Congo has banned exports of copper concentrate and cobalt concentrate in a major escalation of its drive to force domestic processing and retain more value from its vast mineral resources, according to a new government order reviewed by Reuters on Thursday.
The June 29 order, signed by Mines Minister Louis Kabamba Watum, Foreign Trade Minister Julien Paluku Kahongya and Economy Minister Daniel Mukoko Samba, states that “the export of copper and cobalt concentrates is prohibited.”
Democratic Republic of Congo, the world’s largest cobalt producer and second-largest copper supplier, also introduced a new tax regime for economically significant mining by-products as part of a broader effort to increase revenue from its mining sector.
The ban takes effect immediately, while the new by-product tax regime has a three-month transition period. The mines minister may grant one-year export waivers under “strategic” circumstances, the order said.
Major operators in Congo include China’s CMOC (603993.SS), opens new tab, the world’s largest cobalt producer, Glencore (GLEN.L), opens new tab, Huayou Cobalt (603799.SS), opens new tab, Zijin Mining (601899.SS), opens new tab, Ivanhoe Mines (IVN.TO), opens new tab and Eurasian Resources Group.
By Ange Adihe Kasongo and Maxwell Akalaare Adombila Reuters