Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo - WHITE PAPER SEPTEMBER 2020 - Weforum
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Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo WHITE PAPER SEPTEMBER 2020
Contents
3 Executive summary
5 1 Introduction: ASM as a business reality in the DRC
7 2 Human rights risks linked to the Congolese cobalt mining sector
8 3 ASM formalization projects in Kolwezi
9 4 Scope and methodology of the situational analysis
14 5 Lessons learned: key factors for successful implementation in ASM
formalization projects
19 6 Recommendations for the future
21 Appendix – Conversation and interview partners
22 Contributors
23 Endnotes
Prepared in collaboration with Geneva
Center for Business and Human Rights at
Geneva University’s School of Economics and
Management, and New York University Stern
Center for Business and Human Rights
This paper is an independent expert assessment
based on the author’s review of cobalt-producing
mines in the Democratic Republic of the Congo
(DRC). The goal of the assessment was to identify
actions that could eliminate violations of human
rights and the use of child labour in sourcing cobalt
in the DRC. These findings are intended to inform
future dialogue on human rights and child labour
issues associated with artisanal small-scale mining
(ASM) in the DRC, including consultations being led
by the Global Battery Alliance.
© 2020 World Economic Forum. All rights
reserved. No part of this publication may
be reproduced or transmitted in any form
or by any means, including photocopying
and recording, or by any information
storage and retrieval system.
2 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo
Executive summary
Artisanal mining is a lifeline for millions of
impoverished people in the DRC. We need to
see companies working with the authorities to
formalize it – make it safer, remove children,
provide miners with a fair price.
Mark Dummett, Head of Business, Security and Human Rights at
Amnesty International, quoted in The Financial Times, 28 May 20201
Global demand for cobalt, a key component of creates challenges for establishing responsible
lithium-ion batteries used in consumer electronics and sourcing practices. This white paper assesses
electric vehicles, is expected to grow fourfold by 2030. recent company approaches to formalizing ASM.
Formalization of an informal industry is generally
More than 70% of the global production of cobalt defined as the development of standards in
takes place in the Democratic Republic of the Congo line with basic human rights principles and
(DRC), of which 15–30% comes from so-called environmental standards. In the case of ASM,
artisanal and small-scale mines where independent these standards include basic infrastructure,
miners use their own resources to extract the mineral.2 health and safety measures, and monitoring to
assess compliance with these standards.
Sourcing cobalt from the DRC is linked to major
human rights risks, which have been widely The insights from three ASM formalization projects
documented. The prevalence of artisanal and stem from field research conducted in Kolwezi,
small-scale mining (ASM) in the cobalt supply chain DRC, in September 2019, with insights largely
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 3
drawn from the Mutoshi site because it is the only with all stakeholders, particularly those working
running ASM cobalt formalization project. The main in the DRC’s mining communities. However, the
objective of analysing these formalization projects is research does not show that the model of ASM on
not to assess the current effectiveness of the pilots a large-scale industrial mining (LSM) concession
but to inform the factors that would need to be put is the best or only model for formalization. If it is
in place to make ASM formalization projects scalable implemented well, formalization can address key
and replicable, based on the limited sample of human rights concerns relating to cobalt mining,
existing formalization projects. including child labour and health and safety issues.
Yet today there are no common standards to
The field research shows that the formalization of formalize ASM, which hampers the establishment
ASM is necessary. Fully examining lessons and best of responsible ASM in the cobalt market and
practices to inform a comprehensive assessment the likelihood of ASM cobalt from responsible
of formalization of ASM will require consultation sources entering the formal supply chain.
Key findings
Any efforts 1. ASM production constitutes 15–30% of total miners and community members; 6) creating
to develop cobalt production in the DRC.3 Human rights new business opportunities in response to
responsible risks, including child labour, are greatly elevated higher output levels and higher demand for
in ASM operations. Yet ASM is often the sole goods and services; 7) ensuring effective and
sourcing practices
form of livelihood for those in destitute local transparent representation of miners’ labour
need to focus
communities. Any efforts to develop responsible rights through the formation of cooperatives that
primarily on ASM sourcing practices need to focus primarily on are empowered to negotiate prices.
operations ASM operations, both on ASM sites and ASM
activities that take place within large-scale 3. Formalization will also require the development
industrial mining (LSM) concessions. Companies of industry standards, performance metrics and
sourcing cobalt from the DRC must implement an implementation system that includes routine
sustainable sourcing strategies that include monitoring and evaluation of mining operations
the establishment of clear labour standards to ensure compliance with these standards.
in line with the DRC’s mining code and a The standards must respond to industry needs
system to implement those standards. This and address the very specific human rights
formalization of ASM sites on LSM concessions and environmental impacts of each different
will require a range of actions including: 1) operational site. Regulatory agencies, industry
fencing off mining sites with access controls; associations and multinational companies have
2) introducing safety measures, as well as the all publicly recognized the validity of the ASM
mechanical preparation of open pits that do sector as an important revenue generator for
not require deep pits or tunnel constructions; impoverished communities. Also, the DRC
and 3) involving one or multiple independent government has developed a range of legal
cooperatives of artisanal miners to oversee instruments, regulations and guidance on ASM
the implementation of safety standards and formalization.5 A common standard developed
negotiations with the mining company. through a multistakeholder process needs to
reflect and reinforce DRC law and help to build
2. The formalization of ASM practices is an capacity for its enforcement.
essential step to address the widespread
human rights problems that are prevalent 4. In addition to the formalization of ASM sites, it
today at Congolese mining sites. The jobs and is important to understand the multidimensional
income created on formalized ASM sites can root causes of persistent human rights issues
also help reduce extreme poverty, which is a in the DRC’s mining context. Addressing
root cause of child labour. The formalization underlying socioeconomic causes related to
of ASM will produce a number of social and extreme poverty, food insecurity, lack of social
economic benefits for local communities. protection systems and an underinvestment
These may include: 1) creating stable in affordable education and health services
employment for adults, which will reduce the requires specific attention. In addition to
need for extra income from child labour and building basic infrastructure (schools and
provide funds for school fees;4 2) ensuring day-care facilities), social development
safer working conditions and reducing the programmes must build capacity in the
number of accidents through capacity- and community by including programmes that
skills-building training for miners; 3) achieving enhance and diversify the miners’ economic
higher productivity levels and generating opportunities such as apprenticeships, financial
higher income for miners as a result of better- literacy courses and microloan programmes.
organized operations; 4) promoting female Comprehensive remediation strategies need
employment and respect for women across to be developed in collaboration with the
a range of mining tasks, including the best- DRC government and with supplemental
remunerated ones; 5) improving the health of funding from the international community.6
4 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo
1 Introduction: ASM as a
business reality in the DRC
The production Approximately two-thirds of all global cobalt ASM is a business reality in the Congolese cobalt
of cobalt from production takes place in the DRC, the location of supply chain. An estimated 15–30% of cobalt
ASM sites in the half of the world’s cobalt reserves. Other cobalt- production in the DRC currently takes place in
producing countries each account for less than artisanal mines in which minerals are extracted
DRC represents
10% of global production and are unlikely to fully using basic tools and typically without the help of
the second- cover the rising demand for cobalt expected in the machines.9 The production of cobalt from ASM
largest cobalt- coming years. Recent projections by the European sites in the DRC represents the second-largest
mining sector in Commission and the Global Battery Alliance forecast cobalt-mining sector in the world after LSM
the world after a fourfold increase in cobalt demand before 2030.7 production in the DRC. Cobalt extraction through
LSM production This growing demand means that companies ASM therefore presents an important development
in the DRC reliant on lithium-ion batteries will need to source opportunity for the DRC, on the condition that
cobalt either directly or indirectly from the DRC. The responsible practices can be established.
development of potential new battery technology that
reduces or entirely eliminates cobalt content from The population of the DRC is growing very quickly
batteries will take time to develop and scale. Many and the Organisation for Economic Co-operation
experts estimate that it will take about 10 years to and Development (OECD) estimates that more
achieve this.8 Battery mineral recycling technology than 80% of the population is underemployed or
is also being developed and may eventually help to unemployed.10 The country does not have a widely
meet the global demand. Yet until these changes diversified industrial sector. Companies that extract
occur, the DRC will remain the key sourcing country cobalt on LSM sites typically rely on heavy machinery
for cobalt. Companies reliant on cobalt need to and create far fewer jobs than ASM mines, which
address questions about their responsible sourcing are often the only source of income for impoverished
strategies from the DRC. communities. As a result, even at large mining sites
Right: Illegal artisanal
cobalt mine
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 5
closed off for industrial mining, ASM remains a batteries to build its new car models.14 Following this
common practice. In such cases, ASM can occur in announcement, however, Tesla signed a long-term
a variety of forms – for example, where individuals supply deal with the world’s largest mining company,
or groups of individuals: 1) covertly enter and extract Glencore, for 6,000 tonnes of cobalt a year (around
ore from pits or stockpiles; 2) are tolerated by mine 4% of global output).15 This decision by Tesla
owners in the margins of operations; and 3) are suggests that, despite its efforts to develop cobalt-
accepted and contribute to mine production. free battery technology, electronics and vehicle
manufacturers will continue to rely on Congolese
According to estimates of the provincial mining cobalt for the foreseeable future. Generally,
minister of the copper- and cobalt-rich Lualaba downstream companies are taking a greater interest
province, there are between 150,000 and 200,000 in their supply chain than ever before by asking
artisanal miners in Lualaba alone.11 Creating decent battery makers questions and, for the first time,
employment opportunities for this ASM community looking to cut out the middleman and buy direct.
would have a positive impact on the socioeconomic
development of the region. It also would address From a human rights perspective, curtailing mining
an increasingly pressing security question arising activities in the DRC would severely harm the local
from tensions between traditional ASM communities population. Mineral extraction accounts for 90% of
that struggle for land access and foreign mining the country’s exports and constitutes a core element
companies that engage in LSM.12 of the Congolese economy.16 More than 2 million
Congolese rely on ASM for their livelihood and they
Faced with these challenges, among others, some in turn support about five times as many people.17
companies that require cobalt to produce their goods Globally, more than 40 million people are directly
are avoiding the DRC. BMW, for example, decided engaged in ASM compared to 7 million in LSM.18
to source cobalt from Morocco and Australia to be
used in the production of electric vehicles from 2020 In light of the rising demand for cobalt, the DRC’s
Below: On street
onwards.13 Tesla has reduced its average cobalt unparalleled cobalt resources and its reliance on
market: tools for mining use by more than 60% in the past seven years, the cobalt mining industry, solutions to mitigate the
(a complete set costs a and the company recently announced that it would human rights risks in the Congolese supply chain
maximum of $50) start using cobalt-free lithium-iron phosphate (LFP) need to be developed now.
6 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo
2 Human rights risks linked
to the Congolese cobalt
mining sector
Child labour is For years, human rights advocates and others have weak enforcement of laws against child labour, the
a systemic issue documented child labour and other human rights likelihood that companies will be held accountable
in the region concerns related to cobalt mining in the DRC. In is low.28 From the perspective of child labourers, the
February 2016, Amnesty International published a reasons to work in Congolese mining concessions
report that detailed widespread child labour, health are many: the need for supplemental income
and safety risks for miners.19 The report triggered from child miners in large families; child-headed
multistakeholder initiatives such as the Global households where children have to provide for
Battery Alliance. In recent years, several large themselves due to parental death, divorce or
automotive and electronics brands such as BMW, illness; young mothers who are considered adults
Ford and IBM have launched responsible sourcing and need to care for their own children; and peer
and tracing pilot projects to drive transparency in pressure on older children who decide to work to
the extraction of raw materials.20 have discretionary income.29
In the aftermath of Amnesty’s report, many The continued pressure by activists and growing
international companies focused on the use of child attention to child labour issues in the media have
labour, viewing it as a red flag compliance issue in increased the need for collective action to address
their supply chains. In 2014, UNICEF estimated that this problem. In December 2019, a lawsuit was
40,000 children were involved in mineral extraction filed against large technology companies on behalf
in the DRC.21 The Center for Effective Global Action of 14 Congolese families who say their children
at the University of California, Berkeley published were killed or maimed while mining for cobalt.
a policy report in 2017 after conducting large- The lawsuit, filed in a US federal district court in
scale surveys in 150 ASM communities; the report Washington, DC, claims that defendants Apple,
estimated that more than 4,700 children from Dell, Google, Microsoft and Tesla “knew that DRC’s
ASM communities worked in the mining sector, cobalt mining sector is dependent on child labour
only about half of whom were 15 years of age or which included hazardous work such as tunnel
older.22 An investigative report by Harvard adjunct digging in primitive cobalt mines”.30 It also alleges
lecturer Siddharth Kara in 2018, based on a visit to that these companies have aided and abetted in
31 artisanal mining sites in the DRC, estimated that the death and serious injury of children who were
there were 35,000 child labourers.23 Most recently, working in their supply chain. As of June 2020, the
in an interview in The Guardian in January 2020, lawsuit is at the preliminary pleadings stage.
Mark Dummett of Amnesty International reiterated
the presence of children working in cobalt mines There have been several company initiatives aimed
around Kolwezi, where the three pilot projects at improving working conditions in the cobalt supply
discussed in this white paper are located.24 Other chain and ensuring the safe and secure delivery
recent studies on the number of child labourers in of cobalt to the market. China’s largest cobalt
the production of cobalt in the DRC are provided in producer, Huayou Cobalt, and one of the world’s
the endnotes section.25 leading commodity trading firms, Trafigura, have
each initiated pilot formalization projects in the DRC
There are three principal reasons for the large to experiment with business models that integrate
number of children working or present at Congolese ASM activities in LSM concessions. A third, more
mining sites.26 First, smaller children often have recent project was set up by the German Agency
no guardians other than their working parents for International Cooperation (GIZ) and is financially
and therefore must accompany their parents to supported by BMW, BASF, Samsung SDI and
mines and work alongside them.27 Second, the Samsung Electronics.
places where the miners live and the sites where
cobalt is mined are not clearly separated and This white paper examines each of these pilot
children play everywhere, including at worksites. projects and outlines their similarities and differences,
Third, child labour is a systemic issue in the region and identifies key characteristics that can be useful in
because it is cheaper than adult labour and, with building future ASM formalization projects.
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 7
3 ASM formalization
projects in Kolwezi
ASM in the This white paper focuses primarily on ASM The DRC government has begun to pay more
cobalt supply formalization projects in Kolwezi, which is the attention to the need for greater oversight of
chain is a business capital city of the Lualaba province in the former ASM. In November 2019, it issued two new
reality in the DRC Katanga region of the DRC. This is in the heart legal directives, which require that: 1) cobalt
of the Congolese copper belt, one of the most from artisanal production be kept separate from
and requires a
important production hubs for copper and cobalt industrial production; 2) cobalt mined at ASM
more formalized
mining in the world. sites be exclusively sold to the government; and
oversight system 3) a government oversight body be created to
to address child The paper presents evidence in support of the ensure decent working conditions at ASM sites.
labour and other formalization of ASM cobalt production, which is ASM products sold to the government will require
chronic human generally understood by downstream companies certification by this oversight body. In June 2020,
rights challenges as the development of industry standards in the DRC government announced that it would
line with basic human rights principles and begin its state-controlled purchase of ASM cobalt
environmental standards. It includes the creation by the end of the summer.33 It remains to be
of basic infrastructure and support to enable the seen how these government directives will be
implementation of such standards in ASM sites, put in place. At the provincial level in Kolwezi,
including routine monitoring to assess compliance local government officials have already identified
with these standards. 40 artisanal exploration sites (each called a Zone
d’Exploration Artisanal, or ZEA) that they want to
The three projects analysed here involve cobalt open in the coming months. Analysing existing
mining in the communities of Mutoshi, Kasulo and formalization projects can help the government
Kisote. These formalization efforts aim to ensure as well as the companies that support these
respect for basic human rights. Comparing the formalization efforts to build on key lessons from
projects and identifying the factors that enable a the initial pilots. An example of this is the Kisote
successful formalization of ASM will indicate how formalization project.
these pilots can be sustained, scaled and replicated.
On another front, in October 2019, the London
The primary focus is on the Mutoshi mining project, Metal Exchange decided to allow the trade of only
which is the most advanced active formalization responsibly sourced minerals.34 This will require
project at a cobalt mining site in the region.31 Access companies to apply, among other requirements,
to the site at Mutoshi to carry out independent the OECD Due Diligence Guidance for responsible
research was facilitated by: Trafigura, a Swiss- mineral supply chains35 by 2022 and reach full
based commodity trading company; Pact, a conformity with these standards by 2023.36 This
non-profit organization that Trafigura appointed also creates incentives for companies to develop
for the implementation of its pilot project at the due diligence systems for their metal supply chains.
Mutoshi mine; Chemaf, the operator of the mine;
Service d’Assistance et d’Encadrement des Mines All of these developments add to the growing
Artisanales et de Petit Echelle (SAEMAPE), the consensus among various stakeholders that ASM
Congolese government agency responsible for ASM in the cobalt supply chain is a business reality in
regulation and training; and COMIAKOL, the worker the DRC and requires a more formalized oversight
cooperative on site. system to address child labour and other chronic
human rights challenges. Developing business
In the past year, there have been several solutions that address these risks has become a
developments that reinforce the timeliness of priority for many companies that are dependent on
addressing human rights risks in the Congolese cobalt production. Civil society and development
cobalt supply chain. While the current low price of organizations such as Amnesty, Human Rights
cobalt has drastically reduced the number of artisanal Watch and Pact share this perspective and see the
cobalt miners, this number is expected to grow as formalization of this sector as the most effective
demand increases and causes a rise in prices. The first step in addressing child labour and other
“swing capacity” of the local community – farmers human rights issues affecting mining communities.37
can switch to mining and miners from one mineral Furthermore, jobs on formalized ASM sites can
to the other – means that the number of artisanal provide decent income opportunities and safer
miners will increase quickly with a rising cobalt price. workplaces.38 In the many poverty-stricken
Mitigating risks from ASM therefore requires solutions communities, these jobs can reduce the need for
to be developed now, before larger numbers of children to help support their families by working as
miners return to cobalt mining without regulation.32 artisanal miners.
8 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo4 Scope and methodology
of the situational analysis
There are three cobalt ASM formalization projects Mutoshi and Huayou Cobalt at Kasulo) and there
around Kolwezi, two of which had been in operation is close cooperation between buyers, the mining
(Mutoshi and Kasulo) until decisions were made for companies and the implementation organizations
their closure due to the COVID-19 pandemic.39,40 on the ground (e.g. Pact at Mutoshi). To legalize
It appears that the Kasulo site is now closed ASM activity on an LSM concession (the so-called
indefinitely, as Huayou Cobalt announced in May hybrid model), clear contracts need to be put in
2020 that it had stopped sourcing from the site.41 place between the cooperatives and the mining
The Mutoshi project has been on hold since March companies, otherwise ASM exists in a legal grey
2020, with project partners hoping to resume zone. For Mutoshi and Kasulo, these contracts exist,
activities in the future. The project partners of the but this is not the case for other sites. Critics of this
Kisote mine announced their intention to develop model argue that there is a risk of abuse because of
a formalization project on a ZEA (artisanal mining the power of the mining company in this relationship.
area) in September 2019, but, as of June 2020, the
site has not become operational. Under the second model, neither private LSM
companies nor their foreign buyers have a direct
There are two models of formalization project. Under role. Instead, the ASM site is set up at a ZEA that
the first model, the mining company or its buyer the DRC government has identified. As described
executes an agreement with the cooperative on below, there are plans to test this model for the first
the site. This agreement grants the company an time in Kisote. Currently there are 40 ZEAs in Lualaba
exclusive right to purchase all of the supply from province with registered cooperatives for each site.
that mining site and thereby confers the ability to ASM is a legal activity on these ZEAs. However,
largely control conditions on concessions and set according to GIZ, digging has not started on any of
standards for ASM. This is the case at Mutoshi and the ZEAs yet because of uncertainty over whether
Kasulo, where the formalization projects are on the there are any cobalt resources. No geological
concessions of private, international, large-scale surveys have been conducted on the ZEAs and
mining companies. Chemaf (Mutoshi) and Congo very few are close to large concessions with proven
Dongfang International Mining (Kasulo) use earth- resources. The cost of a geological survey is
moving machinery to prepare the ASM site. The estimated at $1 million, which is a very high sum for
projects were initiated by the buyers (Trafigura at any cooperative to pay.
4.A Mutoshi
The Mutoshi formalization project started in than 30 years, it has strong links to the local
February 2018, initiated by Trafigura. Chemaf, community and, together with Chemaf, it has
the mining operating company, agreed to the developed its own management structures.42
project provided that Trafigura would support its
implementation. Trafigura appointed Pact, a non- As part of the formalization process Trafigura and
profit organization, to help implement workplace Chemaf have fenced off premises and controlled
standards and to work alongside SAEMAPE, the entry/exit areas. With the help of COMIAKOL, they
government’s ASM supervision body. registered more than 5,000 miners and distributed
identity cards to them, which are in addition to
Pact consulted with five local mining cooperatives the cards individuals are required to carry by law
that the government proposed for the Mutoshi site. to demonstrate they are registered as artisanal
The local cooperatives are vital to the success of miners. The photographic ID cards are not digital
these formalization projects. In this largely informal and copying them or passing them on to family
context, they provide a consolidated institutional members would not be difficult for individuals
contact point for the mining companies and help to who look similar. While registration is a necessary
support the implementation of agreed standards. step to formalization, the current system may
require additional updates to be fully effective. The
COMIAKOL, the cooperative working at Mutoshi, companies have adopted rules aimed at excluding
is registered with regional and national government children and (visibly) pregnant women from the
agencies. Having operated in the region for more site. The exclusion of pregnant women requires
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 9the creation of alternative safe workplaces where Furthermore, COMIAKOL has introduced formal
women can earn an income while they are most and informal grievance channels. The cooperative
vulnerable. At Mutoshi, COMIAKOL reported that a appointed a female member to handle all
very modest fund to support pregnant women and complaints, including gender-specific requests
women after birth was set up, but it could not be related to funds reserved for mothers who request
assessed how many women have benefitted from support for a two-week maternity leave.
this financial support.
Chemaf’s general manager, Ghislain Yumba K., said
An investigative team of local researchers led by that all of these reform measures are designed “to
Harvard lecturer Siddharth Kara determined that the create a safe environment”. He also pointed out
fence at Mutoshi does not prevent outside miners that putting these measures in place is costly and
from selling cobalt into the project site, thereby “all these costs remain the same at a time when
potentially mixing the cobalt from the project with production is going down”. What this means from
cobalt extracted at non-formalized ASM sites. his perspective is that “to make the project viable
The project partners at Mutoshi, however, denied [they] need to have a minimum income”. As cobalt
that the fence is permeable and questioned what prices have dropped, this means that the economic
motivation there could be to sell cobalt into the viability of the formalization project has become
project, given that Chemaf’s prices are lower than even more challenging.
those paid by public depots in order to recoup
some of the cost of the project. Ensuring that While the project’s infrastructure, such as
cobalt from formalization sites is kept separate is overburden removal and PPE distribution, was
a condition for establishing trust in the viability of a clearly implemented at the time of the research trip
responsible cobalt production through ASM. to Mutoshi, other less visible aspects of the project
(for example, the extent to which workers trust
Trafigura and Chemaf provided every worker with the grievance channels set up by the cooperative
personal protective equipment (PPE): uniforms, COMIAKOL or the extent of worker satisfaction
boots, glasses, helmets, masks and gloves. During in general with the work of COMIAKOL) could
the site visit for this white paper, most miners used not be fully assessed. One indicator of success
some PPE but generally not masks or gloves. is the amount of turnover and, at Mutoshi, the
On-site Pact staff explained that some of the PPE attrition rate is very low. While alternative sources
had already worn out and needed replacing, and of livelihood in the Congolese copper belt are very
discussions between the project partners are ongoing limited,43 at least some of the miners at Mutoshi
over who will bear the cost for the replacement. have been working on the site for many years.
Several of the female workers stated that they liked
Chemaf had also opened the pits using earth- working at Mutoshi because they felt safe on the
moving machines, which allows extraction to take site. In addition, child labour on the mining site
place without dangerous tunnel constructions or has been fully eliminated. A first socioeconomic
deep pits. This mechanical preparation of mining assessment of the Mutoshi community found
sites improves worker safety and productivity. decreased rates of illness, injury and harassment
Under this new oversight system, new rules have of female miners.44 Local critics such as Afrewatch
also been enacted on alcohol consumption to attest to an improved safety situation at Mutoshi,
prevent conflicts and accidents. Alcohol tests with but claim that there are neither economic nor social
a breathalyser are now conducted randomly and benefits for workers.45 Cleary, further independent
regularly by COMIAKOL. assessments are needed to comprehensively
analyse the improvements in mining conditions
Below: The Mutoshi COMIAKOL fully supports the efforts by Chemaf, delivered by the Mutoshi formalization project.
mining site Pact and Trafigura to implement ASM standards.
10 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo4.B Kasulo
Above: Kasulo mine The Kasulo project started prior to Mutoshi the ore, but they were not typically present at the
in the concession controlled by CDM, extraction sites.
a mining company and a subsidiary of
Huayou Cobalt based in the DRC. At Kasulo, there were open pits but also many
tunnels. The working conditions in these tunnels do
While there are many structural similarities to not meet international standards. Even if tunnels
Mutoshi in terms of the project’s set-up, there were are only 10 metres deep, miners need to wear
also major differences regarding the implementation head lamps because they work in total darkness.
of standards. Similar to the physical structure of Many miners also need to carry oxygen because
Mutoshi, a wall had recently been constructed at of the low oxygen level in the tunnels. Work takes
Kasulo, with clearly designated entry and exit areas place for hours in very confined spaces. The
to keep the site closed to the outside community. construction of these tunnels often poses added
During the visit to Kasulo, it was not possible to dangers of collapse. While tunnel depth is limited
make an assessment as to whether the wall was to a maximum of 10 metres, miners are allowed to
effectively keeping non-miners out of the mining site. dig horizontally underground, which increases the
potential for mines to collapse.47
At the peak of production in 2018, Kasulo had
approximately 14,000 artisanal miners working Workers at Kasulo were not wearing PPE. A
on the site. At the time of the research trip in representative of Kasulo’s cooperative stated
September 2019, there were only 565 miners that equipment had been provided to the
still active on the site, owing to the decline in the miners, but they resisted using it. A CDM
commercial demand for cobalt. There were also no representative explained that some miners were
women working in the mines because, according selling their equipment on the market. Neither
to local guides, there is widespread superstition the representative of the cooperative nor the
that women bring bad luck for mining.46 Some representative of CDM expressed concern about
women were on the premises as food vendors, and workers not availing themselves of the protections
other women were involved in washing and selling afforded to them by PPE.
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 11Another challenge at Kasulo arose from the compensation had been inadequate and that
relocation of the village prior to the launch of communities were moved to locations that
the formalization project. Several non-profit did not have any infrastructure, leaving them
organizations including representatives of Pact without access to drinking water, health services
argued that the relocations were not problematic or schools.48 While a resettlement of the local
because communities themselves had already community took place only in the case of Kasulo’s
destroyed the foundation of roads and houses project, it is important to highlight that relocations
to dig for cobalt and, in any event, were paid add significant complexity and cost to building
compensation. But residents of Kasulo and formalization projects and can give rise to additional
local civil society organizations argued that the human rights challenges.
4.C Kisote
Known as “Cobalt for Development”, the Kisote – Tunnel security – increasing the security of
project has a budget of approximately $5 million, digging activities by providing advice for tunnel
which is exclusively financed by several major construction, for example, tips on how to
multinational companies, including BMW, BASF, protect tunnels from rainwater and how to
Samsung SDI and Samsung Electronics. It is support horizontal tunnels structurally.
implemented by GIZ, with The Good Shepherd
International Foundation (through local affiliate – Accident reduction – distributing helmets,
Bon Pasteur Kolwezi) and IMPACT (an NGO gloves, protective glasses and security boots,
formerly known as Partnership Africa Canada, and making their use obligatory.
which focuses on transforming natural resource
management and empowering communities) acting – Eradication of child labour – stopping children
as implementing partners. from undertaking such tasks as transporting
sacks of cobalt and washing ore, while
The aim of this project is to test how working providing free schooling as an alternative.
conditions in artisanal mines can be improved
through formalization and improve the living In September 2019, Cobalt for Development
conditions for artisanal cobalt miners, their families announced its intention to work at a ZEA next to
and the neighbouring communities. The project Kisote, 20 kilometres south of Kolwezi. This site
partners have identified five areas in which they will was under development by the Lualaba provincial
assess performance. These are: government and several partners. A geological
report – commissioned and financed by this
– Drinking water – preventing the contamination government-led project – confirmed the site’s
of drinking water in mining regions by new likely economic viability based on initial drill data.
methods such as adding impermeable layers to However, external factors caused repeated delays
ground around the open pits to prevent toxins and, as of June 2020, the government’s ZEA
from entering ground water. development project has not been concluded and
the site is still not operational.
– Air quality – preventing respiratory diseases
through the use of PPE, such as mouth filters, Despite these unexpected challenges, the Kisote
and by watering dusty sites during the dry project plans to continue implementing its activities
season. in the community. Until the mine site becomes
operational, the project is engaging with various
concession holders to negotiate authorizing existing
ASM operations on their permits.
12 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the CongoTA B L E 1 Comparison of cobalt formalization projects in Kolwezi
Key facts of ASM
formalization projects in Mutoshi Kasulo Kisote
Kolwezi, DRC
GIZ, BMW, BASF, Samsung
Initiated by Trafigura (buyer) Huayou Cobalt (buyer)
SDI, Samsung Electronics
Congo Dongfang International
Operated by Chemaf Tbd
Mining (CDM)
The Good Shepherd
Implemented on the ground
Pact and COMIAKOL CDM and cooperative International Foundation,
by
IMPACT
ZEA designated by local
Concession held by Chemaf CDM
government
Number of workers allowed
on formalization site at one 5,000 14,000 Tbd
time
Cooperative on site Yes, COMIAKOL Yes Yes, planned
Yes, masks, hats, boots,
Yes, but the provided PPE was
Provision of personal uniforms and gloves are
not used systematically and Yes, planned
protective equipment (PPE) provided by Chemaf, but first
disappeared
generation of PPE has worn out
Enforcement of PPE at time
Yes, miners wore PPE No, miners did not wear PPE N/A
of visit
Yes, free provision of sanitary
Health, sanitation and Yes, healthcare services on
facilities, potable water and Yes, planned
hygiene measures site
healthcare services
Structural measures Yes, fences Yes, walls Yes, fence is planned
Controlled entry
Yes Yes Yes, planned
and exit
No clear
Registration of miners Yes, ID cards Yes, planned
registration process
Work shifts 8 hours No clear work shifts Tbd
Yes, planned, with local
Preparation of open pits Yes Yes company providing earth-
moving machines
Yes, both vertical and
Construction of tunnels No tunnels permitted. horizontal, limited to 10 metres No tunnels permitted.
in depth
Advice on tunnel Yes, provided by CDM
N/A N/A
construction engineers
Yes, informal mechanisms set
Grievance mechanisms Not assessed Yes, planned
up by COMIAKOL
Turnover rate of miners Low No record Tbd
Presence of female miners Yes No, only female food vendors Tbd
Relocation of community
No Yes No
prior to project
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 135 Lessons learned: key
factors for successful
implementation in ASM
formalization projects
Based on the experiences of the ASM formalization examining lessons and best practices to inform
projects at Mutoshi and Kasulo and the plans a comprehensive assessment of formalization of
outlined for Kisote, there are several useful ASM will require consultation with all stakeholders,
lessons that can help promote human rights in the particularly those working in the DRC’s mining
implementation of formalized ASM at these and communities. This section does not show that the
future sites. This section is largely based on the model of ASM on a LSM concession is the best or
lessons from Mutoshi because it is the only running only model for formalization.
ASM cobalt formalization project to date. Fully
5.1 Close coordination among all project partners and
ongoing oversight of the project by the buyer
Devising and implementing a formalization project the implementation of the standards on the ground,
requires close coordination between buyer, which were regularly assessed by Kumi Consulting.
mining company, implementation organization Trafigura’s advocacy for the project with Chemaf
and communities through local cooperatives. To after the COVID-19 pandemic will be essential
succeed, the project partners need to conduct a to help ensure the successful continuation of the
thorough analysis of the realities on the ground project. Effective implementation of standards, such
to establish the key risks to people and the as wearing PPE, requires close communication
environment. All consecutive project steps will and mutual trust between parties active at the
demand exceptionally active and ongoing oversight mine site and the local cooperatives. Because this
and assistance. trust and the capacity-building of cooperatives
are key to success, mining companies and foreign
For the Mutoshi project, Trafigura (the buyer), aid agencies should invest in building them at the
Chemaf, Kumi Consulting (a sustainability outset when they set up ASM formalization sites.
specialist acting as a third-party assessor) and
Pact collaborate to set, implement and assess the Capacity-building on safety, productivity and
extent to which sourcing expectations are being compliance at Mutoshi is carried out through a
met. A spokesperson for Pact noted that Trafigura’s collaboration between technical experts employed
project lead has visited the project frequently. Close by Chemaf, such as mine engineers, IT specialists,
involvement of the buyer was crucial. Trafigura geologists and safety managers, and the other
presented the adoption of ASM standards as a project partners – COMIAKOL and SAEMAPE –
business condition to Chemaf, while Pact ensured overseen by Pact.49
14 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo5.2 Longer-term commitments to build sustainable
ASM formalization projects
At Mutoshi, Trafigura executed a three-year To date, there is neither an agreed ASM human
marketing agreement with Chemaf whereby it rights standard nor any form of internationally
would receive all cobalt hydroxide production recognized validation of the implementation of
from the site provided that Chemaf would meet such a standard at ASM sites. As a result, many
Trafigura’s responsible sourcing requirements. downstream buyers still refuse to source any cobalt
Formalization of ASM activities at the Mutoshi from ASM sites. What this means in practice is
site became part of the agreement subsequently. that informal ASM sites operate without any basic
For a commodity trading company, this is an human rights protections. Looking to the future,
unprecedented long-term commitment that commitment by more buyers to buy products from
enabled the formalization project at Mutoshi to formalized ASM sites will help to create a new
launch and operate successfully. To advance the understanding that ASM sites can be run according
project, Trafigura built close relationships with local to basic human rights standards and that they can
and national stakeholders, including government serve as development accelerators for poor mining
representatives, civil society organizations and ASM communities. The success of this model will require
cooperatives and they consider this network as cooperation among industry competitors and
essential to the formalization project’s success. longer-term commitments.
5.3 Independence, legal status and governance
capacity of local cooperatives
Commitment The recently enacted DRC mining law requires that COMIAKOL was unable to negotiate a fair
by more buyers artisanal miners to become members of a price with Chemaf could not be substantiated in the
to buy products cooperative in order to engage in legal mining interviews. During the visit to the project, the head
from formalized activities in ZEAs.50 The law also permits artisanal of COMIAKOL explained how he checks daily world
miners to mine legally on LSM sites under market prices and negotiates with Chemaf in case
ASM sites will help
a subcontracting relationship with the LSM its price does not reflect world market fluctuations.
to create a new operator and thereby introduces the legal basis Daily prices are displayed in the entry and exit areas
understanding that for a collaboration between LSM operators and so that miners know the compensation they will be
ASM sites can be artisanal miners. paid. The low cobalt prices in the past year have
run according to been challenging for all project partners at Mutoshi
basic human rights Interviews with implementation partners at and raise questions over the project’s sustainability.
standards Mutoshi highlighted the critical role that the local Generally, strengthening the leadership of
cooperative COMIAKOL is playing. Because it cooperatives is relevant to ensuring that they
has close ties to the community, COMIAKOL’s remain independent of government influences and
engagement is crucial to shaping these standards the interests of mine operators (if they operate on
and winning their acceptance by the miners. an LSM site) and truly work for the benefit of the
Identifying an organization that authentically miners and not for the interests of government
represents the interests of the ASM community officials or the mine operator.52
at each facility, and one that can operate
independently, ensures that the interests of To further clarify and strengthen the role of
artisanal miners are integral to the project.51 cooperatives that operate on LSM sites, legal
subcontracting agreements need to be put in
At Mutoshi, COMIAKOL has been active on the place between the owner of the LSM concession
site for many years and has very engaged and and the cooperative in line with the 2018 mining
effective leadership. Many of those interviewed law. Currently, such contracts that fully legalize the
during the research trip view COMIAKOL’s role ASM activity on the property of a foreign mining
as a major factor in the success of the project. company have been put in place only at Mutoshi
COMIAKOL had no proper legal status prior to and Kasulo, while cooperatives elsewhere operate
the start of the formalization project. According to on this so-called “hybrid model” but are effectively
Pact, registering cooperatives in the DRC can be an illegal.53 Formal contracts are in the interest of both
expensive, complicated and long process involving parties because on the one hand they fully legalize
DRC government agencies at the provincial the cooperatives’ ASM activity while on the other
and national level. Registering COMIAKOL was they enable the mining company to outline the
successful thanks to the support it received from conditions for the cooperative to operate, including
the implementation partners at Mutoshi. Allegations respecting standards.
Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo 155.4 Professional geological analysis and preparation
of the mining site
ASM communities develop around locations with too much earth moving, and the cobalt must have
rich resources. At Kasulo, the discovery of highly the right “grade” or quality. Cooperatives cannot
concentrated cobalt resources resulted in a gold afford the excessive cost of geological surveys.
rush-like extraction of the mineral in the middle of While cooperatives have already been registered
an established village. At Mutoshi, artisanal miners for most ZEAs, artisanal miners represented
have been active for several decades, originally by cooperatives are currently not interested in
digging for gold but also copper and cobalt. These commencing work on these sites.
mining locations are thus known for rich resources.
Eventually, however, the resources will be depleted At Mutoshi, representatives of Chemaf explained
and new mining sites will need to be carefully that the ASM site’s location would also not lend
assessed before new formalization projects are itself to machine extraction. Apparently, the “grade”
set up. If artisanal miners are digging for weeks of cobalt there would not make it profitable to
without significant income, this could endanger extract with machines. While machines can recover
the trust in all formalization projects. At Mutoshi, cobalt ore at a grade of 0.5%, the human eye can
Chemaf geologists have conducted drilling to identify recover material at a higher concentration (i.e.
potential future sites on their mining concession for around 1.5%). As such, ASM works well at Mutoshi.
profitable ASM formalization projects; this is because Furthermore, the site is an ideal location for a
the ore body of the original Mutoshi site is depleted formalization project because it does not take away
and artisanal miners are seeking new mining areas. from the land that can be used for LSM, even as it
provides profitable resource extraction for ASM.54
Careful geological analysis is therefore particularly For mining companies to identify such locations
important for the many new ZEAs. Cobalt resources would be ideal for integrating future formalization
must be accessible close to the surface to avoid projects on LSM sites.
5.5 Agreement on common ASM standards and
a system of assessment
Currently, there are no widely accepted industry development of ASM communities engaged in the
standards for ASM cobalt formalization projects mining of gold and associated precious metals.57
and no independent body to monitor and assess Most recently, the Fair Cobalt Coalition set out to
standards once individual projects have been define specific ASM standards for cobalt mining from
established. Yet the development of these standards the DRC.58 Standard development for ASM in the
and metrics does not need to start from scratch. The cobalt context can benefit from these explorations
2018 mining law can guide formalization and a future and be adapted to the specific challenges of cobalt
standard must build on these legal foundations and mining in the DRC.
strengthen their efficacy. We can also learn from other
ASM contexts where good methods have already The currently disparate standards and
been identified and draft ASM standards have been implementation levels observed at Mutoshi and
developed. For example, the Code of Risk-mitigation Kasulo threaten to undermine the formalization idea
for ASM engaging in Formal Trade (“CRAFT”) outlines because formalization has different definitions at
ASM standards generally, without a specific focus on different sites. ASM standards need to be developed
any commodity or geography.55 The Certified Trading that will define concrete operational measures
Chains (“CTC”) approach of the BGR (German applicable to all formalized cobalt mining sites and
Federal Institute for Geosciences and Natural cover the most consequential human rights risks.
Resources) was developed to certify responsible
mining practices and is particularly concerned with Once these common standards are in place, a
feasibility and impact in the ASM context.56 The system needs to be developed that will include
CTC has been implemented at pilots in Rwanda and independent inspectors assessing the sites and
the DRC. Further input for the operationalization of determining compliance with these standards. Audit
standards could come from comparative analysis reports need to be undertaken against a common
of formalization projects in other mineral industries. industry standard using shared metrics and carried
One example is the Fairmined Standard, which was out by independent monitors to ensure the credibility
developed in the gold context to support sustainable of the process.
16 Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo5.6 Preparation of basic infrastructure for formalized
ASM sites
A key aspect Formalization projects require minimum infrastructure pits are significantly less dangerous than tunnels.
of formalization to address gaps in mine safety and to promote Also, the machines do the most labour-intensive
is to control who health. Understanding that the size of ASM sites work – namely, removing the top layer of earth and
enters and works varies considerably and that smaller sites will not be the waste material. An added benefit of the semi-
able to set up the infrastructure elements outlined mechanized method is that the cobalt extraction
on designated
below, the following list outlines an ideal benchmark can start immediately, without miners having to dig
ASM sites for larger formalized ASM operations: deep in order to reach the cobalt. At Kasulo, open
pits are also prepared for artisanal miners. Although
A. Offices for cooperative, SAEMAPE, it is not in operation yet, the Kisote project plans to
clinic, etc. employ a local company to provide earth-moving
Preparing space for the cooperative, for the machines to prepare open pits and it will not allow
government oversight body SAEMAPE and for the construction of tunnels on the site.
emergency medical services in case of an accident
are important infrastructure elements that support D. Installation of drinking water, sanitation, etc.
the implementation of standards. Offices need to For health and safety reasons, toilets as well as
be provided, as is the case at Mutoshi, so that drinking water access are provided at Mutoshi.
these agencies can conduct their work on site and There is also no rubbish on the site, which
basic health services in case of injuries are directly represents a stark contrast to the environment
accessible. outside of the fence. These measures contribute to
a cleaner work environment and better health and
B. Fencing/walling of the site and creating safety conditions for the workers.
designated entry/exit areas where identity
cards are checked E. Protective equipment
A key aspect of formalization is to control who At both the Mutoshi and Kasulo formalization sites,
enters and works on designated ASM sites. This PPE was provided for free to all registered miners.
aspect is most important to control for child labour The kit includes helmet, masks, uniforms, gloves,
or for pregnant women who should be banned glasses and protective shoes.
from mining sites for health reasons. At Mutoshi,
there is a fence; at Kasulo, a wall was constructed At Mutoshi, using the PPE is obligatory and its
to separate activities on the mining site from the use is controlled by the oversight bodies Pact and
community life that directly borders the concession. SAEMAPE. COMIAKOL helped to explain to all
In the past, accidents involving children reportedly workers why wearing the PPE reduces risks, an
often happened simply because the children were effort that led to greater acceptance of its use in
playing too close to dangerous mining sites. practice. However, the PPE at Mutoshi has worn
out after more than a year of use. According to
While controlling who enters the mining site is calculations by Chemaf, replacing the equipment
certainly a necessary condition, it is also important for 5,000 workers would cost around $120,000.
to ensure that miners are free to leave at any time to However, the low cobalt price has also affected the
prevent forced labour situations. finances of the cooperative and it currently does not
have sufficient funds to replace the PPE.
C. Preparation of open pits with heavy
machinery At Kasulo, miners were not wearing PPE during the
All three projects are semi-mechanized sites where visit. This reluctance to use PPE reinforces the need
ASM is facilitated by heavy earth-moving machinery for oversight by project partners to ensure artisanal
that prepares open pits. At Mutoshi, there are miners are protected against health and safety risks.
exclusively open pits and no tunnels. Earth-moving These facts demonstrate not only that PPE should
machines create terraces. Digging is allowed to a be practical for the working context but also that
maximum of 10 metres, at which point machines individuals should consistently be encouraged to
remove the earth to open the pit further. The open wear PPE and that PPE should be regularly renewed.
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