Strategic Raw Materials, International Mining Firms and the Democratic Republic of the Congo

The Democratic Republic of the Congo represents one of the world’s most important sites for mining activities. Strategic raw materials, such as cobalt and tantalum, fuel the global electromobility movement and high-tech industries. Located in the heart of Africa multinational firms from Canada, China and other countries do currently find themselves in a run for resources. Quantifications of interdependencies between disruptions in the former Belgian colony and associated real and financial economic values of international scale are largely nonexistent and aimed for in this study. Using SVAR models and the classical event study methodology we find that risk in the Congo and events, influencing the local competitive structure of multinational firms, do significantly influence prices of strategic raw materials and internationally listed stocks.