Miners get relief after DRC makes exceptions to export ban
The Democratic Republic of the Congo (DRC) has given mining companies an indefinite waiver to an export ban on cobalt hydroxide and carbonate, as well as tin, tungsten and tantalum concentrates after meeting the country’s biggest miners in Kinshasa.
The mines ministry also announced on Saturday an export ban
waiver on copper concentrate, but said the duration of that waiver is still to
be determined, with companies expected to submit proposals in a week.
The DRC, the world’s leading producer of cobalt and Africa’s
biggest copper producer, banned exports of copper and cobalt concentrates in
2013 to encourage miners to process and refine the ore in the country.
But insufficient smelting capacity has driven it to
repeatedly issue waivers, the most recent of which was set to expire on
Saturday.
Mines minister Willy Kitobo Samsoni decided to grant an
“indefinite waiver for cobalt hydroxides and carbonates, the tin concentrates
of Alphamin, and concentrates of 3Ts [tin, tungsten and tantalum]”, the
ministry said in a statement.
Alphamin, which runs a tin mine in the DRC’s North Kivu
province, did not immediately reply to a request for comment.
The decision will come as a relief to cobalt, copper and tin
mining companies in the DRC as well as smelters and refiners in Zambia, which
process copper from the DRC, and in China, where much of the DRC’s cobalt is
processed.
In January, Chinese state-owned mining company CNMC launched
the DRC’s first large-scale smelter, the Lualaba Copper Smelter (LCS), capable
of processing 400,000 tonnes of copper concentrate and producing about 120,000
tonnes of copper blister per year.
But even at full capacity, LCS cannot process all the DRC’s
copper. The DRC produced 765,000 tonnes of copper concentrate in the first half
of the year alone, the central bank said, up 13.4% year on year.
Miners whose copper concentrate is incompatible with LCS
must “rapidly” develop their own smelting capacity on-site, the ministry
statement reads, adding all copper miners at the meeting accepted the
importance of on-site processing.
The DRC produced 38,816 tonnes of cobalt in the first half
of 2020, up 6% year on year according to the central bank. Production of “3Ts”
concentrates — tin ore cassiterite, tungsten ore wolframite, and tantalum ore
coltan — plunged.
Environmental lapses
Glencore, the biggest industrial cobalt miner in the DRC,
declined to comment on the decision.
Elsewhere in the African mining sector, Sierra Leoneans
living next to the country’s largest diamond mine are taking their government
to West Africa’s regional court for failing to protect them from alleged
environmental lapses by the company that runs it, a subsidiary of Octea.
It is alleged in the complaint, filed to the Economic
Community of West African States (Ecowas) court of justice on Thursday last
week, that the government failed to act when residents of Koidu, the largest
city in the diamond-rich Kono district, complained about water contamination
and damage to their houses from blasting at the mine.
It also said the government failed to ensure that the
company relocate hundreds of households away from the blasting site, as
required by Octea’s 2003 mining licence agreement. “The state has violated [the
plaintiffs’] right to a suitable environment,” it said.
The complaint follows a lawsuit filed by the residents
against Octea in Sierra Leone’s high court in March seeking an unspecified
amount in damages for “degradation or destruction of land, destruction of homes
and loss of livelihoods and ... dumping of toxic mine waste” among other
allegations.
On July 22, a judge ruled that case was “adjourned for
judicial recess” until the end of September. Octea, a subsidiary of BSG
Resources, founded by Israeli billionaire Beny Steinmetz, did not respond to
e-mailed requests for comment. It has described the accusations in the March
case as “baseless and without merit”.
The Sierra Leone government also rejects the complaints as
unfounded. “It’s our job to conduct regular evaluations of [Octea’s] conduct in
regards to the environment, and we have never found them not to be compliant,”
said Ibrahim Turay, regional representative for the Environmental Protection Agency
in Kono District. He added that it was mainly residents who refused to go to
the resettlement area who were continuing to have problems.
The cases highlight how communities in developing countries
are becoming emboldened to use courts to pursue grievances against
international mining companies. In the new complaint, the residents demand the
government address their concerns and pay compensation “for their emotional
suffering resulting from their degraded quality of life and health, and the
instability and uncertainty of their resettlement status”.
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