FX.co ★ Congo Ends Cobalt Export Ban, Sets Annual Quotas

The Democratic Republic of Congo is set to lift its cobalt export ban on October 16, transitioning to an annual quota system to regulate global supply, according to the country's strategic minerals regulator. Starting from now until the end of 2025, exporters will be allowed to ship up to 18,125 tons of cobalt, with annual limits increasing to 96,600 tons for both 2026 and 2027. As the source of approximately 70% of the world's cobalt production last year, Congo had initially suspended exports in February following a significant drop in prices to a nine-year low, later extending this suspension in June. This halt led major producers, such as Glencore and China’s CMOC Group, to invoke force majeure. The introduction of the quota system, which has received backing from Glencore but faces opposition from CMOC, aims to curb excess inventories and stabilize prices. The strategic move also coincides with escalating conflict in eastern Congo. Quotas will be apportioned based on the miners’ previous export performances.