Cobalt, an essential mineral for the energy transition and for many industries, is seeing its demand increase on world markets. However, the Democratic Republic of Congo (DRC), which is responsible for 70% of the world’s cobalt production, benefits little from the revenue generated by its export.
Faced with this observation, President Félix Tshisekedi recently encouraged the Congolese government to take urgent measures to better regulate the marketing of cobalt and increase revenues from its export. He also called for accelerating the implementation of the strategy for the local processing of cobalt ore, in order to take greater advantage of this resource.
It is indeed paradoxical to note that the demand for cobalt is increasing while the price per ton is falling. This situation puts the DRC in a disadvantageous position, with multinationals making record profits from the exploitation of cobalt, while the country benefits little from the economic fallout.
Thus, President Tshisekedi asked the Minister of Finance and the Minister of Mines to finalize the draft interministerial decrees aimed at regulating the export of cobalt. The objective is to ensure better management of the supply, pricing and export of the ore, in order to increase the revenue generated by its exploitation.
It is important to point out that the DRC has one of the largest cobalt reserves in the world. It is therefore essential for the country to benefit equitably from the economic benefits linked to this precious natural resource.
In conclusion, it is urgent for the DRC to put in place measures aimed at better regulating the marketing of cobalt and increasing the revenue generated by its export. This will enable the country to fully benefit from the economic spin-offs linked to the exploitation of this essential resource for the energy transition and for many industries