As the top producer and exporter of cobalt, Kinshasa is asserting its stance on the international market by considering measures to influence cobalt prices.
Declining cobalt prices have prompted the Congolese Government, led by President Félix Tshisekedi, to contemplate setting export quotas for green cobalt to better manage the sector’s operations.
During a recent Council of Ministers meeting on February 9, 2024, President Tshisekedi emphasized the urgent need for measures to regulate cobalt marketing and enhance revenue from its exploitation.
He referred to previous communications highlighting the disparity between multinational profits from cobalt and national revenue, particularly noting the recent decline in cobalt prices from over $31,000 per tonne in August 2023 to $28,727 currently.
Attributing the price decline to oversupply in the international market, exacerbated by increased artisanal mining, President Tshisekedi underscored the importance of strengthening supervision to prevent revenue loss.
He stressed that falling cobalt prices adversely affect local mining turnover, tax revenues, customs income, and mining royalties, while also jeopardizing employment opportunities.
To address these challenges, President Tshisekedi emphasized the need to enhance control and regulation in supply, exploitation, and pricing of strategic minerals, with a focus on cobalt.
He instructed the Prime Minister to evaluate the potential introduction of export quotas or alternative measures to ensure fair cobalt prices, based on recommendations from ARECOMS, the regulatory authority.
Furthermore, President Tshisekedi urged the Prime Minister to allocate necessary resources to ARECOMS promptly, with support from the Ministers of Budget, Finance, and Mines.
This allocation aims to empower ARECOMS to act swiftly in improving state revenues from cobalt.
In summary, Kinshasa’s efforts underscore its commitment to address market challenges and maximize the benefits of cobalt exploitation, highlighting the importance of regulatory measures and strategic planning in the mining sector.
