Truckers Strike in DRC Strands Copper and Cobalt Supplies
A truckers strike in Kolwezi, Democratic Republic of Congo (DRC), has left copper and cobalt produced by companies such as Glencore and CMOC stranded, impacting global supplies of these crucial materials.
As the strike enters its third week, around 2,700 trucks carrying approximately 89,000 metric tons of copper are immobilized in Kolwezi.
Copper is essential for power generation and construction, while cobalt is a key component in rechargeable batteries used in electric vehicles, making both materials vital for the ongoing energy transition.
A Reuters survey in November revealed expectations of a small copper market surplus of approximately 112,000 tons for the year, which could turn into a deficit if the strike persists.
The DRC, as the world’s third-largest copper producer and the largest cobalt producer, is significantly impacted by this strike. Truck drivers who transport minerals from Kolwezi to Zambia and then to coastal ports have demanded logistics firms pay an additional $700 as a risk allowance per journey.
Major suppliers, including Ivanhoe Mines, CMOC, Glencore, and Sicomines, have been affected, causing disruptions to the production and transport of copper and cobalt materials. However, these companies have not officially commented on the situation.
Hippy Tjivikua, CEO of Walvis Bay Corridor Group, explained that truck drivers are seeking incentives to operate in the DRC due to the risks associated with transporting valuable copper and cobalt materials. Their demand for a danger allowance reflects concerns about theft during transportation.
Last year, the DRC supplied the world with 76% (approximately 141,500 tons) of cobalt, according to mining and metals company Darton Commodities.
