This document summarizes a presentation given by Nicholas Garret on donors in the mining sector in the Democratic Republic of Congo. It provides background on Garret and his experience in the region. It then discusses the current state of the mining sector in DRC, including the involvement of armed groups and transition from artisanal to large-scale mining. It analyzes social, security, economic, and political conflict dynamics related to mining. It also outlines trends like increasing international investment, decentralization efforts, and potential triggers for increased conflict. Finally, it summarizes some current interventions and principles for engagement.

1.
The
Right
Interven-ons?
Donors
in
the
DR
Congo’s
Mining
Sector
Nicholas
Garre6
(Resource
Consul-ng
Services,
Limited)
PCNRM
Workshop
Barcelona,
10
October
2008

2. Background
• Personal
Background
• Nicholas
Garre6
• Director
/
Resource
Consul-ng
Services
Limited
• Research
Associate
/
London
School
of
Economics
• PhD
Candidate
(Poli-cal
Sciences)
/
Freie
Universität
Berlin
• Regional
/
Sectoral
Experience
• Extended
regional
field
research
(PhD/LSE
Posi-on)
• Policy
work
(DFID/World
Bank/UNECA/GTZ/LSE/
Egmont/EITI
etc.)
©
Nicholas
Garre6,
2008

3. Mineral
Produc-on/Trade
Assessment
• Since
2002
we
have:
– Collected
data
on
the
minerals
trade
from
Eastern
DRC
– Analysed
the
conflict
poten-al
of
mining
in
DRC
– considered
current
and
future
dynamics
and
possible
triggers
for
increased
conflict
regionally
– determined
the
effec-veness
/
conflict
sensi-vity
of
donor
engagement
in
the
mining
sector
– made
recommenda-ons
for
strategies
and
approaches
– Provided
ongoing
advice
©
Nicholas
Garre6,
2008

4. The
DR
Congo’s
Mining
Sector
• Mainly
ar-sanal
&
small-­‐scale
mining
(ASM)
• Armed
actors
involvement
only
localized
• Parastatals
in
dire
economic
posi-on
/
joint
venture
partners
• Increasing
localized
investment
into
LSM
(Katanga
/
less
into
Kivu’s
/
Ituri
/
Kasai)
• Gradual
transi-on
from
ASM
to
LSM
• Contract
review
• Main
hard
currency
earner
©
Nicholas
Garre6,
2008

5. Conflict
Dynamics
in
the
DR
Congo’s
Mining
Sector
• Economic
and
Social:
– The
right
to
access
/
tenure
(ASM
vs.
LSM
&
customary
vs.
statutory
law)
– Unmet
expecta-ons
(parastatal
legacy)
– Low
state
capaci-es
at
local
/
provincial
levels
– Pe6y
corrup-on
/
illegal
taxa-on
– Geographically
induced
buying
monopolies
– Migra-on
pressures
©
Nicholas
Garre6,
2008

6. Conflict
Dynamics
in
the
DR
Congo’s
Mining
Sector
• Security:
– mul-tude
of
private/state
security
actors
compete/collaborate
for
economic
gain
– low
wages/patronage
structures
encourage
corrupt
prac-ces
– FARDC
is
not
adequately
trained
to
control
or
guard
natural
resources
– Suicidaires
– FDLR
/
FARDC
/
85th
brigade
/
CNDP
©
Nicholas
Garre6,
2008

7. Conflict
Dynamics
in
the
DR
Congo’s
Mining
Sector
• PoliDcal:
– Piealls
of
democracy
-­‐
need
for
an
elected
patron
to
try
to
keep
his
supporters
over
-me
– State
trying
to
create
a
role
for
itself
as
an
arbitrator
between
compe-ng
commercial
interests,
and
as
a
protector
of
human
rights
and
facilitator
of
development
vested
interests
and
issues
of
technical
capacity
limit
or
ac-vely
undermine
its
ability
to
do
so
©
Nicholas
Garre6,
2008

8. Trends
and
Dynamics
Steady
growth
in
internaDonal
investment
(has
already
started)
• represent
risks
and
present
opportuni-es
– Posi-ve
impact
if
mining
companies
and
government
ensure
benefits
are
equitably
shared
– Nega-ve
impact
if
community
rela-ons
not
well
managed
/
conflict
trigger
(industrial
accident
/
environmental
degrada-on)
• Chinese
investment
unique
set
of
risks/
opportuni-es
to
forge
new
partnerships
©
Nicholas
Garre6,
2008

9. Trends
and
Dynamics
DecentralisaDon
• Unclear
when
process
will
start
• Presents
opportuni-es
to
increase
transparency
and
accountability.
• Risk
of
transfer
of
many
exis-ng
problems
of
corrup-on,
lack
of
transparency
and
accountability
for
revenues
to
a
provincial
level,
whilst
increasing
poli-cal
compe--on.
©
Nicholas
Garre6,
2008

10. Trends
and
Dynamics
Others
• Definite
end
to
military
ac-vity
in
the
east
of
DRC
• Changes
in
the
world
market
price
of
minerals
has
direct
impact
on
popula-on
movements
and
income
• Sudden
triggers:
– accidents,
pollu-on
or
environmental
degrada-on
– the
use
of
violence
to
protect
mining
sites
–
processes
of
change
(greater
regula-on,
for
example)
that
create
significant
losers.
More
likely
as
opera-ons
scale-­‐up.
©
Nicholas
Garre6,
2008

11. Current
Interven-ons
InternaDonal
/
Regional
• MONUC
• UN
Group
of
Experts
• ICGLR
• OECD
Guidelines
• EITI
Provincial
/
Local
• SAESSCAM
• PPAs
• Civil
Society
(Training
&
Advocacy)
• Infrastructure
Most
of
these
suffer
from
capacity
constraints
on
DRC
side
©
Nicholas
Garre6,
2008

12. Principles
of
Engagement
• Make
decision-­‐making
work
for
all
• Ensure
benefits
are
shared
equitably
and
understood
to
be
• Manage
decentralisa-on
for
conflict
preven-on
• Try
to
spread
engagement
across
provinces
• Transform
the
AM
sector
• Promote
be6er
donor
coordina-on
• Engage
with
Chinese
interests
• Pay
careful
a6en-on
to
sequencing
• PFM,
transparency
and
accountability
• Roads
• SSR
&
DDR
• Public
Sector
Reform
• Iden-fy
and
engage
with
spoilers
©
Nicholas
Garre6,
2008

13. Entry
Points
• Transparency
&
EITI
– poten-al
to
serve
as
an
entry
point
for
broader
efforts
to
improve
governance
in
the
mining
sector
• Mineral
CerDficaDon
– build
up
and
support
the
ins-tu-onal
capacity
of
the
GoDRC
to
implement
and
oversee
cer-fied
trading
chains
for
precious
and
semi-­‐precious
minerals
• Public
Private
Alliances
– help
mining
companies
align
their
investments
behind
the
provincial
government's
priori-es
– help
encourage
mining
companies
to
adopt
and
uphold
good
interna-onal
standards
and
prac-ce
• Other
entry
points
– Con-nued
provision
of
technical
assistance
to
GoDRC
as
an
entry
point
for
engaging
on
more
poli-cal
issues
– Engagement
with
na-onal
and
provincial
parliaments
to
support
parliamentarians
to
be6er
fulfil
their
oversight
func-ons
– Suppor-ng
the
work
of
na-onal
and
interna-onal
civil
society,
par-cularly
the
engagement
of
civil
society
with
the
EITI
process,
and
on
conflict
sensi-ve
business
prac-ce
©
Nicholas
Garre6,
2008

14. Thank
You!
For
further
details
email:
nicholasgarre6@resourceglobal.co.uk
©
Nicholas
Garre6,
2008