Africa Action: Activism for Africa Since 1953
Africa Action on Congo Conflict Minerals Act and the Financial Reform Bill
On July 15, U.S. Congress passed the financial reform bill, which includes an amendment addressing the Democratic Republic of Congo’s conflict minerals. This provision calls for increased corporate transparency where companies must disclose the origins of their minerals. The companies are also required to submit annual reports to the Securities and Exchange Commission detailing their progress in eliminating conflict minerals from their business. In turn, these reports will be subject to regular audits.
Conflict minerals, such as coltan, copper, tungsten, and gold (to name a few) are abundant in the Congo and equally abundant in technological devices (cell phones, laptops, digital cameras, mp3s). The profits from these resources have driven warfare between multiple rebel groups and armies, particularly in eastern DRC. This conflict in the Eastern Congo has been terrible for the civilians living in the region; sexual violence and the use of rape as a weapon of war have both been prevalent. While the Congo amendment is not seen as a final resolution, there are hopes that it will eventually alleviate the situation in the country, by reducing the profits armed groups earn from illegally mining and exporting the minerals.
Africa Action agrees that efforts need to be made to stem the flow of conflict minerals from the Congo. However, even within this amendment there are particular obstacles to achieving that aim:
On July 15, U.S. Congress passed the financial reform bill, which includes an amendment addressing the Democratic Republic of Congo’s conflict minerals. This provision calls for increased corporate transparency where companies must disclose the origins of their minerals. The companies are also required to submit annual reports to the Securities and Exchange Commission detailing their progress in eliminating conflict minerals from their business. In turn, these reports will be subject to regular audits.
Conflict minerals, such as coltan, copper, tungsten, and gold (to name a few) are abundant in the Congo and equally abundant in technological devices (cell phones, laptops, digital cameras, mp3s). The profits from these resources have driven warfare between multiple rebel groups and armies, particularly in eastern DRC. This conflict in the Eastern Congo has been terrible for the civilians living in the region; sexual violence and the use of rape as a weapon of war have both been prevalent. While the Congo amendment is not seen as a final resolution, there are hopes that it will eventually alleviate the situation in the country, by reducing the profits armed groups earn from illegally mining and exporting the minerals.
Africa Action agrees that efforts need to be made to stem the flow of conflict minerals from the Congo. However, even within this amendment there are particular obstacles to achieving that aim:
- Many companies support the regulation of minerals; however, few have the means of tracking where their minerals have come from. Minerals from the Congo typically are smuggled into neighboring countries such as Rwanda and then exported to smelting companies in Asia before they end up in the consumer products sold by U.S. based companies. As there is no monitoring or certification system IN the Congo currently, the capacity to track minerals’ origins is extremely challenging.
- Some companies have also felt pressure to look elsewhere for their minerals. However, this is hardly the solution. In the case of coltan, 64%- 80% of which is in the Congo, it is not feasible for an entire industry to move to Canada, Australia, or Brazil where the other sources of coltan are found. Also, many Congolese are employed in the DRC mines. Despite the many dangers and low pay for working in the mines and labor law and child labor law abuses, if businesses were to relocate, many who have acquired skills in mining would be left without income.
