Regulatory overhaul puts halt on DRC cobalt exports

Ore containing copper and cobalt. Source: Paul-Alain Hunt/Unsplash

Government agencies, including the Direction Générale des Douanes et Accises (DGDA) and the Direction Générale des Migrations (DGM), have been tasked with ensuring strict enforcement of the new regulations.

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Arecoms has also introduced stricter guidelines for artisanal cobalt extraction and processing:

• The mixing of cobalt ores from uncertified artisanal or semi-industrial sources with industrially mined cobalt is strictly prohibited.
• Cobalt mining must comply with national laws and the Organisation for Economic Cooperation and Development (OECD) standards.
• Child labour, the presence of vulnerable individuals at mining sites, and unsafe working conditions have been explicitly banned.
• The responsible sourcing standards of Entreprise Générale du Cobalt (EGC) are now the official national standards.
• Artisanal and semi-industrial cobalt exports must be conducted exclusively through EGC.
• Processing entities without a consistent supply source will have their export licences revoked.

Additionally, any agreements between EGC and mining or quarrying rights holders must comply with existing regulations without transferring ownership or rights.

Enforcement and penalties

Arecoms has warned that violations of these new rules will result in criminal prosecution under the DRC’s Criminal Code and Mining Code.

The decision took immediate effect upon its signing.

Tightened control over cobalt production and exports is expected to have a significant impact on global supply chains.

As cobalt is a critical component in electric vehicle batteries and various high-tech applications, the temporary export ban may drive up global prices and force manufacturers to seek alternative sources.