Tag Archives: Democratic Republic of Congo

Conflict Gold to Peace Gold – part 2


We live in a crazy world and gold fever only adds to the madness. The stories we hear of conflict gold from the DR Congo are true, however they are only one half of the story. The other half of the story is the one I am here to explore with Peace Direct partners Centre for Resolution of Conflicts (CRC), whose coordinator is Henri Ladyi. The central conundrum that CRC have identified and want to tackle is, ‘can responsible and well-organised small-scale mining by ex-combatants lead to genuine peaceful and sustainable transformation? I have witnessed elements of this idea in my work in securing traceable gold from Colombia from the Green Gold project in my capacity as Founder of CRED Jewellery. The benefits of which are plain to see now that the certified Fairtrade Gold programme has five certified mining groups in the system. Cred Jewellery alone has paid over $100,000 in FT premiums to their Fairtrade gold partners Sotrami in Peru, since its launch in Feb 2011. To date Sotrami have invested this money in to education in their community as well as the establishing of a food store that supplies at wholesale prices to the wider community. This is the impact that can be made when you get artisanal mining traceable and certified.

The small towns of Iga Barrieré and Kobu is where I start my discovery. The road that takes us there snakes north of Bunia, past the new Chinese Gold mining concession and eventually to the highly controversial Anglo Gold Ashanti mine near Mongbwalu. But I am not here to investigate the predictably secretive and un-transparent member of The World Gold Council and Responsible Jewellery Council. I am here to review and understand the very activity of peace building in the war torn DRC. CRC have identified that a key to reducing or deflating the conflict is finding employment for the ex-combatants that inhabit every town and village across the eastern DRC. I admire their boldness as they have chosen to take a pro-active stance towards the issue of conflict minerals. I confess as a veteran campaigner in the jewellery profession for more ethical and fair trade practices, I have arrived with a certain level of unspoken scepticism, but with an open mind.

It is hard to describe to someone who has never stood in the artisanal gold fields of Africa what the experience is like. To say it is chaotic is to understate the reality of its cousin horror. It is like stepping into a circle of hell that Dante forgot to write about. Small-scale mining is the second biggest employer on the planet, with a global workforce and dependency in excess of 100 million. They like Dante’s omission are forgotten. The forgotten millions who for the politics of daily bread pound their bodies in the scorching heat in search of the madness that is gold.

Korean Dave's Gold processing machine lying on its side in The Nizi River

Korean Dave’s Gold processing machine lying on its side in The Nizi River

In Iga Barrieré, on one level everyone is a millionaire and the vast riches of the gold deposits are a living testimony to the resource curse. One story I heard and verified is that in a one-month period the local miners worked with a Korean called ‘Mr Dave’. And they produced 40 kilos of gold using Dave’s mechanised processing unit. Dave of course disappeared back to Korea with the 40 kilo’s without paying, leaving behind a group of defrauded miners and his processing machine. The affected miners showed me the site of Dave’s processing machine, now lying on its side in the middle of the fast flowing Nizi river. A small vignette of how opportunities dissipate through the locals’ finger tips like water through a sieve.

The first thing you notice about any small-scale mine site is a constant white noise of mechanised humming of the water pumps and generators. It is a universal sound associated with ASM, but it is soon drowned out by the endless chatter of the trivial pursuits of the countless workers, as they dig and haul pans of soil up though the chain gangs to the top of slopes where the content is panned and washed of its muddy content, leaving only fine sands and alluvial gold particles. All this is backbreaking, dirty, noisy, insecure and dangerous work carried out on the promise of payment plus a daily meal till the gold is delivered. It is mind-boggling how the sheer muscle of humanity, driven on by the primeval urge to survive can move tonnes of earth every hour and in doing so carve vast ravines out hillsides, re-direct river courses, and sculpt entirely new landscapes as they pursue the gold veins wherever they may lead. But to truly understand the ASM sector you need to look beneath the obvious of environmental mismanagement, systemic mercury usage and the child labour issues and understand the hidden driver of money and survival.

Small-scale mining next to the Nizi River.

Small-scale mining next to the Nizi River.

During my journey I talked to lots of miners in the towns I visited, on the mine sites I frequented and to the traders I encountered. They all told the same basic story best illustrated by this one miner I spoke to in Kobu. He borrows money from a local trader which will allow him t open up a small pit which requires he employs a group of local diggers, maybe as many as forty a pit. These diggers will move the soil until they hit the gold bearing rock or start to wash the gold from the river sands. If he is digging rock he will also be loaned some mercury that he will use to amalgam the gold from the rock dust. Mercury and gold particles really do like each other. Once he has extracted his gold, he will have to pay back the trader in gold plus the interest he owes which can be as much as between 30 to 50%. He is then obliged by the terms of the original loan to then sell the remaining gold to the same trader at discounted rates on the international fix. This price is determined by weight and purity of gold sold.

The gold traders table in the local gold market

The gold traders table in the local gold market

The trader will determine purity through a process called ‘acid burning’ where the gold is heated and melted to liquid and burned with acid to remove any material that is not gold. After selling the remaining gold he then pays the Government Mining group Kilomoto 30% of his income as they have licensed him to work on their concession in the first place. He then pays his workers for their sweat and muscle. Throughout the time that he opens the pit to the time he finally closes the deal on the gold sale, he has to manage a myriad of different quasi-official interests that are taken in any new mine site. He makes payments to; the Police, the Congolese Security service, soldiers, local government office, local chiefs, the environmental office as well as the hydro carbon tax (he actually offsets his carbon omissions) and anyone else who may have the power to stop him from mining, if he and his partners are left with as much as $3000 between them from a $50,000 transaction for 1 kilo of gold he will feel himself fortunate. When you ask him why he does it he simply replies, ‘It is all I know how to do, and I earn just enough per month to feed my family’.

Conflict Gold to Peace Gold – part 1


Over the next three posts I will be reflecting from my journals on my trip to the Democratic Republic of Congo, where I had been invited by Peace Direct to explore a grass roots idea of using small-scale gold mining as a means of building a peace and reconciliation process. A bold plan in the face of the well recorded troubles.

Anyone who travels in Africa must be blessed with patience and an unswerving belief in the inherent goodness of humanity, not something I believe St Augustine (an African himself) the inventor of the doctrine of original sin had in abundance when he came up with that innately negative outlook. This belief was tested upon my arrival at Entebbe Airport where I was transiting to Bunia in the Eastern Democratic Republic of Congo. The immigration officer retains my passport and allows me the freedom of this singularly underwhelming airport. I then wait for four hours for what is increasingly looking like a mythical representative of the small airline company who will be flying me to Bunia to issue me with my pre-paid ticket. As I sit in almost solitude I have re-occurring visions of scenes of torture and abuse from the film The Last King of Scotland, grateful those days have long disappeared from Uganda. Eventually a lady arrives from the airline company and asks for my passport. For ten heart-stopping minutes the half-dozen immigration officials, who are all busy chatting, half-heartedly move piles of envelopes and papers from one side of their desks to the other, whilst telling me ‘I need to relax’. In this matter of humanities inherent goodness, I am vindicated as my passport turns up from another room, only to disappear again with the airline lady to be shown to another mythological person in an upstairs room.

The plane that will take me to Bunia.

The plane that will take me to Bunia.

After another two hours the small twin prop flight to Bunia dances through the clouds and over a scattering of lakes, rocky hills, bush and forest that keeps my aching body entertained. Bush fire smoke drifts across the landscape telling us the wind direction and that the land beneath is inhabited by, if you believe the popular media myths of the west, bandits, militia and smugglers of conflict gold. A narrative I have been guilty of perpetuating in my career as an ethical jeweller and not without a measure of truth attached to it.

Arriving at the Bunia airstrip is a small education in the challenges the DRC faces on a daily basis. After my passport is stamped with a date stamp similar to the ones you can buy in any stationary store, I collect my bag from the nose of the plane and take it to a room full of cardboard boxes and plastic chairs to be inspected by a customs official in a garish blue and yellow shell suit. As he opens my bag he spots my camera and removes it from its box and in an animated French Swahili diatribe, announces this is not permitted in the country. He declares it is a telescopic camera that can link to the Internet via a satellite and can also be used to film the local underwater wildlife which last appeared in this region during the Jurassic period. Others begin to emerge from small rooms off the main cardboard room and join in what rapidly conflates to a game of pass the parcel amongst eight grown men. Eventually the camera, in the mass confusion disappears into a back room and I am told through Henri Ladyi, the co-ordinator of The Centre for Resolution Conflicts (CRC) that they want a $100 tax to import the camera. I refuse to pay.

As I am clearly no longer part of the discussion I decide to adopt a stance of calm self-preservation, as I recognise I  am going to be here for a long time. I sit down, open my Bible and go into a state of Zen-Christian exhaustive Lectio-Divina. Eventually the commotion attracts the attention of the airport police and the situation becomes further magnified when the location of the camera cannot be determined. What had started as an attempt to bribe a visitor has now become a case of theft. Some one has stolen my camera. The volume increases again to a pitch that would rival Jimi Hendrix’s rendition of Wild Thing at The isle of Wight Festival in 1969, as the airport customs boss now realises that he has an incident on his hands that involves the Police. With the head of Airport Police involved the noise hits a new and more frenzied level. The original customs officer in the garish blue suit, has been found to have stashed the camera in his bag. He makes a statement to the Police and after much ‘tooing and froing’ between officials in the airport the offender turns out to have been drinking on the job and is now pleading to keep his job and not be charged by the Police. The noise has by this stage reached the District Head of Customs who has driven down to the airport to take personal control of what seems to have become a diplomatic incident. At the end of three hours, two police statements later and a very contrite and worried corrupt customs official I am given back my camera by the District Customs Officer in a ceremony that includes a photo shoot, a very formal verbal apology and a letter I have to sign, all during a long handshake. There is nothing low key about my arrival.

Meeting Henri and hearing his story is both inspiring as will as very distressing. Distressing because he like so many in this war torn country he has suffered. Having lost his father to a rebel attack, he joined a local militia in order to protect his family from other similar events. Inspirational because his wife persuaded him to turn from being militia to becoming a peacemaker when she threatened to pack up and leave for her parents. The insecurity of living with violence was too much for her to cope with, especially with a young family. In 2003 he and his family found themselves in the Mukulia IDP camp as they fled the ethnic violence that had erupted at the time. Whilst in the camp he started to work across the ethnic divides and to build a local peace movement by facilitating dialogue, interaction and mutual understanding between historic rival groups.

I am to be based in Bunia for the week, one of the main towns in the Ituri district of Oriental Province. Bunia is the home to the recently re-opened United Nations MONUSCO mission. Re-opened, as a few months ago it was attacked by students from the next-door University as an outpouring of anger and frustration at the unsettling and accidental death of a student at the hands of the UN, which forced the UN to move out of Bunia for a short period of time. My first job is to register at the UN and to receive a security briefing. The guards seem slightly confused as I ask them where to go to register myself for security purposes, but eventually, after visiting three separate offices I am introduced to a man, who points to a map and informs me that the road is ‘green all the way to Aru in the north, anywhere south of Bogoro you will need a military escort and do not head west, (he points to a huge space on the map that is effectively empty), as it is full of poachers and militia’. I am instructed to keep my satellite phone with me at all times and stay in radio contact. I am told as I leave that the current security situation is ‘Calm but Volatile’. I confess to being slightly nervous now as I do not have a satellite phone and I am rather reliant on a mobile phone signal and the wisdom of Henri and team who know how to navigate this region with aplomb. Next we visit the Congolese security service office, where after a hour of French chit chat, we are issued our travel stamp on the requisite document, I am given a lecture by the Chief of Security in why I should not be doing this, and we are sent on our way. My next stop is one of the artisanal mining sites that is part of the peace building process.

CAFOD Press release on Anglo Gold Ashanti


CAFOD calls on mining giant AngloGold Ashanti to share its contract with local community

CAFOD welcomes the news that the review of mining company AngloGold Ashanti’s contract in the Democratic Republic of the Congo (DRC) has been concluded after almost three years of negotiations. The Catholic agency stresses the need for the publication of the contract and its amendments and calls on AngloGold Ashanti to share it immediately with the local community in DRC.

The contract between the South African company and the DRC government confirms a joint venture to mine one of the largest unexplored goldfields in Africa. Although reduced from 9,000km2 under its exploration contract to 6,000km2, the mining area is still about 60 times the size of Paris and contains around 3 million ounces of gold. The site includes the town of Mongbwalu in the Ituri district of north eastern DRC, an area scarred by war and marked by desperate poverty and unemployment.

The size of the mining area means the impacts on the local community and the environment will be significant but no information about the company’s plans to conduct a Social and Environmental Impact Assessment has been released to date. In a January report about the company’s DRC project, Golden Opportunity or False Hope?, CAFOD made the case that those who stand to be most affected should be informed and involved in every phase of the mine’s development and that AngloGold Ashanti should seek broad community consent for the project before proceeding any further with developing the mine.

CAFOD Policy Analyst, Sonya Maldar said “DRC’s vast mineral wealth should have provided a ticket to prosperity. In reality it has trapped the country in a cycle of violence and poverty. If the people of Mongbwalu are to benefit from this gold mine there must be transparency of information about the project. It is vital the contract is not only published in its entirety but that AngloGold Ashanti commits to sharing the full details directly with local people in a format they can understand.”

Following the finalisation of the contract, a number of issues remain to be clarified. In particular, it is unclear why the size of the concession has been reduced by 3,000km2 and where its boundaries now fall. It is also unclear why and where it will continue to reduce in size over the next three years by a further 30%. The company’s amodiation (rental) agreement with the government, as well as its agreed revenue payments and social obligations should also be made public.

The AngloGold Ashanti contract is one over 60 mining contracts which have been under renegotiation as part of a DRC government-led process. The contract review, which started in 2007, has been characterised by a lack of transparency and the exclusion of Congolese civil society from discussions. During the review, despite community requests, Anglo Gold Ashanti did not supply information about their plans for large-scale mine operations and future social development programmes. Now that the contract has been finalised, there should be no further delays in sharing this important information with the community.

Father Alfred Buju, head of the Justice and Peace Commission of Bunia Diocese is the joint-coordinator of local civil society network Cadre de Concertation. He said: “For too long the people of Mongbwalu have been kept in the dark about the future of this mining project. With the signing of the contract, AngloGold Ashanti and the government now have a chance to show they are serious about transparency. Publication of the contract is essential for the people of Mongbwalu to understand the implications of this vast project on their doorstep.”

Note to Editors:
•    CAFOD has been supporting the Cadre de Concertation to monitor the progress of the AngloGold Ashanti project in DR Congo since 2006.

•    The population of Mongbwalu is approximately 32,000 people

•    AngloGold Ashanti and OKIMO form the joint venture company Ashanti Goldfields Kilo (AGK) in Ituri. AngloGold Ashanti holds an 86.22% share and OKIMO holds 13.78%

•    Golden Opportunity or False Hope? can be found on the CAFOD website in both French and English http://www.cafod.org.uk/content/download/106612/1178506/version/1/file/DRC_reportEN.pdf

For further information or interview request please contact: Pascale Palmer on: Tel: 020 7095 5459 or mobile: 07785 950 585 or email: ppalmer@cafod.org.uk