Chinese state-controlled mining company MMG suspended its cobalt processing plant at the Kinsevere mine in the Democratic Republic of Congo (DRC) shortly after its opening due to a price slump and a recent export ban, reported Bloomberg.

MMG halted operations at its Kinsevere mine facility in December 2024 due to unfavourable market conditions for cobalt, a key component in electric vehicle batteries.

The company, which is majority-owned by China Minmetals, had invested up to $600m in a project to boost copper output and initiate cobalt production at Kinsevere.

Despite the investment, the cobalt facility was placed on care and maintenance shortly after commissioning began in September 2023.

The DRC, a major producer of cobalt, has seen a surge in production, particularly by China's CMOC Group, leading to an oversupply that has driven down prices.

Last month, the Congolese Government imposed a four-month export ban aimed at curbing oversupply and exerting greater control over cobalt pricing.

MMG's spokesperson stated that the company has adopted a "flexible production strategy" and will resume cobalt operations based on price evaluations, while also planning to increase copper production by at least 40% this year.

Last year, the company produced 1,600 tonnes (t) of cobalt from the Kinsevere operations and 380,000t of copper from its operations across Africa, Australia and South America. Its most substantial asset is the Las Bambas mine in Peru.

The DRC also initiated a state monopoly to oversee the production and export of artisanal cobalt.

The new regulations grant state-owned Entreprise Generale du Cobalt exclusive rights to export hand-dug cobalt.