Congo Looks to Partner with Indonesia to Strengthen Cobalt Export Ban
By seeking collaboration with Indonesia, the world’s largest Cobalt producer, the Democratic Republic of Congo (DRC), is taking steps to reinforce its temporary four-month export ban on Cobalt exports. The DRC imposed the surprise export suspension in late February that had driven prices to some historic lows.
While preventing stockpiled material from flooding the market once the Cobalt export ban is lifted, the government is now exploring longer-term policies. With the aim of generating more value from Cobalt extraction and processing. Additionally, the Economic Situation Committee recommended measures for the “efficient management” of the export ban, according to minutes from a cabinet meeting held on March 14. In Kinshasa to be precise. The recommendations from the cabinet meeting, chaired by Prime Minister Judith Suminwa Tuluka, include “obtaining Indonesia’s collaboration” to “better control” global Cobalt supply and prices.
While the DRC remains the dominant player in Cobalt production, Indonesia’s contribution has been growing steadily. Last year, Indonesia accounted for 11% of global Cobalt supply, according to data from specialist trading house Darton Commodities. Mined alongside Copper and Nickel in Indonesia, Cobalt is extracted as a byproduct in both countries.
Long-Term Strategies to Boost Value and Control Supply
Similarly, the Congolese government is considering introducing export quotas and requirements, aiming to boost domestic processing of Cobalt. The purpose of these measurements is to ensure that the country benefits as much as possible from its vast mineral wealth. By moving beyond raw material exports as well as encouraging local value addition. While the committee’s recommendations did not provide specific details, the government has been deliberating potential production or shipment limits for over a year.
Moreover, the push for domestic processing aligns with broader efforts by resource-rich nations to capture a larger share of the global supply chain. By imposing export quotas and encouraging local refining, the DRC hopes to prevent a repeat of the oversupply issues that led to the current price slump. Additionally, collaborating with Indonesia could help both countries coordinate supply strategies. In addition to that, potentially stabilising global Cobalt markets and securing better prices for their exports.
For more information, check this article.
