24th Aug 2020 11:47
(Alliance News) - Glencore PLC said Monday it has joined the Fair Cobalt Alliance in the Democratic Republic of the Congo, aimed at supporting small-scale cobalt mining in the country.
"As a major copper and cobalt miner in the Democratic Republic of the Congo, we have engaged on the issue of artisanal and small-scale mining with communities around our businesses, the DRC Government, the OECD, civil society and other key stakeholders, including our customers," Glencore said.
The mining giant said "legal" artisanal mining or small-scale mining can play an "important and sustainable" role in the DRC economy when "carried out responsibly and transparently".
As part of the alliance, Glencore said, it will work towards eliminating child and forced labour, as well as other dangerous practices that take place at small mines in the country.
"Glencore, through our support of the Fair Cobalt Alliance, will support legitimate artisanal mining or small-scale mining cooperatives in their endeavours to transform their practices and align with international human rights practices, especially in the prevention of child labour," Glencore added.
The miner noted it does not process, buy or trade artisanal mining or small-scale mining material.
Glencore continued: "Historically, ASM has been associated with significant challenges. In particular, child labour and illegal intrusions onto active industrial mining sites - including our own - continue to present risks to both our people and communities. As a responsible miner, we do not tolerate any form of child or forced labour. And we do not tolerate illegal intrusions onto mining concessions."
The DRC has around 60% of the world's known cobalt reserves.
"We believe we have a responsibility to collaborate with local stakeholders to help address social challenges in the regions that host our operations," Glencore said.
The miner said the alliance is needed due to the increased use of cobalt in electric cars.
"As the world calls for more cobalt and copper to power the energy and transport revolutions, the demand for these vital everyday commodities will underline the global importance of the DRC. It is crucial that all supply chains, including both cobalt and copper, are sustainable, ethical, and responsible," Glencore said.
The alliance also includes Huayou Cobalt, China's largest cobalt refiner, which supplies carmakers including Volvo Cars and Volkswagen.
Shares in Glencore were 2.0% higher in London on Monday at 171.65 pence each. In Johannesburg, the shares were 0.9% higher at ZAR38.28.
The Swiss miner has previously agreed to source Tesla Inc's cobalt - to use in Tesla's new car factories in Shanghai, China, and Berlin, Germany.
The carmaker will use the Glencore's metal from its Democratic Republic of Congo mine for use in Tesla's new Gigafactories to make lithium-ion batteries.
The deal will increase Tesla's reliance on the DRC but shows an increased effort to secure its own raw materials.
By Paul McGowan; [email protected]
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