DRC in dispute with Chinese firm amid push for responsible sourcing

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State cobalt buyer is cleaning up to reassure car and battery makers about human rights abuses in mining

Workers at Tilwizembe, a former industrial copper-cobalt mine outside Kolwezi, the capital city of Lualaba province in the DRC, in 2016. Picture: REUTERS/KENNY KATOMBE

But EGC’s plans to start buying cobalt in September from the mine have been disrupted by China’s Zhejiang Huayou Cobalt. Bryce Lee, head of corporate social responsibility at Zhejiang Huayou Cobalt, said the company is in “friendly negotiations” with EGC over Kasulo. The dispute highlights the DRC’s challenges as it seeks to be a responsible source of the metal used to make electric vehicle batteries, and to secure a greater share of the profits from its mineral wealth.

EGC's responsible cobalt standard, set out in March, bans tunnelling on its sites and says pits must not exceed 10m in depth. That means Kasulo will have to be remodelled before EGC can source from it. Lee said that letter “did not align with the formal agreement that is in place”. He also sent Reuters the cover page of a June 2017 agreement between the Lualaba government and CDM, but declined to share the entire document.Reuters could not determine whether the government decree establishing EGC’s monopoly rights voids CDM’s contract with the provincial mines ministry.

 

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