Congo miners urge urgent talks on clearing cobalt export backlog
Congo's mining industry has called on the government to hold urgent discussions in order to clarify the new rules for cobalt export. They also said that legal ambiguities, compliance obstacles and delays could cause global battery supply chains to be disrupted.
After a month-long ban on cobalt exports, the Democratic Republic of Congo launched a quota system on 16 October. The regime allocated 18,125 metric tonnes for the fourth quarter, and capped annual exports to 96,600 metric tons starting in 2026.
China's CMOC, and Glencore are the two largest cobalt producers in the world. ARECOMS, the regulator, retained a 10% reserve.
Exporters are struggling with unclear payment procedures and unclear government regulations.
Last week, it was reported that Congo had added conditions to a government circular. The circular required miners prepay 10% royalty in 48 hours and get a compliance certification before shipments could move.
EXPORTERS Face 'Serious Difficulties'
The Chamber of Mines wrote to the Mines Minister on December 5, and it was seen by. It said that exporters have "serious difficulty" applying quotas. They have sought repeatedly, but without success, a ARECOMS meeting to clarify their concerns about its role, legality of prepayments required, and the new documentation requirements which have slowed shipments.
The Mines Chamber confirmed the letter and declined to comment further.
The letter stated that "any measure perceived to be deviating from mining code could undermine operator trust and damage Congo's credibility internationally," and called for a meeting at a high level with ARECOMS and state agencies, as well as major producers.
It is important to ensure legal security in the sector and maintain its attractiveness.
The Mines Ministry and ARECOMS didn't immediately respond to comments.
The quota system, which aims to raise prices from multi-year lows has already tightened the supply for Chinese refiners as well as electric vehicle battery manufacturers. Prices of cobalt chloride have risen by more than 80% in just a few months since Congo first banned exports.
Benchmark cobalt traded at around $24 per lb (52,910 dollars per ton) last week. This is up from $16 a pound in August. It was $10 a pound in February 2009 when the ban started.
China controls 70-75% global cobalt refinery capacity, and provides major companies such as automakers Tesla, BYD, and CATL, with feedstock. Any export delay is a threat to the EV and Battery supply chains.
A Chinese analyst has said that China will not see any cobalt exports from Congo before April. He cited slow local government processes and poor road infrastructure as the main reasons. (Reporting and writing by Ange Kasongo, Additional reporting in Beijing by Amy Ly; Editing and editing by Barbara Lewis).
(source: Reuters)
