Congo produces the first 1,000 tons traceable artisanal Cobalt

The state cobalt company in the Democratic Republic of Congo produced the first 1,000 metric tonnes of traceable artisanal. This is a major step towards formalizing this sector in a nation that supplies a large portion of the world’s battery metal.

Congo is home to 72% of the world's cobalt reserves, and 74% of its supply comes from artisanal mining.

Artisanal mines are a lifeline in Congo. They employ between 1.5 and 2 million people, and indirectly support more than 10 millions people.

Cobalt that is not regulated can be difficult to track, and the government may confiscate it. This uncertainty leads to a reduction in the amount of ethically-sourced materials and increases prices for traceable material. Congo, after months of export bans and a desire to control oversupply while supporting prices, introduced export quotas on October 1st.

ARESCOM's quota system restricts exports while promoting local processing. It does this by making it less appealing for producers to export raw cobalt.

At a ceremony held in the Congolese mining city Kolwezi, Entreprise Generale du Cobalt announced that it had produced its first 1,000 tonnes of traceable artisanal copper. The company's traceability model is expected to clean up the supply chains and align production standards with international environmental and social standards.

At the launch of the company in Kolwezi (the heartland for Congo's cobalt industry), CEO Eric Kalala stated that the vision was to turn artisanal cobalt from a commodity into a strategic resource under Congolese management.

"Each ton of mineral purchased by EGC should reflect the dignity of the people who mine it as well as the value of that mineral."

According to the International Energy Agency, global cobalt consumption is expected to increase by 40% by 2030 due to demand for electric cars and energy storage.

Automobile and electronics companies are increasingly requiring proof of ethical sourcing. This puts pressure on the producers to stop child labor and unsafe working practices.

EGC intends to expand beyond its initial 1,000 tons, while adding refinery capacity and capturing an increased share of the artisanal markets, Kalala stated.

EGC has not disclosed how the first 1,000 tons of coal will be sold or marketed.

(source: Reuters)