Congo replaces cobalt export ban by quotas starting Oct 16
The Democratic Republic of Congo's strategic minerals regulator announced on Sunday that the country will lift its export ban on cobalt from October 16, and manage global supplies by imposing export quotas.
The Authority for the Regulation and Control of Strategic Mineral Substances' Markets announced that miners would be permitted to ship up 18,125 tonnes of cobalt for the remainder of 2025. This will increase to 96,600 tons per year in 2026 and 97,600 tonnes annually in 2026 and 207.
Congo, which produced 70% of the global cobalt production last year, suspended its exports in Febraury after prices dropped to their lowest level in nine years. In June, the move was extended and major producers such as Glencore Group of China and China's CMOC Group declared force majeure.
The largely unregulated artisanal sector of the Congo is responsible for a large share of the cobalt production, which complicates traceability and compliance with global buyers.
The government has announced the introduction of a quota-based system amid an escalating conflict that is raging in eastern Congo. There, illegal mining and exploitation are said to be fueling M23 rebel violence.
The new system, backed up by Glencore, but opposed by CMOC aims to reduce inventory and support prices. Quotas are allocated based upon historical exports of critical battery material.
Glencore declined comment. CMOC did not respond to a request for comment.
Congo's regulator stated that 10% of future volumes would be reserved for strategic projects in the country. Quotas may be revised depending on market conditions and progress made by local refiners.
In a statement signed by the chairman, the regulator said it could buy back stocks of cobalt that exceeded the authorized quarterly quotas for each company. Congo Newsroom, Maxwell Akalaare Adombila and Christina Fincher edited the article.
(source: Reuters)
