- The Democratic Republic of Congo will allocate annual cobalt export quotas based on companies’ production and shipment data.
- Glencore, the world’s second-largest cobalt producer, supports the quota system, while CMOC, the top producer, opposes it.
The Democratic Republic of Congo will allocate annual cobalt export quotas based on companies’ production and shipment data for the previous three years, three sources familiar with the matter stated, in a major policy shift intended to curb supply from the world’s top producer.
The quota system, set to take effect on October 16, replaces a months-long export suspension that disrupted supply chains and rattled electric vehicle manufacturers, particularly in leading consumer China.
Congo accounts for over 70 per cent of global cobalt output, making its regulatory decisions critical to the key battery, smartphones and defence systems metals market.
It was previously reported that Congo would permanently ban cobalt exporters who violate the new quota system. President Felix Tshisekedi said the export freeze helped drive a 92 per cent rebound in cobalt prices since March, calling the new system a “real lever to influence this strategic market.”
Glencore, the world’s second-largest cobalt producer, supports the quota system, while CMOC, the top producer, opposes it.
Cobalt prices on Comex at $19 a lb or $41,890 a metric ton have surged 90 per cent since hitting nine-year lows at $10 a lb in February when the first suspension was announced.
The first source, who asked not to be named because of the sensitive nature of the issue, said a government committee is reviewing historical data of producers to determine quota levels and eligibility.
The framework will exclude artisanal miners, the source said, and will not introduce a licensing regime for large producers.
According to the source, authorities plan to strengthen controls at laboratories and cobalt loading sites to ensure traceability and prevent evasion.
Smaller producers will still be required to apply for export permits and additional licences, a second source said.
The quota system is being developed by a multi-agency committee that includes representatives from the presidency, mining ministry, and the chambers of mines, with the aim of aligning with national policy goals and improving transparency in the sector.
Preparations to roll out the quota system come amid escalating conflict in mineral-rich eastern Congo, where fighting between M23 rebels and the army has killed thousands of people and displaced hundreds of thousands.
A U.S.-backed peace effort faced a new setback when Congo and Rwanda failed to sign an accord known as a Regional Economic Integration Framework. The framework was part of a plan to make the two countries’ sectors more attractive to Western investors.