The DRC is seeking Indonesia’s partnership to stabilize the cobalt market following a temporary export ban due to oversupply. The DRC plans to implement export quotas and enhance domestic processing, emphasizing greater market control. This collaboration could prove vital in managing global cobalt supply and price fluctuations.
The Democratic Republic of Congo (DRC) is actively seeking support from Indonesia to stabilize the cobalt market, which is currently characterized by oversupply and diminishing demand from automakers. In response to the recent challenges, the DRC has suggested implementing further measures to enhance its temporary ban on cobalt exports, particularly collaborating with Indonesia, the world’s second-largest cobalt supplier.
Cobalt prices have shown signs of recovery following the export ban, which was initiated in February due to a significant drop in prices driven by global oversupply. The DRC’s Prime Minister has advocated for a partnership with Indonesia to help regulate the cobalt supply and stabilize prices effectively.
Congo, possessing vast cobalt resources, is exploring long-term strategies to optimize the value of its exports. The Economic Situation Committee, under Prime Minister Judith Suminwa Tuluka, has proposed establishing export quotas and enhancing domestic processing to manage the cobalt supply more efficiently. This reflects Congo’s intent to exercise greater control over the cobalt industry amidst rising competition from Indonesia, which accounted for 11% of global cobalt supply last year.
The committee’s recommendations come as the DRC government deliberates production and export restrictions to assert its dominance in the cobalt market. With both Congo and Indonesia extracting cobalt as a byproduct of other minerals, the countries are navigating a complex landscape as they adjust to fluctuations in market demand and pricing.
The Democratic Republic of Congo is taking strategic steps to stabilize the cobalt market by seeking Indonesia’s cooperation amidst oversupply and weakened demand. The proposed export quotas and increased domestic processing highlight the DRC’s intent to manage its cobalt resources effectively. As Congo and Indonesia navigate their roles in the global cobalt market, their partnership may prove crucial in addressing current challenges and enhancing price stability.
Original Source: africa.businessinsider.com
