from congress to congo—turning the tide on conflict minerals, closing loopholes, and empowering...

7/31/2019 From Congress to CongoTurning the Tide on Conflict Minerals, Closing Loopholes, and Empowering Miners

1/17

From Congress to Congo

Turning the Tide on Confict Minerals, Closing Loopholes, andEmpowering Miners

Fidel Bailemba, Sasha Lezhnev, and Sarah Zingg Wimmer August 2012

www.enoughproject.org


2/17

From Congress to CongoTurning the Tide on Confict Minerals, ClosingLoopholes, and Empowering Miners

Fidel Bailemba, Sasha Lezhnev, and Sarah Zingg Wimmer August 2012

Editors Note: Economics remain a he hear o he renewed violence

in easern Congo ha has displaced roughly 400,000 people. Te laes

insabiliy has been caused by he Rwanda-backed M23 rebellionan

insurgency largely ormed o proec Rwandan-linked miliary and polii-

cal ineress in he region, including conrol over mineral resources and

land. M23 and is allied miliias have esablished conrol over a number

o sraegic locaions in he Kivu provinces o easern Congo and hreaen

urher insecuriy and a massive smuggling operaion. Te rebellion hasslowed he rs expors o clean minerals om he Kivus bu reorms are

sill going ahead in peaceul areas ouside he crisis areas. Te majoriy o

research conduced or his publicaion was done in advance o he onse

o he escalaion in confic, bu he longer-erm reorms highlighed here

remain criical o he comprehensive peaceul soluion o he confic.

ON THE COVER: Miners interviewed by Enough supported the Dodd-Frank legislationand related reorms as a way to increase security, ree themselves rom armed groups, andeventually increase their wages through transparency and development. Nyamurhale,

South Kivu, eastern Congo.

SASHA LEZHNEV/ENOUGH PROJECT


3/17

1 The Enough Project www.enoughproject.org | From Congress to Congo

Executive summary

e ide on conic minerals is saring o urn bu more mus be done o close loop-

holes ha sill allow smuggling. e mos recen oubreak o violence in easern Congo,

spawned by he Rwanda-backed M23 rebellion, has economic ineress a is core, ashe rebels and heir parons are resolved o preserve heir access o Congolese land and

naural resources, including minerals. However, his masks noeworhy progress ha

companies and governmens have made over he pas 18 monhs o signicanly dimin-

ish he abiliy o armed groups o generae income rom conic minerals.

An Enough Projec invesigaion has ound ha he passage o he conic minerals

legislaion wihin he Dodd-Frank Wall Sree Reorm law and new ech indusry sourc-

ing policies have helped lead o a 65 percen drop in armed groups pros rom he rade

in in, analum, and ungsenhe 3 sover he pas wo years.1 In March 2012,

prior o he M23 rebellion, his nancial srain, coupled wih miliary pressure rom heCongolese army and Unied Naions, had diminished he Rwandan Huu rebel group he

Democraic Forces or he Liberaion o Rwawnda, or FDLR, o a quarer o is size o wo

years ago. However, wih M23 now wreaking havoc in he region, gains made o demilia-

rize mines and eradicae armed groups such as he FDLR are a risk. Furher, due o gaps

in he implemenaion o he U.S. legislaionwhich coninue o allow armed groups o

smuggle 3 minerals, in smaller amouns and gold in larger amounspolicymakers and

indusry leaders mus redouble heir eors o close he loopholes hrough beter monior-

ing. Oherwise, here is a risk ha a river o smuggled conic minerals could ow again o

Rwanda, Uganda, Burundi, and on o global markes.


4/17


e passage o he U.S. law is also sparking landmark reorms by he Congolese govern-

men and elecronics companies o rapidly build up he archiecure or a legiimae,

conic-ree mineral rade in Congo and he region. ese reorms are suppored by

a new price srucure in which raced conic-ree minerals are sold a a 70 percen

markup over unraced minerals.2 e reorms include:

A new requiremen rom he Congolese governmen ha all mineral expors are o beaudied and raced o conic-ree mines. is policy was enorced by Congos suspen-

sion in May 2012 o wo Chinese companies or conic rading. e rs shipmens o conic-ree maerials being expored rom 501 raceable mines

in he areas bordering he war-orn Kivu region o easern Congo.3 Progress in armed groups pulling ou o 3 mines. e rs-ever validaion o mines o check or he presence o armed groups and

child labor. e upcoming launch o a regional governmen iniiaive o regularly monior mines

or he presence o armed groups, wih U.S. suppor.

Addiionally, according o inerviews conduced wih over more han 100 miners in Norh

and Souh Kivu, mos miners view he ransormaion o a clean rade ree o armed

groups as a process o liberae hemselves rom he slave-like condiions under which hey

have worked or years. A o he ime o research, armed groups had decreased harass-

men o miners in mos 3 mines, and some gold mines, because o pressure rom he

Congolese army o demiliarize mining areas. Over he pas year, many miners in he Kivus

have also changed livelihood sraegies. Many have moved o work in conic-ree mines in

neighboring provinces or have aken up work in agriculure or small business enerprises;

bu, hey need greaer securiy and inusions o sar-up capial o succeed. Neverheless, as

he M23 conic prevens urher responsible invesmen in he Kivus, some miners haveseen heir incomes decrease, which mus be addressed wih urgency.

In he shor erm, insabiliy may increase, and greaer pressure on Rwanda, M23,

and he Congolese governmen will be needed o increase sabiliy. 4 However, i

he sysemic changes are o sick, programs aimed a improving livelihoods, closing

loopholes, and mining reorm mus move ahead. is will begin o allow communiies

in easern Congo o be reed o miliia conrol and experience he benes o a clean

minerals rade and a diversied economy.

is repor is based on inerviews wih 143 people in Congo and Rwanda rom

February o July 2012, including visis o ve mining areas.5 e ollowing recommen-

daions are a resul:

Pressure Rwanda to stop support to M23. e U.S. and is inernaional parners

should demand Rwanda hal all suppor o he M23 rebellion, which represens a sep

backward in he gh agains conic minerals and armed violence. Rwanda should


5/17


also cooperae in eors o creae peace in he region, as well as ensure accounabiliy

or he muineers. e U.S. and U.K. should voe agains he World Banks $135 mil-

lion in general budge suppor or Rwanda and place Rwandan ocials named in he

U.N. Group o Expers repor or supporing M23 under nancial and ravel sancions.

Speed up certification of conflict-free mines. e U.S. should ensure ha he

independen monioring mechanism o he Inernaional Conerence on he GreaLakes Region, or ICGLR, is operaional quickly and is able o sancion smugglers. A

high-level U.S. ocial should chaira special session o he Public-Privae Alliance on

Responsible Minerals, or PPA, oharmonize raceabiliy and audi iniiaives o increase

ransparency, eciency orbusinesses, and compliance wih regional sandards. Rwanda,

or he in indusry raceabiliy program, iSCi, should publish he capaciy o mines and

heir produciondaa, proving wheher expors are conic-ree.

Increase conflict-free sourcing.Companies rom he auomoive, jewelry, and reail

secors should suppor Congolese conic-ree mining by joining he Public-Privae

Alliance and by beginning projecs similar o he elecronics indusrys Soluions orHope projec o parner wih suppliers sourcing rom conic-ree mines in Congo.

Empower miners. e U.S., European Union, or E.U., he World Bank, and compa-

nies in he minerals supply chain should, as a mater o urgency, esablish a miners

empowermen und o increase employmenespecially in consrucion, micro-

nance, and agriculure.

Increase mine security. e U.S. and E.U. should suppor a signican increase in he

number o Congolese mining police.

e ollowing repor examines he progress made by indusry, governmen, and civil

sociey working o reorm he conic minerals rade in easern Congo, as well as he

exising gaps and challenges hey ace. e rs secion ocuses on progress and chal-

lenges regarding mine securiy, he developmen o a clean minerals rade, armed

groups pros, raceabiliy, and independen monioring. e second secion ocuses

on he percepions o reorm wihin mining communiies in he Kivu provinces and he

need or addiional suppor or livelihoods and economic developmen.

1. Reorm or a clean minerals trade: Positive steps but loopholes must

be closed

ree main caegories o reorm are underway ha have decreased conic minerals

nancing and increased he number o conic-ree mines: securiy a mines, race-
http://solutions-network.org/site-solutionsforhope/http://solutions-network.org/site-solutionsforhope/http://solutions-network.org/site-solutionsforhope/http://solutions-network.org/site-solutionsforhope/


6/17


abiliy, and independen monioring and cericaion.6 However, each o hese reorms

sill has loopholes and mus go several seps urher in order o ge o ully conic-ree

sourcing rom he region.

Mine Security: From armed groups to police. By early 2012 newly rained civilian min-

ing police were aking he place o armed groups a he larges 3 mines in he Kivus.

e FDLR and oher armed groups had been driven ou o mos mining areas on ordero Kinshasa, which el poliical and commercial pressure o ge conrol o he mining

secor in he eas. Mine demiliarizaion was saring in mos major mining areas, rom

souhern Masisi o Walikale o Nyabibwe.7 Local civil sociey aciviss old Enough,

Beore, i was chaos, wih everyone ghing each oher over he minerals. Now weve

seen he miliary pulling ou. ese guys are araid o inernaional pressure.8 Since he

M23 rebellion in April, armed groups have reaken conrol over some mining areas,

hough producion is sill low. Mai Mai Sheka or NDC, an armed group allied wih

M23, has begun minerals rading again in Walikale, he FDLR ook over he Lukoma in

mine, and some army ocers have insalled relaives a mines.9 ere is a risk ha his

could increase, as M23 could move more ully ino Norh and Souh Kivu and beginmore signican smuggling operaions hrough Rwanda.

However, he overall rend o having ewer armed groups a mines represens incremenal

progress or wo reasons. Firs, mine demiliarizaion ges he guns ou o he mines and

mining-adjacen communiies, allowing people o go abou heir normal lives wihou

major securiy risks. Some o his has reversed in recen monhs and could once again esca-

lae bu he overall rend remains. e U.N. repors ha he Congolese army now mainly

uses invesmen and expor raud o pro rom he minerals rade bu is preying less on

communiies.10 Enough spoke o miners who repored signicanly lower inimidaion by

armed groups han in previous years bu said harassmen was sill no a zero.

Second, armed groups only earn approximaely 35 percen o heir previous pros less

rom he 3 s rade, including smuggling pros. While armed groups and army unis earn a

larger percenage rom smuggling han rom rading hrough ocial channels, his sill only

represens a racion o he overall unds hey were able o generae rom he 3 s in previ-

ous years because he overall volume o 3 minerals is so low. Consider he ollowing:

Producion a 3 mines is 65 percen o 80 percen o 2010 levels11

3 s ocially expored rom Congo represen an esimaed 35 percen o he overall

rade,12 and he price o hese minerals is 25 percen o 35 percen o he 2010 price13

3 s smuggled rom Congo represen an esimaed 65 percen o he overall rade, 14

and he amoun generaed by armed groups rom smuggling hese minerals is 150

percen o he 2010 price15

e oal pros received by armed groups rom he minerals rade is an esimaed 35

percen o 2010 levels.


7/17


in in paricular has been dicul o smuggle, because he reddish in ore ound in

Norh Kivu is physically dieren rom he black in ound in Rwanda and is hereore

dicul o pass o as Rwandan. Furhermore, in is one-enh he price o analum by

volume, so i akes large rucks o smuggle, which are much more easily caugh.

One indicaion o armed groups rusraion is he inghing among army ocers and

rebels previous business parners over he remains o he 3 s rade. During hedemiliarizaion o Bisie mine, or example, our neworks wihin he army and securiy

services urned on each oher over he lowered pros a he mine.16 When armed com-

manders gh over money, i weakens he srucure and cohesion o insurgencies. Such

nancial raricide led o he weakening o rebel insurgencies in Sierra Leone, where

diamond pros had decreased.17

Going orward, mining police should be rained and deployed in much greaer numbers,

ogeher wih U.N. peacekeepers and a limied, moniored Congolese army presence

around he perimeers o mines, o provide securiy bu no harassmen. Some 100 min-

ing police have been rained hus ar by he U.N. and a urher 100 are o be rained wihU.S. suppor in he coming monhs.18

However, his is no nearly a large enough presence or he mines or example, only 14

police are deployed a one o he regions larges mines, Bisie, where roughly 4,000 min-

ers work. I his miniscule raio coninues, Congos army and rebels will occupy mines.

Civil sociey groups also repor ha some mining police are aciliaing smuggling wih

armed groups. Mining police mus hereore be moniored hrough he monioring

mechanism described below.

Getting back to the mines: traceability, due diligence, and initial investments. Findingou wha minerals are being expored rom which mines is a key sep o veriying ha

he minerals are conic-ree. Over he pas 18 monhs, signican work has been done

in his area o raceabiliy. In 2011, Congo began o require exporers o ollow due dili-

gence guidelines and in 2012 he governmen adoped he ICGLR cericaion rame-

work ino law requiring all minerals o be raced rom conic-ree mines.19 I minerals

are ound unraceable, hey are o be banned or expor. In a bold move, Congo enorced

hese proocols by suspending wo Chinese exporersT (CMM) and Huayeiin

May 2012 or exporing unraceable minerals.20

Oher ransparency seps are complemening his work. Four rading ceners, or cenres

de negoce, have also been buil in he Kivus o increase local raceabiliy, alhough none

have opened. e meals indusry bagging and agging sysem, called iSCi, inended

o race minerals has begun work a 95 mines in Kaanga Province and 406 mines in

Rwanda; a conrac was signed in April o sar work in he Kivus and Maniema.21 A

high-ech agging sysem is also being piloed in Rwanda ha uses barcode scanners and

GPS, similar o FedEx racking.22


8/17


While armed groups have begun to be disrupted by the decreased trade

in the 3 Ts, gold is one o their last major lielines. Production is booming,

driven by a 150 percent price increase over the past ve years and the ease

o smuggling gold out o eastern Congo. The trade rom the Kivus is worthan estimated $300 million per year,26 which has been controlled largely by

General Bosco Ntaganda, now co-commander o the M23 rebellion. Nearly

100 percent o eastern Congos gold is smuggled, with only 23 kilograms o

gold ocially exported rom the Kivus thus ar in 2012, despite an estimated

our to eight tons going out unocially.27 The smuggling trade is primarily

controlled by a small group o Congolese, Ugandan, and Burundian smug-

glers. They carry the gold by hand in briecases to sell in Dubai, beore it

reaches U.S., European, and Asian markets via Switzerland and India.

In contrast to the 3 Ts, little reorm has taken place on conict gold. Mini

companies and jewelers have begun initial audits, but conict gold cont

ues to ow out unchanged rom the Kivus.28 One change has been the

industrial gold mine at Twangiza, South Kivu, where violence was rampave years ago but is conict-ree today due to investment and control by

Banro, a Canadian mining company.

As a local miner told Enough, I you put pressure on gold, the maa

networks would disappear.29 Going orward, jewelry and mining compa

nies should invest in air trade, transparent mines in the Kivus; the U.S. a

U.N. should sanction known conict gold traders and Congo and donor

countries should register miners and ormalize the trade.

Conflict gold

In he Kivus, reorms are coninuing in non-conic areas. A closed-pipeline supply

chain or in, or example, is being nalized in Nyabibwe, hough his mus be closely

moniored or armed groups.23 e rade rom he Kivus has increased o abou one-

hird o pre-2011 levels, narrowing he gap beween Kaanga and he Kivus.24 Local

minerals businesses are also adoping clean supply chain policies and have launched a

due diligence awareness program.25

Local communiies should be he beneciaries o increased racing and audiing. is

has already sared o be he case or conic-ree mining communiies in Kaanga andRwanda where schools, roads, and healh ceners are being buil, and miners are see-

ing increased wages.30 Mineral producion in non-conic areas is rising rapidly, such as

in Norh Kaanga, where operaors are racing and using due diligence a 143 mines.31

Furher, invesmen by Banro and in invesors is planned in Maniema, wes o he Kivus.32

rough supply chain parnerships, six elecronics companies Moorola Soluions,

Inel, HP, RIM, Foxconn, and Nokia have also proven ha i is possible o source clean

minerals rom Congo. ese shipmens are raceable rom mine o produc and have been

audied or involvemen by armed groups; however, pricing mechanisms should improve.33

ech company Keme also iniiaed a conic-ree sourcing program. Moreover, he PPA

is reviewing proposals o disburse he $800,000 i currenly has available or projecs ha

enable raceable, validaed supply chains rom he region.34 While all o hese projecs are

posiive seps orward, hey mus all also be ransparen and credible.

e mine reorms mus be expedied, however, in order o speed up he developmen o

conic-ree mines. Acceleraion o reorms canno be limied o Kaanga and Maniema.


9/17


raceabiliy work in he Kivus, hough a challenge, mus proceed aser. Coss mus also

be brough down, wih he iSCi sysem cosing $350 per on compared wih oher

sysems ha run near $135 per on.

Independent monitoring and certification: initial steps. Alhough here is sill no inde-penden monioring sysem in place, several posiive seps have been aken o develop

hird-pary audiing and monioring o he rade. Firs, a muli-sakeholder group madeup o indusry represenaives, he Congolese governmen, donor counries, and civil

sociey compleed a validaion o 46 mines in he Kivus in mid-2011. ey checked or

he presence o armed groups and child laborers. e repor concluded ha 41 percen,

or 19 ou o 46, mines in Norh and Souh Kivu were conic-ree.35

e validaion was a good iniial sep as he rs-ever evaluaion o

mines in easern Congo bu i does no give a deniive answer regard-

ing hese mines. e mehodology o he evaluaion process mus

be improved; armed groups and children were ofen alered o he

groups visis and lef in advance o he validaors arrival a he mines.Moreover, he eigh-monh publicaion delay mean ha condiions a

he mines had changed by he ime o he repors release. Furher, he

ull assessmens o each mine should be made public so ha poenial

invesors and he public can know why a cerain area is or is no caego-

rized as conic-ree as well as evaluae he possible risks o each loca-

ion. e curren validaion repor only has a char ha icks yes, no,

or improving or he mines. Finally, validaion should be exended

o areas across he Kivus, as local civil sociey has argued. Germany is

also piloing audis o mines in he region. Having conduced a series

o audis in Rwanda, he German governmen is underaking is rsCongolese audi a Nyabibwe and planning 25 urher mine audis over

he coming six monhs.36

e regional body ICGLR and Rwanda have also aken seps on monioring bu should

go urher. e ICGLR consiued is commitee o review audis o mineral exporers

bu has no approved he nal Independen Mineral Chain Audior, or IMCA, designed

o be an audior general or cericaion. Moreover, Rwanda had ve o is larges mineral

producers audied in 2010 bu he ull repors o he audis have no been released. ese

should be made public. Rwanda hen suspended ve minerals companies and arresed our

miliary generals in separae incidens relaed o minerals smuggling in early 2012.37 Four

blacklised companies were ound o have illegally agged minerals and are currenly serv-

ing a six-monh ban rom all aciviies. Burundi, Uganda, and anzania have aken ew o

no seps on raceabiliy or monioring, despie a long hisory o conic gold smuggling.38

Next steps on mine security

PERIMETER

MINE

Monitoring Mechanism

Congolese Army

(Small Contingents)

UN Peacekeepers

Checking for

armed groups


10/17


ese are posiive seps bu a more sysemaic, ransparen approach o monioring is

needed. Regional governmens, companies, and civi l sociey, hrough he Public Privae

Alliance, should agree on and adop a comprehensive minerals monioring mechanism,

which would improve upon he validaion work o regional acors. e U.S. governmen

has announced $4.8 million o suppor monioring and audiing bu he arduous ask o

assessing wha mines and rading roues are conic-ree will require more comprehen-

sive suppor. Donors should pool o suppor he ICGLRs Independen Mineral Chain

Audior, designed as a eam o 20 o 30 moniors o conduc spo checks on mines andrading roues o ensure compliance wih demiliarizaion.39

Consolidaion mus also be addressed. Businesses are going hrough rounds o conic-

ree audis rom dieren organizaions and are unsure o which one o rus. Some

mines have been audied by he Congolese validaion commitee, he German BGR, and

PAC wihin six monhs. As Edward, a local business owner, old Enough, ere is so

much compeiion beween he [German] BGR, IRI, OECD In he end, everyone

is so conused, and his is cosly or business. You need o consolidae. e U.S.... should

help accredi audiors and esablish he sandards ha will enable us o sell properly.42

e Public Privae Alliance, because i has he backing o a wide range o sakeholders,

should convene he BGR and oher validaion and audiing groups and recommend

consolidaion. I should also suppor he ICGLR audi commitee in esablishing audi

sandards and encourage raceabiliy iniiaives o be complian wih ICGLR sandards,

paricularly daa ransparency.

Although their prots rom the 3 Ts are much lower than previously,

armed groups in eastern Congo still generate some income by smug-

gling 3 Ts through Rwanda. Rwanda has taken steps on traceability, but

loopholes remain in the iTSCi tracking system that allow conict miner-als to lter through.

The Enough Project spoke to eyewitnesses who recounted observing min-

eral smuggling rings in Numbi and Masisi run by ex-CNDP soldiers and an

Ntaganda-controlled Rwanda-Congo border crossing. As a tantalum trader

told us, I have had no choice over the past two months but to connect with

Boscos [Ntaganda] guys to help me smuggle coltan to Rwanda since the

Chinese comptoirs were shut down.40 Rwandas minerals exports rose 62

percent rom 2010 to 2011 compared with only a 22 percent rise in domestic

mining production, according to Rwandas own statistics.41 In particular,

tin exports rose 65 percent over their six-year average, rom 4,211 tons to

6,952 tons but domestic tin production rose only by 14 percent. Some o t

increase may be explained by a sell-of ater the liting o Congos export bin 2011 but those shipments were not tagged as being conict-ree.

The Rwandan traceability system has three major holes. First, neither

Rwanda nor iTSCi publishes the capacity versus production o each o

its mines (or at least the major mines). It is thus impossible to tell which

mines are over-producing. Second, there is no transparent system to

determine how many tags are issued to companies or cooperatives. A

company with one mine, or example, could be given huge numbers o

tags. Third, there is no independent monitoring o the system as yet.

Stopping smuggling through Rwanda


11/17


2. Miners and livelihoods: I can manage while the reorms are

happening our conlict minerals should be cleaned up.

Mos arisanal miners inerviewed believe a conic-ree rade will provide hem wih

securiy, livable wages, and credible healh and saey sandards. I inernaional ocus

is kep on he region, a clean rade would also bene mining communiies hrough

increased inrasrucure and invesmen. is would consiue a dramaic changerom he saus quo. is is already saring o occur a conic-ree mines in Kaanga

Province and could be a possible model or similar iniiaives in he Kivus.

Conic minerals reorms are having an impac on miners a 3 mines, bu mus go

urher. Miners are no unemployed, claimed he head o Norh Kivus minerals deal-

ers associaion. Enough decided o go o several mines o veriy his saemen, which

seemed o y in he ace o asserions rom some academics and indusry lobbyiss. e

Enough research eam arrived a hree main ndings.

Firs, mos miners were indeed working, eiher on arms, in small shops, or a conic-ree 3 mines in Maniema or Kaanga. Many miners had also swiched o gold mining,

which is sill unregulaed and where working condiions mus improve. Second, many

3 miners were earning less income han hey were a year ago, bu were operaing in a

more secure environmen. ird, people rom all across easern Congo miners, expor-

ers, armers, and civil sociey suppored he U.S. conic minerals legislaion and

hough o conic minerals reorms as a way o increase securiy, ree hemselves rom

he abuse and deb slavery ha came wih lie a he mines under he armed groups, and

evenually o increase heir wages hrough ransparency and developmen.

Miners were upse abou his decreased income and desired ouside invesmen as soonas possible bu expressed a paience o deal wih he siuaion because o he prospec

o mining in an environmen ree o armed groups. As a ormer miner rom Bisie old

Enough, We are no earning as much money as beore, bu we are hopeul, because we

are no longer paying illegal axes.43

Anoher miner explained:

I can manage while he reorms are happening, even hough my siuaion is no good

now. Te U.S. law is somehing good. I came o show us ha our minerals are confic

minerals and should be cleaned up. I imposes raceabiliy. No miner is agains race-

abiliy. Everyone will ge he mos ou o he business.44

Ye anoher miner old Enough, Were very hankul o he U.S. law, because i will pu

an end o he chaos in he mining secor. e armed groups are pulling ou [o mines].

I hey are kicked ou, i will be oal reedom or us.45 Oher miners, civil sociey, and

mining communiies similarly repored ha hey suppored he Dodd-Frank legislaion


12/17


and he accompanying reorms as a way o improve heir lives and he securiy siuaion

in he region, despie he income problems hey ace oday.46

wo mining groups who had previously writen public leters abou how minerals ranspar-

ency reorms were killing miners revealed ha hey were hreaened by minerals dealers.

omas, a miner, old Enough on condiion o anonymiy or ear or his personal saey:

Compoirs (exporers) and negocians (raders) buil heir business on our backs, he

miners. We were prisoners. Tey did business wih he miliary powers. Ten hey orced

us o wrie leters o he SEC o delay he Dodd-Frank law. I we ook any posiion agains

hem, our saey would be compromised. One compoir hreaened o kill me.47

Increased securiy in mining areas, as o he ime o he research, allowed people sabiliy

in heir day o day lives and reedom o arm or go o school wihou ear o harassmen.

Rober, a ormer miner, old Enough in February, Securiy has increased [in mines],

because here are ewer armed groups. We are hopeul.48 e decrease in producion

orced many miners o seek alernaive jobs in local shops or a NGOs. As Paulin, alocal civil sociey leader said, ere has been a big increase in agriculure here recenly.

People are growing maize, peanus, rice, and soya because he mineral aciviies have

gone down. All our minds are on arming, and we can ea.49

Securiy has deerioraed in several areas since he M23 rebellion and will likely con-

inue o worsen in he near erm. Neverheless, he long-erm rend over he pas 18

monhs, driven by sysemic reorms, has been oward improved securiy in mining

areas. Miliias have no ye re-aken he majoriy o he mines and local businesses have

opposed he rebellion because i will preven invesmen.

Par o he renewed hope sems rom he exremely poor working condiions a mines

unil now. ese grave siuaions have been exensively documened in local and

inernaional repors. Armed groups orced miners o work, paying hem poorly, i a

all. Healh and saey hazards have been exreme due o lack o proper equipmen and

risks o landslides. Children make up almos hal o he populaion a mining sies.50 A

clean rade oers a chance o improve condiions in he secor bu i will require urher

invesmen and commimen o workers, a air price, and communiy livelihoods.

Mining communiies need more urgen atenion overall.51 Firs, aser reorms would

enable miners o work a conic-ree mines wih improved working condiions. Second,

recognizing ha mineral resources are nie, economic diversicaion and livelihood

projecs need greaer invesmens and sar-up capial o succeed. Donors should sup-

por livelihood projecs ha include micronance and diversicaion such as arming,

small business, inrasrucure developmen, and consrucion. Many miners inerviewed

by Enough expressed ha wih small loans o $100 o $300, hey could sar up small

businesses such as clohing and produce sores, ranspor agencies, and more. e $20


13/17


million USAID und or livelihoods run hrough he inernaional NGO CARE and he

recenly announced $6 million or livelihoods rom Japan will be wo imporan seps

bu an added push rom companies and European counries is needed.52 Also, possible

air rade alliances on agriculure, or example air rade coee, should be considered.

Conclusion

Wih increased inernaional atenion, he minerals rade in easern Congo and he

surrounding region is slowly saring o be cleaned up. Bu he risks o increased

insabiliy ueled by he recen M23 rebellion and mouning ensions beween Congo

and Rwanda are high. Loopholes in monioring, racing, and smuggling o illici miner-

als mus be closed o ully sop he rade rom he war zone. e U.S. legislaion, due

diligence guidelines, and supply chain acion by leading elecronics companies have

been an imporan sick, compelling he supply chain o play by beter rules o rans-

parency. Now, i hey wan access o he global marke, minerals suppliers mus race

heir producs and be able o audi back o he mines, proving ha he minerals areconic-ree. Bu he carro is needed more han ever o nish he work o cuting o

unding o armed groups and enabling a clean minerals rade ha empowers miners and

communiies. is is jus saring and miners have experienced decreased harassmen

a gunpoin. e pas wo years have proven ha progress is possible even in he mos

dicul areas o Cenral Arica, alhough he recen power vacuum creaed by he M23

rebellion will likely cause increased insabiliy in he immediae uure. However, i he

deeper, sysemic reorms are o succeed over he long erm, increased diplomacy, greaer

invesmen rom companies, and a consolidaed push o go conic-ree will be required.

I is now he ime o make ha eor.


14/17


Annex 1: Methodology

Enoughs eldwork was primarily conduced over he course o our weeks, rom February

1 o March 3, 2012 in six locaions in Norh and Souh Kivu in he Democraic Republic o

Congo and in hree locaions in Rwanda, wih a oal o 143 people. Follow-up inerviews

were conduced in Goma, Rushuru, and Rwanda in June o July 2012.

e sudy uilized a purposive sampling approach; Enough researchers ocused on

mining, mining-adjacen, and commercial areas in order o evaluae he direc impac

o Dodd-Frank on hese communiies. Wihin hese seleced inerview areas, he

Enough research eam colleced esimonies rom a broad sampling o inormans.

Men and women o various ages, occupaions, and social posiions were inerviewed.

ese included miners in boh 3 and gold mines, porers, mining raders, civil sociey

represenaives, women leaders, governmen ocials, NGO workers, diplomas, U.N.

ocials, ex-combaans, miliary ocers, and mining companies.

A qualiaive, semi-srucured approach o individual inerviews and ocus group discus-sions was uilized in order o collec daa rom a broad specrum o inormans. A lis

o quesions was used as saring poins bu he research eam allowed he conversaion

o develop organically. Several ocus group discussions were also held wih miners and

minerals porers.

Inerviews were conduced in he inormans preerred language. Enough conduced iner-

views in French, English, Kiswahili, and Kinyarwanda. When necessary, wo members o

he Enough research eam conduced simulaneous ranslaion rom he primary language

ino English. All inerviews were documened wih eld noes and/or video recordings.


15/17


Endnotes

1 See p. 4 or detailed explanation.

2 Interviews with minerals dealers, North and South Kivu,February 2012.

3 These are 95 mines in Katanga and 406 mines in Rwandathat operate with the iTSCi bag and tag traceability systemrun by the tin and tantalum industry associations. Theyare ully traceable to mine o origin, but they still must be

certied by the International Conerence on the Great LakesRegion, or ICGLR, to be categorized as conict-ree. H.E. Vin-cent Karega, Progress in Mineral Traceability: The RwandanStory Presentation at ITRI Conerence in South Arica, April1, 2012, available at http://itri.co.uk; Presentation by Resolveto EICC-GeSI conerence in Philadelphia, Pennsylvania onin-region sourcing initiatives, April 2012.

4 Enough Team, Enough Commends U.S. State Departmentor Statement on Rwanda, Further Action Needed EnoughProject, July 5, 2012 available at http://www.enoughproject.org/blogs/enough-commends-us-state-department-statement-rwanda-urther-action-needed; Aaron Hall,Rwandas Long Shadow: U.S.-Rwandan Relations and a PathForward in Eastern Congo Enough Project, June 20, 2012,available at http://www.enoughproject.org/publications/rwanda%E2%80%99s-long-shadow-us-rwandan-relations-and-path-orward-eastern-congo

5 See Annex 1.

6 For urther detail on the reorms, see Sasha Lezhnev, AWindow or Reorm in Eastern Congo: Novembers Electionand Three Achievable Steps on Conict MineralsEnoughProject, 2011, available at< http://www.enoughproject.org/publications/window-reorm-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conict

7 Enough interviews in North and South Kivu, February 2012.This was enorcement o the prohibition on involvement inmining in the Congolese military code.

8 Interview with two civil society activists, Mubi, Walikale,February 15, 2012.

9 U.N. Group o Experts Interim Report or 2012, para. 43.http://www.un.org/sc/committees/1533/egroup.shtml

10 As the U.N. Group o Experts states, As a consequence ointernational and domestic opposition to their levying

illegal taxes at mine sites and roadblocks, FARDC criminalnetworks are increasingly exercising commercial controlover mineral trading chains through a combination oinvestments in mineral purchases, the protection o localmine operators and the acilitation o the transport andraudulent export o minerals. U.N. Group o Experts, 2011,para. 422. http://www.un.org/sc/committees/1533/egroup.shtml

11 According to interviews with the U.N. Group o Experts,miners rom three mines, several minerals traders, and civilsociety groups, 2011-2012.

12 Based on North Kivu Division o Mines statistics, the averagemonthly export rate or tin in 2010 was 900 tons and or tan-talum, 30 tons. The ocial monthly export rate in 2012 was173 tons or tin and 0 or tantalum. Based on the evidencethat mines are operating at 20 percent to35percent o 2010capacity, approximately 142 tons o tin per month and10.5 tons o tantalum per month were thereore smuggled

out o Congo in 2012. Based on weighted percentages ortheir respective price values, the ocial rate represents ap-proximately 30percent o the currently traded volume. It isimportant to recall, however, that the overall volume is only20 percent to 35percent o the 2010 trade.

13 Interviews with minerals traders in Goma, Walikale, Febru-ary and July 2012; North Kivu Divisions des Mines statisticsrom 2010 and 2012.

14 Based on North Kivu Division o Mines statistics, the averagemonthly export rate or tin in 2010 was 900 tons and or tan-talum, 30 tons. The ocial monthly export rate in 2012 was173 tons or tin and 0 or tantalum. Based on the evidencethat mines are operating at 20 percent to35percent o 2010capacity, approximately 142 tons o tin per month and10.5 tons o tantalum per month were thereore smuggledout o Congo in 2012. Based on weighted percentages ortheir respective price values, the ocial rate represents ap-

proximately 30percent o the currently traded volume. It isimportant to recall, however, that the overall volume is only20 percent to 35percent o the 2010 trade.

15 Black market markup, due to militarization o the smuggledtrade. Evidence or this comes rom the U.N. Group oExperts 2011 report, S/2011/738, para. 422. http://www.un.org/sc/committees/1533/egroup.shtml; interviews withminerals traders in Goma, Walikale, February 2012 and July2012.

16 These were reportedly General Amisis Kinshasa networkwithin the army, the 8th military region command, theWalikale army sector, and the intelligence ocer network.Interviews with Walikale minerals expert and pol itician,February 17-18, 2012.

17 See, or example, Sasha Lezhnev, Crating Peace: Strategiesto Deal with Warlords in Collapsing States(Plymouth, UK:Lexington Books, 2006).

18 Interviews with Mining Police ocers, Goma and Walikale,February 2012.

19 Jonny Hogg, New Congo scheme targets conict mineralexporters,Reuters February 28, 2012,available at http://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228

20 These are TTT Mining and Huayei. These were suspended bythe Congolese government on May 15, 2012.

21 See H.E. Vincent Karega, Progress in Mineral Traceability:The Rwandan Story Presentation at ITRI Conerence inSouth Arica, April 1, 2012 available at http://itri.co.uk;interview with U.S. o cial, Washington, DC, May 29, 2012;In the case o the Kivus, this is a restart, as ITSCI was activein 2010 beore President Kabilas mining ban. ITRI citedthat the restart ollow[ed] an evaluation o progress byMinistry experts who have reported improved trans-parency and statistics o production, and resulting tax

revenues, as well as increased Government control andgovernance in the stannierrous mineral sector in Katanga.Available at http://www.itri.co.uk/index.php?option=com_zoo&task=item&item_id=2374&Itemid=177

22 This is by the company Met Trak. See Shawn Blore and IanSmillie. Taming the Resource Curse: Implementing the ICGLRCertication Mechanism or Confict-Prone Minerals. Partner-ship Arica Canada, March 2011.

23 The U.N. Group o Experts cites that Congolese army Col.Biyoyo had extorted money rom civilians at Nyabibwe inApril 2012. Considering recent turmoil in the mining areaso Rubaya, as well as Nyabibwe, the surrounding mineswould need to be assessed again as soon as the securitysituation allows it. U.N. Group o Experts Interim Repor t,June 2012, paras. 145-6. http://www.un.org/sc/commit-tees/1533/egroup.shtml

24 U.N. Group o Experts Interim Report or 2012, para. 141.

http://www.un.org/sc/committees/1533/egroup.shtml

25 OECD, Upstream Implementation o the OECD Due Dili-gence Guidance or Responsible Supply Chains o Mineralsrom Conict-Afected and High-Risk Areas: Cycle 2 InterimProgress Report on the Supplement on Tin, Tantalum,and Tungsten. drat or discussion at the ICGLR-OECD-U.N.Group o Experts joint meeting, May 34 2012, Paris,France.
http://itri.co.uk/http://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228http://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228http://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228http://itri.co.uk/http://www.itri.co.uk/index.php?option=com_zoo&task=item&item_id=2374&Itemid=177http://www.itri.co.uk/index.php?option=com_zoo&task=item&item_id=2374&Itemid=177http://www.itri.co.uk/index.php?option=com_zoo&task=item&item_id=2374&Itemid=177http://www.itri.co.uk/index.php?option=com_zoo&task=item&item_id=2374&Itemid=177http://itri.co.uk/http://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228http://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228http://www.reuters.com/article/2012/02/28/congo-democratic-mining-idUSL5E8DS6FU20120228http://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://itri.co.uk/


16/17


26 Approximately 4-8 tons o gold are smuggled out o theKivus annually, based on industry and U.N. estimates. At cur-rent prices, the mean value or this trade is approximately$300 million.

27 Industry estimates and UN Group o Experts, 2011 report.http://www.un.org/sc/committees/1533/egroup.shtml

28 This includes the World Gold Council and Responsible Jew-ellery Council. U.N. Group o Experts, 2012, Interim Report,155.

29 Interview with mining cooperative leader, Goma, February

11, 2012.

30 For example, miners at the Solutions or Hope project arepaid the London price or tantalum, which is reportedlyhigher than the previous, opaque price.

31 A militia called Mai Mai Gedeon was present in one area onorthern Katanga, where the company MMR had conces-sions. In a positive step, the Provincial Government oKatanga suspended minerals exports rom that particulararea, until the problem was resolved. This does not appearto have afected production at other mines in the area,which undergo a bag and tag system. However, iTSCi, whichruns the program, should make all production statisticspublic so that the public can be assured that the mineralsare conict-ree.

32 On Maniema, see U.N. Group o Experts, 370. The project,unded by the U.S. Bureau o Democracy, Human Rights andLabor, is being run through the NGO PACT. The committees

must ensure security or members and ull transparency oreports, so that incidents can be publicly highlighted. Thiswould ensure pressure on conict actors.

33 For the results o the audit, see Current Status available athttp://solutions-network.org/site-solutionsorhope/current-status/

34 The Request or Proposals is open or public comment untilMay 11, 2012 at http://www.resolv.org/site-ppa/rp/

35 The checks were done in Masisi and Kabare, Mwenga, andWalungu.

36 The German/Congolese audits under the Certied TradingChains rubric examined our actors: security; the presenceo children in the site; the working conditions; and environ-mental standards. The Nyabibwe baseline audit, done byan independent third party, highlighted that The work othe operating is in compliance. the Certication WorkingGroup considered it useul to submit the ollowing relevant

observations: The observation made on ground indicatesthat there is lack o military and other armed groups, lacko children and women. Nyabibwe ullls the requirementsor certication o a site which ex tracts the minerals canbe considered rom a legal channels and clean; Lack oITRI in this country is the only handicap or the marketingo products derived rom this site or lack o labeling; Werecommend that the Ministry o Mines, and BGR Prominesnecessary contacts and undertake in the near uture withother organizations specializing in product labeling miningto compensate or this lack o ITRI on the ground; Theproduction continues normally in this site but the stock ominerals extracted is not visible. Which suggests a massiveraud.http://mines-rdc.cd/r/index.php?option=com_content&view=article&id=185

37 These were Fred Ibingira, Richard Rutatina, Wilson Gumisi-riza and Dan Munyuza.

38 UN Group o Experts, 2011, 112. http://www.un.org/sc/com-mittees/1533/egroup.shtml

39 For more detail, see Sasha Lezhnev, Conict Minerals inan Election Year, Enough Project http://www.enough-project.org/publications/window-reorm-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conict

40 Interview with second minerals trader, Goma, July 6, 2012.

41 National Bank o Rwanda, Annual report 2011, p. 42. Avail-able at http://www.bnr.rw/publications.aspx Furthermore,the U.N. Group o Experts stated that It remains unclear,however, how efectively the Rwandan mining authoritieshave been able to prevent the raudulent importation oCongolese minerals into Rwandan mines, where they arethen tagged as Rwandan. United Nations Group o Expertson the Democratic Republic o the Congo: Final Report. Rep.no. S/2011/738. United Nations, 2011

42 Interview with Edward, local business owner, Goma, Febru-ary 12, 2012.

43 Interview with Robert, miner, Mubi, February 14, 2012.

44 Interview with Gabriel, gold and tin miner, Goma, February11, 2012.

45 Interview with Juslain Kubuya, head o artisanal miners

association, Bisie mine. Njingala, February 14, 2012.

46 Some more statements are attached as an appendix.

47 Condential interview with miner, eastern Congo, February10, 2012.

48 Interview with Robert, miner, Mubi, February 14, 2012.

49 Interview with Paulin, civil society leader, Walikale, February15, 2012.

50 See Free the Slaves, Zorba Leslie, Jody Sarich, and KarenStauss. The Congo Report: Slavery in Confict. Rep. Free theSlaves, June 2011. ..

51 Numbi: Resources between potential and actual state de-ciencies in Kalehe, South Kivu. Pole Institute, April 4, 2012.http://www.pole-institute.org/site%20web/echos/echo166.htm

52 The U.S.-supported program is set to cover three territories:Masisi and Beni in North K ivu and Walungu in South Kivu.More unds are needed to cover other important, moredicult accessible mining areas in Walikale and Lubero inNorth Kivu and in most o the territories in the South Kivuprovince. Interview with CARE, Goma, April 17, 2012.
http://solutions-network.org/site-solutionsforhope/current-status/http://solutions-network.org/site-solutionsforhope/current-status/http://www.resolv.org/site-ppa/rfp/http://mines-rdc.cd/fr/index.php?option=com_content&view=article&id=185http://mines-rdc.cd/fr/index.php?option=com_content&view=article&id=185http://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.bnr.rw/publications.aspxhttp://www.pole-institute.org/site%20web/echos/echo166.htmhttp://www.pole-institute.org/site%20web/echos/echo166.htmhttp://www.pole-institute.org/site%20web/echos/echo166.htmhttp://www.pole-institute.org/site%20web/echos/echo166.htmhttp://www.bnr.rw/publications.aspxhttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.enoughproject.org/publications/window-reform-eastern-congo-november%E2%80%99s-elections-and-three-achievable-steps-conflicthttp://www.un.org/sc/committees/1533/egroup.shtmlhttp://www.un.org/sc/committees/1533/egroup.shtmlhttp://mines-rdc.cd/fr/index.php?option=com_content&view=article&id=185http://mines-rdc.cd/fr/index.php?option=com_content&view=article&id=185http://www.resolv.org/site-ppa/rfp/http://solutions-network.org/site-solutionsforhope/current-status/http://solutions-network.org/site-solutionsforhope/current-status/


17/17

Enough is a project o the Center or American Progress to end genocide and crimes against

humanity. Founded in 2007, Enough ocuses on the crises in Sudan, South Sudan, eastern

Congo, and areas aected by the Lords Resistance Army. Enough conducts intensive ield

research, develops practical policies to address these crises, and shares sensible tools to

empower citizens and groups working or change. To learn more about Enough and what

you can do to help, go to www.enoughproject.org.

from congress to congo—turning the tide on conflict minerals, closing loopholes, and empowering...

Documents