DR Congo Halts Cobalt Exports Amid Market Oversupply

The Democratic Republic of Congo, the world’s leading producer of cobalt, has temporarily suspended exports of the metal due to a production glut. The export ban, announced on Monday by the Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS), will remain in effect for at least four months.

"This measure is intended to regulate supply on the international market, which is faced with a production glut," said ARECOMS President Patrick Luabeya. The decree enforcing the ban was signed by Luabeya and co-signed by Mines Minister Kizito Pakabomba.

Effective from February 22, the ban applies to all cobalt produced in the country, including output from artisanal and small-scale miners. The restriction may be adjusted or lifted after three months, depending on market conditions.

Following the announcement, the most active March electrolytic cobalt futures contract on China’s Wuxi Stainless Steel Exchange hit its upper limit during night trading and registered another 2.81% gain by early Tuesday.

The move comes in response to a sharp decline in cobalt prices, driven by increased global supply and waning demand. China’s CMOC Group, the world’s largest cobalt producer, more than doubled its output in 2023, reaching approximately 114,000 metric tons, up from 56,000 tons the previous year. CMOC’s shares fell 1.3% following the news, while major producers such as Eurasian Resources Group and Glencore have yet to comment on the development.

In addition to cobalt, the DR Congo is also the world’s second-largest producer of copper, further solidifying its strategic importance in global mineral markets.