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Congo Cobalt Exports Face Glitch-Driven Crisis
3 Jul
Summary
- An administrative glitch impacts a customs platform, risking export quotas.
- Up to 20,000 tons of cobalt shipments, worth $1.1 billion, could be lost.
- Producers have until July 5 to use quotas before they are withdrawn.
The Democratic Republic of Congo's cobalt exports are in jeopardy due to an administrative glitch affecting a key customs platform. This disruption threatens to cause major producers to lose their first-half export quotas, potentially leading to approximately 20,000 metric tons of missed shipments, estimated to be worth $1.1 billion at current market prices. The situation is critical as Congo, responsible for about 70% of the world's cobalt, hosts operations for global giants like CMOC and Glencore.
Congo's strategic minerals regulator, ARECOMS, had set a July 5 deadline for exporters to use their allocated quotas, after which unused volumes would be withdrawn and reallocated. However, mining executives report that a significant percentage of companies are unlikely to meet this deadline due to administrative delays. Specifically, producers have been unable to register necessary export declarations since July 1, as ARECOMS has not yet provided the formal notification authorizing customs to proceed. Companies are urgently seeking a resolution and deadline extension from ARECOMS and have appealed to the prime minister for intervention.
