The Democratic Republic of the Congo (DRC)’s response to artisanal cobalt mining: The Entreprise Générale du Cobalt (EGC)

Abstract

The Democratic Republic of the Congo (DRC) supplies the vast majority of the world's cobalt used for the production of battery critical to the green transition. An important part of this production originates in the pits of artisanal miners operating in the provinces of Lualaba and Haut Katanga. In 2018 the DRC government established the Entreprise Générale du Cobalt (EGC) to address the issues faced by these miners, implement taxation on their production, and respond to reputational risks feared by the industry. The newly established state-owned company, officially operating since 2021, will buy and sell the production of artisanal miners and act as a monopoly on all cobalt artisanal materials, effectively controlling 15 to 30 percent of the country's output. Inscribed in historical continuities, the EGC's structure is nevertheless profoundly different from previous attempts at controlling artisanal production. Its close partnership with a Swiss trader, as well as its internal structures geared toward responsible sourcing, make the company an anomaly in the landscape of cobalt mining. Nevertheless, expectations are high around the new entity. This article addresses these expectations all along the supply chain and provides an overview of the EGC's challenges in the years to come. Even more, it identifies avenues for potential studies to explore as the company will become a critical player on the world's stage as governments and companies transition to greener strategies.