China’s CMOC Group, the world’s leading cobalt mining company, has called on the Democratic Republic of Congo to lift its current ban on cobalt exports, which is set to expire next month.
According to a report by Reuters, CMOC’s Vice President Kenny Ives emphasized the urgency of lifting the export restrictions during a closed-door session at an industry meeting in Singapore. The ban, initially imposed in February as cobalt prices hit a nine-year low of approximately $10 per pound, or $22,000 per metric ton, was intended to curb surpluses.
However, Ives highlighted that the restrictions could accelerate a shift among automakers towards lithium iron phosphate (LFP) batteries, which do not require cobalt, potentially impacting the cobalt market. Congolese officials, including Mines Minister Kizito Pakabomba, were present during Ives’ remarks.
Some interpreted his comments as a strategic move by China to influence cobalt prices for stockpiling purposes. Meanwhile, CMOC has projected its cobalt production for the year to be between 100,000 and 120,000 metric tons, leveraging its operations at the Tenke Fungurume and Kisanfu mines in Congo.
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In contrast, Glencore, another major player in the cobalt market, expressed support for maintaining the export ban until prices stabilise. They indicated a willingness to comply with a quota system if Congo decides to implement one. As the expiration date of the ban approaches, Congo is evaluating the impact and considering various proposals, including the potential introduction of export quotas.
According to Benchmark Mineral Intelligence, the likely scenarios include either extending the ban followed by implementing an export quota or directly transitioning to a quota system in late June, both of which are expected to support pricing.
