However, the situation is complex.Įvery day, tens of thousands of people in the DRC try to scrape out small amounts of mineral ore on the periphery of the large-scale mining operations. Aware of this concern, large mining companies such as Glencore, based in Switzerland, typically assert that their output includes only cobalt from large industrial mines. They regard it as a risk to their reputation, a perspective reinforced by investors.
Most car-manufacturing and electronics companies try to avoid including ASM cobalt in their supply chains. The challenge of making mining accountable
Because of the proximity of informal and formal operations, and a lack of effective regulation, artisanal operations are intrinsic to the overall cobalt supply chain. Operating on the periphery of large industrial mining sites, ASM miners use makeshift methods to dig deep tunnels from which they collect cobalt ore and employ an estimated 25,000 children. The typical battery for an electric vehicle contains about 8kg of cobalt and global demand is projected to triple by 2035.Īt least 70 per cent of cobalt comes from the DRC, of which between one-sixth and one-third is produced by informal or artisanal small-scale mining (ASM). Yet battery-powered cars and trucks depend on cobalt, a mineral found primarily in the Democratic Republic of Congo (DRC), where child labour and unsafe mining conditions are common. We’ll send you a myFT Daily Digest email rounding up the latest Masters in Management news every morning.ĭemand for electric vehicles has increased sharply in response to concern about climate change.
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