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

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

international.alert.org
from international.alert.org More from this publisher
19.01.2015 Views

42 International Alert Southeastern Orientale

The complexity of resource governance in a context of state fragility: An analysis of the mining sector in the Kivu hinterlands 43 Chapter 3: Bafwasende and Mambasa (Filip Hilgert & Rachel Perks) 3.1 Minerals in Bafwasende and Mambasa Orientale province occupies 503,239 km 2 and comprises 22 percent of the nation’s land surface. It has a population of 6.6 million (12 percent of the total population) and an average 4.7 people per household. The administrative capital is Kisangani and there are four districts (Bas-Uele, Haut-Uele, Tshopo, Ituri). Some 75.5 percent of the population lives in poverty, with an average monthly household income of US$25. Agriculture (cassava, plantain, rice) is the main livelihood for 84 percent of the population, and there is a history of growing coffee, cocoa and palm oil for export. Animal husbandry and fishing are other important activities. 149 Minerals play an important, though largely informal, economic role for a significant amount of the population. While large-scale mining has historically played a central role in the economy of the eastern part of Orientale province, most mining today is artisanal and small-scale. This chapter does not look at mine sites across the entire province; 150 but focuses just on those in the least-known areas bordering North Kivu, namely southern Bafwasende territory (Tshopo district) and Mambasa territory (Ituri district). These hinterlands mainly service the trading towns of Butembo, Beni and Bunia, and the minerals extracted from them include gold, diamonds, cassiterite, coltan and wolframite. Diamonds Though an important source of income and revenue across the country, diamonds will not be treated in depth. Despite the strides made in the Kimberley Process, sizeable amounts of diamonds continue to be exported illegally from the province, but diamond production and exports fell sharply between 2008 and 2009, in value and in volume, as a result of the global financial crisis. 151 CEEC figures for the first five months of 2010 show a further decrease in production compared to 2009, but a 32 percent increase in value. 152 In Orientale the crisis has led to the abandonment of the majority of the diamond sites, the bankrupcy of most diamond négociants and a large shift by artisanal diamond miners into gold. Gold The 2009 CEEC Orientale activity report declared 86.829 kg (US$2,134,547) of gold bought and “sealed” within the province 153 . Compared to 2008 (16.618 kg for US$336,315) this was an increase in volume of 422.5 percent and an increase in value of 534.69 percent. To provide context for these figures, the entire DRC legally exported only 123 kg of gold in 2008, for an estimated five tonnes of production. 154 CEEC Orientale attributes the the large rise in production in 2009 to the influx of many former diamond miners into gold, and especially the opening of two official comptoirs in Bunia (COPED and OKIMO/MIKUBA) and the subsequent installation of a CEEC office. In fact, over 96.5 percent of the total official gold production of the province in 2009 was declared in Bunia, and the remainder by just one comptoir in Kisangani (Abner Congo 149 UN Development Programme (2009) ‘Province Orientale. Profil Résumé’, op. cit. 150 See IPIS natural resources map of Province Orientale, with accompanying report by S. Spittaels and F. Hilgert, ‘Mapping conflict motives: Province Orientale (DRC), March 2010, at http://www.ipisresearch.be/mapping_orientale.php. 151 According to Direction Provinciale du CEEC, Synthèse du rapport d’activités 2009, from 244,160.44 carats (US$16,864,069) in 2008 to 96,666.94 carats (US$4,927,901) in 2009, a decrease of 60.41 percent in production and 70.78 percent in value. 152 36,666.57 carats (US$2,159,026) in January–May 2010, and 40,176.52 carats (US$1,634,730) in January–May 2009. Over 38 percent of production comes from mines just north of Kisangani (Lubuya Bera collectivity), and 25 percent from Bafwasende territory. 153 The Provincial Division des Mines 2009 annual report has only 62.79389 kg (US$1,556,441.24). 154 ‘RDC, Exploitation d’or, une perte sèche de près de 70 millions USD suite à la fraude’, Radio Okapi, 13th July 2009.

<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 />

43<br />

Chapter 3: Bafwasende and Mambasa<br />

(Filip Hilgert & Rachel Perks)<br />

3.1 M<strong>in</strong>erals <strong>in</strong> Bafwasende and Mambasa<br />

Orientale prov<strong>in</strong>ce occupies 503,239 km 2 and comprises 22 percent <strong>of</strong> the nation’s land surface.<br />

It has a population <strong>of</strong> 6.6 million (12 percent <strong>of</strong> the total population) and an average 4.7 people<br />

per household. <strong>The</strong> adm<strong>in</strong>istrative capital is Kisangani and there are four districts (Bas-Uele,<br />

Haut-Uele, Tshopo, Ituri). Some 75.5 percent <strong>of</strong> the population lives <strong>in</strong> poverty, with an average<br />

monthly household <strong>in</strong>come <strong>of</strong> US$25. Agriculture (cassava, planta<strong>in</strong>, rice) is the ma<strong>in</strong> livelihood<br />

for 84 percent <strong>of</strong> the population, and there is a history <strong>of</strong> grow<strong>in</strong>g c<strong>of</strong>fee, cocoa and palm oil for<br />

export. Animal husbandry and fish<strong>in</strong>g are other important activities. 149<br />

M<strong>in</strong>erals play an important, though largely <strong>in</strong>formal, economic role for a significant amount <strong>of</strong><br />

the population. While large-scale m<strong>in</strong><strong>in</strong>g has historically played a central role <strong>in</strong> the economy <strong>of</strong><br />

the eastern part <strong>of</strong> Orientale prov<strong>in</strong>ce, most m<strong>in</strong><strong>in</strong>g today is artisanal and small-scale.<br />

This chapter does not look at m<strong>in</strong>e sites across the entire prov<strong>in</strong>ce; 150 but focuses just on those<br />

<strong>in</strong> the least-known areas border<strong>in</strong>g North Kivu, namely southern Bafwasende territory (Tshopo<br />

district) and Mambasa territory (Ituri district). <strong>The</strong>se h<strong>in</strong>terlands ma<strong>in</strong>ly service the trad<strong>in</strong>g towns<br />

<strong>of</strong> Butembo, Beni and Bunia, and the m<strong>in</strong>erals extracted from them <strong>in</strong>clude gold, diamonds,<br />

cassiterite, coltan and wolframite.<br />

Diamonds<br />

Though an important source <strong>of</strong> <strong>in</strong>come and revenue across the country, diamonds will not be<br />

treated <strong>in</strong> depth. Despite the strides made <strong>in</strong> the Kimberley Process, sizeable amounts <strong>of</strong> diamonds<br />

cont<strong>in</strong>ue to be exported illegally from the prov<strong>in</strong>ce, but diamond production and exports fell<br />

sharply between 2008 and 2009, <strong>in</strong> value and <strong>in</strong> volume, as a result <strong>of</strong> the global f<strong>in</strong>ancial crisis. 151<br />

CEEC figures for the first five months <strong>of</strong> 2010 show a further decrease <strong>in</strong> production compared<br />

to 2009, but a 32 percent <strong>in</strong>crease <strong>in</strong> value. 152 In Orientale the crisis has led to the abandonment<br />

<strong>of</strong> the majority <strong>of</strong> the diamond sites, the bankrupcy <strong>of</strong> most diamond négociants and a large shift<br />

by artisanal diamond m<strong>in</strong>ers <strong>in</strong>to gold.<br />

Gold<br />

<strong>The</strong> 2009 CEEC Orientale activity report declared 86.829 kg (US$2,134,547) <strong>of</strong> gold bought<br />

and “sealed” with<strong>in</strong> the prov<strong>in</strong>ce 153 . Compared to 2008 (16.618 kg for US$336,315) this was<br />

an <strong>in</strong>crease <strong>in</strong> volume <strong>of</strong> 422.5 percent and an <strong>in</strong>crease <strong>in</strong> value <strong>of</strong> 534.69 percent. To provide<br />

context for these figures, the entire DRC legally exported only 123 kg <strong>of</strong> gold <strong>in</strong> 2008, for an<br />

estimated five tonnes <strong>of</strong> production. 154 CEEC Orientale attributes the the large rise <strong>in</strong> production<br />

<strong>in</strong> 2009 to the <strong>in</strong>flux <strong>of</strong> many former diamond m<strong>in</strong>ers <strong>in</strong>to gold, and especially the open<strong>in</strong>g <strong>of</strong><br />

two <strong>of</strong>ficial comptoirs <strong>in</strong> Bunia (COPED and OKIMO/MIKUBA) and the subsequent <strong>in</strong>stallation<br />

<strong>of</strong> a CEEC <strong>of</strong>fice. In fact, over 96.5 percent <strong>of</strong> the total <strong>of</strong>ficial gold production <strong>of</strong> the prov<strong>in</strong>ce <strong>in</strong><br />

2009 was declared <strong>in</strong> Bunia, and the rema<strong>in</strong>der by just one comptoir <strong>in</strong> Kisangani (Abner Congo<br />

149 UN Development Programme (2009) ‘Prov<strong>in</strong>ce Orientale. Pr<strong>of</strong>il Résumé’, op. cit.<br />

150 See IPIS natural <strong>resource</strong>s map <strong>of</strong> Prov<strong>in</strong>ce Orientale, with accompany<strong>in</strong>g report by S. Spittaels and F. Hilgert, ‘Mapp<strong>in</strong>g conflict motives:<br />

Prov<strong>in</strong>ce Orientale (DRC), March 2010, at http://www.ipisresearch.be/mapp<strong>in</strong>g_orientale.php.<br />

151 Accord<strong>in</strong>g to Direction Prov<strong>in</strong>ciale du CEEC, Synthèse du rapport d’activités 2009, from 244,160.44 carats (US$16,864,069) <strong>in</strong> 2008 to<br />

96,666.94 carats (US$4,927,901) <strong>in</strong> 2009, a decrease <strong>of</strong> 60.41 percent <strong>in</strong> production and 70.78 percent <strong>in</strong> value.<br />

152 36,666.57 carats (US$2,159,026) <strong>in</strong> January–May 2010, and 40,176.52 carats (US$1,634,730) <strong>in</strong> January–May 2009. Over 38 percent <strong>of</strong><br />

production comes from m<strong>in</strong>es just north <strong>of</strong> Kisangani (Lubuya Bera collectivity), and 25 percent from Bafwasende territory.<br />

153 <strong>The</strong> Prov<strong>in</strong>cial Division des M<strong>in</strong>es 2009 annual report has only 62.79389 kg (US$1,556,441.24).<br />

154 ‘RDC, Exploitation d’or, une perte sèche de près de 70 millions USD suite à la fraude’, Radio Okapi, 13th July 2009.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!