Key measures implemented
- 1. Temporary export suspension
- The Democratic Republic of Congo has implemented a temporary export suspension on all cobalt, encompassing every type of mining operation from industrial to artisanal. This
- comprehensive ban will remain in effect for four months, during which time no cobalt exports will be permitted from the country. The authorities have scheduled an evaluation of this
- measure after three months, allowing for the possibility of modifications or even early termination of the suspension based on their findings.
- 2. Strict separation of artisanal and industrial production
- The new regulations enforce a strict separation between artisanal and industrial cobalt production, prohibiting the mixing of uncertified artisanal or semi-industrial cobalt ores with
- industrial production, and explicitly forbidding the export of any products resulting from such mixing practices.
- 3. Exclusive export rights for artisanal cobalt
- In a significant move to centralize and regulate the artisanal cobalt sector, the Democratic Republic of Congo has granted the General Cobalt Company (Entreprise Générale du Cobalt -
- EGC) exclusive rights to export cobalt sourced from artisanal or semi-industrial mining operations. This decision aims to enhance traceability, improve working conditions, and
- ensure a more equitable distribution of profits within the artisanal mining community, while also providing the government with greater oversight and control over this crucial segment of
- the cobalt industry.
- 4. Adoption of responsible sourcing standards
- The Democratic Republic of Congo has taken a significant step towards improving the ethical and environmental standards of its cobalt industry by adopting the responsible sourcing
- standards of the General Cobalt Company (EGC) as national benchmarks for the entire sector, while simultaneously mandating that all mining operations adhere to both OECD guidelines
- and existing DRC laws and regulations, thereby establishing a comprehensive framework for responsible cobalt production.
- 5. Human rights and labor conditions
- The Democratic Republic of Congo has implemented stringent measures to protect human rights and improve labor conditions in the cobalt mining sector, explicitly prohibiting the
- involvement of children, pregnant women, and vulnerable individuals at mining sites and throughout the entire supply chain, while simultaneously placing a strong emphasis on
- ensuring safe working environments and strict adherence to both national and international human rights directives, thereby aiming to address long-standing concerns and elevate the
- industry's ethical standards.
Implications for the industry
These measures represent a significant shift in the DRC’s approach to managing its cobalt resources. The temporary export ban is likely to cause short-term supply disruptions in the global market, given that the DRC is the world’s largest cobalt producer. The exclusive export rights granted to EGC for artisanal cobalt could lead to more centralized control and potentially improved traceability in the supply chain. However, it may also pose challenges for existing operators in the artisanal mining sector. The adoption of EGC’s responsible sourcing standards as national benchmarks signals a strong commitment to improving the ethical and environmental aspects of cobalt mining in the DRC.
Enforcement and Penalties
ARECOMS has emphasized that violations of these new regulations will be subject to penalties as prescribed in the DRC’s Penal Code and Mining Code. This underscores the government’s determination to enforce these measures strictly.
Conclusion
These regulatory changes mark a pivotal moment for the cobalt industry in the DRC and globally. While aimed at improving the sector’s integrity and sustainability, they are likely to
have far-reaching effects on global supply chains, pricing, and the operational landscape for mining companies in the DRC. Stakeholders in the cobalt industry will need to closely monitor the implementation and impact of these measures in the coming months.
have far-reaching effects on global supply chains, pricing, and the operational landscape for mining companies in the DRC. Stakeholders in the cobalt industry will need to closely monitor the implementation and impact of these measures in the coming months.