $1.084 billion, is set to start at the end of 2024, with production expected in 2027. This move will further solidify CMOC's dominant position in the global cobalt mining industry ![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OSuwfLDbfU8Sza663vqYDzFpN3cb-K4Nu-QO5s0boNVawAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OutWxHMz6oX87eFPJmsBTTFrF_us9xpMFQ-OHzi6sfS7EAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Moreover, CMOC is closely tied to CATL, the world's largest cobalt supplier + the world's largest power battery manufacturer, ensuring seamless integration with downstream demand. CATL will fully underwrite KFM's future cobalt production capacity according to its shareholding ratio, effectively hedging against market volatility risks.

Cobalt mines are overly concentrated in one country, making them highly susceptible to administrative bans from that country. On February 22, 2025, the Democratic Republic of the Congo announced a four-month suspension of cobalt exports, leading to a surge in cobalt prices; subsequently, after the export ban was extended, the country shifted its policy from a complete ban to a quota system, with only 18,000 tons of export quotas remaining for the rest of 2025. Following the policy announcement, cobalt prices began to rise sharply again, with prices soaring by 140% throughout 2025.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OI-bUWYsdhyku7idncxSQOWswc4Os2o5Dnze2WUbVM9mMAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

With its scale and cost advantages, CMOC has contributed the largest increment of cobalt mines globally in the past two years. Considering that Glencore's cobalt resources mainly come from the Mutanda and KCC mines, with declining grades and proactive production cuts, CMOC's influence in the global cobalt market will further increase in the future.

The purpose of the quota system implemented by the Democratic Republic of the Congo is to tighten supply through administrative means to boost cobalt prices, which will significantly reverse the supply-demand situation for cobalt and provide strong support for cobalt prices.

According to the country's decree, the total quota for 2026 and 2027 is 96,600 metal tons (of which 87,000 metal tons are allocated to enterprises), with the annual quota total sharply reduced by 55% compared to 2024, transforming global cobalt supply from a significant surplus to a severe shortage.

According to the quota regulations, the quotas are based on each enterprise's export volume over the past three years, and CMOC has significantly expanded production in the past three years, receiving an allocation of 31,200 metal tons/year, accounting for 35%, ranking first, far exceeding Glencore's 18,800 metal tons/year.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OGypMGZ8uwK-sJnQwAF3GT-R2Q7EL_vqLSv185rSJ2F7AAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Considering that other players are constrained by the quota system and that other countries and recycling smelting technologies cannot yet fill the gap, CMOC will become a super beneficiary in the new cycle.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OWAPEw6y-UFvCnzAEwmpzaCgyOwxk1DRr9690-JNRpWQcAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) In the resource-driven sector, CMOC is gradually achieving a super leap from "cash hoarding" to "mineral hoarding" to "integrated mineral trade" by purchasing mines against the trend at low prices.

The key to its profitability lies in low costs and high quality, with two high-quality large mines serving as the backbone. High quality means that CMOC can produce 3-5 times more copper ore per ton of ore processed compared to its competitors. Coupled with the low-cost advantage, data estimates that for every 10% increase in copper prices, CMOC's net profit can increase by as much as 2 billion yuan.

Currently, the company has set a goal of "reaching one million tons of copper," aiming to increase annual copper metal production from 600,000 tons to 800,000-1,000,000 tons over the next five years, positioning itself among the world's leading mining companies.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OVcnBXLoFv1nFS6-ya0Um11TFO-QzvBNpsqD_Dk1_Yn1UAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

If copper lays the foundation for CMOC's scale, cobalt is its absolute trump card. In terms of both reserves and production, CMOC is almost in an absolute dominant position in the global cobalt market, with a cobalt production of 117,500 tons in 2025 and a global market share of 37%, which can be considered a "monopoly" level existence.

At the same time, the company is also the world's second-largest molybdenum producer, the second-largest tungsten producer, and the second-largest niobium producer, while entering the gold sector to cultivate new growth points.

From a county-level state-owned enterprise on the brink of bankruptcy to a global mining leader, its institutional reforms, strategic layout, capital operations, and globalization breakthroughs are worth emulating for any Chinese mining company.

However, CMOC also faces certain risks. First, the inevitable cyclical fluctuations in the mining sector. Historically, every super bull market is likely to be accompanied by a bear market, and globally, no company has been able to avoid this;

Second, cobalt plays a strategic role in the new energy industry chain but faces challenges of being replaced. In the iteration of battery technology, low-cobalt and even cobalt-free routes are being promoted. If this trend is recognized by the market, the logic supporting cobalt prices will completely collapse. At that time, CMOC's original advantages will vanish, and the variables of technological evolution will be factors it must pay close attention to.

Third, CMOC's core assets are mainly concentrated in the Democratic Republic of the Congo, with a high proportion of overseas revenue. However, the policy risks of overseas mines, labor conflicts, and weak infrastructure such as electricity and transportation could trigger a chain reaction at any time. Historically, many mining giants have been forced to adjust their asset structures or even sell local projects due to regional conflicts, and these potential risks cannot be ignored.

![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OMTD29dHySKId1JqiNqnoCIh7Pxe_BcQXLgi9P5qhk4WkAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

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