The Democratic Republic of Congo seeks Indonesia’s assistance to stabilize cobalt prices following an export ban. Measures proposed include export quotas and collaboration with Indonesia, which holds an 11% share of the global cobalt supply. The DRC aims to enhance market control and value from cobalt resources amidst current oversupply conditions.
The Democratic Republic of Congo (DRC) is seeking Indonesia’s support to stabilize the cobalt market amid a global oversupply and diminished demand from automakers. Following a four-month suspension of cobalt exports, the DRC government plans to implement export quotas and has proposed collaboration with Indonesia, the second-largest cobalt supplier, to regulate supply and stabilize prices.
Since suspending exports in late February due to significantly declining prices, the DRC has experienced a rebound in cobalt prices. The government is exploring long-term strategies to maximize the value of its cobalt resources and avoid oversupply when the ban is lifted. These strategies include fostering a partnership with Indonesia to manage global cobalt supply efficiently.
Congo’s Economic Situation Committee, chaired by Prime Minister Judith Suminwa Tuluka, has called for enhanced management of the export suspension. Among the suggestions are securing Indonesia’s cooperation and introducing export quotas, alongside increasing domestic processing requirements. The DRC has been contemplating production and export restrictions for over a year to enhance its control over the cobalt market, given that Indonesia’s cobalt production share has increased to 11% of the global supply as noted by Darton Commodities.
In conclusion, the Democratic Republic of Congo is actively seeking Indonesia’s collaboration to stabilize the cobalt market following its temporary export ban. By proposing measures such as export quotas and a cooperative agreement with Indonesia, the DRC aims to manage global supply effectively and maximize the value of its cobalt resources. The focus on robust market control reflects the DRC’s strategic vision amid fluctuating prices and an evolving industry landscape.
Original Source: africa.businessinsider.com
