President Tshisekedi Urges Regulation to Stabilize DRC’s Cobalt Market
The unchecked artisanal exploitation of cobalt ore in the Democratic Republic of Congo (DRC) is contributing to its declining prices in international markets, according to President Félix Tshisekedi.
During a recent Council of Ministers meeting on February 9, 2024, President Tshisekedi highlighted the decrease in cobalt prices, which have dropped from $31,000 to $28,727 per ton since the beginning of the fourth quarter of the previous year.
In response to this trend, President Tshisekedi urged the Congolese Government to implement urgent measures to regulate the cobalt market effectively and increase revenues from its exploitation.
The oversupply of cobalt in the international market, exacerbated by rampant artisanal mining in the DRC, is cited as the primary reason for the price decline.
President Tshisekedi emphasized the need to strengthen supervision of artisanal mining to prevent further losses in state revenue.
The decline in cobalt prices has significant repercussions, including reduced turnover for local mining companies, lower tax and customs revenues, decreased mining royalties, and threats to employment opportunities and revenue from superprofit tax.
President Tshisekedi underscored the importance of enhancing control and regulation of the supply, exploitation, and pricing of strategic mineral substances, particularly cobalt.
He directed the Prime Minister, Jean-Michel Sama Lukonde, to evaluate proposals from ARECOMS and consider implementing export quotas or other measures to stabilize cobalt prices.
Furthermore, President Tshisekedi urged the Regulatory Authority to take immediate action, calling on the Ministers responsible for Budget, Finance, and Mines to prioritize allocating resources to ARECOMS.
This will enable the authority to swiftly address the challenges and contribute to enhancing state revenues from cobalt.
By implementing these measures promptly and effectively, the DRC aims to mitigate the negative impact of declining cobalt prices and secure sustainable revenue streams from this vital mineral resource.
