Congo Seeks Indonesia’s Support to Stabilize Cobalt Market Amid Oversupply
The DRC seeks Indonesia’s support to stabilize the cobalt market amidst global oversupply and weakened demand from automakers, proposing export quotas and cooperation measures. Cobalt prices have recovered since the export ban, while Indonesia’s share in the market continues to increase. The DRC aims for better control over its cobalt industry.
The Democratic Republic of Congo (DRC) is actively seeking support from Indonesia to stabilize the cobalt market in response to a global oversupply and decreased demand from automakers. Following a four-month export ban, the DRC plans to impose export quotas while proposing a partnership with Indonesia, which holds significant shares in cobalt supplies.
The DRC halted cobalt shipments in late February to address the decline in cobalt prices caused by oversupply issues. Now, the government aims to implement long-term strategies to maximize its cobalt resources and maintain price stability once the export ban is lifted.
Congo’s Economic Situation Committee, headed by Prime Minister Judith Suminwa Tuluka, has underscored the necessity of effective management during the export suspension. A central proposal includes securing cooperation from Indonesia for the regulation of the global cobalt supply.
Although the DRC remains a key player in the cobalt market, Indonesia’s contribution has been increasing, representing 11% of global supply last year, as reported by Darton Commodities. Cobalt extraction occurs as a byproduct of copper in the DRC and nickel in Indonesia. The recent export ban has allowed cobalt prices to rebound from their lowest points.
The committee has also recommended the introduction of export quotas and heightened domestic processing requirements, although specific details have not been disclosed. The DRC government has contemplated production and export restrictions for over a year to assert greater control over the cobalt sector.
In summary, the Democratic Republic of Congo is taking decisive steps to stabilize the cobalt market, notably by seeking Indonesia’s cooperation. The continuation of export quotas, alongside domestic processing requirements, could significantly impact the regulation of cobalt supply. As both nations navigate market fluctuations, strategic partnerships will be crucial for sustaining cobalt price stability.
Original Source: africa.businessinsider.com
