DOCSLIB.ORG

CAO Audit of MIGA's Due Diligence of the Dikulushi Copper-Silver Mining

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
CAO Audit of MIGA's Due Diligence of the Dikulushi Copper-Silver Mining CAO Audit of MIGA’s Due Diligence of the Dikulushi Copper-Silver Mining Project in The Democratic Republic of the Congo Final Report November 2005 Office of the Compliance Advisor/Ombudsman International Finance Corporation/ Multilateral Investment Guarantee Agency Table of Contents Acronyms Executive Summary 1. Introduction 1.1 Background ..........................................................................................................................1 1.2 Scope of the CAO’s audit.....................................................................................................3 2. Context for the audit of MIGA’s Due Diligence 2.1 The Kilwa incident and subsequent events .........................................................................4 2.1.1 Brief description ....................................................................................................4 2.1.2 Immediate and underlying causes .........................................................................5 2.1.3 Anvil’s immediate reaction to these incidents ........................................................5 2.1.4 Notifications to MIGA .............................................................................................6 2.2 MIGA’s due diligence processes .........................................................................................7 2.2.1 MIGA’s core business and interfaces with conflict and security issues .................7 2.2.2 Environmental and Social Review Procedures ......................................................8 2.2.3 Emerging commitments under the World Bank Group’s EIR Management Response ........................................................................................8 2.2.4 Warranties, representations, and Contracts of Guarantee...................................10 2.2.5 Key changes in MIGA’s due diligence processes ................................................10 2.3 MIGA’s due diligence regarding Guarantees for the Dikulushi project ..............................11 2.3.1 Pre-May 2004.......................................................................................................11 2.3.2 May 2004 – September 2004 (Board date)..........................................................12 2.3.3 September 2004 – April 2005 (issue of Contracts of Guarantee) ........................12 2.3.4 Since issue of Contracts of Guarantee ................................................................12 3. CAO analysis of key audit aspects 3.1 Security and Conflict: MIGA’s ‘core business’ due diligence..............................................13 3.1.1 Did MIGA’s core business due diligence processes provide a framework to address conflict and security issues? ........................................13 3.1.2 Extent to which MIGA’s due diligence was followed in relation to conflict and security.............................................................................................13 3.1.3 Inherent limits to MIGA’s core business due diligence on conflict and security issues..............................................................................................14 3.2 Adherence to MIGA’s Environmental and Social Review Procedures (ESRPs) ................14 3.2.1 Do the ESRPs provide a framework for addressing broader social issues?........15 3.2.2 Extent to which MIGA’s due diligence was followed in relation to ESRPs ...........15 3.2.3 Areas of weakness in ESRPs due diligence ........................................................16 3.3 Commitments under the World Bank’s EIR Management Response.................................18 3.3.1 Was MIGA’s due diligence responsive to development impact aspects? ............18 3.3.2 Weaknesses in MIGA’s due diligence on development impact aspects ..............19 3.3.3 Was MIGA’s due diligence responsive to security and Human Rights aspects? .20 3.3.4 Weaknesses in MIGA’s due diligence on security and Human Rights aspects ...20 4. Findings and recommendations 4.1 Findings .............................................................................................................................22 4.2 Recommendations .............................................................................................................23 Annex 1: Request for Audit ........................................................................................................... 25 Annex 2: Letter from RAID to President Paul Wolfowitz ............................................................... 26 Annex 3: Organizations and Sources Consulted .......................................................................... 31 Annex 4: Analytical framework and criteria for assessing Dikulushi Project Compliance with E&S Review Procedures ........................................................................................ 32 Acronyms ABC Australian Broadcasting Corporation ASADHO Association Africaine de Défense des Droits de l’Homme CAO Compliance Advisor/Ombudsman DRC Democratic Republic of the Congo EA Environmental Assessment EIR Extractive Industries Review ESMS Environmental and Social Management System ESRP Environmental and Social Review Procedure FARDC Forces Armées de la République Démocratique du Congo MONUC Mission des Nations Unies en République Démocratique du Congo (UN Mission in Democratic Republic of the Congo) MIGA Multilateral Investment Guarantee Agency NGO Nongovernmental Organization PRI Political Risk Insurance RAID Rights & Accountability in Development RMC Risk Management Committee WBG World Bank Group Executive Summary management due diligence provide a Background framework through which security and conflict issues could have been identified This report was prepared in response to a July and addressed; and to what extent were 27 2005 request from the President of the these issues addressed? World Bank Group, Paul Wolfowitz, for the Compliance Advisor Ombudsman (CAO) to Adherence to MIGA’s Environmental audit the Multilateral Investment Guarantee and Social Review Procedures (ESRPs): Agency’s (MIGA’s) due diligence of the Did MIGA follow its ESRPs; did these Dikulushi Copper-Silver Mining Project procedures provide a framework through (Dikulushi project) in The Democratic Republic which broader social issues, including of the Congo (DRC). security and conflict, could have been identified and addressed; and to what Dikulushi is a copper-silver mine located in the extent were these issues addressed? Katanga province of DRC. The project has been developed by Anvil Mining, a Canadian New commitments under the World company, and has been in production since Bank’s EIR Management Response: 2002. The MIGA Board approved the project in Was MIGA’s due diligence responsive to September 2004. In April 2005, Contracts of applicable commitments of the World Guarantee were issued by MIGA providing Bank’s Extractive Industries Review (EIR) $13.3 million of political risk insurance, management response on enhancing the including cover against damage resulting from development benefits of extractives war and civil disturbance. projects and addressing Security and Human Rights concerns? In October 2004, the town of Kilwa, some 50 kilometers from Dikulushi, was taken over by a In order to investigate whether MIGA’s due small rebel group. Kilwa is the point of export diligence was inadequate, CAO thoroughly for Dikulushi copper and silver concentrates to reviewed MIGA files and had discussions with Zambia. In reestablishing control over the town, MIGA’s project team, RAID, and several other the armed forces of the DRC allegedly killed NGOs, as well as Anvil Mining and IFC staff civilians, including by summary execution, involved in the EIR. looted, and carried out other crimes including extortion and illegal detention. Findings At the request of the Army, Anvil Mining MIGA’s core business due diligence: CAO provided them with logistical support in October finds that MIGA adequately followed its 2004, as it had done in a previous (March 2004) underwriting and risk management due incident when the army engaged with a different diligence. However, these core business rebel group. In July 2005, Rights & processes provide a framework for addressing Accountability in Development (RAID), a UK- conflict and security issues insofar as they based NGO wrote to President Wolfowitz on represent insurable risks to a project. The behalf of a number of NGOs concerning MIGA’s analysis does not address whether the project involvement with Anvil, alleging a number of may either influence the dynamics of conflict or failures in the due diligence preceding MIGA’s whether security provision for a project such as support for the project. Dikulushi could indirectly lead to adverse impacts on the local community. Focus of the CAO’s audit The CAO’s audit focused on the following Environmental and Social Review aspects of MIGA’s due diligence: Procedures (ESRPs) due diligence: CAO finds that MIGA’s initial adherence to its ESRPs Security and Conflict – MIGA’s ‘core was adequate, but its follow-through on social business’ due diligence as Political Risk aspects was weak in some key areas. For the Insurers: Did MIGA’s underwriting or risk Dikulushi project, CAO considers that the i ESRPs should have flagged the potential social MIGA should support Anvil in its ongoing impacts of the risk that the presence of the efforts to fully implement the Voluntary mine could exacerbate local tensions or attract Principles. rebel groups with consequent increased MIGA should retrospectively address
Load more

Recommended publications
  • RAID Rights & Accountability in Development
    RAID Rights & Accountability in Development July 8, 2005 Paul Wolfowitz, President World Bank Group 1818 H Street NW Washington, DC 20433 Dear President Wolfowitz: We are writing concerning Anvil Mining and the company’s Dikulushi copper/silver mine in the Democratic Republic of the Congo (DRC). In September 2004, despite the numerous concerns of Congolese and international NGOs – one of which included the propriety of Anvil’s relationship with a prominent Congolese political official – the Board approved a $5 million political risk guarantee from the Multilateral Investment Guarantee Agency (MIGA) for the Stage II expansion of the Dikulushi mine. On June 6, the Australian Broadcast Corporation’s “Four Corners” program aired a documentary that revealed Anvil’s logistical role in a brutal massacre that took place in the town of Kilwa in October 2004. In addition, Anvil Chief Executive Bill Turner confirms on camera that the company has indeed made payments to Mr. Augustin Katumba Mwanke, despite assurances given to MIGA stating otherwise. In light of these revelations, we believe that MIGA has no option but to withdraw its political risk guarantee for the Dikulushi project. As you may know, in 2000 the United Nations Security Council appointed a Panel of Experts to investigate illegal exploitation of mineral resources in the DRC and the widespread concern that this was fuelling the war. The 2002 report produced by the Panel exposed a vicious cycle of resource-driven conflict in the DRC. The Panel concluded that sophisticated networks of high-level political, military and business people were deliberately fostering violence in order to retain control over the DRC’s natural resources.
    [Show full text]
  • Kapulo Copper Project, DRC Mawson West
    Kapulo Copper Project, DRC National Instrument 43-101 Technical Report Prepared by Coffey Mining Pty Ltd on behalf of: Mawson West Ltd Effective Date: 30 June 2011 Qualified Persons: Harry Warries - MSc Mine Engineering, MAusIMM Steve Le Brun - BSc(Hons), MSc, MAusIMM, MMICA Chris Johns - MSc, P.Eng.(Alberta), MIEAust Peter Hayward - Dip Metallurgy, MAusIMM Aaron Massey - Dip Metallurgy, MAusIMM Chris Orr - MSc, MAusIMM MINEWPER00482AC Coffey Mining Pty Ltd DOCUMENT INFORMATION Author(s): Harry Warries Manager Mining - West Perth MSc Mine Engineering, MAusMM Steve Le Brun Principal Resource Geologist BSc(Hons), MSc, MAusIMM, MMICA Chris Johns Associate Geotechnical/Environmental Engineer MSc, P.Eng.(Alberta), MIEAust Peter Hayward Senior Process Engineer (Sedgman Ltd) Dip Metallurgy, MAusIMM Aaron Massey Senior Process Engineer (Sedgman Ltd) Dip Metallurgy, MAusIMM Chris Orr Associate Engineering Geologist MSc, MAusIMM, MAIG Date: 30 June 2011 Project Number: MINEWPER00482AC Version / Status: Final F:\MINE\Projects\Mawson West Ltd\MINEWPER00482AC_Mawson West_Kapulo Mine Path & File Name: Eng\Report\43.101_June2011\CMWPr_482AC_MawsonWest_KapuloMineEng_43-101_30June2011_SEDAR.docx Print Date: Thursday, 30 June 2011 Copies: Mawson West Ltd (2) Coffey Mining – Perth (1) Document Change Control Version Description (section(s) amended) Author(s) Date Final HW, JH 30 June 2011 Document Review and Sign Off [Signed] [Signed] Primary Author Supervising Principal Harry Warries John Hearne Kapulo Copper Project, DRC – MINEWPER00482AC National Instrument
    [Show full text]
  • The Mineral Industry of Congo (Kinshasa) in 2007
    2007 Minerals Yearbook CONGO (KINSHASA) U.S. Department of the Interior March 2010 U.S. Geological Survey THE MINERAL INDUS T RY OF CONGO (KINSHASA ) By Thomas R. Yager The Democratic Republic of the Congo [Congo (Kinshasa)] tantalum, tin, and tungsten. Artisanal and small-scale miners also played a globally significant role in the world’s production of played a significant role in the country’s cobalt mine production. cobalt and diamond. In 2007, the country’s share of the world’s cobalt production amounted to 36%; industrial diamond, 31%; Mineral Trade and gem-quality diamond, 6%. Congo (Kinshasa) accounted for about 49% of the world’s cobalt reserves. Copper and Exports were estimated to be about $2.32 billion in 2006, crude petroleum production also played a significant role in the and imports, $2.74 billion. Diamond accounted for 38% of total domestic economy. The country was not a globally significant exports; crude petroleum, 25%; cobalt, 16%; and copper, 11%. consumer of minerals or mineral fuels (Olson, 2008a, b; Shedd, Other mineral exports included gold, niobium (columbium), 2008). tantalum, tin, tourmaline, and tungsten. The share of diamond in total exports declined from nearly 53% in 2001; the shares Minerals in the National Economy of cobalt and copper increased from 8% and 4%, respectively. From 2001 to 2006, diamond exports nearly doubled in value, The mining and mineral processing sector accounted for but cobalt and copper exports increased at a faster rate because 13.2% of the gross domestic product in 2006 (the latest year of higher prices and increased production.
    [Show full text]
  • ANVIL MINING CONGO SARL Public Disclosure Authorized
    ANVIL MINING CONGO SARL Public Disclosure Authorized DIKULUSHI COPPER SILVER PROJECT IMPACT Public Disclosure Authorized ENVIRONMENTAL ASSESSMENT APRIL 2003 Public Disclosure Authorized Public Disclosure Authorized African Mining Consultants 1564/5 Miseshi Road A P.O. Box 20106 5 Kitwe 3 Zambia Environmental Impact Assessment Dikulushi Copp r-Silver Project Anvil Mining C ngo SARL TABLE OF CONTENTS FRAMEWORK .... 1 I POLI Y, LEGAL AND ADMINISTRATIVE ............................................. 1I 1.1 Pr ect Proponents 1 Policy .............................................. 1.2 Co orate Environmental 1 .............................................. 1.3 Re ulatory Framework 3 Process ............................................. 1.4 Th EIA Review 4 1.5 t nationalEIA Guidelines ............................................. ............................................. 5 1.6 El Administration and Structure . ......................................... 6 2 PRO ECT DESCRIPTION . 6 Dikulushi Copper-Silver Deposit .............................. 2.1 Hi tory of the 6 ............................................. 2.2 Pr ject Location 7 2.3 S ci-Economic Aspects .............................................. 7 2.4 Si Ecology .............................................. 8 and Site Access .............................................. 2.5 Inlrastructure 8 ............................................. 2.6 M e Development 8 Processing Facilities ....................................... 2.7 Me Components, 13 2.8 0 -site Investments ...........................................
    [Show full text]
  • For Personal Use Only Use Personal for TABLE of CONTENTS
    ANNUAL INFORMATION FORM FOR FINANCIAL YEAR ENDED DECEMBER 31, 2007 MARCH 28, 2008 For personal use only TABLE OF CONTENTS CORPORATE STRUCTURE ..........................................................................................................................................4 CAUTION REGARDING FORWARD LOOKING STATEMENTS...........................................................................4 GENERAL DEVELOPMENT OF THE BUSINESS......................................................................................................5 NARRATIVE DESCRIPTION OF THE BUSINESS.....................................................................................................7 Business of the Anvil Mining Group ...................................................................................................................................7 Logistics ..............................................................................................................................................................................8 Employees ...........................................................................................................................................................................8 Mine Financing....................................................................................................................................................................9 Democratic Republic of Congo ...........................................................................................................................................9
    [Show full text]
  • The Mineral Industry of Congo (Kinshasa) in 2011
    2011 Minerals Yearbook CONGO (KINSHASA) U.S. Department of the Interior September 2013 U.S. Geological Survey THE MINERAL INDUSTRY OF CONGO (KINSHASA) By Thomas R. Yager The Democratic Republic of the Congo [Congo (Kinshasa)] In September 2010, the Government suspended mining in played a globally significant role in the world’s production the eastern Provinces of Maniema, Nord-Kivu, and Sud-Kivu, of cobalt, copper, diamond, tantalum, and tin. In 2011, the which accounted for most domestic niobium, tantalum, tin, country’s share of the world’s cobalt production amounted to and tungsten production. The Government imposed the ban in 53%; industrial diamond, 34%; tantalum, 13%; gem-quality an attempt to remove military and rebel groups from the local diamond, 7%; copper, 3%; and tin, 2%. Congo (Kinshasa) mineral trade. In March 2011, the Government lifted the ban accounted for about 45% of the world’s cobalt reserves. Crude (De Koning, 2011, p. 31). petroleum production also played a significant role in the In July 2010, the U.S. Congress passed the Dodd-Frank domestic economy. The country was not a globally significant Wall Street Reform and Consumer Protection Act, which consumer of minerals or mineral fuels (Carlin, 2012; Edelstein, contains provisions concerning the use of minerals to 2012; Olson, 2012a, b; Papp, 2012; Shedd, 2012). finance military operations in eastern Congo (Kinshasa). All companies registered with the U.S. Securities and Exchange Minerals in the National Economy Commission (SEC) that sell products containing cassiterite, columbite-tantalite, gold, or wolframite were required to The mining and mineral processing sector accounted for disclose whether these minerals originated from Congo an estimated 15.5% of the gross domestic product in 2010 (Kinshasa) or adjoining countries.
    [Show full text]
  • Anvil Mining Congo Sarl 3
    ANVIL MINING CONGO SARL DIKULUSHI COPPER SILVER PROJECT ENVIRONMENTAL IMPACT ASSESSMENT APRIL 2003 African Mining Consultants 1564/5 Miseshi Road A P.O. Box 20106 5 Kitwe 3 Zambia Environmental Impact Assessment Dikulushi Copp r-Silver Project Anvil Mining C ngo SARL TABLE OF CONTENTS FRAMEWORK .... 1 I POLI Y, LEGAL AND ADMINISTRATIVE ............................................. 1I 1.1 Pr ect Proponents 1 Policy .............................................. 1.2 Co orate Environmental 1 .............................................. 1.3 Re ulatory Framework 3 Process ............................................. 1.4 Th EIA Review 4 1.5 t nationalEIA Guidelines ............................................. ............................................. 5 1.6 El Administration and Structure . ......................................... 6 2 PRO ECT DESCRIPTION . 6 Dikulushi Copper-Silver Deposit .............................. 2.1 Hi tory of the 6 ............................................. 2.2 Pr ject Location 7 2.3 S ci-Economic Aspects .............................................. 7 2.4 Si Ecology .............................................. 8 and Site Access .............................................. 2.5 Inlrastructure 8 ............................................. 2.6 M e Development 8 Processing Facilities ....................................... 2.7 Me Components, 13 2.8 0 -site Investments ............................................ STUDY .................................... 16 3 ENV RONMENTAL BASELINE 16 Study Area ...........................................
    [Show full text]
  • 1. Mining: Scenarios for Growth
    Report No. 43402-ZR Report No. 43402-ZR Democratic Republic of Congo Growth with Governance in the Mining Sector Public Disclosure Authorized May 2008 Oil/Gas, Mining and Chemicals Department AFCC2 Africa Region Democratic Republic of Congo Democratic Public Disclosure Authorized Growth with Governance in the Mining Sector with Governance Growth Public Disclosure Authorized Document of the World Bank Public Disclosure Authorized MPW Ministry of Public Works MSR Ministry of Scientific Research OCC Congolese Control Office OFIDA Office of Customs and Duties OKIMO Office of Mines of Kilomoto ONATRA National Transportation Office PNC National Congolese Police PPP Public Private Partnership ROSC Report on Observance of Standards and Codes SAESSCAM Assistance Office for Artisanal and Small-Scale Miners SAKIMA Gold Company of Kivu and Maniema SNCC National Railways Company SNEL National Electricity Company SODIMICO Industrial and Mining Company of Congo SOMINKI Kivu Mining Company SOE State-Owned Enterprise TSX Toronto Stock Exchange UN United Nations UNICEF United Nations Fund for Children USAID United States Agency for International Development USGS United States Geological Survey WBG World Bank Group Authorship and Acknowledgements This report was prepared by senior staff of the World Bank, including Craig Andrews, Principal Mining Specialist, Boubacar Bocoum, Senior Mining Specialist, and Delphin Tshimena, Mining Consultant. The kind assistance of Mr. Markus Wagner, German Federal Institute for Geosciences and Natural Resources and Mr. Ulrich Daldrup, University of Aachen is gratefully acknowledged. The sections pertaining to Congo mineral endowment and resources have been prepared by Dr. Pierre Goossens, mining consultant. The study team would also like to thank all of the Congolese government officials, private sector representatives, representatives of international organizations and members of civil society organizations for their assistance and information during the preparation of the study.
    [Show full text]
  • Q&A the Kilwa Massacre and the Landmark Decision of the African
    Q&A The Kilwa Massacre and the Landmark Decision of the African Commission of Human and Peoples Rights The African Commission on Human and Peoples’ Rights has issued a landmark decision that found the government of the Democratic Republic of Congo responsible for the 2004 massacre of over 70 people in Kilwa, in the southeast of the country. Amongst other collective reparations, it granted landmark compensation of US $4.36 million to the victims and their families, the highest amount ever recommended by the Commission. An Australian-Canadian mining company, Anvil Mining, which operated a copper and silver mine at Dikulushi, 50 kilometers from Kilwa, was publicly rebuked by the Commission for its role in the violations. The Commission urged the Congolese government to launch a new criminal investigation and “take all diligent measures to prosecute and punish agents of the state and Anvil Mining Company staff.” The complaint on behalf of 8 victims was brought to the African Commission in November 2010 by UK-based Rights and Accountability in Development (RAID), Congo-based Action Against Impunity and Human Rights (ACIDH) and the Institute for Human Rights and Development in Africa (IHRDA), based in Banjul, Gambia. Questions (Answers can be found below) 1. What happened in Kilwa? 2. Is what happened in Kilwa linked to the war in DRC 4. What role did Anvil Mining play in the massacre? 5. What does Anvil Mining say happened? 6. Did the Congolese government arrest any of the soldiers or Anvil employees? 7. Have there been other attempts to seek criminal justice? 8.
    [Show full text]
  • The Mineral Industry of Congo (Kinshasa) in 2006
    2006 Minerals Yearbook CONGO (KINSHASA) U.S. Department of the Interior April 2009 U.S. Geological Survey THE MINERAL INDUS T RY OF CONGO (KINSHASA ) By Thomas R. Yager The Democratic Republic of the Congo [Congo (Kinshasa)] Trade played a globally significant role in the world’s production of cobalt and diamond. In 2006, the country’s share of the world’s Exports were estimated to be about $2.32 billion in 2006, cobalt production amounted to 38%; industrial diamond, 28%; and imports, $2.74 billion. Diamond accounted for 38% of total and gem-quality diamond, 6%. Congo (Kinshasa) accounted exports; crude petroleum, 25%; cobalt, 16%; and copper, 11%. for about 49% of the world’s cobalt reserves. Copper and crude Other mineral exports included gold, niobium (columbium), petroleum production also played a significant role in the tantalum, tin, tourmaline, and tungsten. The share of diamond domestic economy. The country was not a globally significant in total exports declined from nearly 53% in 2001; the shares consumer of minerals or mineral fuels (Olson, 2007a, b; Shedd, of cobalt and copper increased from 8% and 4%, respectively. 2007). From 2001 to 2006, diamond exports nearly doubled in value, but cobalt and copper exports increased at a faster rate because Minerals in National Economy of higher prices and increased production. Petroleum products accounted for nearly 6% of total imports in 2006 (International The mining and mineral processing sector accounted for Monetary Fund, 2007, p. 68-69). 13.2% of the gross domestic product, and the manufacturing sector, 4.5%. An estimated 700,000 artisanal miners were Commodity Review involved in diamond production; employment in diamond trading amounted to about 100,000 (International Monetary Metals Fund, 2005, p.
    [Show full text]
  • Anvil Mining Limited and the Kilwa Incident Unanswered Questions
    Anvil Mining Limited and the Kilwa Incident Unanswered Questions 20 October 2005 B.P.909, Commune de Lubumbashi, Avenue K APENDA, N°565 Angle MOBUTU Tel: +243 97032984 et +243 97022410 et 0818153407 et 0814043641 E-Mail : [email protected] ACIDH RAID Action Contre l’Impunité pour les Droits Humains Rights & Accountability in Development Action against impunity for human rights Oxford, United Kingdom Avenue Des Usines N°317/Coin avenue Kasavubu Tel. (44) (0)1865 436 245 Commune de Lubumbashi Fax: (44) (0)1865 270 721 Tél : 00 243 97108022 et 00 243 970 11 202 E-mail : [email protected] E-mail : [email protected] Anvil Mining Limited and the Kilwa Incident Unanswered Questions Introduction ................................................................................................................................................... 1 Purpose and structure of this briefing........................................................................................................ 1 Status of investigations.............................................................................................................................. 2 Background information on Anvil Mining Limited and the Dikulushi Mine............................................ 3 1. The UN’s Account of the Kilwa Incident.................................................................................................. 6 2. Allegations concerning Anvil Mining contained in the UN Report .......................................................... 8 3. Anvil’s response
    [Show full text]
  • The Mineral Industry of Congo (Kinshasa) in 2010
    2010 Minerals Yearbook CONGO (KINSHASA) [ADVANCE RELEASE] U.S. Department of the Interior June 2012 U.S. Geological Survey THE MINERAL INDUSTRY OF CONGO (KINSHASA) By Thomas R. Yager The Democratic Republic of the Congo [Congo (Kinshasa)] were poorly integrated into the national army (Global Witness, played a globally significant role in the world’s production 2010, p. 7, 10; De Koning, 2011, p. 18). of cobalt, copper, diamond, tantalum, and tin. In 2010, the In July 2010, the U.S. Congress passed the Dodd-Frank Wall country’s share of the world’s cobalt production amounted to Street Reform and Consumer Protection Act, which contained 51%; industrial diamond, 25%; tantalum, 14%; gem-quality provisions concerning the use of minerals to finance military diamond, 5%; and copper and tin, 3% each. Congo (Kinshasa) operations in eastern Congo (Kinshasa). The U.S. Securities accounted for about 47% of the world’s cobalt reserves. Crude and Exchange Commission (SEC) issued proposed regulations petroleum production also played a significant role in the in accordance with the Dodd-Frank Wall Street Reform and domestic economy. The country was not a globally significant Consumer Protection Act in December, The SEC was required to consumer of minerals or mineral fuels (Carlin, 2011; Edelstein, issue regulations in final form by April 15, 2011 (U.S. Securities 2011; Olson, 2011a, b; Papp, 2011; Shedd, 2011). and Exchange Commission, 2010, p. 80948–80950). Under the proposed regulations, all companies registered Minerals in the National Economy with the SEC that sold products containing cassiterite, columbite-tantalite, gold, or wolframite were required to The mining and mineral processing sector accounted for disclose whether these minerals originated from Congo an estimated 13.4% of the gross domestic product in 2009 (Kinshasa) or adjoining countries.
    [Show full text]