The Democratic Republic of Congo (DRC), the world’s largest cobalt producer, is contemplating an extension to its cobalt export ban, which was initially set at four months due to a decrease in the metal’s price, reported Reuters.
The ban, which commenced in February, aimed to address the global oversupply and stabilise the market.
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DRC also plans to enforce cobalt export quotas and collaborate with Indonesia, another major producer, to regulate pricing and supply.
In addition, the DRC regulator has introduced stricter regulations for the domestic cobalt industry, prohibiting the mixing of cobalt from artisanal sources with that from industrial mining.
The DRC’s Katanga region is known for its extensive cobalt mining activities, both industrial and artisanal.
After a cabinet meeting, Government Spokesperson Patrick Muyaya reported a more than 50% rise in cobalt prices since the DRC’s decision to halt exports.
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By GlobalDataPresident Felix Tshisekedi’s statement, as quoted by Muyaya, underscored the necessity of maintaining the export ban, with an evaluation planned at the end of the four-month period to determine whether to prolong the ban or implement new measures for market stability.
Cobalt futures prices in China jumped more than 9%, driven by strategic purchasing by China and discussions of the DRC’s potential extension of the export ban.
Chinese-listed CMOC Group and London-listed Glencore are the largest cobalt producers in the DRC.
CMOC previously boosted its cobalt output to around 114,000 tonnes (t) from 56,000t by ramping up copper production at its two mines.
Since February, prices on China’s Wuxi Stainless Steel Exchange have increased by 55%.
The National Food and Strategic Reserves Administration of China has been actively making price inquiries and bidding for metals including cobalt, as reported by Bloomberg News.
