Copper and cobalt producers in the Democratic Republic of Congo have seen some orders for key leaching chemicals cancelled or withdrawn by suppliers this month, forcing companies to reduce usage and consider lowering output as supply disruptions linked to the Middle East conflict worsen, industry sources familiar with the situation told Reuters.
The Democratic Republic of Congo is the world’s largest cobalt producer and Africa’s biggest copper supplier, making it a crucial part of global supply chains for electric vehicles and the clean-energy transition.
However, copper and cobalt extraction relies heavily on sulfuric acid and sulfur-based chemicals such as sodium metabisulfite (SMBS), both of which have been affected by shipping disruptions tied to the Iran war.
Some mining firms are already feeling the impact. According to a supply-chain source speaking anonymously due to commercial sensitivity, a 2,000-metric-ton SMBS order was completely cancelled, while another 1,800-ton shipment was withdrawn earlier in April after contracts had already been signed.
As a result, miners are reducing chemical consumption to preserve remaining stocks and are also weighing potential cuts to cobalt production, according to the source and mining chemicals consultant Isabel Ramirez. One alternative being considered is producing off-spec cobalt, although that is not an ideal solution.
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The sources did not name affected companies but referred to the three major operators in the country: China’s CMOC Group Limited, Glencore, and the Eurasian Resources Group. Glencore declined to comment, while CMOC, Eurasian Resources Group, and Congo’s mines ministry did not immediately respond to requests for comment.
With uncertainty increasing, buyers are now placing overlapping orders and tightening verification processes, including sending representatives to warehouses to confirm physical stock levels and ownership documentation. The supply-chain source said, “Now they want to verify first that you actually have the stock.”
Congo’s months-long cobalt export suspension and the introduction of export quotas have already tightened global supply, affecting smelters worldwide. The government said this month that companies will be allowed to ship delayed fourth-quarter quotas by April 30 and first-quarter volumes by the end of June.
Meanwhile, premiums for sulfuric acid and SMBS shipped through Tanzania’s Dar es Salaam port have nearly doubled since the conflict began, increasing costs for miners, according to Peter Harrisson of consultancy CRU.
Mining supply chains have also been further strained by rerouted shipping routes and limited freight availability. As mining consultant Isabel Ramirez explained, “What used to take you three months now takes you four, six months,” adding, “There is a heightened risk of shortages.”
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Image Credit: Reuters
