Wedoany.com Report-Sept. 24, The Democratic Republic of Congo (DRC) will replace its cobalt export ban with an annual quota system, effective from October 16, 2025. The DRC’s mining regulator, the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, will allow exports of up to 18,125 tonnes of cobalt for the remainder of 2025, followed by 96,600 tonnes annually for 2026 and 2027.

Last year, the DRC accounted for approximately 70% of global cobalt production, a critical material for electric vehicle batteries. The export ban, initiated in February 2023 due to cobalt prices dropping to a nine-year low, was extended in June, prompting force majeure declarations from major producers, including Glencore and CMOC Group.

The DRC’s significant artisanal mining sector, which operates with limited oversight, contributes substantially to cobalt output but poses challenges for international buyers seeking traceability and compliance. The shift to a quota system aims to manage inventories, stabilize prices, and address concerns related to unregulated mining in eastern Congo, which the government links to regional instability.

Glencore has expressed support for the quota system, emphasizing the need for stable pricing. Traders from the company stated: “A stable price is needed before the export ban is lifted, and cobalt-producing countries like the DRC and Indonesia need to manage oversupply.” In contrast, CMOC Group has opposed the quotas, having requested a complete lifting of the export ban in May 2025, before its scheduled expiration.

The regulator will allocate quotas based on historical export volumes, with 10% of future exports reserved for national strategic projects. Adjustments to quotas may occur depending on market conditions or progress in local refining capabilities. The authority also retains the right to repurchase excess cobalt stocks that exceed quarterly limits assigned to companies.

Glencore is reportedly exploring the sale of a majority stake in its Kamoto Copper Company (KCC) in the DRC, which operates a major copper and cobalt project. The company has faced operational difficulties and a royalty dispute with the Congolese government amid low cobalt prices, according to industry sources.

The quota system reflects the DRC’s efforts to balance global cobalt supply and support its mining sector while addressing compliance and market stability challenges. By implementing these measures, the DRC aims to strengthen its position in the global cobalt market and support sustainable economic growth.