Rampant cobalt smuggling and corruption deny billions to DRC economy

The Democratic Republic of the Congo (DRC) is the world’s leading cobalt producer, contributing around 70% to global production. However, complex levels of organised crime occur along the supply chain of this strategic mineral from the DRC. These include illegal mining, smuggling and collusion between illegal miners, organised criminal gangs, and state-embedded actors involved in its extraction and trade.

Cobalt plays a crucial role in powering modern technology. It’s used to produce lithium-ion batteries, integral to electric vehicles, computers and smartphones. With the increasing shift towards renewable energy sources, there’s a massive demand for these batteries. Global demand for cobalt is projected to quadruple by 2030, primarily for electric vehicles.

The DRC has at least three ownership and operation levels for cobalt mining. In 2019, the government granted the Entreprise Générale du Cobalt the monopoly to acquire, process and market all artisanal cobalt produced in the country. It also established an authority to oversee and manage the production and export of minerals considered crucial to the DRC’s economic and national security. Lastly, multinational corporations launched emerging responsible cobalt sourcing programmes to mitigate supply chain risks by formalising artisanal cobalt production.

But the State lacks the capacity to monitor and enforce compliance, enabling local and foreign mining licensees to operate outside the rules of engagement.

Many foreign companies with mining licences don’t produce Congolese cobalt themselves, due to the country’s instability and volatility — instead sourcing it through artisanal miners. Around 150,000 to 200,000 artisanal miners work cobalt deposits in the DRC, and another million people depend on these miners’ incomes.

The Mining Code stipulates that any adult citizen who wants to participate in the artisanal extraction of mineral resources must be a member of an authorised mining cooperative. To join such a cooperative, one must hold an artisanal mining permit — which is provided once miners have completed a formal registration process. Although they lack permits and are as such illegal miners, many don’t see their mining activities as unlawful and believe the minerals are rightfully theirs.

Artisanal cobalt miners tend to occupy mines in remote territories where it’s harder for the state to access and control. Those from surrounding communities sometimes buy protection (in cash or minerals) from the armed groups who control these isolated sites so they can extract the mineral. They sometimes sneak into the mines at night to work.

Track and trace impossible

Human and environmental crisis