Mutoshi Pilot Project

The Chemaf Case Study

Chemaf is a leading mineral exploration, mining and processing company in the Democratic Republic of the Congo (DRC). In July 2017, while exploring a commercial partnership with the company, Trafigura initiated a review, conducted by third-party assessor Kumi Consulting, examining Chemaf’s operations against our Responsible Sourcing standards. The review examined Chemaf’s operational facilities on the outskirts of Lubumbashi, and incorporated Mutoshi, a then dormant mine in Kolwezi, that Chemaf sought to develop.

In 2018, Trafigura Group entered into a three-year marketing agreement with Chemaf and its parent company Shalina Resources Ltd for cobalt hydroxide. A component of the agreement provided for Trafigura’s ongoing support to Chemaf in building the company’s ability to manage social and environmental impacts across its operations.

In light of Chemaf’s intention to develop its Mutoshi concession, initially through the appointment of an artisanal and small-scale mining (ASM) contractor, Trafigura engaged internationally respected NGO PACT in January 2018, to support Chemaf in the ongoing maintenance of a Responsible Mineral Sourcing programme in line with Trafigura’s standards.

In response to the threat of the COVID-19 virus and with a view to safeguarding the health of workers onsite and their surrounding communities, in March 2020 operations at the Mutoshi Pilot Project were suspended. It was later determined that operations would not restart owing to changes in DRC law which saw the establishment of Entreprise Générale du Cobalt (EGC), the DRC State Owned Entity responsible for the purchasing of all ASM cobalt. Click here to learn more about Trafigura’s engagement with EGC.

Whilst noting that the Mutoshi Pilot Project is no longer in operation, the below provides a full outline of the structure of the project, as well as the many and varied benefits it delivered.

Watch short version of Responsible Sourcing: Facing-up to the challenge of ASM in English, Chinese and French.

Monitoring & Assurance

Extraction

Chemaf, a supplier of cobalt hydroxide to Trafigura, is initially developing its Mutoshi concession on a pilot-basis through the appointment of a single authorised ASM contractor, 'COMIAKOL'. In time, Chemaf intends for the concession to be mechanised, either in part or in full.

Chemaf has appointed a single cooperative, COMIAKOL, authorised by DRC Regulatory Authorities and representing approximately 5,000 ASM workers, to operate as a mining contractor on a designated area of the Mutoshi concession known as ‘Mutoshi Cobalt’.

For safety reasons, Chemaf has determined that only 5,000 workers can be present at Mutoshi Cobalt at any one time. Numbers onsite fluctuate and most workers operate on a week-on, week-off shift pattern.

The partnership working on this pilot project have sought to introduce and enhance operational controls at Mutoshi Cobalt. Controls of note include:

Workers must be at least 18 years of age. They must present officially recognised identity cards to register with the COMIAKOL cooperative.
There is a single entrance to the Mutoshi Cobalt site and an electric fence around its perimeter.
Personal protective equipment (PPE) has been issued free of charge to ASM workers at Mutoshi Cobalt, as well as to all workers at Chemaf’s buying centre.
Only registered workers wearing PPE may enter Mutoshi Cobalt.
Chemaf is distributing identity cards to workers. These will be used both for verification and to facilitate the recording of personal data, such as hours worked.
Workers are allocated demarcated zones within Mutoshi Cobalt. Any pits they dig must be less than 10 metres deep. They are not allowed to dig tunnels horizontally within their assigned zone.
Chemaf, ‘SAEMAPE’ (DRC State Regulator for ASM or ‘Service for Assistance and Supervision of Artisanal and Small-Scale Mining’), COMIAKOL and PACT conduct regular inspections and report on all incidents within a defined time period.

In the first six months of operations, achievements of the partnership have included as follows:

There have been no instances of child labour reported, but SAEMAPE and COMIAKOL remain vigilant.
Chemaf and PACT are jointly raising awareness in surrounding communities about child rights and the importance of preventing children from working in mining.
Chemaf and PACT have seen no evidence of human rights abuses (e.g. forced labour, sexual violence etc.) associated with ASM activities on the concession as a whole.
Clear signage within Mutoshi Cobalt prohibits alcohol and drugs on site. Chemaf regularly undertakes random alcohol breathalyser tests. Anyone that fails a breathalyser test is denied access to the site.
Security at the site is provided by a third party security company. Security staff are supported by DRC Mine Police. Only Mine Police are armed.
Physical barriers segregate pedestrians and vehicles at Mutoshi Cobalt and at the buying centre.
ASM workers travelling between Mutoshi Cobalt and the buying station are transported by a Chemaf bus to limit pedestrian traffic on connecting roads.
Drinking water and sanitation facilities have been introduced on site.
There are two first aid clinics at Mutoshi Cobalt. Medical supplies and health staff (doctor, nurses and a paramedic) are available and free of charge.
Chemaf’s Radiation Officer conducts monthly assessments to ensure exposure of workers to naturally occurring radiation from cobalt remains within safe limits.
A health and safety committee including Chemaf, COMIAKOL and PACT members is raising hazard awareness and safety management capacity amongst the ASM workforce.