"LME to strengthen scrutiny of DRC-sourced cobalt", 10 July 2018

The London Metal Exchange is intensifying its scrutiny of companies that source their cobalt from mines in the Democratic Republic of Congo, amid growing fears over the use of child labour in the electric car supply chain. The LME, the world’s largest metal exchange, will require all companies that get at least 25 per cent of their metal from small-scale mines in the DRC to undergo a professional audit starting in January...Groups such as Amnesty International say children as young as seven are mining cobalt by hand in the DRC, one of the world’s poorest countries. The allegations have put pressure on companies such as Tesla to ensure cobalt in their cars is traceable to reputable mines...The LME, one of the City’s oldest institutions, is introducing responsible sourcing guidance for all of its metals, but that is not due to come into effect until 2020...If companies fail the audit they could be delisted from the LME, making them unable to sell metal on to the exchange, people familiar with the rules said...[Also refers to Cobalt Blockhain, Trafigura]