AlN bulk ceramic has been implanted with energetic Co ions. In order to accurately characterise the atomic surrounding of the implanted ions. X-ray absorption measurements were carried out at 80 K in the fluorescence mode at the Co K edge in the as-implanted and annealed states. Simulation of the EXAFS oscillations allowed us to identify a first stage where Co is inserted in the AlN matrix followed by a second stage where Co precipitates form.