Congo will revoke cobalt export quotas to companies who fail to export the full volume
In a statement released on Saturday, the mining regulator of the Democratic Republic of Congo said that it would revoke export quotas for companies who fail to meet their export targets, violate environmental or tax regulations, or transfer them to third parties.
It was announced that the new rules would come into effect on 16 October.
The Congo's Strategic Mineral Substances Market Regulation and Control Authority issued the warning to mark the resumption, under a brand new system, of cobalt production by the world's largest producer after a long-term ban intended to curb oversupply and influence global prices.
This is also Congo's most aggressive step yet in asserting control over the crucial battery metal. It introduces a strict "use it or lose it" regime, which could disrupt global supply chains for electric vehicles if major manufacturers fail to comply.
China's CMOC and Glencore, which are the two largest cobalt producers in the world, have emerged as the biggest beneficiaries of the new export quota system. They will receive 6,500 tonnes and 3,925 tons, respectively, during the fourth quarter 2025.
According to the ARECOMS Directive, the remaining cobalt export quotas for fourth quarter 2025 are divided among companies like Congolese Gecamines JV (CGN), Entreprise Generale du Cobalt(EGC), Societe du Terril de Lubumbashi(STL), Deziwa JV (Ruashi Mining), Chemaf (Huayou), CDM (Huayou), Musonoi JV (and several smaller operators).
Congo reserves the right, if necessary, to withdraw quotas for companies that process cobalt from third parties or artisans. This does not include Entreprise Generale du Cobalt (an entity owned by the state) and Societe du Terril de Lubumbashi.
According to the statement, firms that do not comply with traceability, tax, or environmental compliance requirements risk losing their allocations.
Before loading shipments, companies must pay mining royalties that are based on current cobalt and monthly quotas.
It added that any monthly allocation not used by January 1, 2026 would be forfeited, and the funds reallocated into a strategic reserve of 9,600 tonnes controlled by ARECOMS to "projects with national importance".
Twenty-one operators were allocated, and the top five operators accounted for 80% of the fourth-quarter quotas. The statement said that December 2025 allocations would automatically renew in 2020 for compliant operators. The statement said that (Reporting and writing by Pratima Deai, Maxwell Akalaare Adombila, Editing by Alex Richardson).
(source: Reuters)