The state cobalt agency in the Democratic Republic of Congo has produced its first 1,000 metric tons of traceable artisanal cobalt, marking a significant step in formalizing the sector in a country that supplies a large share of the world’s battery metal.
Congo holds about 72% of global cobalt reserves and accounts for over 74% of global supply, much of it sourced from informal artisanal mines.
Artisanal mining is a vital lifeline for the country, employing an estimated 1.5 million to 2 million people directly and supporting more than 10 million people indirectly.
Unregulated cobalt avoids official oversight, making supply difficult to track and vulnerable to government confiscations, which reduces the amount of ethically sourced material and raises prices for traceable cobalt.
To curb oversupply and support prices, Congo introduced export quotas in October following a months-long export ban, according to Reuters.
Don’t Miss This:
Congo’s Cobalt Producers Still Await Export Approvals Under New Quota System, Sources Say
The quota system, managed by regulator ARESCOM, restricts exports and promotes local processing by discouraging producers from shipping out raw cobalt.
Entreprise Générale du Cobalt (EGC), created in 2019 as a subsidiary of state-owned miner Gécamines, announced its first 1,000 tons of traceable artisanal cobalt at a ceremony in the Congolese mining town of Kolwezi on Thursday.
The company said its traceability model will clean up the supply chain and align production with international environmental, social, and governance standards.
“The vision is to transform artisanal cobalt into a strategic asset under Congolese control,” EGC CEO Eric Kalala said at the launch in Kolwezi, the heart of Congo’s cobalt production.
“Every ton purchased by EGC must reflect not only the value of the mineral, but also the dignity of those who extract it.”
Global demand for cobalt is projected to rise 40% by 2030, driven by the growth of electric vehicles and energy storage, according to the International Energy Agency.
Automakers and electronics companies increasingly require proof of ethical sourcing, putting pressure on producers to eliminate child labor and unsafe practices.
EGC plans to expand beyond the initial 1,000 tons while increasing refining capacity and capturing a larger share of the artisanal market, Kalala said.
The company did not disclose how the inaugural 1,000 tons will be marketed or sold.
Don’t Miss This:
Congo Republic In Talks With European Partners On Potential Debt-for-Nature Swap
Image Credit: SWI swissinfo.ch
