Cobalt export restriction to be replaced by quotas in Congo starting October 16
The DRC’s strategic minerals regulator announced on Sunday that it will remove its export restriction on cobalt starting on October 16 and use annual export quotas to control the world’s supply.
According to the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, miners will be permitted to ship up to 18,125 tons of cobalt throughout the remainder of 2025, with yearly caps of 96,600 tonnes in 2026 and 2027.
After prices dropped to a nine-year low, Congo, which produced over 70% of the world’s cobalt last year, halted exports in February. When the move was prolonged in June, big producers such as China’s CMOC Group (603993.SS) and Glencore (GLEN.L) declared force majeure.
A considerable portion of cobalt production comes from the mainly uncontrolled artisanal mining industry in Congo, which makes compliance and traceability more difficult for buyers from other countries.
The implementation of a quota system coincides with the intensifying war in eastern Congo, where the government claims that M23 rebel brutality is being fueled by illegal mineral mining.
Supported by Glencore but opposed by CMOC, the new approach seeks to stabilize prices and lower inventory. Based on past shipments of the essential component for electric batteries, quotas will be distributed.
Glencore chose not to respond. CMOC did not immediately respond to requests for comment.
10% of future quantities will be set aside for critical national projects, according to Congo’s regulator, and quotas may change in response to changes in the market or advancements in domestic refining.
According to the statement issued by its chairman, the regulator has the authority to repurchase more cobalt stocks than each company’s quarterly allotted limit.
