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Investing.com -- Shares of Ecora Resources (LON:ECORE) rose Monday after the Democratic Republic of Congo said it will lift its cobalt export ban and impose quotas, while Rainbow Rare Earths reported positive test results at its Phalaborwa project in South Africa.
The Congolese government said the export ban will end Oct. 16. Under the new rules, cobalt shipments will be capped at 18,125 tons for the rest of 2025.
Annual quotas of 96,600 tons will apply in 2026 and 2027. Authorities said 10% of future volumes will be reserved for strategic projects, and the quotas may be revised depending on market conditions or progress in local refining.
Cobalt accounted for about half of Congo’s output in 2024 and 44% of global supply, according to RBC Europe. The new restrictions are expected to shape availability in the coming years.
Rainbow Rare Earths said its Phalaborwa project advanced after tests confirmed the successful incorporation of a cerium depletion step in its processing flowsheet.
The company said the improvement enhanced the quality of the mixed rare earth product and reduced the volume of material entering the separation circuit. The change is expected to lower capital and operating costs for that stage of production.
The project aims to recover and separate rare earth elements from phosphogypsum stacks, a waste product of phosphoric acid production.
Rainbow Rare Earths said it is now working to finalize the separation component of the flowsheet, which it expects to complete in the fourth quarter of 2025.
Ecora Resources holds a 0.85% gross revenue royalty on the Phalaborwa project. "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," said analysts at RBC Capital Markets in a note.