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Deforestation Trends in the Congo Basin Reconciling Economic Growth and Forest Protection Public Disclosure Authorized

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Deforestation Trends in the Congo Basin Reconciling Economic Growth and Forest Protection Public Disclosure Authorized Deforestation Trends in the Congo Basin Reconciling Economic Growth and Forest Protection Public Disclosure Authorized WORKING PAPer 4 | Mining Kirsten Hund Carole Megevand with Edilene Pereira Gomes Public Disclosure Authorized Marta Miranda Erik W. Reed Public Disclosure Authorized Public Disclosure Authorized APRIL 2013 Deforestation Trends in the Congo Basin Reconciling Economic Growth and Forest Protection WORKING PAPer 4 | Mining Kirsten Hund Carole Megevand with Edilene Pereira Gomes Marta Miranda Erik Reed APRIL 2013 Working Paper 4: Mining iii CONTENTS ACRONYMS ....................................................................................................................................................vii AcknoWLedgments .................................................................................................................................ix IntrodUctIon .............................................................................................................................................xi Chapter 1. MIneraL WeaLth IN the Congo BasIN: LargeLY Untapped.........................1 Geology and Associated Mineral Resources ................................................................................................1 Mining Sector in the Congo Basin ....................................................................................................................3 Types of Mining Operations ........................................................................................................................4 Typology of Mining Operators ....................................................................................................................5 Mining in the Congo Basin Forest: Key Characteristics and Environmental Concerns ......................................................................................................................5 Chapter 2. Prospects For MINIng DEVELopment IN the Congo BasIN ......................9 Trends in World Demand for Minerals and Long-Term Perspectives .................................................9 Copper...............................................................................................................................................................10 Gold ....................................................................................................................................................................12 Iron Ore .............................................................................................................................................................13 Aluminum.........................................................................................................................................................15 Potassium Chloride ......................................................................................................................................15 Coltan, Tantalum, and Nobium ................................................................................................................15 Exploration and Prospects for the Congo Basin Countries ...................................................................17 New Deals: Infrastructure Burden Lifted from Host Countries ...........................................................17 Chapter 3. PotentIAL Impacts OF MINIng ActIVITIes on Congo BasIN Forests ................................................................................................. 19 Direct Impacts of Large-Scale Mining Operations at Different Stages .............................................19 Exploration Activities ................................................................................................................................... 20 Construction ....................................................................................................................................................21 Processing ........................................................................................................................................................21 Closure and Rehabilitation ........................................................................................................................ 22 Indirect Impacts Resulting from Infrastructure Associated with Large-Scale Mining Operations ............................................................................................................................................... 22 Transport Infrastructure .............................................................................................................................. 23 iv Deforestation Trends in the Congo Basin: Reconciling Economic Growth and Forest Protection Dams and Hydropower Plants ................................................................................................................ 23 Induced Impacts of Large-Scale Mining Operations .............................................................................. 23 Agricultural Expansion ................................................................................................................................ 23 Bushmeat Hunting ....................................................................................................................................... 23 Logging ............................................................................................................................................................. 23 Cumulative Impacts of Large-Scale Mining Operations .........................................................................24 Impacts of Artisanal and Small-Scale Mining .............................................................................................24 Direct Impacts ................................................................................................................................................24 Indirect Impacts ............................................................................................................................................ 25 Cumulative Impacts .................................................................................................................................... 25 Conflict Minerals................................................................................................................................................... 25 Chapter 4. HOW to ReconcILE MINIng DEVELopment WIth Forest PreserVatIon: POLIcy RecommendatIons .......................................................29 Promote Integrated Land Use Planning for Mining and Associated Infrastructure Development ................................................................................................................................................. 29 Set High Standard Goals for Environmental and Social Management ............................................ 30 Improve Management of the Artisanal and Small-Scale Mining Sector in Areas of High Biodiversity ..........................................................................................................................31 Offset Negative Impacts of Mining Operations ....................................................................................... 32 Promote Innovative Mechanisms to Offset Negative Impacts ........................................................... 35 Strengthen Governments’ Capacities to Manage the Mining Sector ............................................... 35 CONCLUSION and OUTLook ................................................................................................................37 REFerences ................................................................................................................................................39 AnneX: MINIng Sector IN the Congo BasIN—COUntry ProFILes .................................43 Cameroon ............................................................................................................................................................... 43 Democratic Republic of Congo ...................................................................................................................... 44 Republic of Congo ............................................................................................................................................... 45 Gabon ...................................................................................................................................................................... 46 Central African Republic .................................................................................................................................... 47 Equatorial Guinea ................................................................................................................................................ 50 Working Paper 4: Mining v FIGUres Figure 1.1 Geological Map of the Congo Basin and Its Surroundings ...........................................2 Figure 1.2 Overlapping Mining and Forestry Concessions in Gabon .............................................8 Figure 2.1 Evolution of and Forecast for Prices of Metals and Minerals (US$ Year 2005=100) (as of September 2012) ..........................................................10 Figure 2.2 Variation in and Forecast for Copper Price (US$/million tons; prices expressed in constant 2005 US$) .........................................................................12 Figure 2.3 Gold Production Shares in Africa .........................................................................................13
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