What's Happening?
The Democratic Republic of Congo's mining lobby is urging the government to hold urgent talks to clarify new cobalt export rules. The DRC, which supplies over 70% of global cobalt, implemented a quota regime in October, capping annual exports at 96,600
tons from 2026. Major cobalt producers, including China's CMOC and Glencore, received the largest shares, while the regulator retained a strategic reserve. Exporters face challenges due to unclear procedures and payment requirements, including a mandatory 10% royalty prepayment. The Chamber of Mines has requested a meeting with the regulator to address legal ambiguities and compliance hurdles.
Why It's Important?
Congo's cobalt export rules are crucial as they impact global battery supply chains, particularly for electric vehicles. The quota regime aims to lift cobalt prices, which have risen significantly since the initial export ban. However, delays in shipments could disrupt supply to major refiners and battery makers, affecting production timelines and costs. The legal uncertainties and compliance issues could undermine operator confidence and damage Congo's international credibility. Resolving these issues is essential to maintain the attractiveness of Congo's mining sector and ensure a stable supply of cobalt to global markets.
What's Next?
The Chamber of Mines is seeking a high-level meeting with the regulator and state agencies to resolve the export backlog. Clarifying the new rules and ensuring legal security are priorities to preserve the sector's attractiveness. The government may need to streamline procedures and address infrastructure challenges to facilitate exports. The outcome of these talks could influence global cobalt prices and supply chain dynamics, particularly for electric vehicle manufacturers relying on Congolese cobalt.
