DR Congo extends cobalt export ban by three months to manage oversupply
DRC, the world's largest supplier of cobalt, instituted the initial ban on cobalt exports in late February, citing oversupply of the mineral after prices hit a nine-year low of $10 (Sh1,292) per 0.45 kg.
The Democratic Republic of Congo has extended its ban on cobalt exports, set to expire on Sunday, by another three months to reduce the supply of the key battery material.
DR Congo's authority for the Regulation and Control of Strategic Mineral Substances' Markets confirmed the development in a statement on X on Saturday.
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"The decision has been taken to extend the temporary suspension due to the continued high level of stock on the market," the statement reads.
Additionally, ARECOMS indicated that it will make a further decision to change, prolong or lift the suspension before the new three-month period ends in September.
DRC, the world's largest supplier of cobalt, instituted the initial ban on cobalt exports in late February, citing oversupply of the mineral after prices hit a nine-year low of $10 (Sh1,292) per 0.45 kg.
To ensure that mining companies complied with the ban, ARECOMS issued a decree co-signed by Mines Minister Kizito Pakabomba. It applied to industrial, semi-industrial and artisanal mining, banning the mixing of cobalt from uncertified sources with industrial cobalt, with legal penalties for violations under DRC law.
Cobalt prices subsequently jumped over 50% from a 20-year low since Congo introduced the export ban on February 22 to control oversupply.
"This measure is intended to regulate supply on the international market, which is faced with a production glut," ARECOMS President Patrick Luabeya said in the statement.
A proposal to implement cobalt production quotas has gained support from some miners, including Glencore, the world's second-largest cobalt producer.
However, the largest producer, China's CMOC Group, has pushed for the ban to be lifted, highlighting differing views within the industry on how best to manage cobalt supply.
According to Statista, DR Congo holds the largest cobalt reserves globally, with approximately six million metric tons as of 2024. This accounts for over half of the world's total cobalt reserves, which stood at around 11 million metric tons that year.
Cobalt mining in the DRC is a major part of the country's economy and plays a critical role in the global supply chain for this essential metal.
It is a key component in the production of rechargeable batteries used in electric vehicles, smartphones and other electronic devices.
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