A significant portion of ASM cobalt is currently produced by informal artisanal miners. ASM provides livelihood for a large number of people in the Lualaba and Haut Katanga provinces. However, artisanal miners are currently working informally and unsupervised in very difficult conditions. Some of the main risks associated with the ASM cobalt supply chain include child labor, frequent fatal accidents, poor working conditions as well as other human rights violations. To support and formalize the ASM sector, a commercial agreement was signed between Trafigura and the Enterprise Générale du Cobalt (EGC) that aims to establish and implement responsible sourcing standards at ASM cobalt sites (the EGC Responsible Sourcing Standard (“The EGC Standard”), and thus to mitigate supply chain risks and improve public perceptions of ASM cobalt. To do so, Trafigura and EGC will work with these miners and invest in their operations, rather than shut them out, leaving them without the support they need to improve their practices.

Pact is partnering with Trafigura and EGC and will be responsible for widespread training and monitoring the implementation of these standards on the ground, developing robust stakeholder engagement forums, providing technical assistance to mitigate traceability, health, safety, environment, and community risks while maintaining a permanent presence on operating sites and supporting continuous improvement of conditions for miners, ASM Cooperatives, government and other key stakeholders. A full description of Pact’s role in this project can be found in this presentation.