MMG Calls for Clarity on DRC’s Cobalt Export Quotas After Receiving Low Allocation

MMG Seeks Policy Transparency as Congo Tightens Control Over Cobalt Exports

China’s MMG Limited is seeking greater clarity on the Democratic Republic of Congo’s cobalt export policy after receiving what it described as a disappointing production quota, raising broader concerns about how the country’s new restrictions are being implemented.

The Democratic Republic of Congo (DRC), the world’s leading producer of cobalt  a critical mineral used in electric vehicle batteries first suspended cobalt exports in February 2025 to reduce global oversupply and increase the value derived from its mineral resources.

In October, the government introduced strict export quotas, largely calculated on a pro-rata basis using companies’ export volumes from the three years leading up to the end of 2024.

While the measures have helped drive cobalt prices higher, they have also slowed exports and created uncertainty within the mining sector.

Speaking at the annual congress of the Cobalt Institute in Madrid, Aaron Chen, General Manager of MMG’s Kinsevere operations, said the quota system had significantly affected the company’s operations.

“The quota allocation has made our cobalt production economically unviable,” Chen said. “MMG is proud of its economic and ESG contributions to the DRC, and we were disappointed that these factors were not considered in the quota determination process.”

MMG, whose largest shareholder is China Minmetals Corporation, commissioned a cobalt processing plant at its Kinsevere mine in September 2023.

However, the facility was placed on care and maintenance in late 2024 due to weak market prices, before the DRC imposed the export suspension.

Although the company initially projected annual cobalt production of between 4,000 and 6,000 metric tons, it received a quota of just 360 tons for 2025.

The company stated last month that the cobalt plant remains inactive, with current exports coming only from existing on-site inventories.

Kinsevere primarily operates as a mid-sized copper mine, producing approximately 53,000 tons of copper last year. In the DRC, cobalt is commonly extracted as a byproduct of copper mining.

Since the export restrictions were introduced, benchmark cobalt prices have surged by roughly 160%, while cobalt hydroxide the main cobalt product exported from the DRC  has increased more than fourfold in value.

However, difficulties in implementing the quota system have delayed the full resumption of exports, limiting the financial benefits for both mining companies and the Congolese government.

Industry stakeholders are increasingly questioning the transparency and fairness of the quota allocation process.

“I hope the DRC government can provide clearer guidance on the specific requirements for Chinese companies and explain how quotas are allocated,” said Ning Wang, a researcher at the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters during the conference in Madrid.

Elisabeth Caesens, founder of advocacy group Resource Matters, suggested that the government could have considered additional factors beyond historical production when determining quotas.

“By relying solely on past production levels, the government may be rewarding some of the companies that contributed to the oversupply problem in the first place,” she said. Caesens added that criteria such as planned investments, local value addition, and environmental, social, and fiscal compliance could also have been included in the assessment process.

Meanwhile, Entreprise Générale du Cobalt  the state-owned company with a monopoly over artisanal cobalt supplies received the fourth-largest quota allocation at 5,640 tons for 2025, despite only beginning production activities toward the end of the year.

Chief Executive Officer Eric Kalala indicated that the company is seeking an even larger quota due to the scale of artisanal mining operations in the country.

Patrick Luabeya, head of the DRC’s Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, defended the quota system, saying it was introduced to create a fairer market and encourage local processing and job creation rather than simply boosting commodity prices.

Despite the challenges, MMG says it remains interested in investing further in downstream mineral processing opportunities within the DRC.

“To support future investment, we would appreciate greater policy clarity regarding the quota mechanism,” Chen said.