The DRC is seeking Indonesia’s support for stabilizing the cobalt market amid oversupply. Following a four-month export suspension, the DRC plans to impose export quotas and enhance regulation in partnership with Indonesia, the second-largest cobalt supplier. The measures aim to prevent oversupply and maximize resource value as the DRC seeks to exert more control over its cobalt industry.
The Democratic Republic of Congo (DRC) is actively seeking Indonesia’s assistance in stabilizing the global cobalt market amidst a current oversupply situation. The DRC has proposed strengthening the temporary ban on cobalt exports, which had been necessitated by a significant price decline driven by weakened demand from automakers and excess supply. Key to this strategy is a partnership with Indonesia, the second-largest global supplier of cobalt, to ensure effective regulation of supply and pricing.
Following a four-month export ban initiated in late February due to these market pressures, the DRC plans to impose export quotas to better manage the subsequent phases of cobalt production. The DRC’s Prime Minister Judith Suminwa Tuluka leads a committee that is advising on this initiative aimed at maximizing the value from cobalt resources while avoiding market oversaturation.
Congo is acknowledged as a major player in the cobalt industry; however, Indonesia’s share has been on the rise, accounting for approximately 11% of the global supply of this critical battery metal as of last year. In a bid to gain greater control, the DRC is contemplating production and export restrictions while also discussing the introduction of export quotas and elevated domestic processing requirements. Overall, these measures signify the DRC’s strategic shift towards a more regulated and managed cobalt market as it emerges from export suspensions that have affected pricing post-suspension.
In summary, the Democratic Republic of Congo is implementing measures to stabilize the cobalt market by proposing a partnership with Indonesia and introducing export quotas following a temporary ban. The government aims to maximize the potential of its cobalt resources while addressing global oversupply issues and fluctuating market demands. These actions underscore the DRC’s intention to strengthen its position within the cobalt industry while navigating challenges posed by market dynamics.
Original Source: africa.businessinsider.com
