Teaching case: Digging into the ethics of cobalt mining

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Teaching case: Digging into the ethics of cobalt mining
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As demand grows for the material used in batteries, this MBA-style case study explores ethical dilemmas over unregulated mines in the Democratic Republic of Congo

email rounding up the latestDemand for electric vehicles has increased sharply in response to concern about climate change. Yet battery-powered cars and trucks depend on cobalt, a mineral found primarily in the Democratic Republic of Congo , where child labour and unsafe mining conditions are common. The typical battery for an electric vehicle contains about 8kg of cobalt and global demand is projected to triple by 2035.

At least 70 per cent of cobalt comes from the DRC, of which between one-sixth and one-third is produced by informal or artisanal small-scale mining . Operating on the periphery of large industrial mining sites, ASM miners use makeshift methods to dig deep tunnels from which they collect cobalt ore and employ an estimated 25,000 children.

Every day, tens of thousands of people in the DRC try to scrape out small amounts of mineral ore on the periphery of the large-scale mining operations. They sell the cobalt to local traders, most of whom are Chinese. The traders then send the ore to refineries in the DRC and later in China, where almost 80 per cent is processed. These intersections during extraction and refining make it virtually impossible to separate ASM cobalt from industrially mined material.

Formalisation will also empower women workers, helping overcome traditional superstitions that they bring bad luck to mine sites and increasing household income, which enables families to send their children to school rather than to work in the mines. This model was successfully tested by the Swiss trading firm Trafigura at the Mutoshi mine from 2018 until early 2020, when operations were suspended because of Covid-19.

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