Glencore Pioneers Cobalt Exports Under New Congo Quota System

Glencore exports the first cobalt shipment under Congo's new quota system, testing the waters for a return to regular exports after a ban. The country's new regulations aim to control exports, with Congo holding 70% of global production. Challenges include payment and compliance issues causing potential delays.

In a groundbreaking move, Glencore has initiated the first export of cobalt under the Democratic Republic of Congo's new quota system, according to sources who spoke to Reuters. This small initial shipment marks a significant step in resuming exports following a prolonged ban that had pushed cobalt prices higher and tightened global supply.

The Democratic Republic of Congo, responsible for over 70% of the world's cobalt production, introduced a new system on October 16. This system has set a quota of 18,125 metric tons for the fourth quarter and will cap annual exports at 96,600 tons starting in 2026. CMOC and Glencore received the largest allocations.

Industry players face challenges like ambiguous procedures and a 10% royalty requirement, potentially delaying exports crucial for electric vehicle production. Meanwhile, the mining lobby calls for urgent discussions to address these regulatory complexities as cobalt prices exceed $52,000 a ton.

(With inputs from agencies.)