Under the trading agreement, Trafigura will fund the creation of controlled artisanal mining zones, install ore purchasing stations and create a traceable delivery system for cobalt hydroxide.
EGC must ensure that the ore marketed by Trafigura complies with the OECD's ‘Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas'.
"Today's announcement is very important for the Congolese artisanal cobalt sector," said Jean-Dominique Takis Kumbo, EGC's managing director. "For our country to benefit from the intrinsic value of cobalt, currently boosted by the development of carbon-free energies, it was essential that measures be taken to support the formalisation of this industry."
More than 70% of the global production of cobalt takes place in the DRC, of which 15-30% comes from so-called artisanal and small-scale mines (ASM)
Earlier this week, German carmaker Volkswagen joined the ‘Cobalt for Development initiative' as part of its efforts to improve artisanal cobalt mining conditions in the country. That initiative initial focuses on 12 artisanal cobalt mining cooperatives in and around Kolwezi in the south.
Trafigura's executive chairman and chief executive, Jeremy Weir, said: "Artisanal mining provides an important livelihood in the DRC. Ultimately, the legitimacy of efforts to formalise and bring controls to the sector will depend on broad-based consultation and assurance that OECD standards will be upheld."
