CMOC Group, the global leader in cobalt mining, has publicly challenged the Democratic Republic of Congo’s (DRC) export ban on the battery metal, arguing that the restrictions—imposed in February to combat nine-year price lows—risk backfiring by pushing automakers toward cobalt-free batteries.
The Standoff
- CMOC’s Plea: At a closed-door industry meeting in Singapore, CMOC VP Kenny Ives warned Congolese officials, including Mines Minister Kizito Pakabomba, that China’s cobalt inventories are dwindling and urged a return to free exports.
- Glencore’s Opposition: Rival miner Glencore countered that the market needs stabilization and supports maintaining curbs or transitioning to a quota system.
- Congo’s Dilemma: The government must choose between tax revenue losses (from halted exports) and propping up prices—with a decision due by June 22.
Why It Matters
- Price Crisis: Cobalt prices halved since 2022 to ~$10/lb, squeezing miners and prompting Congo’s intervention.
- EV Industry Shift: Chinese automakers like BYD are already adopting LFP batteries, which avoid cobalt entirely. CMOC framed this as an existential threat to Congo’s cobalt dominance.
- Stockpiling Fears: Congolese officials suspect China aims to depress prices further to build strategic reserves—a claim CMOC denies.
Market Realities
🔋 CMOC’s Output: Plans to produce 100K–120K tons in 2024 (vs. 114K in 2023) at its Tenke Fungurume and Kisanfu mines.
📦 Chinese Stockpiles: Smelters hold 2 weeks to 6 months of supply (Shanghai Metals Market data).
⚖️ Policy Scenarios: Analysts expect either a ban extension or export quotas post-June—both likely to boost prices.
CMOC Urges Congo to Lift Cobalt Export Ban as Battery Metal Prices Languish Near Decade Lows