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DRC State Firm Targets Deals to Curb Illegal Cobalt Digging

Bloomberg Markets •
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The state-owned entity monopolizing the purchase of hand-dug cobalt in the Democratic Republic of Congo (DRC) is actively pursuing new collaborations with large-scale industrial producers. This strategic move aims to exert greater control over the rampant illegal mining activities occurring within the concessions of these major operations. The head of the state group confirmed this push for expanded partnerships in a recent interview.

Currently, the entity holds the exclusive right to procure artisanal cobalt, a critical mineral often sourced under questionable labor conditions. By integrating with industrial miners, the government seeks a more comprehensive oversight mechanism to trace the supply chain and potentially formalize the artisanal sector's output, thereby reducing the shadow economy.

These proposed agreements are designed to create direct channels for monitoring and potentially integrating artisanal miners working near or on industrial sites. The long-term objective is to tackle systemic issues related to artisanal and small-scale mining (ASM), which frequently involves safety hazards and a lack of traceability for international buyers reliant on DRC's substantial cobalt reserves.

The head of the state-owned purchasing group articulated that these partnerships represent a crucial step in stabilizing the market and ensuring compliance. Cobalt producers are being approached to establish frameworks that acknowledge the presence of artisanal diggers while formalizing the extraction process near their approved mining blocks.