Wedoany.com Report-Mar 3, The Democratic Republic of Congo (DRC) has initiated a state monopoly to oversee the production and export of artisanal cobalt.

The policy aims to boost the DRC’s control over cobalt prices following market instability.

On 21 February, new regulations were established by the DRC’s prime minister and mines minister, granting the state-owned Entreprise Generale du Cobalt (EGC) exclusive rights to export hand-dug cobalt.

This move aims to capitalise on the country’s pivotal role in the global supply of the battery metal and is part of broader efforts to strengthen its influence over cobalt prices following a period of market instability.

It follows a four-month suspension on cobalt exports announced earlier this week.

The ministerial decree explicitly states that EGC holds the “exclusive right” to purchase and trade hand-dug cobalt, either directly or through partnerships.

Additionally, industrial producers are now strictly forbidden from mixing their minerals with non-certified sources of artisanal cobalt.

This regulation also permits companies to collaborate with EGC to allow artisanal mining on their concessions without the risk of penalisation, potentially reducing the incidence of ore theft from industrial sites.

The plummeting production of artisanal cobalt, which has seen margins shrink, threatens the livelihoods of Congolese miners, the report said.

EGC CEO Eric Kalala saying that during the suspension period, the company plans to purchase cobalt from artisanal miners and stockpile it to mitigate the impact of the export ban.

Independent processing facilities, which typically buy from artisanal miners, are now barred from exporting cobalt, according to the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS).

ARECOMS has called for the revocation of their export licences with immediate effect.

However, these facilities may still process cobalt in partnership with EGC and continue refining copper and other metals.

The new monopoly will not affect major industrial mining companies such as Glencore, CMOC Group and Eurasian Resources Group, which dominate the cobalt production landscape in the DRC. These companies contribute to approximately three-quarters of the global cobalt supply.

The recent slump in cobalt prices, exacerbated by CMOC’s increased output from two major mines in the DRC, has led many artisanal miners to pivot to other minerals such as gold and copper.

According to specialist trading house Darton Commodities, this market downturn resulted in artisanal mining volumes dropping to as low as 2% of the country’s total output in 2024, a stark contrast to the peak levels seen in 2018.

The artisanal mining sector in the DRC, while providing essential income for many, is frequently criticised for hazardous working conditions and the use of child labour. EGC’s formation is a government effort to address these concerns and ensure a consistent supply of ethically sourced cobalt, particularly during periods of higher prices.