An Obsolescing Bargain in a Rentier State: Multinationals, Artisanal Miners, and Cobalt in the Democratic Republic of Congo

Brett Zeuner

doi:10.3389/fenrg.2018.00123

Abstract

Drawing from theories on the political-economy of natural resources, this paper broadens the discussion surrounding cobalt sourced from the former Katanga region of the Democratic Republic of Congo; specifically, the use of that cobalt in rechargeable lithium-ion batteries as energy storage in electrified transportation and distributed energy systems. Two theories, Rentier State and Obsolescing Bargaining, are applied to the cases of multinational and artisanal cobalt mining operations in the former Katanga region. Risks between the DRC government and multinational cobalt mining companies are compared to the risks present in artisanal cobalt mining. Additionally, this paper explores how the decision to include or exclude Congolese, artisanal cobalt from supply chains involves broader questions of bargaining power, political stability, and resource dependency. Additionally, this paper expands consideration to explore how the inclusion of artisanal cobalt in the supply chain might impact political stability and corruption in the DRC, rather than focusing on how Western or Chinese purchasers of electrified vehicles, for example, might perceive the suitability of the product’s supply chain. By relating artisanal cobalt mining to multinational mining companies and the broader political issues present in the DRC, decision-makers can better consider current and historical outcomes as part of a broader political-economy that includes both artisanal and multinational mining. Furthermore, this paper hopes to provide a robust argument for the transparent and intentional inclusion of artisanal cobalt in electrified vehicle supply chains to make the transition to low-carbon transportation more sustainable through improvements to measures of social sustainability in the DRC.

Highlights

As discourse grows regarding the question of whether to include or exclude artisanal cobalt from electrified transportation supply chains, media coverage addressing such concerns has largely left out cross-comparisons between large-scale, multinational, and small-scale, artisanal cobalt mining operations.Obsolescing Bargaining of DRC Cobalt MiningWith countries from China to Norway adopting electrification mandates for transportation systems, the demand for cobalt has been expected to grow dramatically1,2
If the planet must reduce carbon emissions to avoid climate risks in the future, what sacrifices are willing to be made in this transition? More importantly, what are the justice implications of such transitions and how can transitional justice be realized in the electrification of vehicles in the twenty-first century? If cobalt can be substituted, what are the potential social impacts to ASMdependent creseurs in the DRC from such a technological shift?
As argued in this paper, the extraction of cobalt through partnerships between multi-national mining companies and the government reinforces political instability and corruption. This is significant as it relates to the incidence of future conflict and the proliferation of artisanal cobalt mining

Summary

INTRODUCTION

As discourse grows regarding the question of whether to include or exclude artisanal cobalt from electrified transportation supply chains, media coverage addressing such concerns has largely left out cross-comparisons between large-scale, multinational, and small-scale, artisanal cobalt mining operations. With more than half of the estimated 110,000 metric tons of cobalt extracted globally in 2017 being of DRC-origin, it is likely that the use of cobalt in future electrified vehicles will continue to include Congolese cobalt. In Spring 2018, news outlets, like CNN and CBS News, covered the topic of artisanal cobalt from the DRC, with a focus on child labor in the supply chain of electrified vehicles. In Spring 2018, news outlets, like CNN and CBS News, covered the topic of artisanal cobalt from the DRC, with a focus on child labor in the supply chain of electrified vehicles10,11 For this reason, electric vehicles will be the main industry considered here as their adoption represents initiatives in both low-carbon energy and transportation system reforms. This paper argues that such partnerships exacerbate socio-political risks through the reinforcement of authoritarian governments and their financial autonomy from the citizenry

BACKGROUND

Findings

DISCUSSION

CONCLUSION