Our client was an international government seeking to determine its investment strategy in the cobalt sector as a means of guaranteeing future supply of the mineral for its sizable automotive industry.
The client was particularly concerned by reputational risks associated with labour abuses, corruption and human rights issues associated with different mining and export supply-chain models in the Democratic Republic of Congo (DRC), which produces around two-thirds of the world’s cobalt.
Africa Practice engaged its extensive network of expert sources involved in mining and politics in the DRC, consulting policy experts, industry players and international NGOs. We combined these conversations with detailed research of policy documents, investigative studies and media exposés, as well as other public record information.
Africa Practice subsequently produced a thorough study of the DRC’s cobalt sector, exploring the different extraction and trading models and their associated risks, as well as exploring broader market risks in the DRC.
Our study included advisory recommendations on investment models and risk mitigation strategies that would best achieve business objectives while maximising the developmental impact for the DRC.
The client is currently developing its strategy based on these recommendations.