Tightened cobalt export quotas in the DRC derail MMG’s production targets and hinder operations

On May 15, MMG Limited stated externally that the cobalt export quota policy introduced by the Democratic Republic of the Congo (DRC) has caused its Kinsevere copper-cobalt mine's cobalt production project to lose its profitability, making it difficult for production and operations to proceed normally.

Company management revealed at an industry conference that the company receives only 360 tons of cobalt product export quota annually, a stark contrast to the previously planned production and sales target of 4,000 to 6,000 tons per year. It is reported that the cobalt smelter at the mining site officially commenced production in September 2023; affected by the continued weakening of cobalt prices, it suspended operations at the end of 2024 to enter the maintenance phase. Currently, the cobalt products flowing out are all existing inventory from the plant site, and no new capacity production has been carried out. Its copper business achieved a copper output of 53,000 tons last year, with relatively stable operations.

It is understood that the DRC has gradually tightened cobalt export controls since 2025, first introducing an export ban and officially implementing a quota management system in October of the same year. The allocation of quotas is primarily determined based on enterprises' historical export scales from 2022 to 2024. MMG believes that its contributions to local economic development, green and low-carbon initiatives, and social responsibility have not been taken into account by the policy. It hopes the local government will clarify the detailed rules for quota allocation to stabilize the investment confidence of foreign enterprises.

As the export of Congolese cobalt resources continues to be restricted, the global cobalt market supply continues to tighten. Since the implementation of the control policy, the industry benchmark cobalt price has risen by 160%, bringing profound changes to the supply and demand landscape of the global cobalt industry chain.