Following the announcement issued in October 2019, Glencore and GEM announced that they have extended their partnership for the supply of cobalt hydroxide by another five years and have formally embedded responsible sourcing and sustainability into the contractual relationship. Under the terms of the agreement, Glencore will provide around 150,000 tonnes of cobalt contained in hydroxide for GEM between 2020 and 2029. Glencore and GEM are committing each other to annual audits under OECD aligned standards, specifically, the Cobalt Refiner Supply Chain Due Diligence Standard developed by the Responsible Minerals Initiative, Responsible Cobalt Initiative and Chinese Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters. This shared commitment will help to demonstrate strong responsible sourcing practices and transparency across multiple points along the supply chain.
The Cobalt Institute, which counts Glencore as one of its members, has developed the Cobalt Industry Responsible Assessment Framework, an industry wide risk management tool that helps cobalt supply chain players identify production and sourcing related risks. This long term strategic cobalt partnership includes a commitment to use CIRAF when communicating publicly on environmental and social issues specific to the cobalt supply chain.