Shares of Ecora Resources (LSE:ECOR) climbed on Monday after the Democratic Republic of Congo announced it would end its cobalt export ban and implement quotas. Meanwhile, Rainbow Rare Earths reported positive testing results at its Phalaborwa project in South Africa.
The Congolese authorities confirmed that the export ban will be lifted on October 16. Under the new framework, cobalt shipments will be limited to 18,125 tons for the remainder of 2025. Annual quotas of 96,600 tons are set for both 2026 and 2027. Officials added that 10% of future production will be allocated to strategic projects, and quotas could be adjusted based on market developments or progress in local refining.
Cobalt represented roughly half of Congo’s output in 2024 and 44% of the global supply, according to RBC Europe. The new regulations are expected to influence availability in the coming years.
Rainbow Rare Earths reported that its Phalaborwa project made progress after testing confirmed the successful integration of a cerium depletion step into the processing flowsheet. The company noted that this improvement enhances the quality of the mixed rare earth product and reduces the volume of material entering the separation circuit, which should lower both capital and operating costs at that stage of production.
The Phalaborwa project is focused on recovering and separating rare earth elements from phosphogypsum stacks, a byproduct of phosphoric acid production. Rainbow Rare Earths said it is now finalizing the separation stage of the flowsheet, with completion expected in the fourth quarter of 2025.
Ecora Resources holds a 0.85% gross revenue royalty on the Phalaborwa project. Analysts at RBC Capital Markets said in a note: “Cobalt represents 30% of ECOR’s 2026e revenue, and we expect the cobalt market to tighten in response to today’s measures, providing upward pressure on prices.”
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