#Congo

The Democratic Republic of Congo has declared cobalt a “strategic” substance, nearly tripling the royalty rate miners will have to pay on it. According to a governmental decree, miners will now pay 10 percent in royalties to extract the element.

While we’ve previously warned of the likelihood of a global supply shortage elevating the price of batteries, it seems this will occur only after the Congo taxes the crap out of it. This is the second time cobalt has seen a royalty hike since June, when the region increased the previous 2 percent royalty to 3.5 percent.

Besides the looming prospect of a reversal in the falling price of EV batteries, a spike in the price of cobalt is already ruffling some feathers.

If you can describe a road surface as being home to a rock formation, you might be in Kinshasa, Congo.

Protrusions of solid rock extend several feet above the road surface, as though thrust upward by some geologic force. In fact, these shockingly large outcroppings are made possible through an unfortunate combination of poor construction, over-use, and extreme neglect. I came upon several such promontories during a recent visit to the Congolese capital. And these were not rural or back street rock climbing opportunities. These can be found on main roads across the city center.