Official order bans the export of copper and cobalt concentrates from Congo
A government order reviewed on Thursday shows that the?Democratic Republic of Congo banned exports of cobalt?concentrate? and copper?concentrate? as part of its efforts to increase domestic processing in an effort to retain more value for its mineral resources.
The London Metal Exchange reported that the ban had been lifted. Benchmark three-month copper rose 1.8%, to $14,369.50 per metric ton. This is the highest price since January 29, when the metal reached its all-time high of $14,527.50. As of 0930 GMT, it was trading at $14300.
Congo wants to use its position as a world leader in cobalt and other minerals for energy transition, including copper, to increase its domestic processing capability and keep a larger share of its mine's wealth.
According to the June 29 order signed by Mines Minister Louis Kabamba Watum and Foreign Trade Minister Julien Paluku Kahongya, and Economy Minister Daniel Mukoko Samba "the exportation of copper and cobalt concentrates is prohibited".
The order stated that export waivers of up to one year may be granted in strategic circumstances. However, it did not elaborate.
The tax regime also included a transition period of three months for mining by-products that are economically significant.
CONGO PUSHES LOCAL PROCESSING
The order stated that the ban was a result of "the need to encourage commercial mining operators to export or market commercial mineral products with high value added,"
The Congo has banned the export of copper and cobalt concentrators for 2013, 2019, and 2023. However, it granted waivers to those countries with insufficient domestic smelting capacities.
The new order replaces the order of 2023 and its exemptions with a framework that governs mineral exports as well as the taxation on economically significant "mining byproducts".
The Congo exports mainly refined copper. According to official statistics, it exported 696.725 tons copper cathodes, while 53,926 tonnes of copper concentrates contained 18,863 tons copper metal.
Over the same period, 51,940 tonnes of cobalt hydrxides containing 17,054 tonnes of cobalt metallic were also shipped.
Christian-Geraud Neema is a mining analyst with the non-profit China-Global South Project. He said that the ban would not have a major impact on the majority of operators, as most of the?copper? and?cobalt? in the Congo are already refined at home.
He said that the Kamoa Kakula venture, which is a joint venture between Ivanhoe Mines and China's Zijin Mining as well as the Congolese Government, could be most affected by this because it continues to export some concentrates under exemptions. Ivanhoe, Zijin and the Congolese Chamber of Mines did not respond immediately to a request for comment.
The new tax regime applies to a wide range of minerals. It is based on a valuation coefficient of 55% and charges royalties along with the mineral. Reporting by Ange Adikhe Kasongo, Maxwell Akalaare Adombila and Tom Daly; Additional reporting by Tom Daly from London; Editing and Veronica Brown by Louise Heavens, Barbara Lewis and Veronica Brown.
(source: Reuters)
