KoBold Metals: The Mining Exploration Firm Using AI To Lead The Electrical Revolution
Last week it was announced that US-based mining exploration firm KoBold Metals would be investing $150 million to develop the Mingomba copper-cobalt mine in Zambia.
The new deal is a joint venture between private equity firm EMR Capital and Zambia’s state-backed ZCCM Investment Holdings (ZCCM-IH) and is set to close within the first quarter of 2023.
KoBold Metals is a start-up firm which uses artificial intelligence (AI) and machine learning to coordinate mining for metal deposits used in making electric car batteries. The company, which began its mining operations in Canada two years ago, aims to create a “Google Map” equivalent of the Earth’s crust, highlighting areas which have high levels of cobalt and copper deposits.
This ‘mapping’ is done by collecting and analysing streams of data of both new and old deposits. The company then uses algorithms to determine where new deposits may be found. As a result, KoBold is better equipped to locate minerals that may have been overlooked by more traditional methods of exploration.
Despite being such a young company, Kobold already has an impressive portfolio, having acquired multiple exploration sites in Quebec, Saskatchewan, Ontario, and Western Australia.
The start-up also has an impressive lineup of stakeholders and investors. These include Australian multinational mining company BHP and support from climate and technology innovators Breakthrough Energy Ventures.
Founded by Bill Gates in 2015, Breakthrough is an umbrella company for a range of organisations that aim to accelerate the innovation of sustainable energy sources to mitigate the effects of climate change. The company is also backed by Amazon’s Jeff Bezos and Virgin’s Richard Branson.
Kobold’s chief executive officer, Kurt House, who has been working with the company for over five years, has previously stated that he does not want to be considered a mining operator “ever,” and that the company root itself in leading the way for the “electric vehicle revolution.”
The new Zambia-based project is a major step forward for both the company and the country. Firstly, it will place President Hakainde Hichilema on good footing to achieve his ambitious copper production target of 3 million tonnes a year by 2032.
Secondly, the Mingomba mine presents a major opportunity to KoBold. The company previously said that the mine is set to be "one of the world's top-tier mines.” They also found that it contains an estimated 247 million tonnes of ore with an average grade of 3.64% copper. That is six times purer than similar deposits found in Chile.
This high quality mine will not only generate more tax revenue for the government but also provide jobs for many Zambians. It will also support Zambian-run businesses within the mine’s value chain in everything from machinery to transportation.
Furthermore, as global consumers make changes towards more climate-friendly options demand for electric vehicles will continue to grow. It is estimated that the global copper industry will need upwards of $100 billion to meet the infrastructure requirements to meet with this demand. With Zambia being the second largest copper producer in Africa, this deal solidifies the key role that the country will play in the green economy going forward.
Photo: Khusen Rustamov from Pixabay.