The copper producer has commissioned a study by consultants Mintrex to look at the possible processing pathways for cobalt production over the next three months.

Kipoi has measured and indicated cobalt resources of 40,400 tonnes, as well as 5600t in inferred.

There is a further 6000t of cobalt resources at the nearby Sase Central deposit.

Kipoi already produces around 26,000t per annum of copper cathode.

Tiger CEO Michael Griffiths said the company was encouraged by growing cobalt demand.

“Cobalt is used in many industries, but its demand is increasing mostly due to its use in batteries and super alloys,” he said.

“Tiger is in a position to capitalise on this with our known resource at Kipoi and a strong operating and production record.”

There is plenty of market interest in cobalt currently, due to its use in batteries for electric vehicles.

The US has reportedly started stockpiling cobalt for strategic regions, given China controls much of the market.

The current price is just over $US24,000t, up from $23,000t earlier this year.

As Outcrop reported last month, Capital Economics expects the price to rise to $25,000/t by the end of this year and $26,000/t by the end of 2017.

The largest cobalt producer is the DRC, where China Molybdenum recent spent $2.65 billion to buy a controlling stake in the Tenke Fungurume copper mine.

Tenke Fungurume is also a major cobalt producer.

“We observe that recent acquisitions by China Molybdenum have been very strategic in nature and focus on future copper supply, as well as cobalt – a key metal of the future given the move towards electric cars,” Investec analysts said last week.

Tiger shares closed A0.1c lower yesterday at 4.4c.