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The complexiTy of resource governance in a conTexT of sTaTe ... - Ipis

The complexiTy of resource governance in a conTexT of sTaTe ... - Ipis

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<strong>The</strong> complexity <strong>of</strong> <strong>resource</strong> <strong>governance</strong> <strong>in</strong> a context <strong>of</strong> state fragility: An analysis <strong>of</strong> the m<strong>in</strong><strong>in</strong>g sector <strong>in</strong> the Kivu h<strong>in</strong>terlands<br />

17<br />

does not mention the orig<strong>in</strong> <strong>of</strong> m<strong>in</strong>erals pass<strong>in</strong>g through Bukavu. 19 <strong>The</strong> 2008 report <strong>of</strong> North<br />

Kivu m<strong>in</strong><strong>in</strong>g division records 18.3 tonnes <strong>of</strong> cassiterite from Katanga and 26 tonnes <strong>of</strong> Katangese<br />

cassiterite tail<strong>in</strong>gs (“scorie”), eventually sold to Thaisarco, a Thailand-based t<strong>in</strong> smelter. 20<br />

<strong>The</strong> Kivu comptoirs active <strong>in</strong> Northern Katanga were Muyeye, Olive, Panju, MDM, Global<br />

M<strong>in</strong>erals Company and TTT. <strong>The</strong>se comptoirs mostly work through middlemen.<br />

BOX 1<br />

Comparison <strong>of</strong> statistics from Katanga and South Kivu<br />

Not only is it impossible to verify the volume <strong>of</strong> Katangese m<strong>in</strong>eral production <strong>in</strong> the South Kivu<br />

statistics, the comparison <strong>of</strong> data suggests large-scale smuggl<strong>in</strong>g. Statistics from the M<strong>in</strong><strong>in</strong>g Divison<br />

<strong>in</strong> Kalemie show 30 tonnes <strong>of</strong> coltan shipped from Tanganyika to the Kivus <strong>in</strong> the first three months <strong>of</strong><br />

2010. 21 <strong>The</strong> largest shipment – slightly over 10 tonnes – was shipped <strong>in</strong> February to Uvira, where the<br />

m<strong>in</strong><strong>in</strong>g division approved the onward shipment to Bukavu on 21st February 2010. 22<br />

However, data from the Office Congolais de Contrôle (OCC) and the Bukavu m<strong>in</strong><strong>in</strong>g division shows<br />

exports <strong>of</strong> less than seven tonnes for the first half <strong>of</strong> 2010. This means that 24 <strong>of</strong> 30 tonnes <strong>of</strong> coltan<br />

that <strong>of</strong>ficially left Kalemie for Bukavu by the end <strong>of</strong> March 2010 were either stocked for three to six<br />

months, or smuggled across the border.<br />

<strong>The</strong>re is little doubt that detailed comparison <strong>of</strong> m<strong>in</strong>eral statistics throughout eastern DRC would<br />

reveal similar discrepancies.<br />

A first <strong>in</strong>tervention from Lubumbashi<br />

Traditionally agrarian and subject to control by the rebel Rassemblement Congolais pour la<br />

Démocratie (RCD) <strong>in</strong> Congo’s wars, Northern Katanga and its <strong>resource</strong>s were somewhat forgotten<br />

by the prov<strong>in</strong>cial authorities, based <strong>in</strong> Lubumbashi. As the security situation improved and trade<br />

<strong>in</strong>tensified, frustration built up <strong>in</strong> the prov<strong>in</strong>cial capital over the monopoly by the Kivu traders.<br />

M<strong>in</strong>erals that did not transit directly through Lubumbashi systematically escaped adm<strong>in</strong>istrative,<br />

economic and tax control by the authorities, which were determ<strong>in</strong>ed to rega<strong>in</strong> control.<br />

In October 2009, Governor Moise Katumbi Chapwe spectacularly raised adm<strong>in</strong>istrative charges<br />

to US$5 per kg on ‘all transit <strong>of</strong> cassiterite and its by-products from Katanga prov<strong>in</strong>ce to any<br />

other prov<strong>in</strong>ce’. 23 Fees had previously amounted to less than US$0.10 per kg, a rate still applicable<br />

to cassiterite and coltan transit<strong>in</strong>g through the prov<strong>in</strong>cial capital. 24 With cassiterite worth less<br />

than US5$ per kg at the m<strong>in</strong>e, the measure doubled costs for traders from other prov<strong>in</strong>ces and<br />

effectively banned export through the Kivu prov<strong>in</strong>ces.<br />

<strong>The</strong> impact on the Central Katanga cassiterite trade was considerable. Under the protests <strong>of</strong><br />

Kivu traders, northbound cassiterite flows fell significantly <strong>in</strong> the months after the measure was<br />

passed. Adm<strong>in</strong>istration documents record no shipments <strong>of</strong> m<strong>in</strong>erals from Manono <strong>in</strong> the first<br />

month after the new tax and, s<strong>in</strong>ce December 2009 all m<strong>in</strong>erals from the region have transited<br />

to Lubumbashi. No Kivu transporter formerly work<strong>in</strong>g <strong>in</strong> the trade now features among those<br />

shipp<strong>in</strong>g to Lubumbashi.<br />

19 Division des M<strong>in</strong>es, Sud Kivu, Rapport Annuel 2008.<br />

20 Division des M<strong>in</strong>es, Nord Kivu, Rapport Annuel 2008, Tables 11, 12 and 14<br />

21 Divison des M<strong>in</strong>es, District du Tanganika, Statistiques des substances m<strong>in</strong>erales declarées au service des m<strong>in</strong>es, 1er trimestre exercice 2010.<br />

<strong>The</strong> négociants who sent these shipments were Yalala, Ntambaka, Buyoya and Cizungu.<br />

22 Attestation de transport des substances m<strong>in</strong>erales des productions artisanales, 21st February 2010.<br />

23 Article 1 <strong>of</strong> the Arrêté Prov<strong>in</strong>cial n˚2009/0035/KATANGA du 9 Octobre 2009 <strong>in</strong>stituant les modalités de transfert de la cassiterite et ses<br />

accompagnateurs de la Prov<strong>in</strong>ce du Katanga vers d’autres Prov<strong>in</strong>ces.<br />

24 Interview, SAESSCAM staff, Lubumbashi, May 2010.

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