The Democratic Republic of Congo has suspended cobalt exports for four months to curb an oversupply that has driven prices of the critical battery metal to historic lows. The government says the slump poses a significant risk to the country’s economy and investors.
This was disclosed by Patrick Luabeya, president of the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS), in a written statement on Thursday.
“Cobalt exports must align with global demand,” Luabeya said, adding that the government had been reviewing market conditions for over a year before deciding on the suspension.
Congo, which produces about 75% of the world’s cobalt, has seen a surge in production in recent years, particularly from China’s CMOC Group Ltd., which operates two major mines in the country.
The increased supply has outpaced demand, pushing cobalt benchmark prices below $10 per pound the lowest level in more than two decades, according to Fastmarkets data.
To address the imbalance, Prime Minister Jean Michel Sama Lukonde and the Minister of Mines signed a decree on February 21, granting regulators the authority to impose temporary measures, including export restrictions, to stabilize the market. The suspension took effect on February 22.
“The situation required immediate action,” Luabeya said. “Uncontrolled exports from both industrial and semi industrial producers have led to excessive supply, creating challenges for the country and its investors.”
Impact on miners and market outlook
The temporary ban applies to all cobalt producers in Congo, including industry giants Glencore Plc and Eurasian Resources Group.
However, Luabeya clarified that copper exports would not be affected, as the two metals are sold separately.
The suspension will be reviewed in three months, during which the government will introduce additional measures to strengthen the cobalt market, including promoting local mineral processing.
“We are working to ensure a fair and transparent pricing mechanism for strategic minerals,” Luabeya said.
Congo remains the world’s second-largest copper producer, and the government says it is committed to balancing market stability while encouraging long-term investments in the country’s mining sector.
