Eurasian Resources Group (ERG) has halted cobalt deliveries from its Metalkol operation in the Democratic Republic of Congo (DRC) due to the country’s temporary export ban on the metal, two sources familiar with the matter said.
ERG, the world’s third-largest cobalt producer, has declared force majeure — a legal clause invoked when unforeseen events prevent the fulfillment of contracts — due to a lack of cobalt stocks outside the DRC, according to one source..
The Luxembourg based company has yet to issue an official statement regarding the situation.
Last month, the Congolese government introduced a four month suspension on cobalt exports to address oversupply and stabilize prices, which had dropped to a nine year low of around $22,000 per metric ton.
The ban, which took effect in February, is under review and may be modified or lifted in three months, depending on market conditions.
ERG’s Metalkol operation, which processes tailings, produced around 19,200 metric tons of cobalt in hydroxide last year.
This accounted for 9% of the country’s total output, according to estimates by Darton Commodities.
The DRC accounts for over 70% of global cobalt supply, making disruptions in its exports a critical factor for the global battery supply chain.
The government is also considering implementing export quotas after the suspension period.
Rising cobalt prices and market reaction
Market sources said the force majeure and ongoing export restrictions have raised concerns among buyers, particularly in China, the world’s largest cobalt consumer.
Prices of cobalt, as assessed by Shanghai Metals Markets (SMM), have surged more than 20% since the ban was introduced, reaching 200,000 yuan ($27,800) per metric ton.
A trader familiar with the matter noted that buyers are scrambling to secure supplies amid uncertainties over how long the restrictions will last.
“With no clarity on when exports will resume, companies dependent on Congolese cobalt are starting to feel the pressure,” the trader said.
China’s CMOC Group remains the largest cobalt producer in the DRC, with an output of 114,165 metric tons last year more than double its 2023 production.
Glencore, the second largest producer, mined 38,200 metric tons in 2024, an 8% decline from the previous year.
The Congolese government’s export policies will play a crucial role in shaping the global cobalt market in the coming months, with industry players closely watching for any changes to the suspension.
