- Glencore announced that a large portion of its cobalt output would likely remain unsold at the end of 2025.
- The company announced on Wednesday, August 6, that they were stockpiling their DRC cobalt in the country since the export ban had been imposed.
Glencore announced that a large portion of its cobalt output would likely remain unsold at the end of 2025, due to the suspension of cobalt sales by the Democratic Republic of Congo.
DRC, the world’s largest cobalt exporter, suspended exports for four months in February, after prices fell to a record low. In June, it extended the suspension by another three months.
The export ban was intended to reduce the global oversupply of cobalt, and the extension allowed the government to have more time to figure out how to allocate export quotas to mining companies.
Glencore‘s first-half results report stated that the extension of the export embargo is expected to tighten cobalt supply and accelerate inventory drawdowns. This will support prices.
In an analyst call, the company said that it was “quite conservative in its assumptions” and that it would not have a material impact on its financial performance even if the company is unable sell any cobalt produced by the DRC during the remainder of the year. It added that if some volumes started to move, it would be a positive.
Sources familiar with the situation told the media in June that Glencore, which is the second-largest cobalt producer in the world, declared force majeure for some cobalt deliveries from the DRC.
The company announced on Wednesday, August 6, that they were stockpiling their DRC cobalt in the country since the export ban had been imposed. The company did not specify how much cobalt was stockpiled.
Glencore’s cobalt production from its own mines increased 19 per cent on an annual basis between January and June, to 18,900 tons. The company’s production forecast for 2025 is 42,000-45,000 tonnes, an increase from 38,200 in 2024.