section_path: Economy/Mining
section_name: Mining
paragraph_text: Mining
  
  The DRC is the world's largest producer of cobalt ore, and a major producer of copper and diamonds. As of 2023, the country is estimated to possess around 70% of the world's cobalt production. Diamonds come from Kasaï Province in the west. By far the largest mines in the DRC are located in southern Katanga Province and are highly mechanized, with a capacity of several million tons per year of copper and cobalt ore, and refining capability for metal ore. The DRC is the second-largest diamond-producing nation in the world, and artisanal and small-scale miners account for most of its production.
  
  At independence in 1960, DRC was the second-most-industrialized country in Africa after South Africa; it boasted a thriving mining sector and a relatively productive agriculture sector. Foreign businesses have curtailed operations because of uncertainty about the outcome of long-term conflicts, lack of infrastructure, and the difficult operating environment. The wars intensified the impact of such basic problems as an uncertain legal framework, corruption, inflation, and lack of openness in government economic policy and financial operations.
  
  Conditions improved in late 2002, when a large portion of the invading foreign troops withdrew. A number of International Monetary Fund and World Bank missions met with the government to help it develop a coherent economic plan, and President Kabila began implementing reforms. Much economic activity still lies outside the GDP data. Through 2011 the DRC had the lowest Human Development Index of the 187 ranked countries.
  
  The economy of DRC relies heavily on mining. However, the smaller-scale economic activity from artisanal mining occurs in the informal sector and is not reflected in GDP data. A third of the DRC's diamonds are believed to be smuggled out of the country, making it difficult to quantify diamond production levels. In 2002, tin was discovered in the east of the country but to date has only been mined on a small scale. Smuggling of conflict minerals such as coltan and cassiterite, ores of tantalum and tin, respectively, helped to fuel the war in the eastern Congo.
  
  Katanga Mining Limited, a Swiss-owned company, owns the Luilu Metallurgical Plant, which has a capacity of 175,000 tonnes of copper and 8,000 tonnes of cobalt per year, making it the largest cobalt refinery in the world. After a major rehabilitation program, the company resumed copper production operations in December 2007 and cobalt production in May 2008.
  
  In April 2013, anti-corruption NGOs revealed that Congolese tax authorities had failed to account for $88 million from the mining sector, despite booming production and positive industrial performance. The missing funds date from 2010 and tax bodies should have paid them into the central bank. Later in 2013, the Extractive Industries Transparency Initiative suspended the country's candidacy for membership due to insufficient reporting, monitoring and independent audits, but in July 2013 the country improved its accounting and transparency practices to the point where the EITI gave the country full membership.
  
  In February 2018, global asset management firm AllianceBernstein defined the DRC as economically "the Saudi Arabia of the electric vehicle age," because of its cobalt resources, cobalt being essential in the production of the lithium-ion batteries that power many electric vehicles. Open-pit cobalt mining has led to deforestation and habitat destruction.