Scruffy depots packed with bags of ore line a road leading to the Democratic Republic of Congo's mining capital Kolwezi, in the southeast of the vast mineral-rich African country. 
 
Behind depot walls scrawled with "CoCu" — signifying cobalt and copper — traders assess the purity of illegally mined ore brought in by informal miners, and fix a price. 
 
But the miners, who mostly work in dire conditions, complain that traders rig purity readings to rip them off.&nbsp; "There's trickery everywhere," said miner Paul Bande, 45, at the Kamilombe artisanal mine near Kolwezi. 
 
An ambitious scheme is now taking shape in Lualaba province to fix the problem by establishing a government-backed depot. 
 
Known as the Musompo Trading Centre, it would cut out mercenary middlemen by offering to test and warehouse ore on behalf of the miners. 
 
Willy Yav, the head of Congolese firm SudSouth tasked by the Lualaba government with running the centre, described the average ore trader as a "mafia guy". 
 
The trading centre would also help burnish the image of artisanal cobalt, he explained, and lead to more money and better working conditions for miners. 
 
A traceability and certification scheme, for example, would ensure that ore in Musompo has only been sourced from artisanal mines that meet certain rights and safety conditions. 
 
Congo produces over 70 per cent of the world's cobalt, a metal critical to batteries used in electronics and electric cars.

Also read |&nbsp;<a href="https://www.wionews.com/trending/watch-nine-trapped-drc-miners-rescued-by-man-with-bare-hands-in-viral-video-576474">Nine trapped DRC miners rescued by man with bare hands in VIRAL video</a> 
 
Most cobalt is extracted from giant industrial mines, but over 200,000 people are estimated to work as so-called artisanal miners at illegal mining sites. 
 
Accusations of child labour, dangerous working conditions and corruption in the artisanal sector weigh on Congo's whole cobalt industry. 
 
The impoverished country relies heavily on mining: the sector represented 95 per cent of export revenues, and about a quarter of GDP between 2016 and 2021, according to the International Monetary Fund.

<h2>Legal issues&nbsp;</h2>

SudSouth CEO Willy Yav admitted that legal issues hinder the Musompo Trading Centre, which is not yet up and running.

Under Congolese law, artisanal miners are only permitted to work in government-designated zones and must be members of approved cooperatives.&nbsp;

Yet the law is not enforced. Most artisanal miners work outside the designated zones, in pits and tunnels dug with rudimentary tools, on concessions owned by mining multinationals.&nbsp;

Without a resolution of the legal issues, legitimate buyers will struggle to purchase ore from Musompo. &nbsp;

Other complications abound. For example, the role of Congo's Entreprise Generale du Cobalt (EGC), a state company with a monopoly on buying and marketing artisan mined cobalt, is unclear.&nbsp;

Congo launched EGC in 2021 hoping to develop the artisanal sector and to influence world cobalt prices. But the state firm has not yet bought any cobalt.

<h2>'Impatience'&nbsp;</h2>

Yav hopes the trading centre can work with the Kamilombe artisanal mine on a pilot basis. Success could then serve as a model for reforming the entire informal cobalt sector.&nbsp;"It's very important to fix this," he said, noting that informal diggers will keep invading corporate concessions because they have families to feed.&nbsp;

"Everyone's interest is met through a model like the trade centre".&nbsp;

A USAID critical minerals adviser, who requested anonymity, said the scheme could work but that legal issues, as well as finding buyers for artisan mined cobalt posed complications.

"There's a lot of interest from the provincial government that has an interest in cleaning up this supply chain and also generating a fair tax revenue," he said.

There is enthusiasm for the scheme in Kamilombe — a sprawling artisanal site of an estimated 1,000 tunnels not far from Kolwezi and located on a state-owned concession.

Bande, the miner, said he was waiting with "impatience" for the opening of the government-backed trading centre.&nbsp;

Traders only pay miners for either copper or cobalt, he explained, even though the ore they dig often contains both.&nbsp;

AFP visited both the Musompo Trading Centre and the Kamilombe artisanal mine as part of a trip facilitated by the Cobalt Institute, a lobby group.

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Scruffy depots packed with bags of ore line a road leading to the Democratic Republic of Congo's mining capital Kolwezi, in the southeast of the vast mineral-rich African country.

Scruffy depots packed with bags of ore line a road leading to the Democratic Republic of Congo's mining capital Kolwezi, in the southeast of the vast mineral-rich African country. Behind depot walls scrawled with "CoCu" — signifying cobalt and copper — traders assess the purity of illegally mined ore brought in by informal miners, and fix a price. But the miners, who mostly work in dire conditions, complain that traders rig purity readings to rip them off. "There's trickery everywhere," said miner Paul Bande, 45, at the Kamilombe artisanal mine near Kolwezi. An ambitious scheme is now taking shape in Lualaba province to fix the problem by establishing a government-backed depot. Known as the Musompo Trading Centre, it would cut out mercenary middlemen by offering to test and warehouse ore on behalf of the miners. Willy Yav, the head of Congolese firm SudSouth tasked by the Lualaba government with running the centre, described the average ore trader as a "mafia guy". The trading centre would also help burnish the image of artisanal cobalt, he explained, and lead to more money and better working conditions for miners. A traceability and certification scheme, for example, would ensure that ore in Musompo has only been sourced from artisanal mines that meet certain rights and safety conditions. Congo produces over 70 per cent of the world's cobalt, a metal critical to batteries used in electronics and electric cars. Also read | Nine trapped DRC miners rescued by man with bare hands in VIRAL video Most cobalt is extracted from giant industrial mines, but over 200,000 people are estimated to work as so-called artisanal miners at illegal mining sites. Accusations of child labour, dangerous working conditions and corruption in the artisanal sector weigh on Congo's whole cobalt industry. The impoverished country relies heavily on mining: the sector represented 95 per cent of export revenues, and about a quarter of GDP between 2016 and 2021, according to the International Monetary Fund. Legal issues SudSouth CEO Willy Yav admitted that legal issues hinder the Musompo Trading Centre, which is not yet up and running. Under Congolese law, artisanal miners are only permitted to work in government-designated zones and must be members of approved cooperatives. Yet the law is not enforced. Most artisanal miners work outside the designated zones, in pits and tunnels dug with rudimentary tools, on concessions owned by mining multinationals. Without a resolution of the legal issues, legitimate buyers will struggle to purchase ore from Musompo. Other complications abound. For example, the role of Congo's Entreprise Generale du Cobalt (EGC), a state company with a monopoly on buying and marketing artisan mined cobalt, is unclear. Congo launched EGC in 2021 hoping to develop the artisanal sector and to influence world cobalt prices. But the state firm has not yet bought any cobalt. 'Impatience' Yav hopes the trading centre can work with the Kamilombe artisanal mine on a pilot basis. Success could then serve as a model for reforming the entire informal cobalt sector. "It's very important to fix this," he said, noting that informal diggers will keep invading corporate concessions because they have families to feed. "Everyone's interest is met through a model like the trade centre". A USAID critical minerals adviser, who requested anonymity, said the scheme could work but that legal issues, as well as finding buyers for artisan mined cobalt posed complications. "There's a lot of interest from the provincial government that has an interest in cleaning up this supply chain and also generating a fair tax revenue," he said. There is enthusiasm for the scheme in Kamilombe — a sprawling artisanal site of an estimated 1,000 tunnels not far from Kolwezi and located on a state-owned concession. Bande, the miner, said he was waiting with "impatience" for the opening of the government-backed trading centre. Traders only pay miners for either copper or cobalt, he explained, even though the ore they dig often contains both. AFP visited both the Musompo Trading Centre and the Kamilombe artisanal mine as part of a trip facilitated by the Cobalt Institute, a lobby group. WATCH WION LIVE HERE:

DR Congo sets up scheme to save informal cobalt miners from swindlers

Diversified miner Vedanta Resources&#39; first-quarter core earnings rose about 48 percent on higher zinc production, with renewed demand for the metal driven by higher steel production in China.

The company, which mines zinc in India, South Africa and Namibia, reported an 84 percent jump in mined metal content, mainly of zinc, at its Indian unit to 233,000 tonnes for the first quarter to June 30.

Zinc is used to galvanise steel to protect it from rusting and steel producing countries such as China have ramped up production this year to support construction growth.

A jump in production boosted revenue at&nbsp;Vedanta&#39;s&nbsp;Indian unit by about 90 percent to $695 million. This underpinned the parent company&#39;s results.

Vendanta&#39;s output hit a monthly record in July at 74.02 million tonnes boosted by demand for steel-making ingredient zinc as mills ramped up production even as Beijing intensified its war on smog.

Vedanta&#39;s&nbsp;bounce back follows a couple of hard year when it was hit by weak commodities prices and debt. Investors have also worried about&nbsp;Vedanta&#39;s&nbsp;legal action in connection with pollution in Zambia.

Its shares were up 1.6 percent at 785 pence at 0728 GMT on the London Stock Exchange. While its shares have fallen around 20 percent this year, they have outperformed the wider STOXX Basic Resources index since the end of June, Reuters data showed. (http://bit.ly/2xrAclo)

Vedanta said earnings before interest, tax, depreciation and amortization rose to $777.8 million in the first quarter, from $527.1 million a year earlier.

The company, which also produces iron ore, copper, aluminium and oil, said revenue rose 32 percent to $3.08 billion in the quarter, beating Jefferies estimates by about 2 percent.

Vedanta has said it is well placed, with its zinc mines and it also produces aluminium - meaning it produces two other materials used in light, low carbon transport.

The group is also exploring ways to produce cobalt for use in batteries amid an anticipated electric vehicle boom.

Diversified miner Vedanta Resources' first-quarter core earnings rose about 48 percent on higher zinc production, with renewed demand for the metal driven by higher steel production in China

Diversified miner Vedanta Resources' first-quarter core earnings rose about 48 percent on higher zinc production, with renewed demand for the metal driven by higher steel production in China. The company, which mines zinc in India, South Africa and Namibia, reported an 84 percent jump in mined metal content, mainly of zinc, at its Indian unit to 233,000 tonnes for the first quarter to June 30. Zinc is used to galvanise steel to protect it from rusting and steel producing countries such as China have ramped up production this year to support construction growth. A jump in production boosted revenue at Vedanta's Indian unit by about 90 percent to $695 million. This underpinned the parent company's results. Vendanta's output hit a monthly record in July at 74.02 million tonnes boosted by demand for steel-making ingredient zinc as mills ramped up production even as Beijing intensified its war on smog. Vedanta's bounce back follows a couple of hard year when it was hit by weak commodities prices and debt. Investors have also worried about Vedanta's legal action in connection with pollution in Zambia. Its shares were up 1.6 percent at 785 pence at 0728 GMT on the London Stock Exchange. While its shares have fallen around 20 percent this year, they have outperformed the wider STOXX Basic Resources index since the end of June, Reuters data showed. (http://bit.ly/2xrAclo) Vedanta said earnings before interest, tax, depreciation and amortization rose to $777.8 million in the first quarter, from $527.1 million a year earlier. The company, which also produces iron ore, copper, aluminium and oil, said revenue rose 32 percent to $3.08 billion in the quarter, beating Jefferies estimates by about 2 percent. Vedanta has said it is well placed, with its zinc mines and it also produces aluminium - meaning it produces two other materials used in light, low carbon transport. The group is also exploring ways to produce cobalt for use in batteries amid an anticipated electric vehicle boom.

Vedanta Resources' earnings rise 48 per cent with helping hand from China

BHP Billiton reported a record $6.4 billion annual loss&nbsp;today, hammered by a bad bet on shale, a dam disaster in Brazil and a commodities slump, but said it expects its cash flow to more than double this year. 
 
The world&#39;s biggest mining company said with cost cuts and a reduction in net debt it expects to generate more than $7 billion in free cash flow in the year to June 2017, at current prices for iron ore, copper, coal, oil and gas. 
 
&quot;While commodity prices are expected to remain low and volatile in the short to medium term, we are confident in the long-term outlook for our commodities, particularly oil and copper,&quot; chief executive Andrew Mackenzie said in a statement. 
 
Excluding $7.7 billion in writedowns and charges, underlying profit still slumped 81 per cent to $1.2 billion for the year to June 2016 from $6.4 billion a year ago, hit by weak prices for its major commodities.&nbsp;The company said weaker commodity prices wiped $US10.7 billion off its pre-tax earnings. 
 
The major costs came from cutting the value of its US shale oil and gas assets ($US4.9 billion), the Samarco iron ore disaster in Brazil ($US2.2 billion) and money set aside for global taxation reassessments ($US570 million). 
 
Even excluding those write-downs, BHP Billiton&#39;s underlying net profit crashed 81 per cent to $1.22 billion. 
 
The underlying profit was the weakest since the merger of BHP and Billiton in 2001, but better than analysts&#39; expectations of around $1.1 billion. 
 
Shoring itself up against tough markets, BHP, like rival Rio Tinto, in February abandoned its long-held policy of never cutting dividends, and flagged instead it would pay out at least 50 percent of underlying profit from then on. 
 
It announced a full-year dividend of 30 cents, which it said was more than the minimum under its new payout policy, although it was just below analysts&#39; forecasts around 32 cents. 
 
Net debt rose slightly from December to $26.1 billion, which was higher than the $25 billion that analysts had expected, but BHP said it expects net debt to fall in the 2017 financial year. 
 
&quot;We continue to pursue capital-efficient latent capacity opportunities which will support volume growth of up to four per cent next year, excluding our onshore US assets where we continue to defer activity to maximise value,&quot; Mackenzie said, referring to its shale oil and gas business.&nbsp; 
 
BHP Billiton was formed through the 2001 merger of Australia&#39;s mining and oil giant BHP and UK-based mining group Billiton. The merger created the world&#39;s largest diversified resources company, with operations in 20 countries spanning the aluminum, coal, copper, ferro-alloys, iron ore, titanium, nickel, diamond, and silver mining sectors, as well as the oil, gas, and liquefied natural gas markets. 
 
BHP Billiton has posted a statutory net full-year loss of $US6.385 ($8.3 billion) on significant one-off write-downs. 
 
The final dividend of 14 US cents per share, fully-franked, down 77 per cent from last year&#39;s final payout of 62 US cents was declared. 
 
(Reuters)

The mining company was hamstrung this year by a bad gamble on shale and the dam disaster in Brazil

BHP Billiton reported a record $6.4 billion annual loss today, hammered by a bad bet on shale, a dam disaster in Brazil and a commodities slump, but said it expects its cash flow to more than double this year. The world's biggest mining company said with cost cuts and a reduction in net debt it expects to generate more than $7 billion in free cash flow in the year to June 2017, at current prices for iron ore, copper, coal, oil and gas. "While commodity prices are expected to remain low and volatile in the short to medium term, we are confident in the long-term outlook for our commodities, particularly oil and copper," chief executive Andrew Mackenzie said in a statement. Excluding $7.7 billion in writedowns and charges, underlying profit still slumped 81 per cent to $1.2 billion for the year to June 2016 from $6.4 billion a year ago, hit by weak prices for its major commodities. The company said weaker commodity prices wiped $US10.7 billion off its pre-tax earnings. The major costs came from cutting the value of its US shale oil and gas assets ($US4.9 billion), the Samarco iron ore disaster in Brazil ($US2.2 billion) and money set aside for global taxation reassessments ($US570 million). Even excluding those write-downs, BHP Billiton's underlying net profit crashed 81 per cent to $1.22 billion. The underlying profit was the weakest since the merger of BHP and Billiton in 2001, but better than analysts' expectations of around $1.1 billion. Shoring itself up against tough markets, BHP, like rival Rio Tinto, in February abandoned its long-held policy of never cutting dividends, and flagged instead it would pay out at least 50 percent of underlying profit from then on. It announced a full-year dividend of 30 cents, which it said was more than the minimum under its new payout policy, although it was just below analysts' forecasts around 32 cents. Net debt rose slightly from December to $26.1 billion, which was higher than the $25 billion that analysts had expected, but BHP said it expects net debt to fall in the 2017 financial year. "We continue to pursue capital-efficient latent capacity opportunities which will support volume growth of up to four per cent next year, excluding our onshore US assets where we continue to defer activity to maximise value," Mackenzie said, referring to its shale oil and gas business. BHP Billiton was formed through the 2001 merger of Australia's mining and oil giant BHP and UK-based mining group Billiton. The merger created the world's largest diversified resources company, with operations in 20 countries spanning the aluminum, coal, copper, ferro-alloys, iron ore, titanium, nickel, diamond, and silver mining sectors, as well as the oil, gas, and liquefied natural gas markets. BHP Billiton has posted a statutory net full-year loss of $US6.385 ($8.3 billion) on significant one-off write-downs. The final dividend of 14 US cents per share, fully-franked, down 77 per cent from last year's final payout of 62 US cents was declared. (Reuters)

World's biggest miner BHP Billiton reports $6.4 billion record loss

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