Congo Mines Minister Aims to End Artisanal Cobalt Monopoly, Reports Reuters

By Helen Reid

CAPE TOWN – Antoinette N’Samba Kalambayi, the Mines Minister of the Democratic Republic of Congo, is moving to revoke a decree that grants Entreprise Generale du Cobalt (EGC) exclusive rights over artisanal cobalt production in the country, as she informed Reuters on Wednesday.

Established by a government decree in December 2019 to buy, process, and market artisanal cobalt, EGC officially began operations on March 31 of the previous year but has not yet purchased any cobalt ore. Artisanal miners in the Congo, who extract cobalt using basic tools, are the world’s second-largest supplier of this critical metal, primarily used in electric vehicle batteries, following the country’s industrial mines.

EGC, which is a subsidiary of the state mining company Gecamines, has faced setbacks due to internal disputes among government departments, changes in leadership at Gecamines, and difficulties in securing access to viable artisanal mining sites.

When asked about EGC, Kalambayi remarked, “I wouldn’t say I am for or against, but one thing is certain: granting the monopoly to Entreprise Generale du Cobalt (EGC) violates our national laws.” She clarified that her intention is not to dissolve EGC but to eliminate its legal monopoly, allowing other companies to compete for the purchase of artisanal cobalt.

EGC did not immediately respond to requests for comments regarding the minister’s statements.

During the Mining Indaba conference in Cape Town, Kalambayi mentioned that her proposal to cancel the monopoly decree would undergo review by the ministerial council and the prime minister, though she did not provide a specific timeline for this process.

The government faces challenges in bringing artisanal mining into the formal economy, especially since many industrial cobalt mines contend with unauthorized artisanal miners operating on their concessions. Kalambayi expressed support for companies willing to formalize this sector, noting that Congolese law permits industrial mines to allocate portions of their licenses for artisanal mining.

“Formalization is a priority for me because the Republic is losing out,” she stated, indicating losses not just in uncollected taxes but also in significant amounts of cobalt that are being smuggled out of the country.

In the Congo, artisanal mining is legally restricted to designated zones, but it often occurs outside these areas due to a lack of available sites with profitable deposits. Addressing the influence of vested interests in the artisanal mining sector, particularly where some politicians have stakes in mining cooperatives, Kalambayi assured, “We are restructuring all of that.”

A representative from commodities trader Trafigura, which entered into a supply agreement with EGC in November 2020 and provided a $5 million loan last year in exchange for cobalt deliveries, commented that the company typically refrains from commenting on ministers’ statements. However, the representative affirmed Trafigura’s commitment to assisting the government in the formalization of the artisanal sector.

According to Trafigura’s estimates, artisanal mining is projected to account for up to 30% of the Democratic Republic of Congo’s cobalt exports this year.