Africa Critical Mineral Contest: China's Luoyang Molybdenum and Switzerland's Glencore Clash Over the Future of Cobalt Export Bans in the Democratic Republic of Congo (DRC)

Luoyang Molybdenum urges the DRC to lift cobalt export bans to meet Chinese customer demand.

Glencore supports the continued implementation of restrictions to stabilize the global market.

Cobalt prices have risen more than 50% since February, with supply tightening.

The disagreement between China's mining company Luoyang Molybdenum and Switzerland's commodity trader Glencore centers on the future direction of cobalt exports from the Democratic Republic of Congo (DRC). The crux of the dispute is whether Kinshasa should lift the current export ban, which was initially implemented to address an oversupply of this key battery metal globally.

LuoYang Molybdenum is lobbying the Congolese government to lift the ban, citing the reduction of cobalt inventories for its Chinese customers. Vice President Kenny Iverson warned that if supplies continue to be restricted, automakers may accelerate their shift to cobalt-free lithium-ion batteries.

Glencore, however, believes the ban should remain in place until the market achieves greater stability. The company supports ongoing efforts by cobalt-producing countries like the DRC to manage supply and avoid price volatility. Although cobalt production has not been disrupted, the current export suspension has significantly tightened global supply.

The DRC's current export ban, which remains in effect, is set to officially expire on June 22. However, authorities have yet to confirm whether the ban will be lifted or extended. President Felix Tshisekedi stated that an extension is still under consideration. The government is also considering a quota-based export system - Glencore reportedly holds an open stance toward this proposal.

Since the embargo began, cobalt prices have surged, rising from $21,000 per ton in late February to over $33,000 on the London Metal Exchange, an increase of more than 50%. As the largest producer of cobalt, the DRC's next move will be crucial for the global supply chain and the trajectory of cobalt prices in the coming months.

Source: ecofinagency

Original Source: https://www.toutiao.com/article/1832759055698954/

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