A regulatory agency announced Saturday that the Democratic Republic of Congo has extended its ban on cobalt exports for three months, a measure aimed at curbing an oversupply of the key material for electric vehicle batteries.
DRC extends ban on cobalt export for another three months
In this April 10, 2004 file photo, a young man carries wet Cobalt on his back at the Shinkolobwe Cobalt mine, situated 35km from the town of Likasi, in the DRC
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SCHALK VAN ZUYDAM/AP2004
The world's largest supplier of cobalt, the country imposed a four-month export ban in February after prices hit a nine-year low of just $10 per pound. The ban was originally set to end this Sunday.
"The decision was taken to extend the temporary suspension due to the continued high level of stocks on the market," the Strategic Mineral Substances Market Regulation and Control Authority (ARECOMS) said in a statement.
ARECOMS plans to announce a further decision to modify, extend, or lift the suspension before the end of this new three-month period, which will conclude in September.
Reuters reported on Friday that Congolese authorities were considering extending the ban as they review the allocation of cobalt export quotas among mining companies.
Several industry players, including Glencore, the world's second-largest cobalt producer, support the introduction of these quotas.
However, Glencore's position differs from that of the leading producer, the Chinese group CMOC, which is actively campaigning for the ban to be lifted.