The Democratic Republic of Congo seeks Indonesia’s support to stabilize the cobalt market amid oversupply. Proposals include strengthening export bans and regulating global supply to enhance price stabilization. The DRC plans to implement export quotas and enhance processing requirements following a recent price rebound.
The Democratic Republic of Congo (DRC) is actively seeking Indonesia’s partnership to stabilize the global cobalt market amidst a current oversupply. The DRC’s proposal aims to enhance measures surrounding the temporary ban on cobalt exports, which was implemented to address a significant drop in prices resulting from weakened demand from automakers and global oversupply. Prime Minister Judith Suminwa Tuluka’s committee suggests that cooperation with Indonesia, the world’s second-largest cobalt supplier, is essential for regulating supply and price stabilization.
Following the four-month export suspension on cobalt initiated in late February due to declining prices, the DRC is considering long-term strategies to prevent future oversupply and maximize the value of its cobalt resources once the ban is lifted. The DRC government is exploring options such as imposing export quotas and increasing domestic processing requirements. This approach indicates a focused strategy on efficient management of cobalt exports to maintain its leading position in the market.
While the DRC remains a major cobalt producer, Indonesia has increased its market share to 11%. Both nations extract cobalt as a byproduct, with Congo mining it alongside copper and Indonesia alongside nickel. Amidst the ongoing challenges, cobalt prices have seen a resurgence since the suspension, reflecting the need for collaborative efforts to stabilize the market.
The DRC’s Economic Situation Committee aims to implement measures that ensure effective management of the export ban. Among their proposals, the introduction of export quotas and enhanced processing regulations were discussed, although specific details are yet to be clarified. These steps indicate the DRC’s commitment to gaining control over its cobalt industry, especially in light of the recent fluctuations in market prices.
In summary, the Democratic Republic of Congo is pursuing collaboration with Indonesia to stabilize the cobalt market following a temporary export ban. This partnership is seen as vital for regulating global supply and managing prices effectively. With rising cobalt prices post-suspension, the DRC aims to implement export quotas and domestic processing requirements to strengthen its control over the cobalt industry as it navigates future challenges.
Original Source: africa.businessinsider.com
