Congo Engages Indonesia to Stabilize Cobalt Market Amid Oversupply Challenges
The Democratic Republic of Congo seeks Indonesia’s assistance to regulate the cobalt market amid oversupply and fluctuating prices. A proposal for cooperation aims to impose export quotas and enhance domestic processing as part of the DRC’s strategy to stabilize the market following a recent export ban.
The Democratic Republic of Congo (DRC) is actively seeking Indonesia’s support to stabilize the cobalt market, which has recently experienced oversupply issues leading to fluctuating prices. The DRC’s Economic Situation Committee, under Prime Minister Judith Suminwa Tuluka, has proposed a series of measures to enhance a temporary ban on cobalt exports and to collaborate with Indonesia, the second-largest supplier of cobalt globally.
Cobalt prices have shown signs of recovery after hitting lows during a period of significant export restrictions. The suspension initiated in late February aimed to address the decrease in prices caused by weakened demand from automakers and a surplus in global supply.
In addition to partnering with Indonesia, the DRC is considering the implementation of export quotas and increasing domestic processing requirements to manage its cobalt resources effectively. This reflects a strategic intention to optimize the value of cobalt resources and prevent oversupply after the ban is lifted.
The burgeoning relationship with Indonesia, which accounted for 11% of the global cobalt supply last year, could enhance DRC’s influence in the market. Both nations extract cobalt as a byproduct—copper in Congo and nickel in Indonesia—raising complementary interests in the minerals industry, particularly during this critical period of market adjustments.
The Democratic Republic of Congo is taking proactive steps to stabilize the cobalt market through enhanced regulatory measures and partnerships, particularly with Indonesia. By implementing export quotas and focusing on domestic processing, the DRC aims to regain control over its cobalt resources while working to mitigate price fluctuations caused by oversupply. This approach could solidify both nations’ roles in the global cobalt supply chain, especially as the market continues to evolve amidst changing demands.
Original Source: africa.businessinsider.com
