In a move to exert greater control over its cobalt resources and stabilise prices, the Democratic Republic of Congo (DRC) has established a state monopoly on the production and export of artisanal cobalt.
New regulations, enacted on February 21 by the DRC’s prime minister and mines minister, grant exclusive rights to the state-owned Entreprise Generale du Cobalt (EGC) to export hand-dug cobalt.
This decision follows a four-month suspension on cobalt exports and aims to capitalise on the DRC’s pivotal role in the global supply of this critical battery metal.
The ministerial decree explicitly states that EGC holds the “exclusive right” to purchase and trade hand-dug cobalt, either directly or through partnerships.
Furthermore, industrial producers are now prohibited from mixing their minerals with non-certified sources of artisanal cobalt.
The new regulations also allow companies to collaborate with EGC, permitting artisanal mining on their concessions without the risk of penalisation.
This could potentially reduce ore theft from industrial sites, a persistent problem in the region.
EGC CEO Eric Kalala stated that the company plans to purchase cobalt from artisanal miners during the suspension period and stockpile it to mitigate the impact of the export ban.
Independent processing facilities, which traditionally buy from artisanal miners, are now barred from exporting cobalt.
The Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS) has called for the revocation of their export licences with immediate effect.
However, these facilities may still process cobalt in partnership with EGC and continue refining copper and other metals.
The new monopoly will not affect major industrial mining companies such as Glencore, CMOC Group, and Eurasian Resources Group, which dominate cobalt production in the DRC and contribute approximately three-quarters of the global supply.
The recent slump in cobalt prices, driven in part by increased output from CMOC’s mines, has led many artisanal miners to shift to other minerals like gold and copper.
According to Darton Commodities, this market downturn resulted in artisanal mining volumes dropping to as low as 2 per cent of the country’s total output in 2024, a significant decrease from peak levels in 2018.
The artisanal mining sector in the DRC, while providing essential income, has faced criticism for hazardous working conditions and child labour.
The formation of EGC is part of a government effort to address these concerns and ensure a consistent supply of ethically sourced cobalt, particularly during periods of higher prices.
