The Democratic Republic of Congo (DRC) has announced a four-month suspension of cobalt exports to address oversupply and falling prices in the international market.
As the world’s leading cobalt producer—accounting for nearly 75% of global supply—the DRC has seen production surge in recent years, driven primarily by China’s CMOC Group Ltd. ramping up output at two major mines. This increase has outpaced demand, causing prices to plummet.
“Exports must be aligned with world demand,” Patrick Luabeya, president of the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS), stated in written responses to Bloomberg.
The export ban, which took effect on February 22, follows a decree signed by the prime minister and mines minister allowing regulators to implement temporary measures, including export restrictions, to stabilize the market.
Benchmark cobalt prices have dropped below $10 per pound, a level not seen in over two decades, apart from a brief dip in late 2015, according to Fastmarkets. Cobalt hydroxide, the primary form of cobalt produced in the DRC, has fallen below $6 per pound.
The Congolese government, also the world’s second-largest copper producer, has been monitoring market conditions for the past year.
According to Luabeya, years of illegal mining and uncontrolled exports from both industrial and small-scale producers have resulted in excessive supply, posing risks to the country’s economy and foreign investors.
Since cobalt is primarily extracted as a byproduct of copper, the suspension applies to cobalt shipments only and does not affect copper exports, Luabeya confirmed.
Major global cobalt producers impacted by the decision include Glencore Plc and Eurasian Resources Group.
The government will reassess the export suspension in three months and is developing additional measures to balance the cobalt market, promote in-country processing, and establish a transparent and fair pricing mechanism.
The move signals the DRC’s intent to play a more active role in managing its critical mineral exports, ensuring long-term market stability and value addition within the country.
