The Democratic Republic of Congo (DRC), the world’s leading cobalt supplier, is reportedly seeking a stabilised cobalt price to promote domestic processing and steady market prices, according to a Bloomberg report, citing the chairman of the state mining company.
The country, which accounts for approximately three-quarters of the global cobalt supply, initially suspended cobalt shipments for four months on 22 February, with a subsequent three-month extension in June.
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The ban’s implementation followed a significant drop in cobalt prices due to increased production, particularly from two mines operated by China’s CMOC Group.
The DRC’s mining sector predominantly exports cobalt hydroxide, which is processed into battery-grade material or metal, mainly in China.
The chairman of the state mining company expressed that while it is not aiming for prices to surge past $40 per pound, it considers it a national responsibility to ensure that prices remain stable.
The country is addressing the issue of excessive supply, which led to substantial inventory being held internationally.
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By GlobalDataCMOC’s trading unit, a major cobalt producer, recently declared force majeure on hydroxide deliveries, indicating mounting pressure on supply chains.
The export ban has significantly impacted China’s imports of cobalt intermediates, which plummeted by more than 60% in June from the previous month, the first notable decline since the ban’s introduction, the report said.
Glencore and Eurasian Resources Group, following CMOC, are two other major cobalt producers with significant operations in Congo. State mining company Gecamines holds minority stakes in joint ventures with all three entities.
Concurrently, Congo is engaging with the US to form a strategic partnership aimed at attracting investment into the nation’s reserves of copper, cobalt, lithium and tantalum.
This collaboration seeks to reduce China’s dominance over critical minerals and their supply chains.
The DRC’s leaders are contemplating long-term measures such as potential export limits post-ban to balance the market, support prices and foster local refining.
The chairman of the state mining company suggested that a quota “could make sense”, emphasising a pragmatic approach to the country’s objectives.
