Congo Seeks Indonesia’s Support to Enhance Cobalt Market Stability

The Democratic Republic of Congo seeks Indonesia’s support to stabilize the cobalt market amid oversupply and declining demand from automakers. The DRC proposes additional measures, including export quotas and collaboration with Indonesia, to regulate supply and maintain price stability, following a recent export suspension that led to a rebound in cobalt prices.

The Democratic Republic of Congo (DRC) is actively seeking Indonesia’s support to stabilize the cobalt market amidst significant global oversupply and diminished demand from automakers. Following recent fluctuations in cobalt prices, which have rebounded due to an export suspension, the DRC proposes enhanced measures to fortify the temporary ban on cobalt exports, focusing on an international partnership with Indonesia.

As one of the foremost suppliers of cobalt, Indonesia’s involvement is seen as crucial. The DRC Prime Minister has indicated plans to impose export quotas following a four-month ban initiated in late February, aimed at counteracting price declines associated with market oversupply. This strategic collaboration with the second-largest cobalt supplier could help stabilize global supply chains.

To manage this economic situation, Congo’s Economic Situation Committee, led by Prime Minister Judith Suminwa Tuluka, has outlined steps for effective oversight during the export suspension. Their recommendations include cooperation with Indonesia to regulate supply levels and maintain stable prices. Although specific details of these measures remain undisclosed, the call for export quotas and enhanced domestic processing requirements underscores the DRC’s commitment to controlling its cobalt resources.

Over the past year, the DRC has been deliberating on production and export restrictions to solidify its position within the cobalt market, amidst growing competition from Indonesia, where cobalt production has reached 11% of global supply as per Darton Commodities. Cobalt extraction in the DRC is primarily a byproduct of copper, while Indonesia extracts it alongside nickel. This partnership aims to create a more balanced and sustainable cobalt market.

In summary, the DRC is pursuing strategies to stabilize cobalt prices through cooperation with Indonesia, particularly after recent market fluctuations. The proposed measures, including export quotas and increased domestic processing, reflect the DRC’s intent to enhance oversight and maximize the value of its cobalt resources. As global demand and supply dynamics evolve, this collaboration could be pivotal in shaping the future of the cobalt market.

Original Source: africa.businessinsider.com