By Staff Reporter
In effort to boost the formalization of artisanal mining in the Democratic Republic of Congo (DRC), the government has thrown its support behind plans for a new domestically owned copper-cobalt plant. This initiative comes at a pivotal moment when minerals essential for electric vehicles are gaining increased global attention.
The ambitious project, spearheaded by Congolese company Buenassa Sarl, is slated to require an estimated $350 million in investment. The Washington-based financial consulting firm, Delphos International Ltd., has pledged its assistance in securing the necessary financing, according to statements from both companies and government representatives.
The DRC stands as a dominant force in the global production of cobalt, contributing approximately 70% of the world’s supply, and is among the top three copper producers globally. These two resources are integral to the global transition towards green energy solutions. Notably, the nation’s mineral output has long been controlled by industrial mines operated by foreign entities like Glencore Plc and China’s CMOC Group Ltd.
However, with increasing pressure on both the government and the industry to ameliorate conditions for informal miners, who often toil in hazardous conditions, the Buenassa Sarl project aims to bridge this gap. Artisanal mining is a vital source of livelihood for many Congolese citizens, and formalization can enhance safety standards and economic stability for these communities.
The participation of Delphos International Ltd. in this venture underscores a growing Western focus on ensuring the security of supply for strategic minerals, including copper and cobalt, while reducing dependency on China. Delphos specializes in development and export-credit financing and has a close working relationship with the U.S. government. Delphos International Chairwoman Roya Rahmani stated that the Buenassa project “is very much aligned with the geopolitical goals of the United States.”
One key driver behind Delphos International’s involvement in the project is the U.S. agreement to support a joint plan between the DRC and neighboring Zambia to develop an electric-vehicle value chain. This initiative underscores the increasing global importance of minerals found in the DRC in the transition to cleaner energy solutions.
This development is poised to reshape the Congolese mining landscape, contributing to safer and more sustainable practices while reinforcing the nation’s pivotal role in the global green-energy shift.
Additional reporting by Bloomberg
