THE world’s leading cobalt mining company, CMOC Group, has called on the Democratic Republic of Congo to lift a ban on exports of the battery metal, according to Reuters which cited sources who attended an industry meeting in Singapore last week.
Congo imposed the four-month export restriction in February amid plummeting cobalt prices, which had reached nine-year lows of approximately £17,000 per ton. The ban is set to expire on 22 June.
CMOC Vice President Kenny Ives reportedly told delegates during a closed-door session that China’s pipeline inventory was running low, urging Congo to allow miners to freely export cobalt. Sources claim Ives warned that continued restrictions could accelerate automakers’ switch to lithium iron phosphate batteries, which do not require cobalt.
Congolese officials, including Mines Minister Kizito Pakabomba who attended the session, reportedly interpreted Ives’ remarks as threatening. Some officials are concerned that China seeks to depress cobalt prices to build strategic stockpiles.
CMOC expects to produce between 100,000 and 120,000 tons of cobalt this year as it increases operations at its Congolese mines, said Reuters.
Industry experts suggest Congo might extend the ban or introduce an export quota system. Representatives from Glencore, another major cobalt producer, indicated they would accept quotas if implemented.
Congo is currently evaluating the ban’s impact while balancing concerns about tax revenue losses against market stability.
