Zambia relaxes export ban on sulphuric acids to Congo, Minister says

Zambia's Trade Minister said that the country has eased restrictions on the mining ingredient.

About 2 million metric tonnes of sulphuric acids are produced by Zambia's smelters each year. This is mainly as a by-product for local mines. The surplus is sent to the neighboring Congo.

Sulphuric acid, which is needed for the "green energy transition", is used in?the central African Copperbelt to extract copper and cobalt from oxide ore.

Zambia banned exports of sulphuric acids in September, followed by a policy of permits in March. This was after a weak domestic production and global disruptions related to the Iran War tightened up the supply.

Miners in Congo, the world's largest cobalt producer, and No. 2 in copper, reduced usage, and considered output reductions. In response, miners in Congo, the?world's biggest cobalt producer and No.

Chipoka Mulenga, Zambia's Minister of Commerce, Trade, and Industry, said on Thursday that after the local stock recovered, the government had authorized Chambishi Copper Smelter to resume sulphuric acids shipments.

Mulenga, without specifying volume, said that they will export "a limited quantity" to make sure the local market is not affected.

Zambia's minister stated that export permits could be expanded if the supply conditions improve.

The document, which was seen by the reporter, also showed that the Ministry had authorized chemicals trader Alliswell Investment Limited for 5,000 metric tonnes of sulphuric acids to be shipped.

A source in the industry, who spoke on the condition of anonymity due to the sensitive nature of the matter, stated that Mopani has yet to receive its export permit.

Alliswell, Chambishi Copper Smelter and Mopani did not respond to our requests for comment.

CONGO CHEMICALS Imports Declined

Data from Access World, a commodities logistics and warehouse group, showed that Congo's imports for processing chemicals dropped sharply in the first quarter.

Previously reported, Mopani Copper Smelter and Chambishi Copper Smelter are planning extended maintenance shutdowns in 2019.

Mulenga stated that the return of exports was due to?improved accessibility. "We allowed these companies to export because local stocks have increased and they?have what they need to provide in Congo."

Mulenga said that Mopani would supply Glencore while CCS would export through three Chinese mining companies in Congo. He did not name the firms.

Glencore declined comment. (Reporting and writing by Chris Mfula, Maxwell Akalaare Adombila, Editing by Barbara Lewis).

(source: Reuters)