The Republic Democratic of Congo Cobalt Mining
Updated: Apr 1, 2022
The DRC is a geological scandal, its mineral resources are important and diverse such as, copper, cobalt, coltan, gold, diamonds, lithium and many more.
The democratic republic of Congo is the world’s largest source of cobalt, approximately 3.4 million tonnes. The country is undoubtably one of the most important world’s supply in raw materials for industries. About 70 percent of the global supply of cobalt is mined in Congo. This precious metal is used in the batteries of most new technology’s smartphones, computers, electric cars, is also used in the refinement of crude oil, which is used to make petrol, diesel, kerosene and pretty more.
Location and key player
cobalt production is concentrated in two southern provinces of the Democratic Republic of Congo: Lualaba and Haut-Katanga. Although there are several mining companies from worldwide operating in DRC, Gecamines is a key player in the mining industry. It is a junior partner in joint ventures with many of the biggest cobalt miners in Congo.
How to invest?
Several mining companies from worldwide are already investing in DRC and many more are still waiting for a good opportunity.
There are two possibilities for investing in the mining sector,
Partnership with portfolio companies or others who already have mining concessions.
Apply for mining titles from the Mining Cadastre in accordance with the conditions and procedure of the mining code
You can apply for either a Research or Exploitation License via the National Investment Promotion Agency.
Moreover, the DRC has created a national transparency initiative committee with respect to the management of extractive industries in the DRC
Recently the government has expressed it ambition to increase mining revenue transparency and strengthen expenditure management at the central level and in selected provinces, with the goal of increasing funds available for public service.
Rich in lithium, manganese, nickel and cobalt, the Democratic Republic of the Congo wants to locally produce batteries for electric vehicles and develop a "green" value chain.
Although the Republic democratic of Congo has many investments opportunities but investing in Africa without professional advice and local support can be high-risk and could significantly increase exposure for your capital, staff, and reputation.
HCBS offers our clients - existing and prospective - an integrated, proficient, and experienced support service for each stage of their journey.