Jeff Hirsh Read: August 2024
Inspiration: Saw on Amazon’s bestsellers list; wanted to learn more about the mining industry for critical metals
Summary
Written with the help of ChatGPT, below is a brief summary to understand what is covered in the book.
“Cobalt Red”, published in 2022 by professor and author Siddharth Kara, exposes the harrowing human rights abuses and environmental devastation caused by cobalt mining in the Democratic Republic of the Congo. Kara’s investigation reveals how militia-controlled mining areas exploit child labor and subject workers to inhumane conditions. The book traces the cobalt supply chain from these toxic pits to the tech giants that rely on this mineral for their products. Through firsthand testimonies, Kara highlights the immense suffering endured by the Congolese people, emphasizing the global implications of our dependence on cobalt. Ultimately, “Cobalt Red” calls for greater awareness and ethical responsibility in addressing this hidden crisis.
Unedited Notes
Direct from my original book log, below are my unedited notes (abbreviations and misspellings included) to show how I take notes as I read.
Katanga region in southeastern corner of Congo holds more reserves of cobalt than the rest of the planet combined, Congo rich with numerous other resources, however with that has come constant exploitation, artisinal and small scale mining (ASM) is at the center—”artisinal” misleads as a label since really means inidividuals without formal employment/tools, ASM digs up 30% of world cobalt and is 90% of mining industry broadly, major western tech companies tout their high standards but it is all a lie—no one on the ground monitoring at all, Congo gvt and military guard mining sites closely and any true journalists/investigators would be risking lives if exposing conditions, mining conditions exacerbated in covid as demand for materials didn’t slow and safety measures impossible, the Congo people needed the couple dollars a day from work, exploitation ongoing for centuries but brief glimmer in 1960 with democratic election of Patrice Lumumba, however Lumumba threatened flow of materials west needed as tried to break cycle so belgium, UN, and US conspired to assassinate and then installed Joseph Mobutu who ruled for 32 years cementing exploitative conditions to benefit west, cobalt is in all modern tech powered by lithium ion batteried which created 1970 by exxon then mass produced first by sony 1990, 2010: 17k EVs, 2021: 16 million, EVs require multiples more cobalt vs smaller electronics, lithium ion batteries require cobalt to maximize energy density while maintaining thermal stability (ie not catch fire) over long battery life/range, essential for recharge cycles to be stable and hold max charge, 3 main types of lithium ion rechargeable batteries today (LCO, LNMC, LNCA—tesla use NCA vs most other EVs use NMC, LOC in electronics), Congo churns out trillions in cobalt value yet gvt annual budget is measured in single digit billions as wealth exported or corruption insulates benefits, China has main control over essential cobalt refineries/depots for mass distribution (~75% of market), artisinal miners sell to middlemen or depots then to commercial facilities China owns, cobalt industry is the congo represents a mix of the formal and informal—the informal on the ground digging and formal profiting, however no one in the formal chain claims responsibility/accountability for working conditions, exploitation of the Congo dates back to King Leopold of Belgium who founded Congo Free State in 1880s, Congo had great materials such as rubber which came as critical discovery as Belgians stake claim, Congo became most profitable african colony, by early 1900s copper became central mining export of Congo, palm oil trees in the Congo also became huge (Unilever founded by Lever brothers once Belgians sold rain forest in congo to them), 1958-early 1961 represent glimmer of independence hope, Lumunba elected and promise change but 11 days after election the Belgian turn on promise to let independent—backed another candidate Tshombe and announce Katanga province secede from Congo (had all the minerals), 70% of gvt income stolen, Lumumba try to get UN help but not expel Belgians for Lumumba turn to Soviets for help which spark CIA plot to kill hill, and then place Joseph Mobutu in power 1960 (Lumumba eventually captured and killed), Mobutu pushed out briefly as Congo reunified 1963 but second coup 1965, Mobutu then rule 32 years with corruption/siphoning money, Mobutu rename Republic of Zaire (though Zaire is based on portguese cartographers incorrect rendering of nzere which was original name of Congo River during Kongo Kingdom), Africa’s Great War: began 1998 for years was war following Rwandan genocide as tutsis fled violence, 2 mill refugees and many into Zaire causing chaos, 9 african nations in the Great War and 5 mill congolese die, fight over Katanga region and control of Kinshasa, 2002 finally get agreement for rwanda and uganda to withdraw troops from congo, Joseph Kabila was congo PM 2001 aftet father assassinated and try to coordinate peace, rwandan and ugandan still established spheres of control in east congo, Kabila look to west congo mines to spark growth, Kabila secured SICOMINES deal 2009 in Katanga which open door to chinese, Kabila pro china but lose power 2018 to Felix Tshisekedi who was feared to follow same path but has gone on anticorruption path and pressure chinese and Kabila plotting return with chinese backing, 2018 Glencore was largest cobalt mining company in the world (30% global production) via Mutanda mine in Congo but jan 2020 said stopping production for 2 years citing misleading reasons when really wanted better tax credits after Kabila increased royalty rate from 3.5 to 10% nov 2018, and 50% tax on “superprofits” when commodity price increase 25% beyond initial bankable feasibility estimate, 2018 glencore paid congo gvt $1.08bn in taxes and royalties which was 18% of congo national budget, Glencore leverage attempt did not work, miners take cobalt-copper heterogenite to negociants who run mining areas then these negociants take to “depots” which are largely run by chinese buyers who acquire and load to trucks to go to industrial mining plants, huge profit skimming as aritisinal miners get $1 per sack or less then negociants sell to depots and split 50/50 (often worse) but negociants simply ride bikes and don’t dig (plus split their 50% with fewer people), depots turn and sell at large profits, Musompo is a depot marketplace (largest in congo)—essentially a laundering marketplace where artisinal informal mining gets blended into formal supply chain and don’t know source, chinese depot heads go to congo as less competitive than china, can bribe to get a depot and make good salary, importantly depot heads confirm their cobalt goes to major conglomerates’ subsidiaries (in contrast to public statements), CHEMAF “model” site funded by apple, dell, google—a bit better run but NGO Pact who helped develop tout safeguards then when visit not in place—Pact never audit, no uranium/toxicity testing, still buy from informal marketplaces that use child labor to maximize transport load to industrial companies need to supply (ie dell, apple, etc),
