On January 19, 2016, Amnesty International published their “This is What We Die For” report, an eye-opening account that documents the human rights abuses that surround the DRC’s artisanal cobalt mining sector, including but not limited to issues such as child labor and hazardous working conditions.
Seeing cobalt sourcing from a wider perspective
Later the same year, Metal Bulletin (now Fastmarkets) reported that China’s refineries imported nearly a quarter of a million tons of cobalt concentrate from the DRC in 2015 (Metal Bulletin, March 23, 2016). The bulletin pointed out that Amnesty International had singled out the transactions in their January report, indicating that it was more than likely that these concentrates were produced in dangerous conditions or by children in artisanal mines in the DRC.
Caption: Extract from the Metal Bulletin, March 29, 2016
Six companies from China were identified as importing a total of over 224,750 MT of cobalt concentrate in 2016. Among these six companies is the cobalt powder producer Nanjing Hanrui. Over the past few years, Nanjing Hanrui has also come under scrutiny for profiting from unfair labor practices as well as suspected supply chain irregularities. China export stats show an Anhui based company declaring Cobalt powder values well below market and potentially allowing the exporter to safe on US duties unfairly.
Making ethical sourcing the norm
A notable exception to the trends discussed by both Amnesty International and Metal Bulletin is GEM Co. Ltd, a primary shareholder in Shu Powders and the only large-scale Chinese Cobalt refinery not listed by either of the above reports.
GEM Co., whose name is an abbreviation of the phrase “Green Eco Manufacture”, follows strict policies that guide its responsible Cobalt sourcing requirements. In line with the company’s mission to follow more eco-conscious processes, it should come as no surprise that GEM is also one of the world’s largest recyclers for secondary Cobalt.
OA sustainable partnership for the future
To strengthen the company’s ability to spearhead responsible sourcing initiatives, GEM announced that it was extending its long-term strategic cobalt partnership with Glencore.
Under the terms of the agreement, Glencore will provide around 150,000 tonnes of cobalt contained in hydroxide for GEM between 2020 and 2029. Another term of the agreement is that the parties will commit each other to annual audits under OECD-aligned standards, specifically the Cobalt Refiner Supply Chain Due Diligence Standard developed by the Responsible Minerals Initiative (RMI), Responsible Cobalt Initiative (RCI), and Chinese Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC).
As a member of RMI, Glencore has repeatedly talked about its refusal to use artisanally mined Cobalt due to the link between child labor and artisanal small-scale mining (ASM). However, Glencore supports the development of responsible ASM, working in partnership with others, such as the Fair Cobalt Alliance (FCA).
Ongoing compliance and transparency
Both of GEM Co. Ltd’s Cobalt refineries, GEM Jiangsu and Jingmen GEM, are listed as RMI-conformant Cobalt refineries under the following link.
GEM Jiangsu and Jingmen GEM underwent reassessment in 2024. GEM Co. Ltd is also currently going through a CAP phase and the updated certificate is expected to be issued by mid 2025.
