Lualaba Civil Society Backs DRC’s Temporary Cobalt Export Ban to Stabilize Market
Amid a sharp decline in cobalt prices, civil society organizations in Lualaba, in collaboration with the CASMIA-G ASBL platform, have assessed the government’s recent decision to temporarily suspend cobalt exports.
This measure, enacted by the Regulatory and Control Authority for Strategic Mineral Substances Markets (ARECOMS), aims to curb oversupply and stabilize the market.
Cobalt, classified as a strategic mineral under Article 7 bis of the Mining Code, is crucial to the Congolese economy.
The majority of production comes from Lualaba and Haut-Katanga, sourced from both industrial mines and artisanal cooperatives. Official data indicates that artisanal mining accounts for approximately 30% of total output.
Revenues from cobalt mining, particularly through royalties as outlined in Article 242 of the Mining Code, contribute significantly to national, provincial, and local budgets.
However, the steep drop in cobalt prices—from $90,000 to under $25,000 per tonne on the London Metal Exchange (LME)—has placed both the government and artisanal miners in a difficult position.
Despite falling prices, industrial mining companies continued large-scale exports, exacerbating oversupply and further driving down market value.
As a result, cobalt stockpiles surged, leading to a depreciation of the mineral. Artisanal miners, already struggling, were forced to sell their production at extremely low prices—often to foreign buyers, particularly from China and Lebanon.
Given these challenges, civil society organizations in Lualaba have welcomed the export suspension as a necessary intervention.
“When a mineral loses market value due to oversupply, it is the State’s responsibility to take corrective action,” they assert.
Beyond the temporary ban, these organizations urge authorities to implement stronger regulatory measures to prevent future market fluctuations.
“It is essential to set a production threshold to avoid overproduction and strictly enforce Article 7 bis of the Mining Code, which mandates specific regulations on cobalt extraction, processing, transportation, and trade. Additionally, conducting a comprehensive inventory of all cobalt processing entities will enhance transparency,” their statement reads.
They also advocate for local value addition by investing in refining infrastructure within the DRC.
“The government should allocate resources from the Future Generations Fund (FOMIN) to establish a local refinery, which would increase the value of our cobalt and reduce dependency on foreign markets,” they propose.
Furthermore, civil society organizations warn against potential corruption attempts aimed at reversing the export ban.
“We will be vigilant against any bribery attempts, particularly from extractive companies seeking to bypass this decision,” they declare.
By temporarily restricting exports, the DRC aims to reduce global stockpiles, stimulate demand, and ultimately drive cobalt prices upward.
As the global cobalt market undergoes significant shifts, the DRC is positioning itself as a key player in regulating this critical resource, vital for electric batteries and emerging technologies.
