South African Exec. Gary Nagle-led Glencore Halts Some Cobalt Deliveries After Congo Ban

Glencore declared force majeure on some cobalt deliveries after Congo suspended exports to ease a supply glut that had depressed global prices.

Glencore shifted 30 billion in mining assets, including coal and copper, into its Australian unit, doubling its asset base and signaling deal readiness.

Cobalt prices have risen 35 since the export freeze, though its unclear if Congo will extend the ban or introduce quotas post-June.

Glencore Plc , the Swiss commodity trading and mining giant led by South African executive Gary Nagle, has declared force majeure on certain cobalt shipments from the Democratic Republic of Congo, following months of export restrictions imposed by the Congolese government.

Congo is the worlds largest producer of cobalt, accounting for nearly 80 percent of global supply. The government announced a four-month export freeze back in February to help ease a supply glut that had driven prices down. Since then, the market has started to recover, with cobalt prices reaching levels last seen in 2023 when U.S. spot prices topped 30,000 per ton.

Caught off guard by the sudden halt, Glencore responded by triggering force majeure on certain supply contracts, a clause typically reserved for events beyond a companys control that make it impossible to meet contractual obligations. Cobalt, largely extracted as a byproduct of copper mining in Congo, is vital for both defense industries and high-performance batteries.

Despite the disruption, many Glencore customers are still receiving deliveries under existing agreements. The company mined 35,100 metric tons of cobalt at its Congolese operations last year, making it the worlds second-largest producer after Chinas CMOC.

Since the ban took effect, cobalt prices have climbed about 35 percent. As of now, the U.S. spot price stands at 33,313.64 per metric ton, up from 31,534.71 last month and 27,997.07 a year ago. Its still uncertain whether Congo will lift the export ban when it expires on June 22 or move to introduce export quotas instead.