What You Need to Know
The Democratic Republic of Congo has announced the production of its first 1,000 metric tons of traceable artisan cobalt, marking a significant step towards regulating this vital sector. The country holds around 72% of the world’s cobalt reserves and supplies over 74% of the global market, primarily from informal artisanal mines. This initiative aims to improve supply chain transparency.
Africa. The government agency responsible for cobalt in the Democratic Republic of Congo has announced the production of its first 1,000 metric tons of traceable artisan cobalt, marking a significant step towards regulating this sector in a country that is one of the world’s leading suppliers of minerals used in batteries.
Congo holds about 72% of the world’s cobalt reserves and provides over 74% of the supply, most of which comes from informal artisanal mines.
Artisanal mining is a vital source of income in Congo, employing between 1.5 to 2 million people and indirectly supporting over 10 million.
Unregulated cobalt mining evades official oversight, making it difficult to trace and susceptible to government confiscation, which reduces the availability of ethically sourced materials and drives up the prices of traceable cobalt.
In an effort to curb excess production and support prices, Congo imposed export quotas in October after a months-long ban.
The regulatory body “Ariskom” manages this system, which restricts exports and encourages local processing by reducing the appeal of exporting raw cobalt.
The state-owned Cobalt Corporation, established in 2019, announced the production of its first 1,000 tons of traceable artisan cobalt during a ceremony held last Thursday in Kolwezi, the cobalt production hub in the Democratic Republic of Congo.
The corporation stated that the traceability model it adopts will contribute to cleaning the supply chain and aligning production with international environmental and social standards.
Executive Director Eric Kalala stated during the launch, “Our vision is to transform artisan cobalt into a strategic asset under Congolese control,” adding, “Every ton purchased by the Cobalt Corporation must reflect not only the value of the metal but also the dignity of those who extract it.”
The International Energy Agency expects global demand for cobalt to rise by 40% by 2030, driven by the expansion of the electric vehicle and energy storage markets.
Automakers and electronics companies are under increasing pressure to prove ethical sourcing, prompting producers to eliminate child labor and unsafe practices.
The Cobalt Corporation plans to expand its production beyond the initial 1,000 tons, adding refining capabilities and increasing its share of the artisanal market, according to the corporation’s director. The company has not disclosed how it plans to market or sell this initial quantity.
The Democratic Republic of Congo (DRC) is a major player in the global cobalt market, holding a significant share of the world’s reserves. The country has faced challenges with unregulated mining practices, which have led to concerns about ethical sourcing and labor conditions. Recent efforts to introduce traceability in cobalt production aim to address these issues and improve the overall sustainability of the industry.
Artisanal mining in the DRC is a critical source of livelihood for millions, yet it often operates outside formal regulations. The government’s push for traceable cobalt production is part of a broader strategy to enhance the sector’s governance, ensuring that the benefits.
