The Democratic Republic of Congo has lifted a 10-month ban on cobalt exports, according to the government. As the world’s leading producer of cobalt, a crucial component in high-performance batteries for smartphones and electric vehicles, the DRC’s decision is expected to impact the global market. The ban, initially imposed for four months, aimed to stabilize the market and counter the effects of oversupply, which had led to falling prices.
Cobalt is a vital mineral, with the DRC accounting for 76% of global production in 2024, according to the US Geological Survey. The government’s decision to suspend exports was designed to ensure national control over raw materials and influence price formation. Finance Minister Doudou Fwamba stated that the ban was necessary to prevent the country from being subjected to fluctuating prices without having a say in the matter.
The export ban was partly targeted at Chinese mining company CMOC, which operates two of the world’s largest mines in the DRC, including Tenke Fungurume and Kisanfu. The company’s production had contributed to the oversupply, leading to a decline in prices. According to Minister Fwamba, the strategy has paid off, with cobalt prices rising from $22,000 per tonne to $54,000 or $55,000.
Despite its significant mineral wealth, the DRC remains one of the world’s least developed countries. The competition for its minerals has led to conflict, corruption, and mismanagement. Artisanal mining, which accounts for a small percentage of total production, has been linked to human rights abuses. The majority of cobalt is extracted from mines in the southeastern province of Katanga, which has been spared from the armed conflict affecting other parts of the country.
The resumption of cobalt exports is expected to have significant implications for the global market. As the world’s leading producer, the DRC’s decision will likely influence prices and supply chains. The government’s efforts to assert control over its mineral resources and ensure fair prices may set a precedent for other countries. With the DRC’s rich mineral deposits and growing demand for cobalt, the country’s decision to lift the export ban is a crucial development in the global mining industry.
