Key Takeaways:
The Democratic Republic of Congo banned copper and cobalt concentrate exports with immediate effect, cutting feedstock that feeds about 70 percent of global cobalt supply.
The June 29 order, signed by Mines Minister Louis Kabamba Watum, Foreign Trade Minister Julien Paluku Kahongya and Economy Minister Daniel Mukoko Samba, states that "the export of copper and cobalt concentrates is prohibited," according to a government order reviewed by Reuters.
The ban takes effect immediately, while a new tax regime on economically significant mining by-products carries a three-month transition period and applies a 55 percent valuation coefficient. The mines minister may grant one-year export waivers under "strategic" circumstances. Major operators in the DRC include CMOC, the world's largest cobalt producer, Glencore, Huayou Cobalt, Zijin Mining, Ivanhoe Mines and Eurasian Resources Group.
The DRC, which supplies about 70 percent of global cobalt and is Africa's largest copper producer, previously regulated concentrate exports through individual waivers to a nominal ban in place since 2013, constrained by electricity deficits that blocked local smelter expansion. Custom smelters, particularly in China, now face a feedstock crunch that could keep refined copper and cobalt prices elevated over the medium term.
Kinshasa's move escalates a decade-long push to force multinational operators to process ore domestically. The DRC's persistent electricity deficits have historically stymied smelter development, and the immediate ban now pressures miners to resolve local power constraints or seek waivers. Glencore, Ivanhoe Mines and CMOC are expected to pursue one-year strategic exemptions from the mines minister, though the frequency and transparency of such approvals remain uncertain.
The new by-product tax regime, which applies a 55 percent valuation coefficient to economically significant mining by-products, is designed to lift state revenue from the sector. Miners must immediately declare by-products in exports ahead of the three-month implementation window.
Operators with integrated local refining capacity are relatively insulated. India's Lloyds Metals and Energy, which completed its acquisition of the CHEMAF Group in the DRC on March 30 and began commercial production of copper cathodes from a 12,000-tonnes-per-annum plant in the Katanga Copper Belt on March 16, stands to benefit from rising refined metal prices. State miner Gécamines, which in January signed a contract to export 100,000 metric tons of copper to the U.S. market through Mercuria, is also positioned for the shift.
Custom smelters that rely on imported concentrates face the sharpest squeeze, with treatment and refining charges already under strain. The ban also threatens the EV battery supply chain, given cobalt's critical role in cathodes, and could push downstream manufacturers to secure alternative feedstock or absorb higher input costs.
This article is for informational purposes only and does not constitute investment advice.
