Congo Seeks Indonesian Support to Stabilize Cobalt Market Amid Oversupply

The Democratic Republic of Congo proposes measures to enhance its cobalt export ban, seeking Indonesia’s cooperation to stabilize prices amid a global oversupply. Cobalt prices have rebounded following the export suspension, and the DRC aims to maximize its cobalt resources while establishing export quotas and processing requirements to maintain market control.

The Democratic Republic of Congo (DRC) has initiated proposals to enhance its temporary ban on cobalt exports, aiming to stabilize the market in response to a global oversupply and diminishing demand from automakers. The DRC’s Economic Situation Committee, under the leadership of Prime Minister Judith Suminwa Tuluka, made recommendations including collaboration with Indonesia, the world’s second-largest cobalt supplier, to effectively manage global supplies and price stabilization.

Since the DRC halted cobalt shipments in February, cobalt prices have witnessed a recovery, a response to the prior price drop caused by oversupply. The DRC, which dominates the cobalt market, is seeking a partnership with Indonesia, which has been increasing its market share, now accounting for 11% of the global supply.

Furthermore, the Congolese government is exploring long-term strategies to enhance the value derived from its cobalt resources. This includes the potential implementation of export quotas and demands for increased domestic processing, ensuring that the country maintains control over its cobalt industry amidst a fluctuating global market.

The Democratic Republic of Congo is actively pursuing measures to strengthen its cobalt export ban while seeking cooperation with Indonesia to regulate the global supply. As cobalt prices recover, the DRC aims to implement long-term strategies to maximize its cobalt resources, including export quotas and processing requirements. These efforts reflect the DRC’s desire to maintain control over its critical mineral industry, especially in light of changing market dynamics.

Original Source: africa.businessinsider.com