The Democratic Republic of Congo (DRC) boasts vast reserves of cobalt, tantalum, tin, and tungsten – minerals crucial for electronics and batteries — and has received a significant Chinese investment. The average electric vehicle battery requires more than 13 kg of cobalt, and a mobile phone battery is about 7g. Demand for cobalt is expected to reach 222,000 tons by 2025, having tripled since 2010.
However, these minerals are often labeled “conflict minerals” by governments due to their association with armed groups, human rights abuses, and environmental damage.
On Jan. 27, China and the Democratic Republic of Congo recently reelected President Felix Tshisekedi reached a new $7 billion deal in financing as part of a renegotiated minerals-for-infrastructure.
Pressure on the electronics supply chain to responsibly source raw materials has been growing for more than a decade and laws banning forced labor are now being actively enforced in many countries. Yet China, which is known for its own for its own human rights abuses, is strengthening its position in the already-troubled DRC. The mining and sale of minerals there has been linked to warring rebel groups that enslave workers.
China’s massive investment in Central Africa paints a mixed picture, marked by potential and pitfalls. On the one hand, China has become the region’s largest trading partner, investing heavily in infrastructure development, mining, and resource extraction. This has brought much-needed capital and created jobs, contributing to economic growth in some countries. Additionally, China has provided significant infrastructure aid, building roads, bridges, and hospitals.
However, concerns grow beneath the surface. Opaque contracts and a lack of negotiation transparency raise concerns about exploitation and unequal benefit distribution. Furthermore, reliance on extractive industries raises environmental problems and potential conflict over resource control.
Many issues have arisen about the working conditions in some Chinese-backed mines. The use of artisanal miners, including children, in hazardous environments raises serious human rights concerns. The allegations of unfair labor practices and environmental damage shadowed China’s involvement in the region.
Forced evictions and exploitation
In September 2023, a report released by Amnesty International and the Congo-based Initiative for Good Governance and Human Rights, or IBGDH, details how the search for the minerals has forcibly uprooted people from their homes and farmland, often without compensation or adequate resettlement.
The Compagnie Minière de Musonoie Global SAS (COMMUS), a joint venture between Zijin Mining Group Ltd, a Chinese company, and Générale des Carrières et des Mines SA (Gécamines), the DRC state mining company, are managing the new project.
The researchers interviewed 133 people affected by cobalt and copper mining evictions in six locations around Kolwezi in Lualaba Province. In the city’s heart, long-established communities have disappeared or relocated since Chinese-backed companies reopened a vast open-pit copper and cobalt mine in 2015.
“The forced evictions taking place as companies seek to expand industrial-scale copper and cobalt mining projects are wrecking lives and must stop now,” said Agnès Callamard, Amnesty International’s Secretary General, “Amnesty International recognizes the vital function of rechargeable batteries in the energy transition from fossil fuels. But climate justice demands a just transition. Decarbonizing the global economy must not lead to further human rights violations.”
Conflict minerals from the DRC
The international community is taking notice. The U.S. and E.U. have raised concerns about conflict minerals originating from the DRC, highlighting the need for ethical sourcing practices. Meanwhile, initiatives like the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas aim to promote responsible sourcing and ethical practices.
While the influx of capital has undoubtedly fueled economic growth and infrastructure development, concerns surrounding conflict minerals, human rights abuses, and environmental degradation remain deeply entrenched.
The United States and the European Union have designated the DRC and adjoining countries as conflict zones, requiring companies to source responsibly and disclose their supply chains under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the European Union Conflict Minerals Regulation, respectively.
For example, component manufacturers reliant on tantalum, such as Kemet and AVX, have established procedures for ethical sourcing.
In July 2023, a measure was introduced in the U.S. House to ban imported products containing cobalt and copper mined through child labor and other abusive conditions in Congo.
Furthermore, last December, the E.U. reached an agreement on its new business human rights legislation called the Corporate Sustainability Due Diligence Directive (CSDDD). “It means people suffering in Nigeria from disastrous oil pollution, or those forced to labor on palm oil plantations in Indonesia, or communities forcibly evicted to make way for cobalt mines in the Democratic Republic of the Congo, may finally have a route to hold large European companies to account for their human rights harms,” said Hannah Storey, Amnesty International’s Policy Advisor on Business and Human Rights.
A 2023 report by Amnesty International, “DRC: Powering Change or Business as Usual?” highlights the exploitation of artisanal miners, including children, who work in dangerous and often life-threatening conditions. Additionally, the report criticizes the lack of transparency in contracts between Chinese companies and the DRC government, raising concerns about unequal benefit distribution and potential exploitation of resources.
China needs to be accountable for its human rights impact in Africa
Experts say the enforcement of existing laws is key to implementing change. The Uyghur Forced Labor Prevention Act in the U.S. is enforced by U.S. Customs and Border Protection (CBP). Seizure of goods is the primary enforcement mechanism, as the law states that goods produced using forced labor are illegal to bring into the U.S. Recidivist offenders or those who do not demonstrate reasonable care in the event of a seizure may be subject to additional penalties but specifics are unclear, Wood explained.
So far CPB has seized more than $1 billion of goods associated with the UFLPA — much of it electronic machinery and equipment.
What’s unique about UFLPA enforcement is that CBP utilizes a presumption of guilt in the identification and the seizure of shipments. If CPB has reason to suspect goods are tied to Xinjiang, it’s up to the importer to prove otherwise.
Looking ahead, navigating the complexities of China’s involvement in Central Africa requires a multifaceted approach. While acknowledging the potential economic benefits, robust measures are crucial to ensure transparency, accountability, and adherence to human rights and environmental standards. Collaboration between African governments, China, and the international community is vital to fostering a sustainable and equitable development model for the region.
The post China’s DRC-Minerals Investment Raises Red Flags appeared first on EPS News.