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

18 International Alert
The case of Kongolo
The most striking impact of the new measure is probably found in Kongolo. Until September
2009 Kongolo was the major transport hub for cassiterite from Manono and Malemba Nkulu,
transiting to Goma and Bukavu. Minerals were shipped by boat from Muyumba (or Bukama) to
the makeshift harbour of Kongolo, where they were transferred to Antonov planes heading for
North and South Kivu. Kongolo airstrip was particularly attractive because larger planes could
land, reducing transport costs. 25 At its peak, Kongolo would see two or three minerals flights
every day. Seven transport agencies operated from the town, flying in consumer goods and food
to the isolated town, and leaving with minerals. The population was pleased with the boost to
the local economy. 26
However, in October 2009 the trade through Kongolo came to a complete halt. The US$5 tax on
export via other provinces meant the airlift between Kongolo and the Kivus was no longer profitable.
For months, no commercial cargo planes landed in Kongolo. A limited service resumed in March/
April 2010, with one or two landings each week. These planes are loaded with agricultural products
and private shipments. They do not appear to transport minerals, although a small quantity of
minerals was discovered beneath a shipment of agricultural products on one occasion. 27
Only two of Kongolo’s seven transport agencies, AGEFRECO and COFRED, are still in business,
but they claim to be struggling and risk closure. The abundant mineral cargoes of the past allowed
agencies to charge less than US$0.5 per kg, but they now charge US$1.7$. Few customers are
attracted by such prices. 28
The impact of the provincial policy is also being felt at the port of Kongolo, although to a lesser
degree. The same boats from Bukama arrive in Kongolo with the same frequency, but they no
longer carry minerals. Two boats that used to operate from Muyumba and transport cassiterite
exclusively no longer leave port. 29
Apart from the provincial tax measure, Kongolo’s role as a transport hub has been further
challenged by two road rehabilitation projects that make truck transport a cheap and therefore
attractive alternative to airlifting. On the one hand, the road connection between Lubumbashi
and the mining centre of Manono is being improved. On the other hand, the eastern access road
to Kalemie is being repaired.
Moreover, a second measure from the Katangese provincial government further discourages the
mineral trade with the Kivu provinces through Kongolo.
The second intervention from Lubumbashi
Although effective in curbing cassiterite traffic from Central Katanga, the US$5 tax did not have
a similar impact on the coltan trade further north. Not only is the distance to Lubumbashi greater
and the road worse, coltan is worth more – a kg sells at up to US$40 in Bukavu. Traders simply
absorbed the fee by lowering the price paid to local miners, and kept on heading north.
25 Manono, which is closer to the mining areas, has an airstrip, but it has a smaller capacity than the one at Kongolo. Flight costs for
cassiterite from Manono were over US$4/kg in September 2009, compared to US$3.5/kg for the combined river/air route via Kongolo.
26 Interview, local authorities, Kongolo, June 2010.
27 Interviews, local authorities and mining official, Kongolo, June 2010.
28 Interview, transport agency manager, Kongolo, June 2010. Why the flights resumed in March/April, despite the slender margins
on agricultural cargo and private shipments, is unknown, but there are two possible explanations. On one hand, the planes might be
smuggling gold. Checks on gold smuggling at the PK 25 (on the Kalemie/Bendera junction) have become increasingly strict for Kivu
businessmen, forcing smugglers to use other routes. Furthermore, the important mining site of Mulunguyi lies “only” 110 km from
Kongolo. Alternatively, the resumption of flights may be linked to the signature of the contract between MMR and the Provincial Minister of
Mines on 25th March, and the subsequent seizure of a truckload of coltan from Bashi traders in Kisengo days later (see below). If traders
perfer not to to sell coltan to MMR, they might smuggle it in small quantities from Kongolo instead of risking the Kalemie-Bendera road.
At least one hidden shipment of minerals was discovered on a plane leaving Kongolo.
29 Interview, FARDC commanding officer at Kongolo port, June 2010.