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Recommendations page 1 SameOldStory A background study on natural resources in the Democratic Republic of Congo A Report by Global Witness. June 2004 Same Old Story—Natural Resources in the Democratic Republic of Congo Recommendations HIS REPORT marks the beginning of an G Actively support and participate in the public extensive project that will examine natural dissemination of information about the new mining and resource governance in the Democratic forestry codes, and guarantee that meaningful Republic of Congo. consultations take place with local communities across the DRC on issues pertaining to resource and revenue T management. Global Witness recommends that the international donor community and the United Nations should: The DRC Government of National Unity should: G Mainstream natural resource governance issues as an area G Firmly commit to making anti-corruption, transparency of critical concern during the transitional period and for and accountability priority areas, and, in the lead-up to the long-term peace and development of the Democratic national elections, all members of the new government Republic of Congo. should publicly declare their assets and business interests. The International donor community should: G Cooperate with the international community and international institutions to build institutional and G Realign and refocus aid programmes to make issues of regulatory capacity. natural resource governance high priority during the G Work to fully implement the Kimberley Process. transitional government period and beyond. The issue of natural resources cannot and must not be ignored in the The United Nation Security Council should: rush to rebuild and develop the DRC. G In the review scheduled for 30 July 2004, the Security G Develop and implement institutional and regulatory Council should amend the mandate of the United Nations capacity within the DRC government’s civil service to Organization Mission in the Democratic Republic of the ensure new laws and codes are adhered to, and revenues Congo (MONUC) to include authority to monitor and are managed transparently and responsibly. report on natural resource exploitation in the DRC. This is G Individual donor countries and bodies should coordinate especially important in Eastern DRC, where the trafficking activities and policies to strengthen activities aimed at of arms is closely linked to natural resource exploitation. improving natural resource governance. Support for anti- G Amend MONUC's mandate further to intensify regional corruption initiatives should be continued and expanded. cooperation between African Union and UN Missions in G Provide financial and logisitcal support to local civil society the Great Lakes, including those already in place in movements in activities aimed at improving resource Burundi, the Central African Republic, Sudan, Angola governance and transparency, and work with local groups and Rwanda. All missions should mainstream and work to provide public education on resource issues at a grass- closely to monitor links between natural resources and roots level. insecurity in the Great Lakes region. G Develop and deepen regional approaches to aid and G Continue to work to bring together the DRC’s neighbours development policies to ensure uniformity of approach in dialogue to find cross-border solutions to resource across the Great Lakes region. Plans for the DRC’s governance. The Great Lakes conference is one of several economic, political and social development should not be African mechanisms and organisations that could provide made in a vacuum: the politics and economics of opportunities for developing innovative solutions to highly neighbouring countries are closely interrelated with the complex problems. DRC. G Strengthen enforcement of existing Security Council G Developmental, political and economic analysis by resolutions on DRC and international law. Stringent countries looking to assist the DRC should incorporate enforcement of targeted aviation, commodity and arms regional characteristics of trade. For instance, regional and embargoes, certification regimes, conventions against sub-regional organisations such as the African Union or money-laundering and bribery would significantly lessen COMESA have the potential to provide creative cross- opportunities for the illicit exploitation of natural border strategies for controlling trade, and smuggling. resources in the DRC and beyond. International Financial Institutions should: G Adopt a definition on conflict resources and a permanent body attached to the UN Security Council with standing G Take on-the-ground realities into account when building capacity to investigate and sanction malfeasance. Global and implementing policies to generate revenues through Witness recommends the following definition: “Natural resource extraction. They must urgently reexamine resources that have been traded in a way that drives violent reliance on a purely fiscal approach to “kick-starting” the armed conflict or which threaten national or regional DRC economy. security.” G Develop innovative immediate and long-term solutions to ensure the historical trajectory of misuse of resources in the DRC is ended. Given that the DRC’s natural wealth has been identified as a key to rapid economic growth and post-war reconstruction, close attention needs to be paid challenges of reconciling the need for investment, reform and law enforcement with on-the-ground realities. Same Old Story—Natural Resources in the Democratic Republic of Congo SameOldStory A background study on natural resources in the Democratic Republic of Congo Contents Recommendations . Copper and cobalt Abbreviations Historical development of copper/cobalt mining • Executive Summary Centres of production and processing • Trade routes • Trade statistics • Political control • Copper/cobalt Introduction mining outlook • Cadmium • Silver • Zinc • Uranium Research methodology . Diamonds Historical context of natural resource extraction in the Historical development of DRC’s diamond industry • DRC Diamond deposits • Artisanal diamond mining • . Leopold II ( – ) & Belgian colonial Commercial diamond production and trade • DRC rule ( – ) illicit and conflict diamonds • International trade routes . Methods of resource exploitation • Trade statistics . Creation of an informal economy and societal . Gold changes Official trade statistics • Trade routes . Development of transport infrastructure . Oil and gas . Independence Relationship between conflict and oil • Trade statistics • Mobutu ( – ) Gas . Natural resource exploitation . Timber . The growth of the informal economy Concession System • The effect of war on the timber . Clandestine trade routes industry • Post-conflict risks • The Northeast • . Decline of central control Equateur Province and the Northwest • National parks: Virunga case study • Government-held territory • . Mobutu’s fall Conflict timber in government-held areas – the Laurent-Désiré Kabila ( – ) Zimbabwe connection • Trade statistics . Natural resource exploitation . “Minor” Resources . The second war: – ? Coal • Lead • Iron Ore • Manganese . Panel of Experts Transport Major Armed Rebel Groups . Roads Joseph Kabila, the Inter-Congolese Dialogue and the . Rivers and lakes Transitional Government . Air transport . The Lusaka Agreement and the Inter- . Train lines Congolese Dialogue DRC International Trade Summary . Transitional government . Note on statistics methodology . International Financial Institutional (IFI) involvement . DRC Exports The DRC’s natural resources Conclusion . Overview Citations . Natural resources and conflict in the DRC Interviews . The mining sector List of organisations contacted Production, control and trade in natural resources Appendix : Airports and Aerodromes . Columbite-tantalite (Coltan) References Uses of coltan • Market demand for coltan • Discovery of coltan • Main areas of extraction • Extraction and processing • Trade routes • Trade statistics • Companies involved in coltan extraction • Political control • Cassiterite (tin) Same Old Story—Natural Resources in the Democratic Republic of Congo Abbreviations ALC Armée de Libération du Congo ABIR Anglo-Belgian India-Rubber Company ADFL Alliance des Forces Democratiques pour la Liberation du Congo AIC Association Internationale du Congo AliR Armée de Libération du Rwanda BCK Compagnie du Chemin de Fer du Bas-Congo au Katanga CAR Central African Republic CEEC Centre for Evaluation, Expert Analysis and Certification of Precious Minerals CFC Compagnie du chemin de fer du Congo CFL Compagnie des Chemins de Fer du Congo Superieur aux Grands Lacs Africains Coltan Columbite-tantalite CSK Comité special du Katanga DRC Democratic Republic of the Congo FAC Forces Armées Congolaises FAPC People’s Armed Forces of Congo FAR Rwandan Armed Forces FDD Forces de Defense pour la Démocratie FEC Fédération des Entreprises Congolaises Forminière Société Internationale Forestière et Minière du Congo Gécamines Générale des Carriers et des Mines IDI International Diamond Industries IMF International Monetary Fund IPIS International Peace Information Service IPR International Panorama Resources Corp KMC Kababankola Mining Company KP Kimberley Process MLC Mouvement pour la Libération du Congo MIBA La Société Minière de Bakwanga MONUC United Nations Observer Mission in the Congo NALU National Army for the Liberation of Uganda NCP National Contact Point NGO Non-Governmental

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