Trafigura enters artisanal cobalt offtake with DRC government body

Commodities trader Trafigura and local government body Entreprise Générale du Cobalt (EGC) have penned an offtake agreement specifically for the supply of artisanal cobalt in a deal designed to concurrently formalize the sector.

This could make artisanally mined cobalt in the Democratic Republic of Congo (DRC) a more attractive prospect to multinational companies that demand greater supply chain transparency and wish to only buy cobalt free from child labor.

It is the latest is a series of actions taken by companies in the cobalt supply chain to invest in the artisanal sector to professionalize it, securing jobs for locals who rely on artisanal mining for an income and simultaneously help remove child labor from the sector.

Glencore, the world’s largest cobalt miner, earlier this year announced the creation of a body aimed at developing working standards in the artisanal mining sector called the Fair Cobalt Alliance. Two weeks later, it was joined by electric vehicle manufacturer Telsa.

EGC is a DRC government enterprise which “holds the monopoly for the purchase, treatment, transformation, sale and export of cobalt extracted by artisanal miners or artisanal mining companies in the DRC,” according to a jointly-made press statement released on Monday November 23.

“EGC has been entrusted with the mission of organizing and supervising artisanal and small-scale mining of cobalt in the Democratic Republic of the Congo, by developing a responsible value chain,” the statement added.

Trafigura will be providing finance “to further creation of strictly controlled artisanal mining zones, the installation of ore purchasing stations and costs related to the transparent and traceable delivery of cobalt hydroxide to Trafigura on an export cleared basis,” the press release said.

The press release did not disclose the volumes of the offtake deal.

Through the deal, the EGC will ensure all ore marketed by Trafigura complies with Organization for Economic Co-operation and Development (OECD) due diligence guidance.

“Artisanal mining provides an important livelihood in the DRC. Ultimately, the legitimacy of efforts to formalize and bring controls to the sector will depend on broad-based consultation and assurance that OECD standards will be upheld. We will continue to engage and collaborate with stakeholders to be part of the solution to supply cobalt responsibly,” Jeremy Weir, executive chairman, Trafigura, said.

More than half of the global supply of cobalt comes from the DRC, with Glencore estimating that in 2019 about 11% of exported cobalt from the DRC was from artisanal mines.

What to read next
Fastmarkets proposes to discontinue its outright price assessments for mixed hydroxide precipitate (MHP).
At Fastmarkets’ International Iron Ore & Green Steel Summit 2025, we expect topics such as iron ore pricing trends, green steel developments and growing demand for high-grade pellets to emerge. The event will address decarbonization, Europe’s green steel growth and shifts in scrap and pellet markets driven by supply and cost changes.
The rationale for MB-CO-0004 cobalt alloy grade, in-whs Rotterdam, $/lb had erroneously stated that an indication at $18.50-20.00 per lb was included in the assessment. This has been corrected to explain the indication was made outside of the pricing window, and had therefore been discarded. The published price is unaffected by this change. These prices are a […]
Seaborne iron ore prices are on the rise due to increased trading activity and stable market fundamentals, highlighting steady demand and opportunities for growth while emphasizing the importance of monitoring market trends to manage risks effectively.
The recent doubling of Section 232 tariffs to 50%, announced by President Trump, has introduced significant uncertainty to the US steel market, with traders reporting disruptions to imports, paused domestic mill quotes and concerns over potential price increases amid modest demand. Industry participants are now assessing how the additional costs will be absorbed across the supply chain.
The publication of Fastmarkets’ molybdenum drummed molybdic oxide – in-whs Busan, MB-FEO-0004, and in-whs Rotterdam, MB-FEO-0003 – and ferro-molybdenum 65% Mo min, in-whs Rotterdam, MB-FEO-0001, price assessments were delayed because of slow data processing on Friday May 23. Fastmarkets’ pricing database has been updated. The publication of these prices was delayed for 12 minutes. The […]