Congo withdraws unused cobalt export quotas

Democratic Republic of Congo will withdraw unused cobalt export rights under first-half quotas and reassign them to a state-controlled entity, its strategic minerals regulator said, tightening control over shipments from the world’s top producer.

In a notice seen by Reuters on Monday, ARECOMS said all export quotas allocated for January to June that remain unused by June 30 will be forfeited and automatically reassigned to its “strategic quota.”

ARECOMS said the reallocated quota volumes will support projects deemed of “national interest,” including efforts to boost local processing, increase value addition and protect the country’s economic interests.

The regulator said forfeited quota volumes will be deducted from companies’ initial allocations and cannot be carried forward, effectively penalizing operators that fail to ship within deadlines.

Congo’s mining chamber did not immediately respond to a request for comment.

China’s CMOC and Glencore, the world’s largest and second-largest cobalt producers, operate in Congo alongside Eurasian Resources Group and China’s Huayou Cobalt, among others.

In a further tightening of logistics rules, only cobalt shipments declared in the customs system by July 5 will qualify for export under first-half quotas. The measures take effect on July 1.

ARECOMS also warned it could withdraw quotas entirely from companies that fail to export allocated volumes, transfer quotas to third parties, process third-party or artisanal material without authorization, or breach regulations.