Congo may impose more cobalt curbs after four-month export ban

The Democratic Republic of Congo may impose strict curbs on exports of cobalt when its existing four-month export ban ends, the head of a government agency said on Wednesday.

Congo, the world’s leading producer of cobalt, imposed the export ban in February to try to revive prices for the metal, which is used for batteries for electric vehicles and mobile phones.

Patrick Luabeya, president of the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, told a conference in Singapore that Congo would implement further restrictions because of high stocks in the country and elsewhere.

He said the stockpiles that have depressed prices “have not yet been exhausted although they have been significantly reduced”.

The government agency’s next decision “will inevitably imply a strict limitation of exports in whole or in part until market balance is reached with regard to the supply and demand of cobalt,” Luabeya said.

He also said the agency would consult industry players in June regarding the ban.

Mines Minister Kizito Pakabomba earlier said in a speech the ban on cobalt exports is under review, without giving further details. The country is in talks with major stakeholders over next steps in its export policy, including miners Glencore, ERG, and CMOC, said.

In February, Congo imposed a four-month ban on cobalt exports to tackle oversupply of the battery metal on the international market.

In March, the country’s prime minister said it intended to impose export quotas on cobalt following the export ban, and plans to partner with Indonesia, another big producer, to manage global supply and pricing.