THE Democratic Republic of Congo may introduce cobalt export quotas to curb oversupply and boost prices, said Reuters citing three sources familiar with the details.
However, no final decision has been made, the newswire added.
On Monday, Congo banned cobalt exports for four months after prices for the metal hit historically low levels amid slackening demand from automakers and as mines ramp up production of copper, from which cobalt is extracted as a by-product.
The ban, announced by the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, or ARECOMS, said the export curb would be reviewed in three months and could either be modified or terminated, depending on its results.
The temporary ban is not enough to limit the flow of metal on the market and is unlikely to have a lasting impact on prices, which are expected to weaken further when companies release stockpiled metal, said Reuters citing its sources and analysts.
Previous attempts by the government to persuade mining companies to voluntarily reduce the flow of the metal on the international market have not been heeded.
Two of the sources said attempts by state miner Gecamines to convince China’s CMOC Group to manage the flow of cobalt on the market and limit the impact on prices, through their joint venture, had failed.
CMOC, the world’s biggest cobalt miner, more than doubled cobalt output last year to about 114,000 tons as it ramped up copper output at its Tenke Fungurume and Kisanfu mines in Congo. CMOC’s Congo mines produced about 650,000 tons of copper, said Reuters.
