DRC Partners with Buenassa for Pioneering Copper-Cobalt Plant
The Democratic Republic of Congo (DR Congo) has embarked on a strategic initiative to formalize artisanal mining while contributing to the global shift towards electric vehicles.
DR Congo is a major player in the green-energy transition, being a leading supplier of cobalt, a crucial element in electric vehicle batteries, and ranking among the world’s top copper producers.
To bolster these efforts, DRC is throwing its support behind Buenassa, a domestically owned company, to establish a new copper-cobalt plant.
This pioneering project is set to cost approximately $350 million, with Delphos International, a financial consulting firm based in Washington, assisting in securing financing.
This initiative represents a pivotal moment for the nation’s mining sector. Buenassa, led by Congolese entrepreneur Eddy Kioni, is collaborating with Entreprise Generale du Cobalt (EGC), a state-owned entity with exclusive rights to all hand-dug cobalt in DR Congo.
EGC, founded in 2019 to formalize and enhance conditions for artisanal mining, is at the forefront of this transformative endeavor.
Originally planned to produce 30,000 tons of copper cathode and 5,000 tons of cobalt hydroxide, the Buenassa project is poised to expand significantly with the backing of Delphos and the government.
The new smelter facility will play a central role in concentrating cobalt from the artisanal sector, ensuring greater wealth distribution within the country.
In addition to sourcing minerals from artisanal miners, Buenassa intends to process industrial ore, enhancing the smelter’s profitability.
The company is also in discussions with a US-based commodities trader to market its output, marking a crucial shift from traditional export routes to China.
The involvement of Delphos International underscores the growing emphasis of western governments on securing vital minerals like copper and cobalt, reducing reliance on China.
Delphos International Chairwoman Roya Rahmani highlighted that Buenassa’s project aligns with the geopolitical goals of the United States.
The decision to support this initiative is partly influenced by a US agreement to bolster the electric vehicle value chain, an agreement between DR Congo and neighboring Zambia.
DR Congo’s minerals have typically been exported to China for final refining. While the specifics of the ongoing renegotiation of the minerals-for-infrastructure deal between DR Congo and China remain undisclosed, Buenassa stands to benefit as DR Congo seeks greater control over this pivotal agreement, marking a significant milestone in the nation’s economic transformation.
