The Democratic Republic of the Congo has resumed the export ban on copper and cobalt concentrates but will allow mining companies with exemptions to continue shipments.
Congo, the world's largest cobalt producer and Africa's largest copper miner, banned concentrate exports in 2013 to encourage miners to process and refine ore locally.
However, due to insufficient smelting capacity, the Congolese Government has repeatedly issued exemptions. In August last year, the Ministry of Mines approved an indefinite moratorium on all mineral exports, with the exception of copper concentrate, pending discussions with miners.
The freeze ended on 12 April and was replaced by a framework that allows the Minister of Mines to grant individual exceptions on a case-by-case basis upon application by the parties concerned.
Jacques Kyabula Katwe, governor of Haute-Katanga province, said on Friday that the country was still dealing with power shortages, which hindered mining companies from building processing facilities.
Most of the most productive mines today are decades old, with a few exceptions, such as the SolGold Cascabel in Ecuador and the Quellaveco project in Anglo American in Peru, where no major new discoveries have been made for many years.
While copper projects are in the pipeline, producers are speeding up their plans as mine construction becomes increasingly tricky and expensive, worried about repeating the mistake of oversupply in the past cycle-one of the reasons why copper prices are trading at near-decade highs above $10000.
A ban on the export of such metals from the Democratic Republic of the Congo could put more pressure on the global supply of copper and cobalt. Analysts expect shortages in both markets to become apparent next year.
It is estimated that by 2030, the copper industry will need to spend more than $100 billion to make up for a possible annual supply shortfall of 4.7 million tons. Trafigura, a commodities trader, says the potential shortfall could reach 10 million tonnes without mines.
Commodity trader and miner Glencore is expected to resume its mining operations in the Democratic Republic of the Congo in 2022. Mutanda is the world's largest cobalt mine and also produces large amounts of copper.
The resumption of operations at the mine could help ease expected shortages, which could limit further price increases.
