Thursday, November 19, 2009

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For Immediate Release
November 19, 2009

Contact

Corinna Gilfillan, 202.725.8705
cgilfillan@globalwitness.org

Eileen White Read, 202.741.6376
eread@enoughproject.org

STATEMENT: NGOs Welcome the Conflict Minerals
Trade Act of 2009

WASHINGTON, D.C– A coalition of international nonprofit organizations - including the Enough Project at the Center for American Progress, Human Rights Watch, World Vision, Oxfam America, Global Witness, International Labor Rights Forum, Resolve Uganda, Falling Whistles, Jewish World Watch,Mennonite Central Committee, As You Sow, and the United Methodist Church General Board of Church and Society – today released the following joint statement regarding the introduction of the Conflict Minerals Trade Act of 2009 in the U.S. House of Representatives:

We welcome the introduction of the Conflict Minerals Trade Act of 2009 in the United States House of Representatives byCongressman Jim McDermott (D-Washington). This bill would help develop the means to ensure that the multimillion dollar trade in minerals from eastern Congo stops financing the world’s deadliest conflict since World War II. It will also help raise awareness about the issue to both the public and policy makers.
The trade in the 3 T’s - tin ore (cassiterite), tantalite (coltan), tungsten (a source derived from wolframite), as well as gold—that are used, among other things, in electronic devices such as cell phones and laptops—are a major source of funding for armed groups in eastern Congo who commit atrocities against civilians. If passed, this bill would create a system of audits and import declarations that would distinguish those goods imported into the United States that contain conflict minerals. The resulting transparency would be an important step forward in helping break the links between the mineral trade and human rights violations, such as killings of unarmed civilians and sexual violence—and the resulting humanitarian crises which comes from trade in conflict minerals. This legislation would also contribute to the development of mechanisms to allow the Congolese people to benefit from these resources. More broadly, the bill directs the United States government to develop a comprehensive strategy toward conflict minerals.
What would this bill do?
This bill demands greater transparency and accountability from those companies whose products contain these mineral ores or their derivatives. The U.S. government would identify those commercial goods that could contain conflict minerals, approve a list of independent monitoring groups qualified to audit the worldwide processing facilities for these minerals, and eventually restrict the importation of minerals to those from audited facilities. Importers of these goods would have to certify on their customs declaration that their goods “contain conflict minerals” or are “conflict mineral free” based upon this audit system. The audits would determine the mines of origin for processed materials, verify the chain of custody and verify information provided by suppliers through investigations in the DRC and other countries.
Importantly, the bill would also direct the State Department to support multilateral and U.S. government efforts to break the link between the trade in minerals and armed conflict in eastern Congo. Specific measures include:
· development of a U.S. government strategy to address conflict minerals;
· support for further investigations by the UN Group of Experts;
· mapping of which armed groups control key mines in eastern Congo;
· inclusion of information on the negative impact of mineral exploitation and trade on human rights inCongo in the annual human rights reports;
· guidance for companies to exercise due diligence;
· expanded U.S. efforts to improve conditions and livelihoods for communities in eastern Congo who are dependent upon mining; and,
· GAO review to evaluate adherence and effectiveness of policies
Legislation in the US alone will not end the conflict in eastern Congo, but this bill would provide a crucial step toward the creation of a practical and enforceable means to ensure that the trade in Congolese minerals contributes to peace rather than war. This bill would also serve as a useful precedent for other countries to develop legislation for holding to account companies in their jurisdiction who may be fuelling the conflict in eastern Congo.
We encourage concerned members of the public to contact their representatives and demand that they actively support this legislation to help ensure that consumer electronics and other goods imported into the US are conflict free.

Visit the Enough Project’s blog, Enough Said, for updates on this issue.

Follow The Enough Project onTwitter; http://twitter.com/enoughproject.

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Global Witness investigates and campaigns to prevent natural resource-related conflict and corruption and associated environmental and human rights abuses.

The Center for American Progress is a nonpartisan research and educational institute dedicated to promoting a strong, just and free America that ensures opportunity for all. We believe that Americans are bound together by a common commitment to these values and we aspire to ensure that our national policies reflect these values. We work to find progressive and pragmatic solutions to significant domestic and international problems and develop policy proposals that foster a government that is "of the people, by the people, and for the people."

Enough is a project of the Center for American Progress to end genocide and crimes against humanity. Founded in 2007, Enough focuses on crises in Sudan, Chad, eastern Congo, northern Uganda, Somalia, and Zimbabwe. Enough’s strategy papers and briefings provide sharp field analysis and targeted policy recommendations based on a “3P” crisis response strategy: promoting durable peace, providing civilian protection, and punishing perpetrators of atrocities. Enough works with concerned citizens, advocates, and policy makers to prevent, mitigate, and resolve these crises. The RAISE Hope for Congo campaign aims to build a permanent and diverse constituency of activists advocating for effective change in eastern Congo, including an end to the long-running conflict and the resulting sexual violence against women and girls, and reforms to reduce trade by rebel groups in conflict minerals. To schedule an interview, please contact Eileen White Read at eread@enoughproject.org; phone 202 641 0779.

Thursday, November 5, 2009

Blood Tantalum Filling the Supply Void?

April 14th, 2009 · 1 Comment

Tantalum is one of those little known metals that is a vital component of so many products in every day use. Although it is a vital ingredient in alloys for jet engines, turbines, cutting tools, power plants and nuclear reactors, its properties in capacitors brings it into daily contact in our lives. According toProactiveinvestors.com some 55% of tantalum consumption is in electronics. Although per device consumption has been dropping as electronics have become more efficient, the shear number of electronic devices we use every day means tantalum is a vital ingredient in every form of electronic device including cell phones, DVD players, PC’s, Digital cameras, LCD screens and games consoles.

So it is no surprise that recent demand and hence spot prices have dropped for tantalum along with the price of just about everything else, apart from fees for bankruptcy lawyers. As demand for electronics goods have slumped so has the tantalum price. Meanwhile, tantalum stocks with distributors and consumers have risen to the point where the largest tantalum producer Talison Minerals has closed the world’s largest mine at Wodgina in Western Australia until the market improves. According to Talison, Wodgina supplied 30% of the world’s tantalum ore in 2008. Fine we would say, this is no different from aluminum companies closing smelters or steel companies closing blast furnaces. It brings the market back into supply/demand balance.

However, there is one supply issue in the tantalum market that creates an additional concern – the lowest cost (and most unstable) supply source is the Democratic Republic of Congo in West Africa. The DRC is quite rich in tantalum oxide ore or coltan as they call it. But the supply sources are a mix of legal mines and illegal operations run by war lords with forced labor. The problem has become so acute, that tantalum from these sources has been labeled “Blood Tantalum” much as Blood Diamonds from similar murky sources forced DeBeers and others to certify their diamonds as to source. According to the UN, some $750m of illicit tantalum profits have fueled the conflict in eastern DRC in the first half of this decade. The stigma that is becoming attached to all tantalum from the DRC is becoming so profound that market leaders like Cabot Corporation go out of their way to state their policy towards such material not just from the DRC but from Rwanda, Burundi and various other West Africa states. Unfortunately, not all consumers operate to Cabot’s high ethical standards and the material still finds a home in Russia and China where it is being consumed in the electronics we use every day. The chances are your mobile phone, or the laptop or LCD screen you are reading this article on has traces of Blood Tantalum in it.

Meanwhile consumers are watching the price of tantalum with concern. With such a major supply source as Wodgina out of the market it would not take much of a demand pick up to create a shortage. With demand down and stocks in the supply chain sufficient, there is no immediate prospect of a problem, but as demand picks up next year that could change. There is a lot of uncertainty around current delivered prices at present, according to InfoMine.com. Tantalite Ore is at $84/kg ($39/lb) for Tantalite (25/40% basis 30% Ta2O5) CIF Europe but the probability is the price has dropped since last year on poor demand. But it should not be forgotten the price has the ability to spike on sudden demand surges. Back in 2000, the price surged to $240/lb; a situation the struggling electronics sector will not want to see repeated, particularly as it will further encourage sources like the illegal DRC mines to meet the demand.

–Stuart Burns

Wednesday, October 28, 2009

Congo-Kinshasa: Pros and Cons to Huge Chinese Investment

Stephanie Nieuwoudt

28 October 2009

analysis

Cape Town — Concerns abound about a nine billion dollar Chinese investment in the Democratic Republic of the Congo, especially around environmental consequences and transparency. And, on the Chinese side, investors complain not only about the lack of security in the DRC but about their own government not providing enough support. (read complete article, click here)



http://allafrica.com/c/-3ZgC9