World: in 2020, four mines located in the DRC produced nearly 41% of the world’s cobalt

Four mining companies based in the Democratic Republic of Congo produced nearly 41% of the cobalt stock produced worldwide, according to a report by the NGO Natural Resource Governance Institute (NRGI).

These companies include Kamoto, Tenke Fungurume, Metalkol RTR and Etoile operating in a market that concerns relatively few countries and companies.

According to this report, this concentration entails significant geopolitical and investment risks for the Governments of the countries consuming and producing cobalt, as well as for companies in the supply chain.

To date, the cobalt market is dominated by two countries. These include the Democratic Republic of Congo which produces 68% of world production
of ore, concentrate and intermediate cobalt.

The Congolese state thus has considerable market power and poses a significant risk to consumers.

By comparison, the Organization of Petroleum Exporters (OPEC) controlled only 50% of the oil market, even at its peak in the 1970s.

However, the DRC’s market power is tempered by the fact that it must sell its resources to a single buyer. China refines and consumes about half of the world’s cobalt production. Even within the DRC, production is even more concentrated.

In 2020, the cobalt reserves of the Democratic Republic of Congo were estimated at 3,600 million tonnes, representing more than 50.7% of the world’s reserves of this mineral.

This position on the market propels the DRC to the forefront of cobalt-producing countries in the world, far ahead of Australia, which comes in second place in the ranking.

The same document indicates that from 2015 to 2019, the Democratic Republic of Congo produced 85,255 tons of cobalt, or more than 60.92% of total world production.

During the same period, the country only refined 9,050 tonnes of cobalt internally, or 4.9% of total world production.