Urgent reforms are needed for conflict gold, says a new study by a Washington D.C.-based human rights group.
RENO (MINEWEB) – A new report by the Enough Project, a Washington D.C.-based human rights group, says the Dodd-Frank conflict minerals legislation is partly responsible for forcing armed groups to cede control of two-thirds of tantalum, tin and tungsten mines surveyed by the Enough Project in the eastern Congo.
“However, artisanally mined gold continues to fund armed commanders,” said the report, The Impact of Dodd-Frank and Conflict Minerals Reforms on Eastern Congo’s Conflict. Gold mining “is still financing armed actors and business and political elites”.
“The U.N. Group of Experts estimated that 98% of artisanal gold (roughly 10-12 tonnes, worth between $380 and 500 million) was smuggled out of Congo in 2013,” said the report. “The army continues to be involved in illicit gold exploitation, with senior officers reaping the majority of profits.”
“The smuggling of gold is also fueled by the sector’s mismanagement and poor enforcement of the Congolese mining legislation. The gold trade must be thoroughly reformed, both through expanded, responsible development and formalization of the artisanal sector,” said Enough Project.
“Further reforms are needed to address conflict gold and close loopholes in other minerals,” Enough Project suggested.
From October 2013-April 2014, Enough policy analysts visited 14 locations in the eastern Congo and conducted 220 interviews, in addition to 32 interviews in the U.S. and Europe.
Among their findings are that the conflict minerals law and electronics industry audits have created a two-tier market for the 3Ts (tin, tantalum, and tungsten) from DRC and the region. “Minerals that do not go through conflict free programs now sell for 30-60% less, thus reducing profits for armed groups trying to sell them,” said the report.
Meanwhile, electronics companies are expanding minerals sourcing from Congo, which is improving conditions for miners and nearby communities. Twenty one electronics and other companies now source from 16 conflict-free mines in the Congo, a substantial improvement over the one conflict-free mine that was operational in 2011.
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