Category Archives: Mining

Mining Resources in Africa: Curse and Opportunity

AEFJN 1

Mining operations and global consumption of natural resources continue to increase annually[1]. However, while developed countries and regions such as the European Union protect their natural resources with sustainable development policies and high social and labor standards to protect the environment, the economies of developing countries are increasingly becoming dependent on export of its natural resources. The developed countries import and transform these natural resources for the benefit of their increasingly digital and clean (green) societies; the developing countries see their wealth plundered with the destruction and contamination of their environments.[2]

Africa has found in the boom of mining and the exploitation of natural resources an economic model that provides great benefits without an investment effort of its own. The majority of the mining companies installed in Africa are foreign investments to which the local governments demand only a small share in the profits that varies according to the countries. Despite national mining codes and United Nations guidelines on business and human rights, these companies systematically breach their obligations of established international standards. In addition, government officials have a lax attitude towards the behavior of these companies in their territories.

The European Union, together with other economically powerful countries, have taken advantage of these circumstances to access mining resources in Africa without an environmental and social cost to their member states. EU citizens live in digital societies and we are not worried about the origin of these natural resources we consume that are present in our daily life, such as car batteries, mobile phones, computers, tablets, microwaves, glass-ceramics, aircrafts, phosphates, etc. Most of these electronic devices need an endless number of minerals that, because of their scarcity or because of the high social and environmental cost, are not produced in the European Union. The need to have access to these minerals triggered the campaigns of the European Union of public private investment in which the companies of the Member States struggle to monopolize the extraction of natural resources in Africa.[3]

This model of development would be legitimate under certain premises that are currently not met, such as respect for human rights (workers’ social and labor rights, child exploitation, social protection, health, etc.), care for the environment, payment of fair taxes by companies, the restoration of damage caused to the environment and fair compensation to the affected local communities that are the legitimate owners of the land.[4]

By contrast, countries in Africa rich in minerals suffer the so-called curse of natural resources.[5] Lack of arable land in Senegal, hairless children with respiratory diseases in Zambia, contaminated water wells in South Africa, child exploitation in DRC, human rights violations in Madagascar, environmental pollution in Nigeria, financing of armed groups in Rwanda … the list it is innumerable and in many cases those violations of international treaties are simultaneous in the countries of Africa with the implicit consent of the new colonizers.[6]

Mineral wealth in African countries should be an opportunity to create job opportunities, increase revenues, promote sustainable development and fight against extreme poverty. But this requires firmness on the part of the African governments in the respect to the law, the prevention of corruption as well as the ethical commitment of the companies, preventing illegal financial outflows through the tax evasion of profits by companies and their managers.

AEFJN calls on governments both in Africa and Europe to ensure that extractive companies respect human rights and the environment in their operations, meet standards of transparency and are held to account when they do not respect National and international legislations. The responsibility and supervision of the extractive industries necessarily falls on their governments, but we, the citizens of those countries, also have the responsibility to make rational use of the consumables that promote mining operations.

The next European elections are once again an opportunity to choose our leaders and those sustainable policies that are in solidarity with the developing countries and respectful of the environment. To be interested in its political programs of political parties, to raise questions to MEPs candidates about their initiatives and to know the intentions of political parties to search for a new Cotonou agreement that will truly benefit the two continents should be the criteria to be taken into account when casting our vote.[7]

 

 

 

http://aefjn.org/en/mining-resources-in-africa-curse-and-opportunity/

Mining in Africa, an Object of Desire

AEFJN

Among all the natural resources that Africa possesses, minerals are the most coveted by developed countries including the European Union (EU). In fact, in 2017 the European Commission published a Communication[1] updating the list of certain minerals that are essential for maintaining economic growth in Europe. The number of critical raw materials has been growing over the years and the EU has been rewriting the list of these minerals in the last decade. The criteria for considering minerals as critical are economic importance and scarcity. These minerals include rare earths, magnesium, tungsten, antimony, gallium and germanium.

The Communication of the European Union including the list of critical raw materials is part of The Raw Materials Initiative of 2008 in which the EU established a strategy to access those minerals that are essential for both the industry and jobs.[2]

Europe needs Africa and its minerals, but Africa also needs Europe as an investor for its economic development. This relationship between Africa and the European Union is established in the Cotonou Agreement, which is based on three negotiation pillars: Development cooperation, Political cooperation and Economic and trade cooperation. This Agreement is in the process of renewal without having reached any agreement so far despite the new rhetoric (equals, neighbours, partners) to old concepts (Economic Partnership Agreements-EPAs, migration control and critical raw materials) employed by the new President-elect of the European Commission Ursula Von der Leyen.[3]

The difficulty of access to minerals to the EU is of threefold. Firstly, many of the minerals found in Africa are not found in Europe. Ensuring access to these natural resources is therefore crucial for an EU that is dependent on imports of these minerals. These coveted minerals are essential for the development of sectors such as construction, chemicals, automotive, aerospace, machinery and equipment. The second lies in the competitiveness of the minerals market itself. Extraction costs, low taxes and the price of labour make Africa an attractive place for mining companies. They squeeze out the continent’s subsoil at low prices, move the minerals for processing in third countries and take advantage of the supply chain to locate their headquarters in tax havens. In addition, the royalties paid by extractive companies to African governments barely exceed 10% at best as set out in the new Democratic Republic of Congo mining code.[4] [5]

The third drive for sourcing minerals outside the shores of the EU is the stringent environmental regulation that exists in Europe. While in Africa there is a certain passivity in the face of environmental crimes, in Europe they are highly prosecuted. This is why mining companies use countries with looser environmental protection standards to process minerals. Taking advantage of Africa’s weak democratic institutions makes mining profitable despite the transport costs along the entire production chain.

Mining is an important source of income for countries in the African continent. However, Africa does not take advantage of the potential of these minerals as engine of economic development despite the importance of these minerals in technological development at global level. Most of the minerals extracted from the subsoil of the African continent are exported immediately outside their borders to be transformed in other countries such as China as an intermediate step in the production chain. Perhaps this is why Africa’s technological and business development is seen as a threat to developed countries as it would increase the economic value of these minerals if they are transformed in Africa and become more expensive for Europe.

Dependence on minerals has become a double threat to Africa, but also to Europe. Many countries in Africa are economically dependent on the profits from these mineral extractions, as well as on oil as is the case in Nigeria. Raw material crises directly affect the economic well-being of those countries that lack the investment needed for a first transformation. Moreover, dependence on critical natural resources extends to Europe, which needs to secure the import of these minerals at a reasonable price. In addition, Europe’s dependence has been increased under the pressure of climate change that forces the EU to access minerals that allow the transition to a low-carbon economy.[6]

 

 

 

 

 

http://aefjn.org/en/mining-in-africa-an-object-of-desire/

Behind the violent upheavals in the Congo Democratic Republic

Posted by Chika Onyejiuwa | Mar 26, 2018 | Africa |
Africa-Europe Faith & Justice Network

DRC-04-Nov-2017-300x175 -REUTERS-Thomas Mukoya
REUTERS/Thomas Mukoya

As the year 2017 wound to a close, the world received ‘’the announcement’’ that the Democratic Republic of Congo was on the verge of entering a new phase of arms conflicts. It was more of a news report than a prediction. In no distant time, the news had assumed a distressing tone; the UN reported that the DR Congo was reaching a ‘breaking point’, violence had once again enveloped the resource-rich nation, and another humanitarian crisis was looming.Like many other African countries, the huge natural resources of this beautiful country have become a curse for her citizens. Their political elites have squandered their post-independence years, looting their resources instead of creating structures for nation-building. The perennial arms conflicts in Congo DR is a systematic struggle of her political elites to sustain their control the country’s vast natural resources and continue with the looting spree. Fortunately, there is a time when even the weakest rise in defence of life, even at the cost of life itself. Could it now be the time for the Congo DR?

The present impasse in Congo arose from the refusal of Joseph Kabila to keep to the ethos of democracy at the end of his mandate in 2016 and the decision of the Catholic Church to stand with the people to demand accountability from him. Indeed, the decision of the Church to stand with the voiceless people of Congo is truly encouraging. It is not only prophetic for the people of Congo; it is also an encouragement to the other Episcopal Conferences in Africa who remain silent in the face of injustices, exploitation and oppression of the people by their leaders. Probably, if the Church in Africa had embraced the Holy People of God as she has embraced the Holy Altar of God through the years, Africa would currently be singing sweet melodies.

Meanwhile, recall that the Congolese constitution was created only in 2006; thirty-two years after Mobutu Sese Seko had plundered the resources of the country. Joseph Kabila accidentally ascended to the throne, but he and his coterie appear ready to use all available means to crush, silence and eliminate any opposition to their effort to stay in power to protect their corrupt and ill-gotten wealth. It is on record that the Kabila family business empire alone includes 80 companies and businesses, 71,000 hectares of farmland, the largest diamond permits along 450 miles of Congo’s border with Angola and a 4.8% stake in one of the country’s largest mobile phone networks. Of course, unjustified acquisition of wealth makes such acquisitions vulnerable to the imperatives of democracy; it is therefore not surprising that Kabila is willing to mortgage the lives of the Congolese in defence of his loot.

While we stand aghast at the corruption, lack of vision and the desperation of the African leaders for ill-gotten wealth, we must point out the complicity of the global north in the crime of the African political elites against their people in providing the safe havens for their loot. It is not possible to speak about the looting of the Africa resources by their political elites without the shadow interest of the global north.

In April 2015, Ibrahim Thiaw, the Executive Director of the UN Environment program, stated that the estimated annual earnings from exploitation of natural resources in Congo by far exceeded USD1 billion. He noted with regret that about 98% of that earning ended up in the coffers of international concerns while the remaining 2% went into the funding of armed groups in Congo DR.

It is known that the link between the illegal exploitation and trade of natural resources; and the proliferation of arms is one of the major factors fueling and exacerbating the conflicts in the Great Lakes. One then wonders why it is that the global north is reluctant to bring its gains in democratic principles to bear on their relations with Africa. In 2016, the European Union shied away from complete regulation of the supply chain of the 3TG (Tin, Tungsten, Tantalum and Gold) even in the presence of compelling evidence to the contrary. It is evident that the failure of Syria is not so much the corruption of President Assad as the shadow interests of some countries of the global north. Unfortunately, those picking up the pieces are not the champions of the interests. If the Congo DR fails, the European Union would surely have enormous challenges with which to grapple.

The EU must now rise above their shadow interests to mobilise the international community and pressurise Kabila to step down from power because Africa is her next-door neighbour. Botswana has shown that the African national governments will flow with the tide of international leadership. Not only that, the EU will need to go beyond mere words to reconsider her unproductive paternalistic economic relations with Africa. There are insinuations out there that the presence of Europe in Africa is the best thing that has happened to Africa irrespective of its shortcomings, pointing to the presence of the Chinese who have infested Africa with their ubiquitous presence. One wonders whether this is the theory of a messiah or a vampire. Although the Chinese – who are pushing on all fronts of the African economy – may not be the perfect economic collaborators, at least it is a wake-up call for the former colony owners that a new economic interest has entered the ‘market place’ that was originally their monopoly. What then is the take of the average African on the current multiple economic interests in the continent? In the interim, it provides alternatives; what it would be in the long run is a matter of speculation. While hoping for the best, the continent awaits the later outcomes with mixed feelings and a prayer that it may not become another veiled plundering that leaves the land and its people poorer.

For now, the Congo DR boils, and the poor people are dying in their hundreds. The international media carry the news of killings, maiming, incarcerations and other gory inhuman acts. Immediate and long-term responses are needed. There are also other pockets of state unrest in Africa. Dare we say that the input of the international community towards crisis resolution in Africa is one of the strongest differentiating coefficients between economic partners and plunderers?

Chika Onyejiuwa

 

 

Brazil opens vast Amazon reserve to mining

BBC News/World/Latin America
(24 August 2017)

_97501939_2c58ba73-fd6c-4844-939a-88aa83872ca5
The reserve was created in 1984 by the then-military government. (Gerry Images/BBC)

Brazil’s government has abolished a vast national reserve in the Amazon to open up the area to mining.

The area, covering 46,000 sq km (17,800 sq miles), straddles the northern states of Amapa and Para, and is thought to be rich in gold, and other minerals.

The government said nine conservation and indigenous land areas within it would continue to be legally protected.

But activists have voiced concern that these areas could be badly compromised.

A decree from President Michel Temer abolished a protected area known as the National Reserve of Copper and Associates (Renca).

Its size is larger than Denmark and about 30% of it will be open to mining.

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The mining and energy ministry says protected forest areas and indigenous reserves will not be affected.

“The objective of the measure is to attract new investments, generating wealth for the country and employment and income for society, always based on the precepts of sustainability,” the ministry said in a statement.

But opposition Senator Randolfe Rodrigues denounced the move as “the biggest attack on the Amazon of the last 50 years,” O Globo newspaper reported (in Portuguese).

Maurício Voivodic, head of the conservation body WWF in Brazil, warned last month that mining in the area would lead to “demographic explosion, deforestation, the destruction of water resources, the loss of biodiversity and the creation of land conflict.”

According to the WWF report, the main area of interest for copper and gold exploration is in one of the protected areas, the Biological Reserve of Maicuru.

There is also said to be gold in the Para State forest, which lies within the area.

The WWF says there is potential for conflict too in two indigenous reserves that are home to various ethnic communities living in relative isolation.

WWF’s report said that a “gold rush in the region could create irreversible damage to these cultures.”

“If the government insisted on opening up these areas for mining without discussing environmental safeguards it will have to deal with an international outcry.”

The human and environmental responsibilities of the mining sector: Day of Reflection at the Vatican

Eco Jesuit

Josep F Mària Serrano, SJ

Photo credit: siteresources.worldbank.org
Photo credit: siteresources.worldbank.org

A Day of Reflection on the mining industry was held last 7 September in Rome organised by the Pontifical Council for Justice and Peace. Its president, Cardinal Peter Turkson, wisely and carefully prepared the event with a group of collaborators. Participants were mainly chief executive officers (CEOs) and top officials of the main global mining companies, but also included members of global NGOs, some of them linked to the Catholic Church, such as Caritas Internationalis and Misereor.

I was gently invited by Cardinal Turkson to prepare and participate in the Day. The climate of confidence was high, and consequently the discussions turned around deep and fundamental questions related to environmental sustainability and the welfare of workers and communities around the mines.
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