Congo Seizes Control of Cobalt Exports with Sweeping State Monopoly
The Democratic Republic of Congo has launched an aggressive strategy to dominate the global cobalt market, establishing a state-controlled export monopoly that could reshape the battery metals industry.
The government’s newly created Entreprise Generale du Cobalt now holds exclusive rights to export artisanal cobalt, fundamentally restructuring how independent traders and processors operate. A ministerial decree signed February 21 grants the state-owned firm unprecedented control over hand-dug cobalt production.
Accompanying the monopoly, a four-month export suspension threatens to disrupt global cobalt supplies. The mineral, crucial for electric vehicle and electronics batteries, has seen dramatic market fluctuations in recent years.
EGC’s CEO indicated the organization plans to purchase and stockpile cobalt from small-scale miners during the export halt, aiming to mitigate potential economic damage to local mining communities.
More than 20 independent processing facilities can continue operations by partnering directly with EGC, though their independent export licenses have been revoked. They remain permitted to refine copper and other metals.
The move targets the country’s struggling artisanal mining sector, which has seen production plummet from 21,000 tons in 2018 to an estimated 4,400-5,000 tons in 2024. Large industrial miners like Glencore and CMOC remain unaffected by the new regulations.
Congo accounts for about three-quarters of global supply, making the government’s intervention potentially significant for global markets. The state monopoly aims to address long-standing issues in artisanal mining, including safety concerns and child labor allegations.
Under the new framework, industrial miners are barred from mixing their minerals with non-certified artisanal sources. Companies can now collaborate with EGC to integrate artisanal mining into their operations legally, potentially reducing unauthorized ore extraction.
Analysts suggest the move could stabilize prices and formalize the informal mining sector. However, the full impact remains uncertain as the global battery metals market continues to evolve.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
