The US Department of Labor announced Monday (January 12th) that it will allocate $22 million to groups in Indonesia and the Democratic Republic of Congo, also known as Congo (Kinshasa), to combat the Chinese Communist Party’s practices of controlling the global key mineral supply chain through labor abuse.
According to a press release issued by the US Department of Labor, the funds will be disbursed in the form of cooperative agreements to four non-profit international organizations to promote the elimination of forced labor and improvement of poor working conditions in Indonesia and Congo (Kinshasa).
The Department of Labor noted that minerals such as nickel, cobalt, copper, tantalum, tin, and tungsten are crucial to the US manufacturing industry, energy production, and national security. Unfair labor practices in overseas supply chains are undermining the competitiveness of US companies and workers who abide by the rules.
Internationally, the non-profit organization Winrock International received $7 million in funding, while the Center for Advanced Defense Studies received $3 million to address labor exploitation issues in the nickel supply chain in Indonesia. Indonesia is the world’s largest producer of nickel, accounting for approximately half of global production. Nickel is a key material in electronics, aerospace, manufacturing, stainless steel, electric vehicle batteries, and energy storage.
Investigations indicate that Chinese companies currently control about 75% of Indonesia’s nickel refining capacity, raising concerns about the resilience of the supply chain. Safety standards at related processing facilities in Indonesia are lax, with reports of over 90 deaths and more than 100 injuries in workplace accidents between 2015 and 2023, according to the Center for Advanced Defense Studies.
The US Department of Labor also included “Indonesian nickel” in the annual list of products produced with forced labor in 2024 to address the issue.
In Congo (Kinshasa), the US Department of Labor provided $7 million to the international non-profit organization Pact and $5 million to World Vision, a Christian humanitarian aid organization, to combat severe labor abuses in the country’s cobalt, copper, tantalum, tin, and tungsten supply chains. Congo (Kinshasa) produces over 70% of global cobalt and has more than half of global cobalt resources.
A 2023 study by the Department of Labor found that nearly 80% of cobalt miners in the region were subjected to forced labor, earning only around $2 per day in high-risk environments.
Additionally, according to data from the US International Development Finance Corporation, Chinese companies control about 80% of critical mineral production in Congo (Kinshasa), with most raw materials being processed in China.
The program is being implemented by the International Labor Affairs Bureau (ILAB) under the Department of Labor. The bureau stated that the projects align with the trade and economic policies of former President Donald Trump’s administration to reduce US reliance on foreign countries for specific mineral resources and strengthen domestic supply chain security.
The funding reflects the measures outlined in the executive order issued by former President Trump in March of last year to increase US mineral production promptly, ensuring that US manufacturers are not undercut by producers relying on labor exploitation or cost-cutting measures and are not at the mercy of countries dominating the market by improper means regarding critical minerals.
The Department of Labor highlighted that the four funded organizations have long-term experience in international development and human rights. Winrock International, founded in 1985, focuses on solving complex issues in global social and agricultural sectors. The Center for Advanced Defense Studies, established in 2000, concentrates on combating illegal networks threatening global peace and security.
Pact, founded in 1971, is committed to community resilience building and governance capacity enhancement. World Vision, established in 1950, is an international organization with a Christian humanitarian aid mission, addressing humanitarian issues such as poverty, child labor, and labor exploitation.
US officials explicitly mentioned the Chinese Communist Party multiple times in the background context, believing that its tolerance of labor issues in certain mineral supply chains has become a significant factor contributing to global market imbalance.
The Department of Labor emphasized that improving labor conditions in critical mineral supply chains not only enhances the transparency and reliability of raw material sources but also reduces supply disruptions, reputation risks, and potential legal liabilities faced by US companies. This ensures that law-abiding operators can compete in a fairer market environment.
(Contributions to this article were made by English Epoch Times reporter Jill McLaughlin)