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

24 International Alert
The subsequent redirection of trade has generated more tax revenues for Lubumbashi and
strengthened its control over remote mining areas, possibly reducing the power of local
strongmen. Channelling most of the trade through a single company brings some clarity to an
opaque situation where a plethora of middlemen intervened, and may offer an opportunity to
reduce local corruption. The other side of the coin is that négociants and transporters are almost
forced out of the trading chain. This has created real tension since the négociants, who paid for a
yearly licence to buy and sell minerals, now find they are barred from the most productive mining
sites. Meanwhile little will change for the creuseurs (artisanal miners) and the local population.
Although MMR has certain social obligations that are included in its contract with the provincial
Minister of Mines, it seems these are not its priority.
The trading routes have also changed and except for gold they have become rather clear. In
general, most cassiterite is transported by road to Lubumbashi, and most coltan is trucked to
Kalemie.
One difference that distinguishes Northern Katanga from the Kivu provinces is that, apart from
a small FDLR presence in the northeast, the local mining sector does not suffer from interference
from armed groups. Nevertheless security incidents are common in mining areas, and are often
due to misbehaviour by FARDC soldiers or other armed officials.
It is clear from the above that international companies will find it easier to carry out due diligence
efforts in Northern Katanga than in the Kivu provinces. Although some mines are very remote
and some security problems persist, a test run is absolutely possible at a large number of selected
sites.
Moreover, the few existing statistics indicate that the production of minerals, especially coltan, is
highly promising in the southern part of the Kivu hinterland, adding to incentives for companies
to carefully monitor their supply chain in this region and isolate it from those in other areas.
A necessary precondition for credible due diligence, however, is a clearer stand on how to deal
with the human rights violations committed by FARDC troops.