Congo considers extending cobalt export ban as it weighs quotas, sources say

JOHANNESBURG, June 20 (Reuters) - The Democratic Republic of Congo is considering extending a ban on exports of cobalt, as it explores how to implement quotas for shipments of the electric vehicle battery material, four sources familiar with the discussions told Reuters.
Congo is likely to continue with the ban because the government wants more time to work out how to distribute export quotas among mining companies that produce the battery vehicle metal, said the sources, who cannot be named because the matters are confidential.
The world's top cobalt supplier in February imposed a four-month ban on cobalt exports that expires on Sunday, as it sought to curb oversupply and breathe new life into prices for the metal that had hit a nine-year low.
A proposal to implement quotas has backing from producers including Glencore (GLEN.L), opens new tab , the world's second-largest cobalt-producing company. However, Glencore's position differs with that of CMOC Group (603993.SS), opens new tab , which has lobbied for the ban to be lifted.
Eurasian Resources Group, another key Congo producer, also wants the ban lifted and is eager to hear more details from the government on how the quotas on cobalt exports would be implemented, a separate source told Reuters.
The government is not fully united on extending the ban, according to Zack Hartwanger, head of commercial, Africa at Swiss-based commodity trader Open Mineral.
"Some (in government) raised concerns about revenues, employment, and informal supply chains," Hartwanger said.
"There's tension between industrial policy goals and economic realities."
CMOC, the world's top cobalt-producing company, and Congo's Ministry of Mines did not respond to emailed questions from Reuters.
The Authority for the Regulation and Control of Strategic Mineral Substances' Markets, or ARECOMS, which is responsible for implementing the cobalt export curbs, did not respond to emailed questions.
CMOC is ramping up cobalt output at its two mines in Congo, where the battery material is produced as a byproduct of copper, even as demand from electric vehicles manufacturers is down as the sector's growth slows.
The market glut depressed prices to as low as $10 a pound or $22,000 a ton in February.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Independent

5 hours ago

• The Independent

Conservation group makes $60M land deal to end mining threat outside Okefenokee Swamp

A conservation group said Friday it has reached a $60 million deal to buy land outside the Okefenokee Swamp from a mining company that environmentalists spent years battling over a proposed mine that opponents feared could irreparably damage an ecological treasure. The Conservation Fund said it will buy all 7,700 acres (31.16 square kilometers) that Alabama-based Twin Pines owns outside the Okefenokee National Wildlife Refuge in southeast Georgia, halting the company's mining plans. 'It's a big undertaking, but it was also an existential threat to the entire refuge," said Stacy Funderburke, the Conservation Fund's vice president for the central Southeast. 'We've done larger deals for larger acres, but dollar-wise this is the largest deal we've ever done in Georgia." A Twin Pines spokesman did not immediately respond to an email message seeking comment. Twin Pines of Birmingham, Alabama, had worked since 2019 to obtain permits to mine titanium dioxide, a pigment used to whiten products from paint to toothpaste, less than 3 miles (5 kilometers) from the southeastern boundary of the Okefenokee refuge near the Georgia-Florida line. The Okefenokee is the largest U.S. refuge east of the Mississippi River, covering nearly 630 square miles (1,630 square kilometers) in southeast Georgia. It is home to abundant alligators, stilt-legged wood storks and more than 400 other animal species. The mine appeared to be on the cusp of winning final approval early last year. Georgia regulators issued draft permits in February 2024 despite warnings from scientists that mining near the Okefenokee's bowl-like rim could damage its ability to hold water and increase the frequency of withering droughts. Twin Pines insisted it could mine without damaging the swamp. Regulators with the Georgia Department of Environmental Protection agreed, concluding last year that mining should have a 'minimal impact' on the refuge. The agency revealed recently that work on final permits had stalled because Twin Pines had yet to submit a surety bond or equivalent financial assurance to show that it had $2 million set aside for future restoration of the mining site. It said the company was informed of the requirement 16 months ago.

Finextra

6 hours ago

• Finextra

Standard Bank adds access to China's Cross-Border Interbank Payment system

In a first for the continent, Standard Bank Corporate and Investment Banking is the first authorised bank to offer transactions through China's Cross-Border Interbank Payment System (CIPS). 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The bank was recently granted license to offer CIPS transactions at this year's Lujiazui Forum. The Forum was created as a high-level global platform for government officials, world financial leaders and outstanding scholars to discuss and foster international financial cooperation and further the financial reform and market opening in China. eponymous conference held in Shanghai. The payment system will allow for interbank payments between Africa and China using Chinese Renminbi (RMB) as the underpinning currency. Access to CIPS will provide banks and financial institutions the ability to clear and settle cross-border payments without the need to use different currencies. 'As an institution that is invested in driving Africa's economic growth, we are excited to be the first bank on the continent that offers CIPS transactions. This demonstrates our commitment and ability to deliver innovative solutions that truly add value for our clients,' says Anne Aliker, Group Head of Client Coverage at Standard Bank Corporate Investment Banking. According to Standard Bank's Trade Barometer 2024, 34% of surveyed businesses source their imports from China in contrast to 23% of the businesses surveyed in May 2023. This is indicative of the growing trade between Africa and China. 'We believe that CIPS will contribute to unlocking Africa's economic potential by fast tracking the advancement in trade that will support infrastructure development, greater regional integration and efficient deployment of capital,' adds Aliker. With China being Africa's largest export market, the new payment system will simplify and accelerate the clearance of transactions between the two markets. 'We will continue to seamlessly meet our clients' needs by providing flexibility in solutions in line with to the developing payments landscape,' concludes Aliker. CIPS transactions will be available on Standard Bank platforms from September 2025.

Finextra

6 hours ago

• Finextra

Visa appoints Tareq Muhmood regional president, Cema

Visa has strengthened its regional leadership in CEMEA by appointing Tareq Muhmood as Regional President. This move highlights Visa's strategic focus on enhancing its executive presence across Central and Eastern Europe, the Middle East, and Africa. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Mr. Muhmood brings more than 30 years of banking and payments experience to the role. He most recently served as head of Value-Added Services for Visa's Europe region, based in London, and originally joined Visa in 2019 as Group Country Manager for Southeast Asia, based in Singapore. Prior to joining Visa, Mr. Muhmood held senior leadership positions with Ahli United Bank, ANZ and HSBC. Mr. Muhmood will be based in Dubai, and will take on the role effective immediately, reporting to Oliver Jenkyn, Group President, Global Markets, Visa. Mr. Muhmood succeeds Andrew Torre, who was recently appointed as President of Visa's Value-Added Services business, which has rapidly grown into a $9B global business and has delivered annualized revenue growth of 20% since 2021. With this appointment, Visa reinforces its commitment to advancing digital payments under its evolving regional leadership in CEMEA. 'We are delighted to appoint a leader with Tareq's deep experience at the intersection of financial services, technology and high growth markets to lead Visa's fastest growing region and continue our journey to advance the future of digital payments across CEMEA,' said Mr. Jenkyn. 'During the course of his career, Tareq has worked in 13 countries, and brings unique global perspective, world-class leadership and a proven track record partnering with Visa's largest clients across diverse, complex and rapidly accelerating markets.' 'It is a great honor to lead the CEMEA region, and to continue the tremendous progress that has been made in transforming the future of payments, commerce and money movement across so many dynamic markets,' said Mr. Muhmood. 'Having spent more than a third of my career in the region, I am excited by the incredible opportunity to further expand digital payments amongst more consumers, merchants and economies. I look forward to working closely with our outstanding team to enable shared growth with clients and partners across the region.'