The Democratic Republic of Congo (DRC), the world's largest producer of cobalt, has temporarily suspended the metal’s export for four months, effective February 22, 2025. This decision, announced by the Autorité de Régulation et de Contrôle des Marchés des Substances Minérales Stratégiques (Arecoms), aims to address the global oversupply of cobalt, which has led to a significant decline in prices. The related statement was inked by the Arecoms’ chairman, Patrick Luabeya.

Over the past two years, cobalt prices have plummeted by nearly 50%, driven by a surge in production that has outpaced demand. In 2023, the market recorded a record surplus of 14,200 tonnes, according to the Cobalt Institute. This imbalance is expected to persist until the end of the decade, contributing to the sharp decline in cobalt prices from their peak of $90,000 per tonne in 2018 to around $20,000 currently on the London stock.

To implement this suspension, a decree was signed by Prime Minister Judith Suminwa Tuluka on February 22, 2025, empowering Arecoms to take measures to preserve market stability. The decision affects all cobalt producers, including major players like CMOC and Glencore, which operate several mines in the DRC. So far, no company has reacted to the measure.

The DRC's cobalt exports are projected to exceed 150,000 tonnes in 2024, up from 87,000 tonnes in 2020. However, predicting the impact of this suspension on global markets and the country's export earnings, to which cobalt contributes 15-20%, remains challenging.

Arecoms plans to conduct an assessment after three months to determine whether to adjust or lift the suspension. Last year, authorities considered introducing export quotas as part of broader efforts to stabilize the market. 

Pierre Mukoko (Ecofin Agency)