navigation-menu

Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

  • Child labor, including hazardous child labor, is the primary labor rights issue associated with artisanal and small-scale mining (ASM). There are currently efforts to formalize ASM mining through the development of mining cooperatives, which can provide the infrastructure for managing human rights and environmental impacts. However, as of 2022, many ASM mines are still informal. Children are involved directly in mining work as well as in adjunct work in active mining areas such as food sales or sexual exploitation.1Bureau of International Labor Affairs, U.S. Department of Labor. Combatting Child Labor in the Democratic Republic of the Congo’s Cobalt Industry (COTECCO)https://www.dol.gov/agencies/ilab/combatting-child-labor-democratic-republic-congos-cobalt-industry-cotecco Understanding the complex dynamics contributing to child labor at a given mine site – and therefore what types of preventative or remediation interventions may be helpful – requires nuanced, on-the-ground assessments conducted by culturally competent assessors. Therefore, traceability systems should not stop at identifying the origin of cobalt in a supply chain. This due diligence includes supply chain mapping; understanding the conditions for mining, transportation, and trading; conducting risk assessments; and remediating impacts and root causes. Because ASM mining is central to the livelihood of so many families and individuals in the Democratic Republic of the Congo (DRC),2Bureau of International Labor Affairs, U.S. Department of Labor. Combatting Child Labor in the Democratic Republic of the Congo’s Cobalt Industry (Cotecco). July 2022, https://www.dol.gov/sites/dolgov/files/Gayar.Arwa.T%40dol.gov/DRC-CO~2.PDF.   traceability efforts that seek to comprehensively avoid or screen out ASM mined-minerals in favor of minerals mined at large-scale mines (LSM) are likely to contribute to endemic poverty and inequality rather than improving the lives of vulnerable workers and families.
  • Due to the significant presence of ASM mining in cobalt production, the risk of child labor is primarily reported in artisanal small mines in the Democratic Republic of the Congo; traceability systems should be flexible and interoperable to allow for the integration of paper-based records, which may be more feasible in small, informal mining contexts.
  • The use of subcontractor labor agencies at industrial mines in the DRC is the heart of the industrial labor abuse problems.3The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines. Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ), November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf Mines distance themselves from their responsibility towards their workforce by employing them indirectly through third parties.4The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines. Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ), November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf. To address the risk of labor abuses presented by labor recruitment agencies, supply chain mapping could be used to identify specific industrial worksites in a supply chain so that comprehensive assessments of labor conditions at worksites as well as assessments of the practices of labor recruiters associated with those worksites can be conducted.5“RMAP Assessment Introduction.” Responsible Minerals Initiative, https://www.responsiblemineralsinitiative.org/responsible-minerals-assurance-process/. This is an example of a “pinch point” (also known as a gatekeeper or choke point strategy), which can work in supply chains such as cobalt where there are a relatively small number of actors at a particular tier. The high frequency of co-mingling means that bulk commodity or mass balance traceability methods may be more suitable than a strict identity preservation traceability method.
  • Demand for cobalt ore is increasing due to the growing market interest in sustainable electric vehicles that use the lithium-ion batteries made from cobalt;6The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines. Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ), November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf. therefore, traceability systems should be flexible and scalable in order to keep up with the increased demand for cobalt ore.

Nature of Labor Rights Risk/Vulnerable Workers

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence or significant likelihood of third-party labor recruiters

Risk of Forced Labor or Trafficking in Persons cited by other source

Documented presence of other vulnerable workers

Features of Production and Supply Chain

Large numbers of dispersed, unorganized, or informal small producers or other worksites

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex/opaque supply chains and/or lack of vertical integration

High degree of flexibility in procurement practices of downstream entities

Distribution of Labor Risk in Various Production Areas

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

  • The nature of the risk varies based on geographic area of production as child labor is only recorded in artisanal mines in the DRC, specifically in the southern provinces of the country.25“This Is What We Die For” Human Rights Abuses in The Democratic Republic of The Congo Power The Global Trade in Cobalt. Amnesty International, January 2016, www.amnesty.org/en/documents/afr62/3183/2016/en/.  
  • Risk of child labor in the DRC is generally associated with smaller artisanal cobalt mines.26“This Is What We Die For” Human Rights Abuses in The Democratic Republic of The Congo Power The Global Trade in Cobalt. Amnesty International, January 2016, www.amnesty.org/en/documents/afr62/3183/2016/en/. Manual labor in artisanal mines is conducted by both adults and children.27“This Is What We Die For” Human Rights Abuses in The Democratic Republic of The Congo Power The Global Trade in Cobalt. Amnesty International, January 2016, www.amnesty.org/en/documents/afr62/3183/2016/en/ The OECD has noted that while distinct cases of forced labor have not been authoritatively documented at ASM or LSM, both types of sites may present risks tied to the presence of security forces, unstable working relationships, multiple levels of dependency between workers and mine operators, and generally hazardous working conditions, all of which elevate the risk of other labor rights abuses. In particular, workers at industrial mining sites recruited and sometimes managed on-site by third-party labor recruiters are subject to adverse working conditions.28The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines. Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ), November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf. They are subjected to extremely low pay (not meeting the minimum living wage), excessive working hours, degrading treatment, unsafe working conditions, and poor quality personal safety equipment, if any.29The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines, Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ). November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf.

Linked Upstream and Downstream Risks

Risk in Nodes in Cobalt Ore Production

The cobalt ore can be produced at either an industrial mine (80 percent of ore produced in the DRC) or artisanal small mines (20 percent of ore produced in the DRC). The risk of child labor exists predominantly in artisanal mines; however, there are also reports of labor abuses existing in industrial mines.30The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines, Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ). November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf

Following mining at ASM sites, miners and traders in the DRC take their cobalt ore to metals markets where minerals are traded. Independent traders buy the cobalt ore and sell the ore to larger processing companies in the DRC that process and then export the ore.31“This Is What We Die For” Human Rights Abuses in The Democratic Republic of The Congo Power The Global Trade in Cobalt. Amnesty International, January 2016, www.amnesty.org/en/documents/afr62/3183/2016/en/. Cobalt ore from industrial mines is sold directly to the cobalt processors in the DRC.32Federated Hermes, “Modern Slavery: The true cost of cobalt mining.” Human Trafficking Search, 2017, humantraffickingsearch.org/resource/modern-slavery-the-true-cost-of-cobalt-mining/#:~:text=Mobile%20power%2C%20human%20toll&text=In%20the%20DRC%2C%20there%20are,poorest%20economy%20in%20the%20world Once exported, companies abroad can further smelt and refine the cobalt ore before selling it on to component (cathode) manufacturers and then to lithium-ion battery manufacturers, which then sell to well-known brands.33Federated Hermes, “Modern Slavery: The true cost of cobalt mining.” Human Trafficking Search, 2017, humantraffickingsearch.org/resource/modern-slavery-the-true-cost-of-cobalt-mining/#:~:text=Mobile%20power%2C%20human%20toll&text=In%20the%20DRC%2C%20there%20are,poorest%20economy%20in%20the%20world These brands exist in industries such as electric cars, jet engines, laptops, and mobile phones.34Federated Hermes, “Modern Slavery: The true cost of cobalt mining.” Human Trafficking Search, 2017, humantraffickingsearch.org/resource/modern-slavery-the-true-cost-of-cobalt-mining/#:~:text=Mobile%20power%2C%20human%20toll&text=In%20the%20DRC%2C%20there%20are,poorest%20economy%20in%20the%20world China is the biggest consumer of global cobalt, with 80 percent being used to make rechargeable batteries.35The Road to Ruin? Electric vehicles and workers’ rights abuses at DR Congo’s industrial cobalt mines. Rights and Accountability in Development (RAID) and Centre d’Aide Juridico-Judiciaire (CAJJ), November 2021, https://raid-uk.org/wp-content/uploads/2023/03/report_road_to_ruin_evs_cobalt_workers_nov_2021.pdf

Artisanal or Industrial Mining

Trading Houses/Metal Markets (Artisanal Mining Only)

Cobalt Processors

Smelters/Refiners

Component (Cathode) Manufacturers

Lithium-ion Battery Manufacturers

Retail as Consumer Product (e.g. electric cars and phones)

Associated Downstream Goods and Consumer Sectors

Energy and Electrical

Cobalt ore is a key component of most rechargeable lithium-ion batteries.

Transportation

Cobalt ore is a key component in larger lithium-ion batteries which are used in electric vehicles.

Electronics

Cobalt ore is present in electronic devices that use lithium-ion batteries such as mobile phones, laptops, and tablets.

Top Global Countries

  1. Democratic Republic of the Congo36List of exporters for the selected product in 2021. Product: 2605 Cobalt ores and concentrates. ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c2605%7c%7c%7c4%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c1%7c1.
  2. Italy
  3. Germany
  4. Nigeria
  5. United Kingdom
  6. South Africa
  7. Philippines
  8. France
  9. Australia
  10. Zambia

Examples & Resources: Traceability Efforts Associated With Cobalt Ore

Footnotes