Congo Seeks Indonesia’s Support to Stabilize Cobalt Market Amid Oversupply
The Democratic Republic of Congo seeks Indonesia’s cooperation to stabilize the cobalt market following a temporary export ban. As cobalt prices rebound amid a global oversupply, the DRC proposes export quotas and enhanced management measures to regulate supply effectively.
The Democratic Republic of Congo (DRC) is actively pursuing Indonesia’s collaboration to regulate the global cobalt market and stabilize prices amidst an oversupply and diminished demand from automakers. This initiative includes a proposal to strengthen the existing temporary ban on cobalt exports, which has been in place since late February. The DRC’s Prime Minister Judith Suminwa Tuluka has indicated that these measures are part of a broader strategy to manage the country’s critical cobalt resources more effectively.
Since the imposition of the export suspension, cobalt prices have recovered slightly, but the DRC remains concerned about the potential for oversupply once the ban is lifted. The government is exploring long-term strategies to enhance the value derived from its cobalt resources while addressing supply management. Among the recommended actions is the establishment of export quotas and enhanced domestic processing requirements, although specific details have not been disclosed.
Congo’s Economic Situation Committee is focused on efficient management of the temporary export ban and is particularly interested in securing Indonesia’s support. Indonesia is recognized as the world’s second-largest supplier of cobalt, contributing significantly to the global market. Last year, Indonesia accounted for 11% of the total cobalt supply, as reported by Darton Commodities.
Both nations utilize cobalt as a byproduct of other mineral extractions; in Congo, it is often extracted alongside copper, while in Indonesia, nickel is the primary mineral. The DRC’s efforts to regain control over its cobalt industry are intended to prevent future fluctuations in market prices caused by oversupply.
The Democratic Republic of Congo’s proactive approach in seeking Indonesia’s support reflects its commitment to stabilize cobalt prices and effectively manage its resources. By implementing export quotas and fostering bilateral collaboration, the DRC aims to secure its dominant position in the cobalt market while addressing challenges posed by global oversupply and fluctuating demand from automakers. These strategies are pivotal for the DRC’s economic sustainability and growth in the cobalt sector.
Original Source: africa.businessinsider.com
