GAO Reports US Conflict Minerals Rules Have Not Alleviated Violence in Congo

LUBUMBASHI, DEMOCRATIC REPUBLIC OF CONGO – A recent report from a U.S. congressional oversight body has found no evidence that a conflict minerals disclosure rule implemented by the Securities and Exchange Commission (SEC) in 2012 has contributed to a reduction in violence in the Democratic Republic of Congo (DRC).

According to the U.S. Government Accountability Office (GAO), armed groups continue to engage in violent struggles for control over gold mines in the eastern region of the country. The rule, which mandates that certain companies disclose their usage of tantalum, tin, tungsten, and gold, seems to have had no impact on reducing violence not only in the DRC but also in neighboring nations.

The GAO’s findings indicate, “no empirical evidence was found that the rule has decreased the occurrence or level of violence in the eastern DRC, where numerous mines and armed factions are present.” Furthermore, the report highlights that the rule might be linked to an increase in violence, particularly around informal, small-scale gold mining operations, as gold is considered the hardest to trace and the easiest to smuggle among the minerals.

The DRC stands as the leading global producer of tantalum, a mineral classified as critical by both the United States and the European Union.

The report noted that the SEC had disagreements with some of the GAO’s conclusions, particularly regarding its methodology and analyses. However, the GAO stated that it made adjustments to its findings that did not significantly alter the overall results.

As of now, the SEC has not responded to requests for comments on the matter.

In a previous report, the GAO mentioned that several U.S. firms sourcing minerals from the DRC and its neighboring countries were not fully adhering to the required disclosure standards.

Additionally, on September 30, Bintou Keita, who heads the U.N. mission in Congo, informed the U.N. Security Council that M23 rebels in the eastern DRC are generating approximately $300,000 each month from a coltan-mining area they took control of earlier this year.