Artisanal Cobalt Mines Vital to Global Production
Cobalt buyers must push for reforms to regulate the operations of artisanal mines in the Democratic Republic of Congo, as they are crucial in meeting the growing demand for the metal used in electric vehicles and consumer electronics, according to a new report.
A paper published by the Geneva Center for Business and Human Rights and the NYU Stern Center for Business and Human Rights stated that cobalt buyers face a challenge when trying to differentiate between the production from industrial mines and the significant output from artisanal small-scale mining (ASM).
The report emphasized that without ASM cobalt, buyers will not be able to meet the projected fourfold increase in global demand by 2030. Congo accounts for nearly 70% of the world’s cobalt supply, with most of it produced by multinational companies such as Glencore and CMOC Group. However, ASM can make up almost 20% of Congo’s output during high prices, according to Darton Commodities.
The formalization of ASM practices would help tackle the root causes of human rights abuses, reduce extreme poverty among workers’ communities, and enhance site-safety standards, the report said.
The report analyzed the results of a pilot project working with artisanal miners at the Mutoshi mine in southeastern Congo from 2018 to 2020. The project was run by Trafigura Group, Congolese miner Chemaf, the NGO Pact, and a local mining cooperative.
The report found that formalization can improve miner safety, encourage female participation, and reduce child labor. However, the report also noted that many practices put in place are no longer being observed, and conditions have worsened.
Trafigura and Chemaf ended the project due to the impact of Covid-19 and Congo’s decision to establish a state-owned artisanal cobalt monopoly. However, they continue to work together through Chemaf’s industrial mining operations in Congo.
James Nicholson, Trafigura’s Head of Social Responsibility, stated that the company remains a strong advocate for the formalization of the ASM cobalt sector in the DRC and looks forward to supporting the government and other stakeholders in taking formalization to scale.
