Congo's Cobalt Clash: Export Rules Stir Global Supply Concerns

Congo's mining sector is grappling with new cobalt export rules, causing delays and threatening global supply chains. Legal ambiguities and compliance issues are leading to stalled shipments, with major players calling for urgent dialogue. The quota regime aims to stabilize prices but faces numerous challenges.

Congo's mining lobby has urgently sought dialogue with the government to address new cobalt export regulations that threaten to delay shipments and disrupt global battery supply chains. Confusion over legal complexities and compliance demands have intensified concerns within the industry.

Under the new regime, Congo, holding over 70% of the world's cobalt supply, resumed restricted exports post a lengthy ban. The fourth quarter allocation allows 18,125 metric tons, while aiming to limit annual exports to 96,600 tons by 2026. Top producers like China's CMOC and Glencore dominate allocations, but exporters face substantial challenges in adhering to strict prepayment and documentation requirements.

The latest regulatory conditions mandate miners to prepay a 10% royalty swiftly, complicating processes for companies reliant on Congolese cobalt. Amidst heightening cobalt prices, any shipment delay poses a significant risk to industries, including electric vehicles. Expert predictions indicate shipments might not resume until April, due to local procedural hurdles and infrastructural issues.