DRC Bans Cobalt Concentrate Exports, Sparking Global Supply Chain Concerns
The Democratic Republic of Congo (DRC) has imposed strict controls on copper and cobalt exports, banning the export of concentrates. This move is expected to impact global supply chains, particularly for cobalt, which the DRC supplies approximately 70% of.
The ban was announced in an official decree signed by several ministers, including Minister of Mines Louis Watum and Minister of Foreign Trade Julien Paluku Kahongya. The order took effect immediately but allows for one-year export exemptions in 'strategic circumstances.'
Copper prices surged after the announcement, with the London Metal Exchange (LME) three-month copper contract reaching USD 14,369.5 per metric ton, up 1.8% on the day.
Analysts note that the greatest uncertainty currently stems from Kamoa-Kakula, the world’s fourth-largest copper mine, which continues exporting some concentrates under exemption provisions.