The Democratic Republic of Congo, the world’s top cobalt supplier, has lifted its export ban on the strategic metal, paving the way for a new $500 million tender by the U.S. Defense Logistics Agency (DLA), according to London-based market data provider Argus.
A previous five-year tender announced in August was canceled in October so the DLA could “verify the qualification of sources,” targeting cobalt cathodes from three sites, including one owned by Glencore. The Swiss miner produces most of its cobalt at the Kamoto and Mutanda mines in the DRC. Suppliers for the upcoming tender have not yet been confirmed.
Glencore, blocked from exporting cobalt since February under the embargo, must now comply with a quota system introduced in mid-October.
“We were in an oversupply situation: there were more offers than demand. When your stocks rise, it signals what will follow: prices will collapse. We wanted to prevent that,” said Louis Watum, DRC Minister of Mines.
Reforms on cobalt supply have coincided with a rebound in global prices, which reached $48,570 per ton in London, up from $21,000 in February. “Now we will start selling at $50,000. If we had sold at $20,000, prices would have kept falling because of oversupply. We assume our sovereignty, and that’s how it will be,” the minister added.
M&B with Agence Ecofin
