DR Congo tightens control over critical minerals with strategic reserves

{"text":[[{"start":11.18,"text":"The Democratic Republic of Congo will establish a strategic reserve of three minerals, including cobalt and coltan, in a move designed to give the central African country more leverage over the market for some of the world’s most important metals."}],[{"start":27.87,"text":"The plan is the latest in a series of moves by African countries to gain greater control over their raw materials, including minerals being used in some of the world’s most important and fast-growing industries such as electronics and electric vehicles."}],[{"start":44.900000000000006,"text":"The reserve, which will also include germanium and could be expanded to other minerals, builds on previous measures to bolster cobalt prices, including a temporary ban on exports last year followed by a quota system. "}],[{"start":59.480000000000004,"text":"“Of course we would be happy if the price goes up and we would not be alone being happy about that,” Patrick Luabeya, head of the DR Congo’s Strategic Mineral Substances Market Regulation and Control Authority, which will administer the reserve, told the FT."}],[{"start":77.56,"text":"But he insisted that this was not the motive for the policy, which was adopted by a decree of the DR Congo’s council of ministers last week but has not yet been publicly announced."}],[{"start":91.14,"text":"“This is being done to have a tool to control and balance the market in the future,” he said, adding it would not be used to “speculate”."}],[{"start":100.18,"text":"Zimbabwe recently introduced quotas on the export of lithium concentrates, while countries including Mali and Niger have adopted new mining laws to increase their share of profits from metals including gold and uranium."}],[{"start":114.91000000000001,"text":"Cobalt is used in the production of EV batteries, while coltan is a crucial ingredient for the semiconductor and technology industries. Germanium is a niche metal used in small quantities, but is vital to fibre optic and infrared systems and has various military applications."}],[{"start":null,"text":"

"}],[{"start":134.55,"text":"Luabeya said the move was part of the strategy to stabilise prices by preventing “excess supply”. That would not only be good for Congolese coffers, he said, but would help attract investors who could be confident of stable prices."}],[{"start":150.54000000000002,"text":"It follows a plan unveiled by the US in February to build a $12bn critical minerals stockpile for civilian manufacturers to use in times of crisis, while it also works to build up its defence stockpile."}],[{"start":165.77,"text":"Other nations including in the EU bloc have also increasingly considered stockpiling as one way to protect domestic metals supply chains — many of which are dominated by China and vulnerable to export restrictions imposed by Beijing."}],[{"start":181.81,"text":"Luabeya said that, in time, other minerals would be added to the DR Congo’s reserve based on an expanded definition of strategic minerals, currently limited by a 2018 decree to cobalt, coltan and germanium. He would not say which minerals were being considered, but the country is an important source of copper and lithium among others."}],[{"start":205.4,"text":"Kinshasa had not ruled out the possibility of future export bans on particular metals, he said. “We can announce another ban if we notice that there is a distortion.”"}],[{"start":216.58,"text":"Luabeya said the DR Congo was watching the potential effect on demand for critical minerals from the global slowdown predicted by the IMF after the Iran war, but he said he did not expect it to be significant."}],[{"start":230.61,"text":"The imposition last year of the DR Congo’s cobalt export ban, and the subsequent introduction of a quota system, shook the market, driving up prices after a glut led to a sharp fall from 2022."}],[{"start":245,"text":"“We are strongly convinced we took the right decision,” said Luabeya. Cobalt prices have more than doubled since the ban went into force. "}],[{"start":null,"text":""}],[{"start":255.14,"text":"The price of germanium has also skyrocketed after China, one of the few suppliers, imposed export controls in recent years."}],[{"start":266.32,"text":"Miners and traders have given mixed responses to the US’s stockpiling ambitions, with some warning that it could distort markets while others welcome the creation of a significant buyer."}],[{"start":278.31,"text":"Swiss miner Glencore said in February that the implementation of the DR Congo’s planned cobalt export quota system had been delayed, which had “resulted in zero 2025 exports”. Unused 2025 quotas would roll over into this year, it said at the time."}],[{"start":298.84000000000003,"text":"Luabeya said 21 quotas had been issued to companies so far."}],[{"start":303.57000000000005,"text":"Glencore said that cobalt it had produced in excess of what it was permitted to export would be stored in the DR Congo and “sold as circumstances allow”, adding: “There is currently too much uncertainty to provide forward production guidance.”"}],[{"start":328.96000000000004,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776323467_1664.mp3"}