CMOC’s IXM declares force majeure on cobalt deliveries from Congo

IXM, a metals trading unit of China’s CMOC Group, has declared force majeure on its cobalt supply contracts due to an ongoing export ban in the Democratic Republic of Congo (DRC), the company said Monday.

Earlier this month, the DRC government extended the export ban by another three months, citing a need to address market oversupply and stabilize prices.

The African nation currently accounts for over 80% of global cobalt output.

The export ban, enforced by DRC’s Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS), first began on February 22. The measure has disrupted shipments from major mines like Tenke Fungurume and Kisanfu, forcing IXM to suspend contract deliveries.

The export halt could fuel global supply concerns by removing more than 100,000 tonnes of cobalt from the market over a seven-month period, according to industry estimates.

Glencore (LON: GLEN), the world’s second-largest cobalt producer, also declared force majeure following the initial suspension. Meanwhile, Cobalt Holdings shelved a planned $230 million IPO in London, which aimed to fund discounted cobalt purchases from Glencore.