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The DRC has imposed a ban on exports of copper and cobalt concentrates to encourage more value-added production.
The Democratic Republic of Congo has banned exports of copper and cobalt concentrates, forcing mining companies to export value-added minerals.
The order signed by Mining Minister Martin Kabwelulu on April 5 gives, companies 90 days to clear their stocks before the ban comes into force. “Little by little, within the next three months, we need to no longer export concentrates,” Kablwelulu told Reuters.
Last year, the Congo was the eighth largest copper producer, with copper production around 500,000 tonnes per year. The country was also the larges cobalt producer in 2012.
Unaffected by the ban is the Congo’s largest copper producer, Freeport-McMoRan (NYSE:FCX), which already processes its copper inside the country. As far as Freeport’s cobalt production is concerned, the company must prove that its cobalt hydroxide produced at the Tenke Fungurum project is a finished product in order to avoid the ban. This could potentially impact the company’s recently acquired Kokkola cobalt refinery in Finland.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
