Exclusive: Under Congo’s new quota system, Glencore will export the first cobalt cargo
Glencore (GLEN.L) has become the first miner to export cobalt under the new quotas established by the Democratic Republic of Congo, sending a small initial shipment to test the system, according to one government source and two trade sources familiar with the matter, as reported by Reuters.
Congo has approved Glencore’s shipment this week, contingent upon the payment of a 10% royalty, according to a government source. This marks the start of a return to exports following a months-long ban that has significantly increased cobalt prices and limited the availability of the metal essential for electric vehicles.
The central African nation represents over 70% of the world’s mined production, which analysts estimate to be approximately 280,000 metric tons this year. The system, which was launched on October 16, has set a quota of 18,125 metric tons for the fourth quarter and will limit annual exports to 96,600 tons starting in 2026.
Cobalt traders initially anticipated that shipments to smelters would commence by January following the introduction of the quota system in Congo; however, two separate trade sources have indicated that they now believe it will take longer. The initial complete shipment from Congo is anticipated to arrive by April.
China’s CMOC and Glencore have been awarded the largest allocations.
China’s CMOC (603993.SS) and Glencore, the two largest cobalt-producing companies in the world, have received the largest quota allocations. CMOC’s allocation for the fourth quarter stands at 6,650 tons, while Glencore’s is set at 3,925 tons.
Congo’s regulator ARECOMS holds back 10% for its strategic reserve.
According to a government source, CMOC’s Tenke Fungurume Mining has initiated the processes to commence exports.
Glencore chose not to provide a comment. CMOC has not yet provided a response to the request for comments. ARECOMS and Congo’s mines ministry also did not.
The first shipment by Glencore has been authorized for release as part of a pilot process. “The procedure is currently ongoing to assess the quality and arrive at a final decision regarding the quantity to be exported,” stated the government source. The 10% royalty will be disbursed following the assessment of quality.
“After completing the initial export, the subsequent one will be significantly simpler,” the source noted. None of the sources could be identified as they were not permitted to discuss the matter publicly.
Despite the government’s threats of penalties for non-compliance, shipments have not commenced, as exporters face challenges due to ambiguous procedures and payment requirements.
The mining lobby has requested immediate discussions to address the delay.
Reuters has reported that the mining lobby in the country has urged for immediate discussions to address legal uncertainties and compliance challenges. The announcement indicated that the new requirements, which entail a 10% royalty prepayment within 48 hours and a compliance certificate prior to any cargo movement, may cause delays in exports and disrupt global battery supply chains.
Glencore, operating the Mutanda and Katanga mines in Congo, preferred a quota-based export system, whereas CMOC aimed for a complete removal of the ban.
According to the new regulations, exporters are required to inform authorities, prepare batches for sampling, and await laboratory tests to verify quality and volumes prior to the calculation and payment of royalties.
A cargo cannot proceed without proof of payment.
Cobalt metal prices are currently at approximately $24 per pound or $52,900 per ton. That stands in contrast to the nine-year lows of approximately $10 a lb in February, when Congo declared the suspension of cobalt exports.
