US-China trade war hits Africa’s cobalt and copper mines with 4,400 jobs expected to vanish
- Mining giant Glencore’s plan to shut a cobalt mine in Democratic Republic of Congo and two copper mining shafts in Zambia is due to weakening demand
- Tariff tit-for-tat between world’s two largest economies seen as one cause of weakening demand for African commodities used in a range of hi-tech products
The US-China trade war is partly to blame for Anglo-Swiss mining giant Glencore’s move to shut a cobalt mine in the Democratic Republic of Congo and copper mining shafts in Zambia, with the probable loss of about 4,400 jobs, analysts say.
Glencore, which also is a commodity trading juggernaut, is placing its Mutanda mine in Congo – the world’s largest cobalt producer and one of the world’s poorest countries – on care and maintenance because of a slump in cobalt prices.
The mine, which produces about one-fifth of the metal used to make batteries for mobile phones and electric cars, provides about 3,000 jobs. It paid US$600 million in taxes last year, or one-tenth of the Congolese government’s budget.
Glencore’s Zambian unit, Mopani Copper Mines, is also shutting two copper mining shafts at its Nkana facility, probably putting 1,400 people out of work. Copper accounts for more than two-thirds of the country’s export revenue and a fifth of tax revenue.
The actions are a big blow for two countries whose economic and employment landscapes depend heavily on revenue from the copper and cobalt markets. Other African economies are also reeling from the slowdown in industries that consume the commodities they sell.
The 13-month trade war is partly responsible for weakening demand for the commodities the mines produce, according to analysts.