CMOC IXM declares Force Majeure on Cobalt Deliveries from Congo

IXM, a commodity trader owned by China's CMOC Group has declared force majeure for deliveries of cobalt from the Democratic Republic of Congo, after the country extended the ban on exports of battery material.

In February, the Congo suspended all cobalt exports for four months to reduce oversupply and stabilize prices which were at a nine-year-low of around $10 per lb.

The world's biggest cobalt producer country announced last week that it would extend the suspension by another three months. It also said that the suspension will be modified, extended or ended before the end of the three-month period in September.

CMOC, which is the largest cobalt producer in the world, anticipates a cobalt output between 100,000 to 120,000 metric tonnes this year from its copper and cobalt mining operations Tenke Fungurume Mining and Kisanfu Mining, both located in Congo. This compares to 114,000 tons of cobalt last year and 56, 000 tons in 2023.

TFM and KFM are suppliers to Swiss-based IXM. The company said on LinkedIn that exports have been banned, making it "legally and practically impossible" for IXM’s suppliers...to export cobalt from the DRC.

Cobalt prices have increased since February, and are now near $16 per lb.

After the February export ban, Glencore (listed in London) and Eurasian Resources Groups (ERG), both listed companies, declared force majeure for some cobalt deliveries. (Reporting and editing by Louise Heavens, David Goods, and Pratima Dasai)

(source: Reuters)