Tantalite is trading in a $100-$105 per lb range on the European spot market, its highest levels since April 2023 and a 25% increase since unrest started in January.

Tantalite contains tantalum, a metal used for capacitors, medical devices and components for nuclear reactors.

"The conflict that is affecting the Eastern DRC is making legitimate tagged tantalite hard to come by," said a minor metals trader.

"You may place an order for material in a province that is unaffected by the conflict, only for the rebels to take over the area within two weeks of signing any deal."

The DRC has experienced a surge in violence since Rwandan-backed M23 rebels launched a major offensive.

This is why many Western smelters are not sourcing tantalum from the DRC and Rwanda, Sian Morris, Senior Analyst for critical minerals at information provider Argus, said.

"They are instead sourcing material from Burundi, Mozambique, and Ethiopia. But supply from these countries is much smaller, so they are paying much higher prices."

According to the United States Geological Survey, DRC and Rwanda together accounted for over 58% of global tantalum production in 2024, amounting to 1,230 metric tons.

By comparison, Burundi, Ethiopia and Mozambique combined accounted for just 4.6% global supplies.

"There are no short-term swing producers to bring on tantalite production, except for artisanal mining which has both ESG (Environmental, Social, and Governance) and traceability concerns," said Piyush Goel, Consultant at CRU Group.

DRC's rich mineral resources have attracted the attention of the United States under President Donald Trump.

His senior adviser for Africa said on Monday DRC and Rwanda have submitted a draft peace proposal as part of a process meant to end fighting in eastern Congo and attract billions of dollars of Western investment.

--Reuters--