Congo (DRC)'s Cobalt Exports Have Been Suspended Due To Disputes Over Test Results.

London, March 18th (Argus) - According to market participants, the Democratic Republic of the Congo (DRC) has effectively suspended cobalt exports after officials raised concerns about inconsistent results from cobalt oxide tests. It is said that border staff are waiting for guidance from Kinshasa on how to handle the discrepancies in laboratory results submitted in the export process, thus delaying the release of relevant documents. An Argus document dated March 13th stipulates that the allowable range for laboratory differences between Arecoms laboratory, CEEC laboratory, and the private laboratory chosen by the exporter is ±2%. If the difference exceeds this threshold, a retest must be conducted and the monthly reconciliation of laboratory data and quota quantities must be implemented. The exporter stated that this notice prevented border staff from processing the goods before the mining minister signed the administrative directive on how the new regulations would apply. This timing coincided with the efforts of mining companies to resume exports after the eight-month export suspension and the subsequent quota system last year. The export volume for October-December last year was 18,125 tons. At the end of last year, due to the depletion of stocks outside the country, a sharp decline in Chinese imports, and the continuous border delays caused by document backlog and heavy rainfall until December, prices rose. The market linked this document to the export disruptions. Multiple sources said that this document seems to reflect the confusion within the government as to why three laboratories would come up with three different results for the same batch of goods. "I've heard the same thing," one source told Argus, and said that they did not encounter any problems at the mining site that morning and were confirming whether it only affected specific mines. Another source said that it is not clear whether the government slowed exports first or the March 13th notice was to address the problems that had already emerged. They pointed out that the document allows exports to continue as long as the differences in laboratory results fall within the ±2% tolerance range. This "might" indicate that the document was drafted to facilitate the export process. The source also said that officials might initially misinterpret normal laboratory differences as signs of improper behavior. "If you have three laboratories test the same batch of goods, you will definitely get three different results," they said, adding that the authorities "automatically assumed this was fraud" and thus blocked transportation. The document now clearly states that exports can continue as long as "all parties act in good faith." The exporter stated that once the mining minister signs the accompanying administrative notice, border staff should resume the release of trucks. But before that, operators expect the goods to remain at the border until officials decide which laboratory result should be taken as the standard.