Congo Revokes Unused Cobalt Quotas and Reallocates Them; Cobalt Prices Have Surged 160% Since February Last Year
Claire Weston
The DRC will confiscate all unused first-half cobalt export quotas and redirect them into a national strategic pool; since the quota regime replaced a blanket export ban last year, cobalt prices have surged roughly 160% to $26 per pound — the first time the DRC has imposed real penalties for quota non-compliance.
What exactly did the DRC announce?
The DRC's strategic minerals regulator, ARECOMS, declared that any first-half cobalt export quota still unused as of June 30 will be automatically confiscated.
Seized quotas will not roll over into H2. They go into a "strategic quota pool" earmarked for national-interest projects — primarily boosting local processing and value-added capacity.
This means → quotas are no longer a soft allocation you can sit on; they are now a use-it-or-lose-it hard constraint.
Why has cobalt already rallied so sharply?
The DRC holds more than 70% of global cobalt reserves and is the world's largest supplier. Last year it swapped a blanket export ban for a quota system, systematically tightening supply.
Cobalt has risen roughly 160% since February 2025 and currently trades at $26/lb (about $57,320/t).
In plain terms = seven out of every ten pounds of cobalt come from one country, and that country is now not only capping exports but clawing back unused allotments — supply can only get tighter.
Why does the July 5 deadline matter?
ARECOMS stipulates that only shipments with customs declarations filed by July 5 count toward H1 quotas; the rules take effect July 1.
This means → miners have a window of just a few days to file; anything that misses the cut loses its export eligibility outright.
This reflects the DRC using ever-shorter administrative windows to stress-test miners' actual shipping capacity and compliance intent.
Can quotas be revoked entirely?
ARECOMS warned that it may fully revoke a company's quota if the firm fails to export its allotment, transfers quota without authorization, or handles third-party or artisanal mining material without clearance.
Major cobalt producers operating in the DRC include CMOC (洛阳钼业), Glencore, Eurasian Resources Group, and Huayou Cobalt (华友钴业).
It remains unclear how much unused quota each company holds, or which firms face the greatest exposure.
What does this mean for the cobalt market?
This confiscation is the first real enforcement penalty since the DRC replaced its blanket export ban with the quota regime last year.
In plain terms = the earlier quota system was more like a sign on the door with no one checking tickets; now the DRC is actually enforcing it — the signal is clear: the supply side will keep tightening.
Near-term checkpoint: after the July 5 customs filing deadline passes, actual shipment data from each miner will reveal how hard this policy truly bites.
Content is for reference only, not financial advice.