SunSirs: Major Copper and Cobalt Producer Shifts Export Policy; Chinese Mining Firms Pre-emptively Establish Downstream Processing Lines

Industry insiders told reporters: "The Democratic Republic of the Congo (DRC) plans to restrict the direct export of copper and cobalt concentrates to compel companies to carry out smelting locally; Chinese mining firms possessing local smelting and processing capacities are better positioned to adapt to these policy changes."

On the evening of August 6, international copper prices surged sharply. The three-month copper contract on the London Metal Exchange (LME) briefly touched $14,369.5 per tonne. Following a multi-day rally, the price neared the all-time high of $14,527.5 per tonne set in January of this year.

The sharp rise in international copper prices is linked to new policies from a major producer of copper and cobalt. Citing foreign media reports, Xinhua Finance noted that the DRC has banned the export of copper and cobalt concentrates. Regarding this, industry insiders told reporters: "The DRC plans to restrict the direct export of copper and cobalt concentrates to compel companies to carry out smelting locally; Chinese mining firms possessing local smelting and processing capacities are better positioned to adapt to these policy changes."

The DRC is the world's largest cobalt producer and the second-largest copper producer. In 2025, the country's copper exports reached 3.4 million tonnes, a year-on-year increase of nearly 10%, while cobalt exports stood at approximately 44,300 tonnes, a year-on-year decline of about 80%. The country initially implemented a cobalt export ban in 2025 before shifting to a quota system.

Currently, companies such as CMOC Group (Luoyang Molybdenum), Zijin Mining, Huayou Cobalt, and Shengtun Mining have established operations in the DRC. Some Chinese mining firms operating in the country have moved beyond simple direct mining to engage in local downstream processing.

CMOC Group currently operates the TFM and KFM copper-cobalt mines within the DRC. Annual reports indicate that CMOC holds an indirect 80% interest in the TFM copper-cobalt mine. The mine covers an area of ​​over 1,500 square kilometers, with copper cathode and cobalt hydroxide as its primary products. Additionally, the company holds an indirect 71.25% interest in the KFM copper-cobalt mine. Phase I of the KFM project reached full production capacity in the second quarter of 2023, producing copper cathode and cobalt hydroxide; Phase II is currently under construction and is expected to be completed and operational by 2027.

Huayou Cobalt holds the mining rights for the Lususi copper-cobalt mine (PE527) and the Lukuni copper mine (PE527) in the Democratic Republic of the Congo (DRC). In its annual report, the company stated that it has established an integrated copper-cobalt resource development system in the DRC, encompassing mining, beneficiation, and smelting.

Zijin Mining owns the Kamoa Copper project and the Kolwezi copper-cobalt mine in the DRC, achieving an attributable copper production capacity exceeding 300,000 tonnes. Notably, the 500,000-tonne-per-annum copper smelter supporting the Kamoa mine produced its first batch of copper anodes in early January 2026.

my country is a major consumer of cobalt; due to a scarcity of domestic resources, it relies heavily on imports from the DRC. Last year, adjustments to the DRC's export policies significantly impacted the global cobalt supply. According to data from the Cobalt Institute, global cobalt demand in 2025 is projected to be approximately 214,000 tonnes—a year-on-year increase of 4.4%—while effective supply is estimated at around 120,000 tonnes.

Late last year, Hanrui Cobalt noted the implementation of export restrictions and quota systems in the DRC for 2025; the company actively engaged with local authorities around the time these measures were introduced to apply for export exemptions.

In its 2026 interim report, Shengtun Mining stated that the cobalt market experienced overall volatility and weakness in the first half of the year. While the tight supply-demand balance is expected to ease gradually in the second half—with raw materials arriving from the DRC despite export quota constraints—consumption is being weighed down by sluggish demand in consumer electronics and the industry trend toward high-nickel, low-cobalt ternary batteries; consequently, cobalt prices are expected to fluctuate.(Source: Xinhua Finance)

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