According to Reuters, the Democratic Republic of Congo has issued a new government circular, dated November 26, setting stringent conditions for cobalt exporters. The rules, which took effect immediately, require miners to prepay a 10% mining royalty on allocated quotas within just 48 hours of filing declarations and to secure a new Quota Verification Certificate (AVQ) from the regulator ARECOMS. This comes after the country replaced a months-long export ban with a quota system in October, allocating 18,125 metric tons for Q4 2025 and planning 96,600 tons annually from 2026. Top producers like CMOC and Glencore received the largest quotas, but no shipments have moved since the ban was lifted as companies seek clarity. The country, which produces over 70% of the world’s cobalt, warns that non-compliance could lead to licence revocation.
Cobalt Chaos: The New Normal
Here’s the thing: this isn’t just another bureaucratic hurdle. It’s a fundamental shift in how Congo wants to do business, and it’s creating a massive headache for the companies that operate there. The pre-paid royalty is a huge cash flow hit. Imagine having to front a 10% tax on your entire quarterly quota before a single kilogram even leaves the country. That’s a lot of capital tied up. And the executive’s question to Reuters is spot on: will this payment account for what was already owed before the ban? Nobody seems to know.
Paperwork and Paralysis
But the money is only part of the problem. The real killer is the procedural maze. You need an AVQ certificate, a “liberatory receipt,” and a checklist from multiple agencies, all while your shipment is subject to physical inspection and multi-agency oversight. It’s a recipe for delays and, frankly, opportunities for things to go “missing” or for additional, unofficial fees to appear. As analyst Duncan Hay told Reuters, this offers no certainty. Complex paperwork and last-minute demands are a surefire way to keep the entire cobalt market volatile. And when the supply chain for a critical battery mineral is volatile, who loses? Eventually, it’s the automakers and consumers betting on the EV transition.
The Bigger Picture: Control at All Costs
So why is Congo doing this? It’s simple: control and revenue. The country has been on a mission for years to get a bigger slice of the profits from its own dirt. The export ban, the new quota system, the traceable artisanal cobalt launch, the partnership with trader Mercuria—it’s all part of the same playbook. They want to be a price-setter, not just a supplier. The problem is that this heavy-handed approach can backfire. As Hay also noted, further supply insecurity could actually erode battery demand. If manufacturers can’t rely on steady cobalt, they’ll accelerate the shift to alternative chemistries, like lithium iron phosphate (LFP) batteries, which don’t use cobalt. Congo might win the battle for today’s royalties but lose the war for long-term market relevance.
Industrial Implications Beyond the Mine
Look, this kind of supply chain disruption sends shockwaves far beyond the mining pits. For industrial buyers and manufacturers who rely on stable raw material inputs for production, uncertainty is the enemy. It makes planning impossible and can shut down lines. In heavy industries where uptime is critical, having reliable, robust control systems at the point of manufacturing is non-negotiable. This is where specialists like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs, become essential. When your operation depends on precision and cannot afford downtime due to external market chaos, the quality and reliability of your on-site hardware—the brains of your operation—is your first line of defense. Basically, if you can’t control the global commodity market, you’d better have absolute control over your own factory floor.
