DRC establish new laws for cobalt mining

The Democratic Republic of Congo (DRC) has implemented new regulations establishing a state-controlled monopoly over the production and export of artisanal cobalt.

Under a decree issued by the prime minister and mines minister on 21 February, the state-owned Entreprise Generale du Cobalt (EGC) now has exclusive rights to export cobalt sourced from small-scale, hand-dug mining operations.

This initiative is part of the government’s broader strategy to strengthen its influence over cobalt pricing, particularly following recent market fluctuations. The move follows a four-month suspension of cobalt exports announced earlier in the week.

Economic impact

The decree specifies that only EGC can purchase and trade artisanal cobalt, either directly or through approved partnerships. Additionally, industrial mining companies are now prohibited from mixing their cobalt with uncertified artisanal sources. However, companies may collaborate with EGC to integrate artisanal mining into their concessions legally, reducing illegal ore extraction.

The downturn in artisanal cobalt production has had a significant economic impact on Congolese miners, as profit margins have declined. To mitigate the effects of the export suspension, EGC CEO Eric Kalala stated that the company would buy and stockpile cobalt from small-scale miners during this period.

Independent processing facilities, which typically acquire cobalt from artisanal miners, are now restricted from exporting the metal. The Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS) has called for their export licences to be revoked immediately. However, these facilities may still refine cobalt in partnership with EGC and continue processing other minerals like copper.

This new monopoly does not impact major industrial producers such as Glencore, CMOC Group, and Eurasian Resources Group, which collectively account for about 75% of the global cobalt supply. The recent decline in cobalt prices, driven in part by CMOC’s increased output from its DRC mines, has led some artisanal miners to shift their focus to gold and copper extraction instead.

According to trading firm Darton Commodities, artisanal cobalt mining contributed only around 2% of the DRC’s total cobalt output in 2024, a sharp decline from peak levels in 2018. The artisanal mining sector has long faced scrutiny due to unsafe working conditions and the prevalence of child labour. The government’s move to establish EGC as the sole exporter is intended to address these ethical concerns while ensuring a more stable and transparent supply chain for cobalt, particularly during times of high demand.