THE FALLING PRICE OF COBALT: A CHALLENGE FOR THE DRC
In a context where the fight against climate change is crucial, the price of cobalt, a strategic mineral, is experiencing a downward trend on international markets. A situation which particularly impacts the Democratic Republic of Congo (DRC), the main holder of the world’s cobalt reserves.
According to experts from the National Mercurial Commission of the Ministry of Foreign Trade of the DRC, the price of cobalt should experience a further drop during the week of September 25 to 30, 2023. A ton of cobalt should trade at 32,731, 00 USD, a decrease of 0.003% from the previous week.
This drop in cobalt prices is worrying for the DRC, which largely depends on this mining resource for its economy. With nearly 70% of the world’s cobalt reserves, the country finds itself facing a major challenge.
In addition to cobalt, other mining products exported by the DRC are also affected by this downward price trend. Tin should therefore experience a drop of 0.93% this week, while copper should increase slightly by 27.75 USD per tonne.
However, not all minerals are impacted by this drop in prices. Gold and zinc are expected to perform well this week, with the price of gold up 0.31% and zinc up 2.99%.
On the other hand, the prices of silver and tantalum remain stable on international markets.
This situation once again highlights the economic dependence of the DRC on its mineral resources, and the need to diversify its economy to cope with such price fluctuations. It becomes essential for the country to develop other sectors, such as agriculture or tourism, in order to reduce its dependence on minerals. A major challenge for the Congolese authorities, who will have to put in place appropriate policies and investments to ensure more balanced economic development.
In conclusion, the decline in prices of cobalt and other mining products on international markets poses a major challenge for the DRC. It is crucial for the country to diversify its economy and develop other sectors, in order to reduce its excessive dependence on mineral resources. An economic transition which will require significant efforts and investments, but which is essential to ensure sustainable and balanced development of the DRC.