(Reuters) -The Democratic Republic of Congo intends to impose export quotas on cobalt following a four-month export ban, and plans to partner with Indonesia, another key producer, to manage global supply and pricing, according to DRC’s prime minister.
The announcement was made during a cabinet meeting on Friday.
In a bid to curb a global supply glut, the quotas will be enforced in two parts, one focusing on exports and the other on local mineral transformation, according to the cabinet meeting minutes seen by Reuters on Wednesday.
Sources told Reuters in February that DRC, the world’s leading cobalt producer, was contemplating export quotas following the imposition of an export ban.
Cobalt, a crucial component in batteries for electric vehicles and mobile phones, has seen its prices fall to historically low levels due to weak demand from automakers and increased copper production, from which cobalt is a by-product.
Prime Minister Judith Suminwa Tuluka said that plans were afoot to collaborate with Indonesia, another significant cobalt producer, to better regulate the supply and price of cobalt on the global market.
Indonesia conducted initial discussions with the DRC during a visit by the DRC delegation to Jakarta before the DRC launched its export restrictions, Energy and Mineral Resources Ministry senior official Dadan Kusdiana told Reuters.
“Discussions were held regarding the global cobalt supply policy strategy and initial discussions to explore various potential opportunities for cooperation,” he said.
Dadan said cobalt is among the minerals that will be affected by Indonesia’s plan to increase production royalty fees. Cobalt content in nickel matte production would see a 2% royalty fee.
Cobalt is a byproduct from Indonesia’s nickel, which typically contains 1% to 2% cobalt, he said.
(Reporting by Sonia Rolley Additional reporting by Fransiska Nangoy in JakartaWriting by Bate FelixEditing by Mark Potter)
