The Democratic Republic of Congo (DRC) has granted the state-owned Entreprise Generale du Cobalt (EGC) exclusive rights to export hand-dug cobalt, according to new regulations established on 21 February by the DRC’s prime minister and mines minister.
The move is to initiate a state monopoly to oversee the production and export of artisanal cobalt amid export ban.
It also aims to capitalise on the country’s pivotal role in the global supply of the battery metal and is part of broader efforts to strengthen its influence over cobalt prices following a period of market instability as reported by Bloomberg.
This comes after a four-month suspension on cobalt exports was announced earlier this week.
The ministerial decree grants EGC the “exclusive right” to purchase and trade hand-dug cobalt, either directly or through partnerships.
Moreover, industrial producers are now strictly prohibited from blending their minerals with uncertified artisanal cobalt sources.
The regulation also allows companies to partner with EGC, enabling artisanal mining on their concessions without the risk of penalties— a move that could help curb ore theft from industrial sites.
The report highlighted that the sharp decline in artisanal cobalt production, which has squeezed profit margins, poses a threat to the livelihoods of Congolese miners.
Bloomberg quoted EGC CEO Eric Kalala stating that during the suspension period, the company intends to purchase cobalt from artisanal miners and stockpile it to cushion the impact of the export ban.
Meanwhile, independent processing facilities that usually source cobalt from artisanal miners are now prohibited from exporting the mineral, according to the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS).
ARECOMS has ordered the immediate revocation of export licenses for independent processing facilities.
However, these facilities may still process cobalt in collaboration with EGC and continue refining copper and other metals.
The new monopoly will not impact major industrial mining companies such as Glencore, CMOC Group, and Eurasian Resources Group, which dominate cobalt production in the DRC. Together, these companies contribute approximately three-quarters of the global cobalt supply.
A recent decline in cobalt prices—driven in part by CMOC’s increased output from two major DRC mines—has prompted many artisanal miners to shift their focus to other minerals like gold and copper.
According to specialist trading house Darton Commodities, this market downturn caused artisanal mining volumes to drop to just 2% of the country’s total cobalt output in 2024, a significant decline from peak levels in 2018.
While artisanal mining remains a vital source of income for many in the DRC, the sector is often criticized for dangerous working conditions and the use of child labor. The establishment of EGC represents a government initiative to address these issues and ensure a stable supply of ethically sourced cobalt, especially during periods of higher prices.