Emmanuel Umpula Nkumba grew up near the mines in Katanga, the Democratic Republic of the Congo\u2019s mineral-rich eastern province, in the early 2000s. He recalls that cobalt mining was not a popular job amongst locals, citing the \u201chard work\u201d of extracting the scattered and deeply lodged minerals \u2013 challenging for artisanal (small-scale) miners using simple hand tools.<\/p>\n\n\n\n
The ubiquity of cobalt mining in the Democratic Republic of the Congo (DRC) would explode later that decade, however. In 2002, the country legalised the privatisation of mines, which led to a boom in foreign investment. By the 2010s, industries in need of huge supplies of cobalt \u2013 electric vehicle (EV) production and battery storage \u2013 started gaining traction worldwide. At the start of the 2020s, prices for the commodity reached record highs, and were expected to continue rising.<\/p>\n\n\n\n
As of December 2023, over 70%<\/a> of the global cobalt supply comes from the DRC. Cobalt mining has been cited<\/a> by the UN as a potential booster of economic growth and government revenue for the country. By positioning itself at the centre of the world\u2019s transitioning economy, this industry is also a developer of new jobs domestically.<\/p>\n\n\n\n But just as the DRC had ramped up production, the price of cobalt dropped, losing 60%<\/a> by 2023. The International Energy Agency (IEA) expects this downward trend to continue. So, what does this mean for the DRC\u2019s cobalt-driven development ambitions, and the livelihoods of over 200,000 Congolese miners?<\/p>\n\n\n\n Experts describe multiple reasons for cobalt\u2019s loss in value, including inflation and the pandemic, which both stifled global demand. Dialogue Earth consulted Yun Young Kim, a world energy outlook analyst for the IEA. She describes 2023 as \u201ca difficult year for commodities and macroeconomics,\u201d because \u201cconsumers were spending less and electronics demand was lower.\u201d<\/p>\n\n\n\n As 2022 ended, the global cobalt stockpile continued<\/a> to increase. That year, four new cobalt mines began operations in Indonesia<\/a>. The country\u2019s rapid development of mines meant it experienced a 250% increase in cobalt production, making it the world\u2019s second-largest<\/a> producer in 2022.<\/p>\n\n\n\n In 2023, the already-significant global supply increased: the Chinese mining company CMOC Group, previously suspended<\/a> from operating in the DRC over royalty disputes, restarted operations at the world\u2019s biggest cobalt mine, Tenke Fungurume; its 2023 output represented nearly a quarter (over 55,000 tonnes<\/a>) of global cobalt production that year.<\/p>\n\n\n\nOversupply and spiralling prices<\/h2>\n\n\n\n