This activist brief provides details and talking points on the illicit conflict gold trade and the M23 rebel group's involvement. It explains how M23 and its allies took over took over a profitable part of the conflict gold trade in the eastern region of the Democratic Republic of the Congo.
New Evidence: M23 Rebels in Congo Conflict Gold Trade
The Enough Project has released a groundbreaking new report that documents the conflict gold smuggling network of the Eastern Congo-based M23 rebels. The report, “Striking Gold: How M23 and its Allies are Infiltrating Congo's Gold Trade,” reveals how M23 is involved in the lucrative gold trade in eastern Congo, which is worth approximately $500 million per year overall. Instead of controlling mines directly, M23 has built alliances with other armed groups in gold-rich areas and expanded its contacts with influential traders in Uganda, Burundi, and Congo to trade gold. The report calls on U.S. Special Envoy Russ Feingold, the U.N. Security Council, U.N. Envoy Mary Robinson, and jewelry retailers to take concrete measures to limit the documented paths of conflict gold to international markets.
“Striking Gold” identifies four main gold exporters whose business operations enable M23 and other armed groups to profit from the gold trade, according to UN experts reports and Enough Project research. The report also names militia leaders, including M23 commander Sultani Makenga, who play a key role in the illicit trade. Makenga has built on the networks of former M23 co-commander Bosco Ntaganda and has extended alliances that cut across otherwise hostile ethnic and political divisions.
Ruben de Koning, co-author of the report, says, “Some of the major official gold exporters in Uganda and Burundi indirectly purchase smuggled gold from M23 and allied armed groups in violation of the U.N. arms embargo, and without exercising any due diligence on the origin of their gold. Sanctions against these individual exporters, as opposed to companies, would help prevent sanctioned owners from merely reinventing themselves under a new company name in order to continue operations. U.S. and U.N. sanctions would make it harder for M23 and other armed groups to finance their struggle, and compel others to start mitigating such risk.”
Sasha Lezhnev, Senior Policy Analyst at the Enough Project, says, “M23's deadly gold may be entering our jewelry stores or banks, which make up 80 percent of the global gold market. The U.S. government and jewelers can help stem this problem at its root. U.S. envoy Russ Feingold should press Congo, Rwanda, and the Great Lakes region to finalize their certification system to weed out conflict gold. Jewelers must also step up efforts to build a clean gold trade in Congo by joining public-private alliances and tech company projects like 'Solutions for Hope.'”
M23 allies have consolidated control over mines, particularly those in Walikale and Lubero territories in North Kivu province and in Ituri district in Orientale province. The growing revenues have enriched those who perpetrate atrocities and crimes against humanity in the region. M23 and its allies have also secured cross-border transit routes for smuggling to Bujumbura, Burundi, and Kampala, Uganda, both important regional hubs for international gold markets.
De Koning adds, “The ball is in the court of the U.S. government and U.N. Security Council to sanction these known exporters. Responsibility also lies with the downstream gold industry to conduct proper due diligence and invest in a clean gold trade in Congo.”
The Enough Project is a project of the Center for American Progress to end genocide and crimes against humanity. Founded in 2007, Enough focuses on the crises in Sudan, South Sudan, eastern Congo, and areas affected by the Lord’s Resistance Army. Enough conducts intensive field research, develops practical policies to address these crises, and shares sensible tools to empower citizens and groups working for change. To learn more about Enough, go to www.enoughproject.org.
This group of 58 European and global non-governmental organizations calls on the European Commission to adopt legislation requiring European business entities to conduct supply chain due diligence in order to ensure that they do not contribute to conflict financing or human rights abuses in the production and trade in natural resources. Such legislation should, at a minimum, meet international standards endorsed by the United Nations and by the Organization for Economic Cooperation and Development and reflect principles contained within the European Union's own Corporate Social Responsibility strategy.
Today, the Enough Project along with the Responsible Sourcing Network released a report,"Expectations for Companies' Conflict Minerals Reporting", that articulates key reporting components that are important to socially responsible investors and rights groups who have been advocates for a clean minerals trade. Read More »
As companies prepare their first required reports on conflict mineral use to the U.S. Securities and Exchange Commission, SEC, Responsible Sourcing Network and the Enough Project released a report that sets expectations for the contents of the inaugural reports required by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
By Darren Fenwick and Patricia Jurewicz | Sep 5, 2013
Investors and Human Rights Advocates Set Expectations for SEC Dodd-Frank Conflict Minerals Reports
As companies prepare their first required reports on conflict mineral use to the U.S. Securities and Exchange Commission, SEC, key investors and human rights groups, have released a paper that sets expectations for the contents of the inaugural reports required by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
"Expectations for Companies’ Conflict Minerals Reporting" describes the content that sustainable and responsible investors and human rights advocates expect to see in a company’s Specialized Disclosure Form and/or Conflict Minerals Report. These disclosures will include information on the use of minerals sourced from the Democratic Republic of the Congo or neighboring countries, where egregious human rights abuses linked to the mining industry have plagued the region for 15 years.
Patricia Jurewicz, Director of Responsible Sourcing Network and co-author of the paper, states:
“Investors would like to see their companies establish baselines the first year and specify the steps they are taking so we can then measure improvements in transparency and accountability reporting over time. Our paper provides a set of specific indicators that can be tracked to allow for comparability between annual reports.”
Both Responsible Sourcing Network and the Enough Project, authoring organizations of the paper, engaged with the SEC throughout the process of defining the reporting requirements for section 1502, which began in 2010.
Darren Fenwick, Senior Government Affairs Manager at the Enough Project and co-author of the paper states:
“Advocates for a clean minerals trade wish to understand how issuers, who are connected to the Congo through mineral sourcing, are addressing their connection to the conflict that has resulted in millions of deaths. Additionally, companies whose reports show compliance benefit from positive public sentiment and increased brand recognition.”
The paper details the expectations for companies’ successful reporting, including:
Constructing key elements of a vigorous company conflict minerals policy and steps for implementing a program
Metrics that companies should track to effectively determine their actions to accurately assess the origin of their minerals
Commitment to only using minerals from smelters that have been audited as conflict-free by a credible program such as the Conflict-Free Sourcing Initiative as they become available; and
Building a clean minerals trade by 1) Committing to sourcing conflict-free minerals from Congo and the surrounding region; and 2) Implementing OECD due diligence processes to determine if an issuers’ minerals are contributing to the conflict.
Stakeholders also encourage companies to take compliance beyond the 1502 reporting requirements to help create a peaceful and secure Congo by participating in diplomatic efforts and contributing to alternative livelihood projects in the region.
Responsible Sourcing Network (www.sourcingnetwork.org), a project of the nonprofit organization As You Sow (www.asyousow.org), is dedicated to ending human rights abuses and forced labor associated with the raw materials found in products we use every day. RSN builds responsible supply chain coalitions of diverse stakeholders to leverage their influence in the areas of conflict minerals from the Congo and forced labor in the cotton fields of Uzbekistan.
Enough Project (www.enoughproject.org) is a project of the Center for American Progress to end genocide and crimes against humanity. Founded in 2007, Enough focuses on the crises in Sudan, South Sudan, eastern Congo, and areas affected by the Lord’s Resistance Army. Enough conducts intensive field research, develops practical policies to address these crises, and shares sensible tools to empower citizens and groups working for change.