China’s cobalt mining company CMOC Group has requested that the Democratic Republic of Congo (DRC) lift its current ban on cobalt exports, which is set to expire next month, reported Reuters, citing three sources familiar with the matter.
The ban was imposed in February for four months to manage surpluses as cobalt prices reached nine-year lows.
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CMOC’s vice-president, Kenny Ives, during a private session at an industry conference in Singapore, urged the Congolese Government to remove restrictions on cobalt, a critical component of electric vehicle (EV) batteries.
The appeal was made in the presence of the DRC’s Mines Minister Kizito Pakabomba.
The DRC, the leading cobalt producer, has left stakeholders uncertain about its plans post-ban, which could include an extension or the introduction of export quotas.
Ives highlighted concerns over China’s dwindling pipeline inventory, emphasising the need for the DRC to permit free cobalt exports.
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By GlobalDataHe warned that continued restrictions could hasten the automotive industry’s shift to lithium iron phosphate (LFP) batteries, which do not require cobalt.
This transition is already under way with Chinese EV manufacturers such as BYD adopting LFP batteries.
Some attendees interpreted Ives’ comments as a veiled threat, reinforcing fears that China aims to suppress cobalt prices to accumulate strategic reserves.
CMOC anticipates its cobalt production to be between 100,000 tonnes (t) and 120,000t this year as it increases operations at its Tenke Fungurume and Kisanfu mines in the DRC.
This projection aligns with last year’s production and marks a significant increase from the 56,000t produced two years ago.
Conversely, at the same event, representatives from Glencore supported the export curbs, suggesting that market stability is necessary before lifting the ban. They indicated willingness to accept a quota system if implemented by the Congolese Government.
Shirley Wang, general manager at Shanghai Metals Market, noted that Chinese smelters have accumulated stockpiles lasting up to six months.
Meanwhile, the DRC is examining the ban’s impact and considering industry proposals, weighing the loss of tax revenue against market stability.
Earlier this month, the country was reportedly evaluating the prospect of imposing stricter export curbs on cobalt after the current export ban concludes.
