MANIEMA PROVINCE, DRC -- Changes in local trade following the agreement to mine conflict-free metals in the Democratic Republic of Congo have had many positive impacts on the community, according to the promoters of a new mining traceability program.
After suffering from a de facto embargo for many months, the start of the iTSCi Programme in Maniema last December signaled a new beginning for the 3T mineral sector in the province, said ITRI, with increasing earning potential opportunities for the miners, traders and authorities. Now, after less than a year of operation, and with production only just beginning to return to pre-embargo levels, benefits to the community can already be seen, the trade group said today.
In what is thought to be a unique move by authorities in the DRC, 70% of the tax revenue created by mineral exports are now returned by the Provincial Government to the local territory for use by the community. This month, another $150,000 is expected to be disbursed to one of the production territories as a result of the revived conflict-free mineral trade associated with the iTSCi Programme. This is to be used by the local community for their own development or business plans; for example, construction of a local community hall and guest house is underway in Kailo Territory, which in itself will help to stimulate more economic activity once it starts to operate.
Company participants in the iTSCi Programme are also starting to give back to the community, for example by the distribution of exercise books to schools in the current areas of mineral production and export covered in the Programme; Kalima, Kailo and Kindu. Malaysia Smelting Corp., buyer of most conflict-free minerals from the area, together with their suppliers, provided and distributed more than 350,000 books, costing several thousand dollars, to both primary and secondary schools locally.
In a press release, Mussadiq Hamid Merican, manager of business development for MSC, said, “Our company has a long term commitment to purchasing from the DRC and is looking forward to working in Maniema for many years to come. We wanted to demonstrate this first step to the community, and through interaction with the schools, to the Congolese mining experts of the future.”
Kay Nimmo of the iTSCi Governance Committee added that “iTSCi was originally conceived as a 3 phase Programme, moving from basic collection of existing documents in phase 1, through implementation of new mechanisms for traceability in phase 2, and with further objectives to improve conditions of the mining operators and wider community as phase 3. It’s great to already see companies engaging in this type of phase 3 activity at an early stage of business in Maniema and we hope to encourage the spread of these positive actions more widely across the Programme areas in the coming months.”
In a demonstration of the commitment of the entire Provincial Government to education and raising awareness of the importance of traceability to the future of the area, visiting experts from ITRI and Pact were also invited to provide a special guest lecture to students at Kindu University.
Infrastructure improvements are also being seen, with new work on road repairs, and increasing levels of traffic on the Maniema to Katanga railway. Mineral exports have created additional demand for use of rail, and plans are underway by mineral trading companies to use this opportunity to bring more goods into this most remote of Provinces and make them available to traders at low margin in order to stimulate the local economy even further.
The iTSCi Programme is a joint industry mechanism designed to address conflict mineral concerns in the DRC, Rwanda and other Great Lakes Region countries. The Programme establishes traceability in the upstream mineral chain for 3T minerals by working with local governments and their field agents, and assists companies to establish due diligence through independent monitoring on the ground and regular audits.
Ed: For a related article on the success of the conflict metals program, click here.
