Tag Archives: Henri Ladyi

Conflict Gold to Peace Gold – part 3


In my early two posts I explored the comedy of arriving in the DRC and the real on the ground challenges the small miners face in making a living out of gold mining. In my final instalment I want to focus on the Organisation for Economic Cooperation and Developments (OECD) due diligences for removing conflict gold from the global supply chain. A process being held up as a solution to the problem.

Crushing and mercury processing of gold in a small roadside hut.

Crushing and mercury processing of gold in a small roadside hut.

In this region of Ituri I am talking directly to small-scale gold miners who are ex-combatants, who want to use gold mining as a means of building peace, not punishment. Their idea cannot be any worse than the top-down proscriptive process the OECD has recently run in the region regarding conflict minerals. From the very beginning of the OECD process I could never understand how their rules for governing the export of designated conflict minerals (Tin, Tantalum, Tungsten and Gold), that they refer to as ‘due diligences in supply chain management’ was going to lead to a reduction in the use of gold as a conflict mineral. Ostensibly because their process does not address the root causes of what, according to CRC is an ethnic conflict in which gold can easily be used to fund the violence. As if to prove this point Henri tells me that the previous evening he had received a call from a local militia leader in the bush who had ten children with two guns that he wanted to demobilise and have rehabilitated back to their families. Why this sudden act of clemency had taken place I never learned, but this is typical of the kind of work that Henri and CRC undertake all the time. Henri explains that the children will be placed with specially trained families for the first few months, while their families are contacted and prepared for their return to village life. Their weapons are then decommissioned at the UN HQ in Bunia. To take the guns to the FARDC (Congolese Army) would mean they would just be recycled back into the conflict as many soldiers sell the guns to get extra cash. Henri is very clear, children end up in the militia because they and their families are poor. Therefore they make easy targets for militia leaders looking for new recruits for a simple USD payment to the family.

None of the miners have ever heard of the OECD, or transparency or supply chain management. Never mind have the ability to read a complex UN styled report written by University graduates. All they know is that they currently sell their gold to traders and its final destination is Bunia.

The OECD conflict gold process is the politically correct tragedy that is unfolding before us. If through our sense of moral outrage at the appalling conflict that has to date claimed 5.5 million lives we remove the population’s ability to earn a living in an honest fashion, then these same people are forced by necessity to militia activity or illegal smuggling to earn a daily crust. As another mining leader in North Kivu once wrote to say in response to the Enough Projects call to boycott eastern DRC minerals ‘We will die by the bullet or die of starvation’. The OECD conflict minerals process deals with the fruit, not the root of the problem. It is the band aid on the festering wound and sold to the market a cure. The root of the problem is poverty and it has created a set of recommended procedures that only corporate mining companies can afford to follow, rather than address the majority employed by the gold trade, namely the small-scale miners and their poor communities.

It is little wonder then that the vast mineral wealth of the DRC will not benefit the DRC people through this process. A UN Security Council report dated 21/6/12 highlighted that since the introduction of the measures by the OECD to stem the flow of conflict metals being smuggled into the global supply chain, the report states ‘In the eastern DRC official export figures seem to have been falling rather than increasing’. Clearly, however well intentioned the OECD Due Diligences on conflict minerals may be, at this stage smuggling is on the increase which in turn will only lead to more insecurity and violence. It is not the idea of conflict free gold that is the problem. Everyone wants that’s, none more so than the exploited miners. It is the way that corporately influenced OECD top-down guidelines have framed the solution that seems to be adding to the already highly complex problem rather than making it better. The same UN report talks about the estimated 3 tonnes of gold sold to the international market in 2010 illicitly. Uganda being the principle destination for this gold, that ends up in the Dubai refineries and eventually onto India and China. China is the world’s biggest jewellery manufacturer with several of the UK’s leading high street jewellery brands manufacturing their collections there. There is no doubt in my mind given the lack of enforceable traceability in the gold supply chain that smuggled gold that currently funds conflicts is making its way onto the high streets of the UK, EU and USA in the form of gold jewellery.

It remains to be seen if the OECD due diligences on conflict minerals will work, but what is clear at the moment is they have given the World Gold Council, London Bullion Market Association and the Responsible Jewellery Council’s corporate members another CSR badge to add to their collection.

Members of the newly formed Initiative of Artisanal small-scale miners for peace and sustainable development

Members of the newly formed Initiative of Artisanal small-scale miners for peace and sustainable development

The sufferings of Job that have been meted out on the people and land of the DRC remains a festering wound on the conscious of humanity. But as Job rightly said, ‘The light is very near the darkness’, and it is this light of hope that burns brightly in the aspirations of the people I have met on my trip that gives me such huge encouragement. People like Henri of CRC and the Hima and Lendu ex-combatants who agreed to form a new Association of Responsible Small scale miners for peace and justice, that demonstrates despite the huge obstacles they will face, they are not burdened down with cynicism about their future, but they are like the countless nameless and faceless majority in the DRC who want nothing more than peace and non-violence to triumph in their country. But this is the DRC and the metaphorical mountain that this fledgling Association of small miners must climb will be bigger than the literal mountain that their large–scale mining cousins blow up and crush to satisfy the greed of the so called moral stock markets and bank vaults.I for one will follow with great interest as they attempt to build their future using gold as the means to build peace not conflict.

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.