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Mapping Artisanal Mining Areas and Mineral Supply Chains in Eastern DR Congo Impact of Armed Interference & Responsible Sourcing

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Mapping Artisanal Mining Areas and Mineral Supply Chains in Eastern DR Congo Impact of Armed Interference & Responsible Sourcing Mapping artisanal mining areas and mineral supply chains in eastern DR Congo Impact of armed interference & responsible sourcing International Peace Information Service vzw TABLE OF CONTENTS Editorial ................................................................................................................................................. 2 Key concepts ......................................................................................................................................... 5 List of acronyms .................................................................................................................................... 6 Executive Summary .............................................................................................................................. 7 Armed interference in mining ........................................................................................................................................7 Link between armed confict and armed interference ..........................................................................................8 Impact of responsible sourcing on armed interference ........................................................................................8 Socio-economic aspects ...................................................................................................................................................8 Challenges for responsible supply chains ..................................................................................................................9 Concluding remarks .........................................................................................................................................................10 1. Introduction and background ...................................................................................................... 12 1.1. Scope and key fndings ........................................................................................................................................12 1.2. Background ..............................................................................................................................................................12 1.3. IPIS’ Methodology .................................................................................................................................................13 1.4. Data gathered .........................................................................................................................................................13 2. Armed interference in eastern DR Congo’s artisanal mining sector ......................................... 15 2.1. Armed interference at mining sites .................................................................................................................15 2.1.1. Armed interference: provincial diferences .............................................................................................................................15 2.1.2. Armed interference: diferent actors .........................................................................................................................................18 2.2. Roadblocks: the militarization of supply chains ......................................................................................... 20 3. Comparing armed confict with armed interference at mining sites ........................................ 24 4. Responsible sourcing: does it mitigate armed interference? .................................................... 28 4.1. Armed interference and responsible sourcing ........................................................................................... 28 4.1.1. Responsible sourcing over time: decreasing interference ...................................................................................................29 4.1.2. Armed interference: geography matters .................................................................................................................................31 5. Socio-economic aspects ............................................................................................................... 32 5.1. Social and economic indicators related to mineral exploitation ......................................................... 32 5.1.1. Miners’ mobility .............................................................................................................................................................................32 5.1.2. Cooperatives ...................................................................................................................................................................................32 5.1.3. Women .............................................................................................................................................................................................34 5.1.4. Mining site owners and the distribution of revenues ...........................................................................................................34 5.2. Economic indicators related to mineral trade ............................................................................................. 35 5.2.1. Pricing along the trading chain .................................................................................................................................................36 5.2.2. The impact of traditional customs and local dynamics ......................................................................................................38 5.2.3. The impact of exchange rates ....................................................................................................................................................38 5.2.4. The impact of world market prices............................................................................................................................................39 5.2.5. The impact of distance/enclavement .......................................................................................................................................40 5.2.6. The impact of the quality of the minerals ...............................................................................................................................41 5.2.7. The impact of monopolies ..........................................................................................................................................................41 5.2.8. The impact of responsible sourcing ..........................................................................................................................................43 2 3 5.3. State control and formalization of the ASM sector ...................................................................................44 5.3.1. Presence of state services .............................................................................................................................................................44 5.3.2. Carte de creuseur ...........................................................................................................................................................................45 5.3.3. Cooperatives ...................................................................................................................................................................................46 5.3.4. Taxation ...........................................................................................................................................................................................46 6. Responsible sourcing challenges ................................................................................................. 50 6.1. Mineral traceability at a distance ..................................................................................................................... 50 6.2. Commercialisation of tags ................................................................................................................................. 50 6.3. Contamination of responsible supply chains ...............................................................................................51 7. Conclusions .................................................................................................................................... 53 7.1. Armed interference .............................................................................................................................................. 53 7.2. Mining and mineral trade .................................................................................................................................. 54 7.3. How sustainable is the situation? .................................................................................................................... 55 4 5 KEY CONCEPTS Below is a list of some terms that are regularly used throughout the report. These are no ofcial defni- tions, but rather denominations that make it easier to refer to certain types of mines or initiatives. Armed interference: this term is used to describe all cases where a non-state armed group, an army unit or an armed criminal network make (illegal) profts from mineral exploitation or trade, through their physical presence in mining zones, or through more indirect interferences; Non-armed interference: this term is used to describe all cases where unarmed ofcials make (illegal) profts through their presence in mining zones; Militarisation of mining sites: this
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