The Democratic Republic of the Congo has announced the suspension of Cobalt exports for a period of 4 months, in a move aimed at facing the surplus of the supply of this basic mineral in the manufacture of electric car batteries worldwide.
The Congo represents the main source of cobalt globally, as it provides about 75% of the total global supply, but the increasing production in recent years, especially by the Chinese CMOC Group, has led to a vaccination in supplies and a significant decrease in prices.
Facing price collapse
In a written response to Bloomberg, the head of the Strategic Mineral Organization and Monitoring Authority, Patrick Labia, stated that the decision came in response to the current situation of the markets, stressing that “exports must be in line with global demand.”
Lapya stated that the procedures entered into force from February 22, after the signing of both the Prime Minister and the mines minister an official decree granting the competent authority the authority to take temporary measures, including the suspension of exports, in the event of any disturbances that affect the stability of the market.
Cobalt at the lowest level
Fast Markets data indicates that the standard cobalt prices fell to less than $ 10 per pound, a level that has not been recorded for more than 21 years except for a slight decrease in late 2015. The price of cobalt hydroxide, which is the primary form of minerals that are produced in the Congo, It decreased to less than $ 6 per pound.
Lapya said that the Democratic Republic of the Congo, which is also the second largest copper producer in the world, was closely monitoring the market dynamics for a year, adding that the matter necessitated “immediate move” due to the illegal mining activities and the unexplained exports by industrial and semi -industrial producers, It caused an increase in the supply in a way that threatens the stability of the local and international market.
No restrictions on copper production
Labia explained that the cobalt is usually extracted as a secondary output of the copper mining process, stressing that the restrictions imposed on the exports of the cobalt include all producers without exception, but these measures will not affect the production or export of copper.
He added, “Given that copper and cobalt are marketed separately, copper exports can continue without any restrictions.”
