Latest news with #ARECOMS
Yomiuri Shimbun
7 hours ago
- Business
- Yomiuri Shimbun
Congo Extends Cobalt Export Ban by Three Months
KINSHASA, June 21 (Reuters) – The Democratic Republic of Congo has extended by three months a ban on exports of cobalt intended to curb oversupply of the electric vehicle battery material, a regulatory agency said on Saturday. The world's top cobalt supplier imposed a four-month suspension on exports in February after prices had hit a nine-year low at just $10 a pound. The ban was due to expire on Sunday. 'The decision has been taken to extend the temporary suspension due to the continued high level of stock on the market,' the Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) said in a statement. ARECOMS said it expected to announce a subsequent decision to either modify, extend or terminate the suspension before the new three-month window closes in September. Reuters reported on Friday that Congolese authorities were considering extending the ban as they explored how to distribute quotas for shipments of cobalt among mining companies. A proposal to implement quotas has backing from miners including Glencore GLEN.L, the world's second-largest cobalt-producing company. But Glencore's position differs from that of the number one producer, China's CMOC Group which has lobbied for the ban to be lifted.
The Star
14 hours ago
- Business
- The Star
DR Congo extends suspension of cobalt exports by three months
KINSHASA, June 21 (Xinhua) -- The Democratic Republic of the Congo (DRC) has extended its temporary suspension of cobalt exports for an additional three months, citing persistently high inventory levels in both domestic and international markets. The move follows a four-month export halt announced in February. The extension was announced on Saturday by the DRC's Regulatory and Oversight Authority for Strategic Mineral Substances Markets (ARECOMS), the national body responsible for regulating the trade of critical mineral substances. Established in 2019, ARECOMS oversees the regulation of strategic minerals such as coltan, cobalt and germanium. Its mandate includes stabilizing markets, formalizing the artisanal sector, and ensuring compliance with international anti-money laundering and counter-terrorism financing regulations. According to an official statement, the extended ban covers all cobalt extracted from industrial, semi-industrial, small-scale and artisanal mining operations, and takes effect immediately from the date of signature, June 21. ARECOMS said that a new decision will be issued before the end of the suspension period, which may either modify, extend, or lift the current export ban, depending on market developments. According to London-based data analytics and consulting firm GlobalData, the DRC's cobalt production is projected to reach 244 kilotonnes in 2024. The country is the world's largest cobalt producer, supplying over 80 percent of global output. Cobalt is a critical raw material used across various industries, particularly in the production of rechargeable batteries for electric vehicles, smartphones, and other electronic devices. The DRC's cobalt mining industry is primarily concentrated in the Katanga region, where both industrial and artisanal operations are prevalent.
Reuters
16 hours ago
- Business
- Reuters
Congo extends cobalt export ban by three months
KINSHASA, June 21 (Reuters) - The Democratic Republic of Congo has extended by three months a ban on exports of cobalt intended to curb oversupply of the electric vehicle battery material, a regulatory agency said on Saturday. The world's top cobalt supplier imposed a four-month suspension on exports in February after prices had hit a nine-year low at just $10 a pound. The ban was due to expire on Sunday. "The decision has been taken to extend the temporary suspension due to the continued high level of stock on the market," the Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) said in a statement. ARECOMS said it expected to announce a subsequent decision to either modify, extend or terminate the suspension before the new three-month window closes in September. Reuters reported on Friday that Congolese authorities were considering extending the ban as they explored how to distribute quotas for shipments of cobalt among mining companies. A proposal to implement quotas has backing from miners including Glencore (GLEN.L), opens new tab, the world's second-largest cobalt-producing company. But Glencore's position differs from that of the number one producer, China's CMOC Group ( opens new tab, which has lobbied for the ban to be lifted.
Yahoo
27-02-2025
- Business
- Yahoo
Exclusive-Congo weighs cobalt export quotas to revive prices amid supply glut
By Sonia Rolley and Felix Njini JOHANNESBURG (Reuters) - The Democratic Republic of Congo is considering introducing cobalt export quotas as the world's biggest supplier of the battery metal seeks to curb oversupply and boost prices, three sources familiar with the details told Reuters. Cobalt prices are languishing at historically low levels amid slackening demand from automakers and as mines ramp up production of copper, from which cobalt is extracted as a by-product, to capitalize on high prices. The plan to introduce limits has been discussed within the Congolese government but no final decision has been taken yet, said the sources, who declined to be named discussing sensitive matters. Congo banned all exports of the battery metal for four months on Monday to contain a supply glut. The ban, announced by the Authority for the Regulation and Control of Strategic Mineral Substances' Markets, or ARECOMS, said the export curb would be reviewed in three months and could either be modified or terminated, depending on its results. The temporary ban is not enough to limit the flow of metal on the market and is unlikely to have a lasting impact on prices, which are expected to weaken further when companies release stockpiled metal, the sources and analysts said. The sources said that Congo's government eventually plans to introduce quotas on exports of the metal, which are going to be negotiated during the export suspension period. ARECOMS and Mines Minister Kizito Pakabomba did not immediately respond to emailed questions. Communication Minister Patrick Muyaya was not immediately available to respond to Reuters questions. Previous attempts by the government to persuade mining companies to voluntarily reduce the flow of the metal on the international market have not been heeded, the sources said. Two of the sources said attempts by state miner Gecamines to convince China's CMOC Group to manage the flow of cobalt on the market and limit the impact on prices, through their joint venture, had failed. CMOC DOUBLES COBALT OUTPUT CMOC, the world's biggest cobalt miner, more than doubled cobalt output last year to about 114,000 metric tons as it ramped up copper output at its Tenke Fungurume and Kisanfu mines in Congo. CMOC's Congo mines produced about 650,000 tons of copper. CMC said production at the mines is not affected by the temporary ban on shipments and spokesperson Vincent Zhou told Reuters the company did not anticipate a significant impact on business performance. Eurasian Resources Group and Glencore, which are also big cobalt producers in Congo, declined to comment. London Metal Exchange (LME) cobalt has plunged from a record high of $82,000 per metric ton in April 2022 to $21,000 per ton, the lowest level since the contract was launched in 2010. The ban could cut off about 65,000 tons of cobalt from the market and while it may send spot prices higher, the impact could be temporary as mining companies will continue to stockpile the metal, BMO Capital Market analysts said in a note. "We fully expect that this will lead to further supply controls in the future, with the most likely next step being production or export quotas," they said.
Reuters
24-02-2025
- Business
- Reuters
Congo suspends cobalt exports for four months to counter oversupply, Bloomberg News reports
Feb 24 (Reuters) - The Democratic Republic of Congo says it has suspended cobalt exports for four months to rein in oversupply of the battery metal on the international market, Bloomberg News reported on Monday. The measures came into force on February 22, the report said, citing Patrick Luabeya, president of the Authority for the Regulation and Control of Strategic Mineral Substances' Markets, known as ARECOMS. ARECOMS did not respond immediately to a request for comment. The decision will be reviewed in three months, Luabeya told Bloomberg in written responses to questions. Congo is the world's top producer of cobalt, a key component in batteries for electric vehicles and mobile phones. The agency is also preparing additional measures to balance the cobalt market, encouraging more processing of strategic minerals in Congo and achieve "a transparent and fair pricing mechanism", the report added, citing Luabeya. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
