DRC Suspends Cobalt Exports for Four Months to Address Global Oversupply

DRC

Temporary Export Ban Aims to Support Falling Cobalt Prices

The Democratic Republic of Congo (DRC), the world’s largest cobalt producer, will halt all cobalt exports for four months. The decision, announced by mineral markets regulator Arecoms, seeks to counter falling cobalt prices driven by global oversupply. The suspension will apply to all cobalt exported from the DRC, regardless of whether it is produced by industrial, semi-industrial, or artisanal mining.

Market Skepticism and Past Precedents

Cobalt prices have declined steadily since 2022, mainly due to significant production growth in the DRC. China’s CMOC, now a major global copper and cobalt producer, has notably expanded its operations. Despite the new ban, many market participants remain cautious. The DRC has previously announced export bans that were either not enforced or only partially implemented. For now, copper exports will continue as usual, making the effectiveness of the new ban uncertain.

Industry Reactions and Supply Chain Risks

Traders warn that such sudden policy changes damage the DRC’s reputation as a reliable cobalt source. Concentrated supply from one country has discouraged investment in alternative cobalt sources. Industry stakeholders say the unpredictability of export restrictions increases risk across the global battery and metals supply chain.