The Democratic Republic of Congo intends to impose export quotas on cobalt following a four-month export ban, and plans to partner with Indonesia, another key producer, to manage global supply and pricing, according to DRC’s prime minister.
The announcement was made during a cabinet meeting on Friday.
In a bid to curb a global supply glut, the quotas will be enforced in two parts, one focusing on exports and the other on local mineral transformation, according to the cabinet meeting minutes seen by Reuters on Wednesday.
Sources told Reuters in February that DRC, the world’s leading cobalt producer, was contemplating export quotas following the imposition of an export ban.
Cobalt, a crucial component in batteries for electric vehicles and mobile phones, has seen its prices fall to historically low levels due to weak demand from automakers and increased copper production, from which cobalt is a by-product.
Prime Minister Judith Suminwa Tuluka said that plans were afoot to collaborate with Indonesia, another significant cobalt producer, to better regulate the supply and price of cobalt on the global market.
(Reporting by Sonia Rolley; Writing by Bate Felix; Editing by Mark Potter)
