Many large companies are currently not sourcing from the DRC because of human rights concerns. This lack of a common understanding of what constitutes “responsible ASM” hampers the acceptance of ASM cobalt in the market. “ASM formalization” can mean very different things to different companies, and no common standard or uniformity in its implementation exists. Most importantly, companies need to work with key stakeholders to establish a common ASM standard for mine safety and child labor and ensure ASM cobalt is sourced responsibly. Lessons from these projects and recommendations for companies were recently published in a World Economic Forum White Paper. Several other formalization projects are currently in the planning phase. During a research trip to Kolwezi in the DRC in September 2019, I visited the two largest active cobalt ASM formalization projects, one led by the Swiss-based commodity trading firm Trafigura, and the other by the biggest Chinese cobalt processing firm, Huayou Cobalt. Some companies have started experimenting with so-called ASM formalization projects, which regulate mining methods and working conditions. Instead, companies committed to setting up responsible cobalt sourcing practices need to take responsibility for addressing the human rights violations that taint the DRC’s ASM sector.

Cutting ASM out of the cobalt supply chain is neither feasible, due to the interwoven nature of the cobalt supply chain, nor desirable from a development perspective. It is a lifeline for millions of Congolese who live in extreme poverty. Child labor, fatal accidents, and violent clashes between artisanal miners and security personnel of large mining firms are recurrent.ĪSM cannot simply be shut down, however. These human rights risks are particularly high in artisanal mines in the DRC, a country weakened by violent ethnic conflict, Ebola, and high levels of corruption. For years, human rights groups have documented severe human rights issues in mining operations. More than 70 percent of the world’s cobalt is produced in the Democratic Republic of the Congo (DRC), and 15 to 30 percent of the Congolese cobalt is produced by artisanal and small-scale mining (ASM). According to recent projections by the World Economic Forum’s Global Battery Alliance, the demand for cobalt for use in batteries will grow fourfold in 2030 as a result of this electric vehicle boom. Demand for cobalt is increasing as more electric cars are sold, particularly in Europe, where governments are encouraging the sales with generous environmental bonuses. Professor Dorothée Baumann-Pauly is director of the Geneva Center for Business and Human Rights at Geneva University's School for Economics and Management and research director at the NYU Stern Center for Business and Human Rights.Ĭobalt is an essential mineral used for batteries in electric cars, computers, and cell phones.

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