Congo halts artisanal copper and cobalt processing amid corruption crackdown

Democratic Republic of Congo has suspended artisanal copper and cobalt mineral processing, according to a decree seen by Reuters, in an effort to improve transparency and prevent illegal exports, a pervasive problem in the mineral-rich nation.

Congo, the world's top cobalt supplier contributing around 70% of global output, has wrestled for decades with illegal, artisanal mining that diverts revenue away from the nation's coffers.

The decree, dated 19 December and signed by mines minister Louis Watum Kabamba, orders all entities that process and market artisanal copper and cobalt to suspend operations and certify the origin of minerals used.

A commission would be set up to carry out compliance and to verify the traceability and legality of supplies, the document said.

Reuters could not determine the likely impact on illegal exports and Congo's government had no figures.

"This suspension will be an opportunity to identify the flow and volume of minerals processed by the processing units," a source at the president's office said.

LICOCO, a Congolese nongovernmental group that aims to fight corruption in the sector said many entities operating illegally paid bribes to obtain their permits to circumvent the requirements laid out in the mining code.

Congo launched its first batch of traceable artisanal cobalt in November to clean up the supply chain and align production with international environmental, social and governance standards.

Artisanal mining is a lifeline for many in Congo, employing an estimated 1.5 million to 2 million people and supporting more than 10 million people indirectly.

But unregulated output is difficult to track, risks being confiscated by the government and pushes up the price of ethically produced, traceable cobalt.