In August 2023, Fair Cobalt Alliance (FCA) introduced a new sourcing model in the ASM (ASM) section called COBABALT CREDITS. The newly released system is designed to reduce the risk of cobalt supply chain and to accelerate continuous improvement of responsible ASM copper cobalt. FAIRPHONE, a co -founding member of the FCA, was proud of the first purchase of these credits and invested about $ 12,000 in about 2.5 tons of cobalt, which explains our total cobalt consumption in 2023. This was a momentary opportunity for the United States and FCA in a joint communal space supplied worldwide, known as CONGO’s CONGON COBALT.
Did you know?
Cobalt is mainly used for the production of lithium ion batteries for smartphones. The core components of the internal cathode help to improve energy density, stability and overall battery life.
How does cobalt credits work?
The cobalt credit center is a ‘book and billing’ credit system that allows a downstream company to financially contribute to improving the upstream ASM mine site, eager to eager cobalt’s responsible and ethical production. To purchase credit, the company pays $ 5000 per cobalt tone produced on a mining site. This is the same as 10%of the average price of cobalt tones over the past three years. Credit in the system indicates that the equal amount of cobalt has been produced and sold to meet the basic sustainability standards and continuously improve the environment, social and governance (ESG) performance. Learn more about cobalt credit systems.
Therefore, after the company purchased a certain number of credits, the funds will be the fund assignment committee operated by the AEGIS of the FCA’s permanent secretariat. The committee includes a representative of the FCA, a regional partner coopérative minière pour Le Development Social (CMD) and a Development Social (CMDS) and four major operator groups that manage four major operator groups. Women’s washers, sellers, carriers, and sailing ships (imports products from the bottom of the pit to the surface and determine where the funds should go. Mine sites Participation comply with the minimum standards and shows the promise of continuous improvement except for the worst practices.
The selected mine can invest in four major areas: good governance, safe and majestic working conditions, environmental protection and comprehensive economic development. The mining site then actively supports the IMPACT facility to perform necessary investment and upgrades to help comply with downstream requirements for responsible production. On the other hand, the company can continue to purchase credit to cover cobalt consumption and support continuous mine improvement.
“Responsible sourcing starts with responsibility. This is why FAIRPHONE developed and pilot cobalt credits with FCA and IMPACT facilities.This book and claim sourcing mechanism act as a way for the company to prevent and alleviate the risk of supply chain (three stages in the live -action cycle), reduce their duties and fairly. It is not possible to produce, and at least some of our cobalt are likely to be used in the DRC.
Angela Zone, Fairphone’s Impact Innovation Officer
How was the investment in the pair phone after all?
Credit purchase funds have been invested in upgrading and improvement of Kamilombe’s Artisanal Cobalt-Copper MINE site. The project selection process began with the FCA team to perform a reduction and recognition session with the Kamilombe Cooperative partner MINE site members, to hold meetings with other workers groups, to introduce the mechanism, and to promote elections for selecting representatives of the Fund Allocation Committee.
Workshops were organized to show how elected representatives submit a consideration for consideration according to the mechanism. With the funds of a pilot with a pair phone, representatives guided the procedure to submit a proposal using the template developed by the IMPACT facility. After many deliberations, they are part of the projects submitted and approved by the Fund Allocation Committe (FAC).
Project #1: Provision of Dynamos combined with the engine to support mining field ventilation
The deeper the underground pit, the lower the natural air circulation, and then the oxygen level of the underground miner is lower. Lack of ventilation can cause choking to be exposed to the risk of oxygen deprivation, and in some cases, deaths of miners may occur. To solve this problem, miners often use a blower driven by a dinner, increasing the basement of the air circulation.
The miners should borrow the needed dynamics because the co -operatives did not hold the Camillobe Mine site before. In addition to the rent, the seller had to maintain the dynamma and purchase the necessary fuel. In other words, it is an easy profit production plan for machine owners. That’s why one of the approved projects was a dynamos purchase for co -operatives.
Cost -efficient suppliers were jointly confirmed and approved by the FCA and workers, and purchased eight dinermoes and eight engines for $ 8,000. At the same time, co -operatives supported those who were selling Dynamos to install and management plans to ensure efficient use and maintenance.
As of today, eight dinners are installed and used in the field, and underground ventilation (underground ventilation) is helpful for 5,220 underground workers in 129 pits at the mining site. This not only greatly reduces the operating costs of miners and cooperatives, but also improves workers’ safety. Installing Dynamos reduced the risk of choking and gas poisoning in the underground gallery. As a result, I am willing to work with more people who sell more. Instead of 40 sellers per shaft, there are currently 70 people per shaft.
Project 2: Provides elbow length gloves for washer families.
In order to increase the purity of the ore, many craftsmen ‘clean’ minerals before buying minerals. Washing machines, mainly women executed the washing task and washed the payments per ore bag. They repeatedly lift the plastic bags filled with metal nets or ore, and rinse the soil by applying pressure to move the ore using the foot. It is common to stand directly in the water and stand barefoot and stand directly without proper personal protection equipment (PPE). As you can imagine, this exposure to chemically contaminated water has a serious risk of health. High concentrations of water can cause skin reactions, causes open wounds and micro -cuts to handle sharp ore and even lead to bladder infections.
With the support of the FCA, the Women’s Washer can access Wader Boots, which can be used through daily rents that are already subsidized by co -operatives. They do not protect their hands, but are effective in preventing direct contact between feet and chemicals. Therefore, representatives of Women Washers have submitted a proposal to a FAC for gloves suitable for ore washing for use during work. This suggestion will benefit more than 200 female washers on the Kamilombe MINE site.
Unfortunately, other regions and regional suppliers of gloves were divided for work, but the samples were so large that they were not suitable for mineral cleaning. Women’s Washer proposed an alternative project, but the FCA team continues to look for more suppliers to meet women’s needs.
Project 3: Construction of a dressing room for women washers
At present, Kamilombe’s Women Washers do not have a dedicated dressing room that can change inside and outside Wader Boots. To solve this problem, women on the mining site submitted a proposal for the construction of the dressing room.
The Impact Facility Team has received two quotations for project construction, and suppliers will start construction in the next few weeks. The construction cost is estimated to be about $ 8368 for the wood frame and about $ 8368 for the $ 9677 for the metal frame structure. But this is a small price paid to improve the working conditions of 200 women washers and to improve the dignity of labor.
Summary
About 150,000 to 250,000 people make a living from the cobalt division, the craftsman of the Democratic Republic of Congo. Their efforts have released more than 10,000 tons of cobalt annually, which is considered to be over $ 300 million in US $ 300 million. Our efforts have helped to establish a pilot for cobalt credit thanks to the excellent work of the FCA and IMPACT facilities, but our investment literally reduces potentially vast sea. In order to have a greater impact on this sector, more players need to invest more by investing in ASAP in COBABANT credits.
If your organization wants to make a long -lasting positive change in DRC’s craftsmen and small cobalt mining communities, please contact us. Secretary @Faircobaltalliance.org
