Democratic Republic of Congo said it’s backing plans for a new domestically owned copper-cobalt plant to help formalize artisanal mining in the country, at a time when minerals crucial to electric vehicles are moving further into the global spotlight.
The project, which will be developed by privately held Congolese firm Buenassa Sarl, is expected to cost about $350 million, and Washington-based financial consulting firm Delphos International Ltd. has agreed to help raise financing, representatives from the two companies and the government said in an interview.
Congo supplies about 70% of the world’s cobalt and is a top-three copper producer, which means it will play a key role in the world’s green-energy shift. The country’s output is dominated by industrial mines owned by foreign firms like Glencore Plc and China’s CMOC Group Ltd., but both the government and industry have faced pressure to help improve conditions for informal miners, who dig by hand in often hazardous conditions.
The involvement of Delphos also highlights a growing focus among western governments on ensuring security of supply for strategic minerals such as copper and cobalt while reducing dependency on China. Delphos works closely with the US government, specializing in development and export-credit financing, and the Buenassa project “is very much aligned with the geopolitical goals of the United States,” said Delphos International Chairwoman Roya Rahmani.
A US agreement to support a plan between Congo and neighboring Zambia to develop an electric-vehicle value chain was a key factor behind the firm’s decision to sign on to the smelter project, she said.
Credit: Bloomberg
