Written by Omnia Hassan

The Democratic Republic of Congo faces a new crisis that could affect the global market for critical minerals, after a flaw in the government's administrative system caused delays in cobalt export procedures, threatening major producers with the loss of their export quotas before the regulatory deadline.

Management disruption confuses mining companies

Major mining companies, led by Glencore, CMOC, Eurasian Resources Group (ERG), and Huayou Cobalt, found themselves unable to complete export procedures after the government customs platform malfunctioned, preventing the registration of cobalt shipments under the new quota system.

Estimates indicate that the crisis could put approximately 20,000 metric tons of cobalt, valued at nearly $1.1 billion, at risk of losing export rights if the issue is not addressed or the deadline is not extended.

Demands for an extension of the deadline

According to mining sector officials, the delay is entirely due to governmental procedures beyond the companies' control. The companies have requested the Strategic Minerals Market Regulatory and Oversight Authority to extend the deadline, which was set for July 5th. Meanwhile, the Prime Minister has called for intervention to avoid significant economic losses.

Officials in the sector believe that the majority of producers may fail to meet the deadline due to the ongoing administrative backlog, rather than a shortcoming in production or shipping processes.

New quota system faces its first test

The crisis comes at a time when Congo is implementing a new cobalt export quota system, after ending a suspension of exports, aiming to regulate global supply and stabilize prices.

The government has set an export cap of 96.6 thousand tons annually for 2026 and 2027, in a move aimed at strengthening state control over one of its most important strategic resources and achieving greater returns from the mining sector.

Repercussions beyond the borders of Congo

The Democratic Republic of the Congo produces about 70% of the world’s mined cobalt, making any disruption to its exports a matter of great concern to manufacturers of batteries, electric vehicles, and electronics.

Cobalt, an essential component in lithium-ion batteries, means that any disruption in the supply flow could be reflected in global supply chains and the prices of the metal, which have already seen a remarkable increase in recent months after government export restrictions.