[SMM Analysis] DRC Issued the "Control Measures for Regulating Deviations in the Detection of Metal Content in Exported Cobalt Hydroxide Under the Quota System Framework of the Authority for the Regulation and Control of Strategic Mineral Substances' Markets in the Congo"

Addressed to all relevant parties, with particular emphasis on:

• the administrative authorities of all provinces;
• the Secretariat of the Directorate-General of Mines;
• the Central Bank of the Congo;
• the Directorate-General of Customs and Excise;
• the Directorate-General of Administrative, Judicial, State Assets and Equity Revenues;
• the public service agencies and entities involved in the export industry chain;
• approved commercial banks;
• mining and export business operators;
• the Chamber of Mines of the Federation of Congolese Enterprises.

Preamble

In order to implement the DRC government's policy of strict, transparent, and efficient management of strategic minerals, and in line with the statutory duties of the Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) in regulating the cobalt market, it was necessary to standardize situations involving possible detection deviations in the process of detecting the metal content of exported cobalt hydroxide.

In fact, the test results issued by various laboratories in the certification and regulatory industry chain showed detection deviations, which may have arisen from factors such as differences in testing methodology systems, inherent deviations in sampling and testing procedures, and differences in sample preparation methods. Such deviations in themselves did not amount to fraudulent conduct involving the deliberate falsification of results (which constituted an illegal act).

In order to balance the smooth conduct of the export business, the legal protection of business operators, and the safeguarding of the state's fiscal, tax, and economic interests, this circular was hereby issued, principally on the basis of the following regulations:

• Law No. 007/2002 of July 11, 2002, the Mining Code (as amended and supplemented by Law No. 18/001 of March 9, 2018);
• Decree-Law No. 10/002 of August 20, 2010, the Customs Code;
• Decree-Law No. 13/003 of February 23, 2013, on the reform of procedures for the assessment base, control, and collection of non-tax revenues;
• Decree-Law No. 18/003 of March 13, 2018, establishing the schedule of taxes, duties, fees, and charges of the central government;
• Law No. 003/2002 of February 2, 2002, on the operation and supervision of credit institutions;
• Decree No. 038/2003 of March 26, 2003, the Mining Regulations (as amended and supplemented by Decree No. 18/024 of June 8, 2018);
• Decree No. 19/16 of November 5, 2019, establishing the Authority for the Regulation and Control of Strategic Mineral Substances' Markets and setting forth its organizational and operational rules;
• Interministerial Order No. 0140/CAB.MIN/MINES/01/2014 and No. 116/CAB.MIN/FINANCES/2014 of July 5, 2014 (Operational Manual for the Traceability Management of Minerals from Extraction to Export);
• Ministerial Order No. 003/CAB/MIN/FINANCES/2009 of January 24, 2009 (Single Collection Window and Allocation Measures for Service Charges on Mineral Exports);
• Circular No. 003/CAB.MIN/MINES/2025 and No. 002/CAB.MIN/FINANCES/2025 of November 28, 2025 (Practical Provisions Governing Cobalt Export Procedures);
• and all related implementing rules.

Article 1 Definition of Detection Discrepancy

For the purposes of this circular, a detection discrepancy refers to any difference in the detection results issued, for the same sample, by the laboratory of the Congolese Strategic Mineral Substances Market Regulatory Authority, the laboratory of the National Electricity Company of the Congo, and the approved private laboratory selected by the exporter.

A detection discrepancyshall be recognized only when such difference exceeds the 2 tolerance threshold for the metal content of the cobalt hydroxide being tested.

Article 2 Impact of Detection Discrepancies on Operations

Provided that the competent authorityhas not formally determined that a violation has occurred, a detection discrepancy shall not suspend the customs pre-clearance process already initiated.

To that end, the relevant administrative authorities shall ensure the orderly conduct of export business, while strictly complying with the relevant fiscal, customs, and foreign exchange control obligations.

Article 3 Temporary Tax Basis

In accordance with the current declaration-based system in the DRC, the detection data issued by the approved private laboratory selected by the exporter shall serve as the detection reference basis for all declaration documents relating to exports of the above-mentioned mineral products.

Article 4 Financial Guarantee

The operating entity shall establishan irrevocable financial guarantee, payable on first demand, to cover any potential difference in taxes, duties, and fees.

The determination of the amount of such guarantee shall be aligned with the mining royalty reserve mechanism required by the Congolese Strategic Mineral Substances Market Regulatory Authority for the corresponding approved export quota.

Article 5 Retesting Provisions

Whenthe detection difference exceeds the tolerance threshold specified in Article 1, the Director of the Provincial Mining Division shall take the lead in commissioning a benchmark laboratory jointly recognized by the Ministry of Mines and the Ministry of Finance to conductretesting.

The retesting result shall be binding on all parties concerned.

Article 6 Technical Mediation Committee for Detection Disputes

ATechnical Mediation Committee for Detection Disputesshall be established to review issues relating to detection discrepancies and consolidate data related to cobalt exports.

The member entities of the Committee shall include representatives of:

• the Ministry of Mines;
• the Ministry of Finance;
• the Central Bank of the Congo;
• the Congolese Strategic Mineral Substances Market Regulatory Authority;
• the General Cobalt Company of the Congo;
• the National Electricity Company of the Congo;
• the Directorate General of Customs and Excise;
• the Directorate General of Administrative, Judicial, State Property and Participating Revenue;
• the Geological Survey;
• the Mining Chamber of the Federation of Congolese Enterprises;
• specialized independent private consulting firms / laboratories.

Committee Structure:

• chaired by the Ministry of Mines;
• with the Ministry of Finance serving as Vice Chair;
• and the Strategic Mineral Substances Market Regulation and Control Authority of the DRC serving as the technical secretariat.

The Committeeshall meet once a month, no later than the 5th day of the following month, to finalize the verification of detection, fiscal, tax, and quantity data relating to exports for the previous month.

The Committee’s Internal Rules of Procedure shall be drafted at its first meeting and submitted to the Minister of Mines for signature and entry into force.

Article 7 Adjustment of Exports

Where necessary, the conclusions of the Mediation Committee’s review may serve as the basis for adjusting the exports in refined cobalt content equivalent recorded with the Strategic Mineral Substances Market Regulation and Control Authority of the DRC.

If the detection results of the laboratory of the Strategic Mineral Substances Market Regulation and Control Authority of the DRC fall within the tolerance threshold provided for in Article 1, those results shall be used to determine exports.

During a given period, any exports exceeding the approved quota shall be deducted from the quota for the following period; any shortfall in exports resulting from detection discrepancies shall be added to the available quota for the following period.

If an export shortfall was not caused by detection discrepancies, the unused monthly quota shall be deemed forfeited and automatically transferred to the annual strategic quota of the Strategic Mineral Substances Market Regulation and Control Authority of the DRC.

Article 8 Supervisory Authority

The competent authorities, in accordance with the relevant regulations currently in force, reservefull ex post supervisory authority.

However, if an exporterstrictly complied with the provisions of this Circular, its declarations already submitted and actions already takenshall not be retrospectively determined to be illegal or non-compliant.

Ifany difference in taxes, duties, or fees arose, the exporter shall file a supplementary declaration andpay the assessed balance due.

If an exporterfailed to fulfill its supplementary declaration obligation, the customs authorities and the departments responsible for collecting mining fees shall have the right tocall upon the financial guarantee referred to in Article 4.

Article 9 Legal Stability

The measures provided for in this Circular are intended to ensure the smooth conduct of the export business, the legal rights and interests of exporters, and the fiscal and tax interests of the State.

These measures do not derogate from the remedies provided for under the regulations currently in force; where an operator complied with the provisions of this Circular in good faith, the relevant conductshall not be construed as implied acknowledgment of any violation on its part.

Article 10 Effective Date and Scope of Application

The provisions of this Circular shall apply tothe export business in cobalt hydroxide conducted after the lifting of the cobalt export ban;

they shall also apply toexport business for which administrative procedures had already been initiated or were in progress on the date of signature of this Circular.

If business entities complied with the provisions of this circular in good faith, the relevant authorities shall not impose fines, monetary penalties, or administrative sanctions on them.

This circular took effect on the date of signature, and applied to all service institutions and administrative departments involved in the strategic ore export process.

Issued in Kinshasa, March 13, 2026

Xiao Wenhao, SMM Cobalt Analyst, +86 16621140365