The DRC seeks Indonesia’s support to regulate cobalt supply and stabilize prices amid oversupply and weakened demand. Following a four-month export ban, the DRC proposes export quotas and collaboration with Indonesia to enhance control over the cobalt market. The Economic Situation Committee, led by Prime Minister Judith Suminwa Tuluka, aims to optimize cobalt resource management.
The Democratic Republic of Congo (DRC) has recently proposed enhanced measures to reinforce its temporary ban on cobalt exports, particularly seeking Indonesia’s assistance in regulating global cobalt supply and stabilizing prices. Cobalt prices have experienced a resurgence following this export suspension, which is attributed to a global oversupply coupled with diminished demand from automakers.
As part of its strategy, the DRC aims to impose export quotas on cobalt after a four-month halt that began in late February, due to a significant drop in prices influenced by the global market. Prime Minister Judith Suminwa Tuluka leads the DRC’s Economic Situation Committee, which advocates for efficient management of the export suspension and emphasizes collaboration with Indonesia, the second-largest cobalt supplier.
Indonesia’s participation is vital, as its cobalt supply reached 11% of the global market last year. The committee has also recommended measures such as implementing export quotas and increasing domestic processing requirements, underscoring the DRC’s intention to maximize the value of its cobalt resources and address oversupply concerns once the ban is lifted. Overall, the DRC seeks to assert greater control over the cobalt industry, acknowledging its dominant position while recognizing Indonesia’s growing presence in the market.
The Democratic Republic of Congo is actively taking steps to stabilize the cobalt market by collaborating with Indonesia and reinforcing export restrictions. Following a four-month export ban, the DRC’s strategies aim to manage global supply effectively and maximize its cobalt resource values amid ongoing challenges of oversupply and fluctuating demand. Overall, establishing partnerships and export quotas appears pivotal in the DRC’s endeavors to regain balance within the cobalt industry.
Original Source: africa.businessinsider.com
