Cuts announced in mines in Congo, world's largest producer.

Cobalt is increasingly at risk of supply deficit in 2019. Recently announced capacity cuts by Eurasian Resources Group Sarl (ERG) and Glencore in the Democratic Republic of Congo -- the world's largest producer -- could impact about 9,000 tons of mined output. BloombergNEF originally forecast global mined cobalt supply to be sufficient to meet demand of 156,000 tons this year. That looks unlikely now, unless new capacity comes up outside of Congo.

ERG announced on Feb. 19 plans to halt production at the Boss mine, as it assesses feasibility of new processing lines. Glencore also announced labor cuts (not yet production halts) at its Mutanda mine. Its Kamoto mine was suspended in a dispute with the Congolese government last month. Capable of producing up to 15,000 tons of cobalt, Kamoto had planned only 6,000 tons of output this year.

Democratic Republic of Congo's cobalt output by mine, 2019