IXM, the metals trading arm of China’s CMOC Group, has declared force majeure on its cobalt supply contracts following an ongoing export ban in the Democratic Republic of Congo (DRC). The move adds further pressure to an already volatile cobalt market, where prices have now slipped below $20,000 per tonne.
DRC Extends Export Restrictions
The DRC government recently extended its export ban on cobalt by an additional three months, citing concerns over market oversupply and a need to stabilise global prices. The ban was originally introduced on February 22 and is being enforced by the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS).
As the world’s top cobalt producer—responsible for more than 80% of global output—the DRC’s decision has far-reaching implications. Key mines such as Tenke Fungurume and Kisanfu, operated by CMOC, have been directly impacted, forcing IXM to halt contractual deliveries.
Supply Disruptions Deepen
Industry analysts estimate the ban could remove over 100,000 tonnes of cobalt from global markets over a seven-month period, exacerbating supply fears for a metal critical to electric vehicle batteries and clean energy technologies.
Glencore (LON: GLEN), the second-largest cobalt producer globally, has also declared force majeure after the initial enforcement of the ban. In a related development, Cobalt Holdings shelved plans for a $230 million IPO in London, which was aimed at financing discounted cobalt purchases from Glencore.
The export halt underscores growing uncertainty in the cobalt supply chain and raises questions about the DRC’s long-term policy direction as global demand for critical minerals continues to rise.
