Conflict Implications of Rising Cobalt Demand and the Effects of Classifying Cobalt as a Conflict Mineral on the DRC
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Date
2022-01-10
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Johns Hopkins University
Abstract
As the world pushes towards renewable energy, the demand for critical minerals is
predicted to see unprecedent levels of growth. One of these minerals is cobalt, a mineral needed
for electric vehicles and battery storage. The largest cobalt reserves in the world are in the
Democratic Republic of Congo where cobalt mining is closely related with human rights abuses
and atrocities. In the wake of the energy transition, NGO’s and other corporations are pushing
for cobalt to be considered a conflict mineral. The literature on this topic, however, suggests that
the mechanisms by which natural resources interact with a state are more complex than being
given credit. Although armed conflict and human rights violations are related, they should not
and cannot be effectively addressed with the same policies.
The labeling of cobalt as a conflict mineral suggests that it is directly used by armed
groups to fund violence, and this legal definition would mean inclusion under supply chain
transparency programs like Dodd-Frank. Furthermore, calling cobalt a conflict mineral leads
many companies to treat it as such, despite the legal classification. Current data shows, however,
that there is little evidence of armed groups vying for control of cobalt mines, utilizing the
existing labor force in these mines, or selling cobalt for profit like is evident in Eastern Congo
with other conflict minerals. The Congolese government is also seeking to monopolize the cobalt
industry and push out artisanal miners, contributing to calls to classify cobalt as a conflict
mineral. As seen in a comparison to Chile’s copper mining industry, however, quality institutions
play a key role in reducing rent seeking and promoting a healthy mining sector, particularly the
healthy relationship between state owned mining companies and private/foreign investors.
Any external supply chain due-diligence efforts will face difficulty without also focusing
on the underlying internal issues present in the DRC’s national treatment of this resource. The inclusion of cobalt under conflict minerals legislation also does not address the fundamental
issues driving the human rights abuses in cobalt mining, which is the primary reason for the
labeling in the first place.
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Keywords
Conflict Minerals, Cobalt, Democratic Republic of Congo