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Glencore Tries to Limit Fallout From Congo Mine Halt

  • Mining giant will keep paying workers while Mutanda is closed
  • Congo government faces big fiscal hit from Glencore’s decision
Updated on

Glencore Plc hopes mothballing the world’s largest cobalt mine in the Democratic Republic of Congo will revive prices, but it’s likely to carry a significant political cost.

Mutanda, source of about one-fifth of the metal used to make batteries in mobile phone and electric cars, will stop operations by the end of the year and go into a care and maintenance program. That’s a disaster for the economy in one of Africa’s poorest countries, where the mine provides 3,000 jobs to local workers and delivered more than $600 million in taxes last year, more than 10% of the government’s target budget.