We’d like to form an OPEC for minerals, says DR Congo’s economy minister
The Democratic Republic of Congo would like to collaborate with other resource-rich nations to ensure stable and sustainable prices for the commodities they produce and is in talks with Indonesia about how to coordinate sales of minerals and other raw materials, the country’s deputy prime minister told Global South World.
The DRC, which supplies 70% of the world’s cobalt, halted exports of the mineral in February following a slump in prices. Daniel Mukoko Samba, who is deputy prime minister as well as economy minister, said his country was talking to Indonesia, the world’s second biggest producer, in discussions that have widened to include forestry products and other goods.
“We understand that we can't do it alone, that we need some kind of cooperation between the big producers and the big exporters,” Mukoko told GSW on the sidelines of the Crans Montana Forum in Casablanca. Asked whether he would like to see the formation of an organisation among resource-rich states, he replied: “That's what we would like to see happening.”
OPEC, or the Organisation of Petroleum Exporting Countries, was set up in 1960 by a group of mainly Middle Eastern countries to control the supply of oil to world markets. Although its power has waned in recent years, it has largely succeeded in limiting supply to support prices.
Mukoko Samba confirmed that the government will review the cobalt export ban at the end of the initially announced four-month period, noting that prices had risen following its introduction.
Cobalt is a key ingredient in rechargeable batteries and semiconductors, but its price has been extremely volatile. Twice in the past decade, the market price for a ton of the metal has peaked at over $80,000 a ton before dropping below $30,000. Part of the challenge for producers is that because cobalt is largely mined together with copper and nickel, production becomes delinked from the market.
Indonesia’s Ministry for Energy and Minerals did not respond to a request for comment.
Source: globalsouthworld.com
