This report explores how the illicit trade in cobalt and copper in Katanga (south-eastern Democratic Republic of Congo) is contributing to the destruction of the country’s economy, the environment as well as the livelihoods of thousands of Congolese people.As the report demonstrates, the volume of the illegal mineral trade is immense. In March 2004 the Central Bank of Congo reported the DRC produced 783 tonnes of cobalt metal. In the same month, the DRC’s customs office reported 13,365 tonnes of cobalt metal was exported, a difference of over 12,00 tonnes, which can be accounted to the illicit trade.This huge volume of illegal trade takes away the crucial mining revenues from the copperbelt, which could provide much-needed revenue for the Congolese government to support the economic development that the DRC so desperately needs.In addition, the illegal trade breeds poverty and instability. Artisanal mining is being carried out in dangerous and uncontrolled conditions, with thousands of miners risking their lives to earn around US$1 a day. The DRC has in place a new Mining Code designed to attract foreign investment by providing a legal framework that provides clarity and certainty. However, due to a lack of regulatory capacity and possible also political will, the Code is yet to be applied on the ground in Katanga.The report offers a number of recommendations, including:the international donor communityand the International Financial Institutions (IFIs) should put pressure on the transitional government to publicly disclose existing mining contracts and revenuesIFIs and the donor community should commit themselves to developing alternative employment opportunities for ex- workers and other unemployed people in Katangathe transitional government should commit itself to making anti-corruption, transparency and accountability priority areas by publishing the results of systems and finance audits of the Ministry of Mines, Cadastre Minier and Ministry of Finance.
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Global Witness exposes the hidden links between demand for natural resources, corruption, armed conflict and environmental destruction
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Many of the world’s worst environmental and human rights abuses are driven by the exploitation of natural resources and corruption in the global political and economic system. Global Witness is campaigning to end this. We carry out hard-hitting investigations, expose these abuses, and campaign for change. We are independent, not-for-profit, and work with partners around the world in our fight for justice.
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