A truckers’ strike in the Democratic Republic of Congo (DRC) has disrupted the exports of copper and cobalt, two key metals for the global green-energy transition, according to people familiar with the matter. The strike, which started in late October, has affected major mining companies such as Glencore, CMOC and Ivanhoe Mines, as well as smaller producers.
The truck drivers, who transport the metals from the mining hub of Kolwezi to Zambia and then to coastal ports, demand an extra $700 per journey as danger pay, citing the risks of robbery and violence along the route. They have refused to move their trucks until their demands are met, leaving thousands of tonnes of copper and cobalt stranded in Kolwezi.
The strike could have serious consequences for the global supply and demand of copper and cobalt, which are essential for the production of electric vehicles, renewable energy and digital devices. According to the International Copper Study Group, the DRC accounted for 10.4% of the world’s mined copper supply and 76% of the world’s cobalt supply in 2022. The country is also home to some of the world’s largest and richest deposits of these metals.
The strike has coincided with a surge in copper and cobalt prices, driven by strong demand from China and other major consumers, as well as supply disruptions in other countries. According to the London Metal Exchange, copper prices reached a record high of $12,000 per tonne in October, while cobalt prices rose to $33,000 per tonne, the highest level since 2018.
The strike has also exposed the fragility of the DRC’s mining sector, which relies heavily on road transport and cross-border trade. The country’s infrastructure is poor and underdeveloped, and its security situation is volatile and unpredictable. The strike has highlighted the need for more investment and diversification in the sector, as well as better governance and regulation.
The DRC’s government and the mining companies have been trying to negotiate with the truck drivers and end the strike, but so far, no agreement has been reached. The strike has also sparked protests and clashes between the drivers and the security forces, as well as local communities who depend on the mining activities for their livelihoods.
The strike has also drawn attention to the social and environmental impacts of the mining industry in the DRC, which human rights violations, corruption, pollution and conflict have plagued. Many civil society groups and activists have called for more transparency and accountability in the sector, as well as more benefits and opportunities for the local population.
Despite the challenges and risks, the DRC’s mining sector remains a vital source of income and development for the country, as well as a strategic partner for the global green-energy transition. The strike has shown the importance of finding a peaceful and sustainable solution that respects the rights and interests of all stakeholders and that ensures the stability and prosperity of the sector and the country.
Source: Mining Weekly
