Congo extends the three-month prohibition on exporting cobalt
The Democratic Republic of Congo has announced a three-month extension of its ban on cobalt exports, aimed at addressing the oversupply of this essential material for electric vehicle batteries, according to a regulatory agency’s statement on Saturday.
In February, the leading cobalt supplier in the world announced a four-month halt on exports following a significant drop in prices, which reached a nine-year low of merely $10 per pound. The ban was set to expire on Sunday.
“The Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS) announced in a statement that the temporary suspension has been extended due to the persistently high level of stock in the market.”
ARECOMS indicated that it anticipates making a further announcement regarding the potential modification, extension, or termination of the suspension prior to the conclusion of the new three-month period in September.
On Friday, Reuters reported that Congolese authorities were contemplating an extension of the ban while they examined methods for distributing quotas for cobalt shipments among mining companies.
A proposal to implement quotas has support from miners such as Glencore (GLEN.L), the world’s second-largest cobalt-producing company. However, Glencore’s stance contrasts with that of the leading producer, China’s CMOC Group (603993.SS), which has advocated for the ban to be removed.
