Congo cobalt exports yet to resume after ban ends, watchdog says

The Democratic Republic of Congo is yet to authorize a resumption of cobalt exports, almost six weeks after a ban on shipments lapsed, according to a government regulator.

The Central African nation, which accounts for about three-quarters of global output of the metal, introduced strict export quotas on Oct. 16 to keep a lid on supply after exports restart. But mining companies are still waiting for permission to dispatch trucks laden with cobalt toward the border.

“The implementation of this measure is subject to a delay,” Congo’s Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, or ARECOMS, said by email on Wednesday. Government agencies “must first ensure ARECOMS’ integration into the export process” and “the practicality of the new procedures.”

Congo suspended exports in February to curb oversupply and boost prices. Production of the metal — used in electric-car batteries, aerospace and the defense industry — has soared in recent years as China’s CMOC Group ramped up output at two large Congolese mines, while Indonesia also hiked supply.

ARECOMS said in September that miners would be allowed to ship just over 18,000 tons of the metal during the remainder of this year, and up to 96,600 tons a year in 2026 and 2027. The volumes permitted for each of the next two years are less than half the country’s production in 2024.

When the ban was introduced, cobalt had dropped below $10 a pound, a level not breached for 21 years, bar a brief dip in late 2015, according to Fastmarkets data. But prices have more than doubled since then, while cobalt hydroxide — the main product exported from Congo — has jumped more than fourfold.

Restart coming

ARECOMS said it expects to complete the outstanding steps required for the restart of shipments shortly.

“Once these adjustments have been finalized, an announcement will be made in the coming days,” it said. Miners have been stockpiling cobalt, while continuing to export copper. The metals are extracted together in Congo.

CMOC, the world’s largest cobalt miner last year, received the biggest export quota, ahead of Glencore Plc and Eurasian Resources Group Sarl. State-owned Entreprise Generale du Cobalt, which has a monopoly on shipping hand-dug output, got the fourth-largest allocation.

“We are awaiting final clarification from the regulators before restarting cobalt exports in compliance with the quota system,” ERG said in a statement sent to Bloomberg.

On top of the volumes cleared for export in the next two years, an amount equivalent to 10% of the total quota is set aside for ARECOMS. That “strategic quota” will be distributed “at the sole discretion” of the regulator, it said previously.

(By William Clowes)