DRC: New report questions benefit of AngloGold Ashanti mine project to communities

As protracted negotiations over mining contract awards draw to a close in the Democratic Republic of Congo (DRC), a new joint report reveals the potential environmental and social impacts of a new mine on local communities.

The 'Golden opportunity or false hope?' report was produced by CAFOD as part of its Unearth Justice campaign, South African CSR monitors Bench Marks Foundation, and DRC civil society organisation Cadre de Concertation.

The report into proposals by multi-million dollar mining giant AngloGold Ashanti to develop a goldmine in the Ituri district of DRC, questions the benefit of the mine for local people.

Ituri sits on one of the richest goldfields in Africa. The report highlights issues of conflict, community consent, displacement and corporate accountability that the mining company must address in order to ensure their project has a net positive impact on the area and its communities.

CAFOD’s extractives policy analyst Sonya Maldar said: “The people of Mongbwalu have such high expectations about what this mining project will bring. But despite years of dialogue, AngloGold Ashanti is still not responding to the community’s key demands, or being transparent about their plans for the project.

"When combined with the enormous social and environmental impacts this mine will have, this is storing up a whole host of community relations problems for the future. Our report outlines clearly the steps AGA needs to take to avoid this scenario. As one of the biggest gold mining companies in the world this is a chance for AngloGold Ashanti to show the people of DRC and their shareholders that they can lead the way in responsible mining.”

Father Alfred Buju, head of the Justice and Peace Commission of Bunia Diocese is the joint-coordinator of local civil society network Cadre de Concertation which has been representing the concerns of local people about the AngloGold Ashanti project.

Father Alfred said: “For too long the people of Mongbwalu have been kept in the dark about the future of this mining project. With the conclusion of the contract review, AngloGold Ashanti and the government now have a chance to show they are serious about transparency. It is essential for the people of Mongbwalu to understand the implications of this vast project on their doorstep.”

.

Research commissioned by CAFOD for ‘Golden Opportunity or False Hope?’ reveals: foo

A new industrial mine at Mongbwalu in Ituri is likely to lead to the displacement of thousands of small-scale artisanal miners, depriving them and their families of their only viable source of livelihood. Many of these workers are ex-combatants from DRC’s war-torn past. There are an estimated 9,500 miners working in and around Mongbwalu, with more than 100,000 on the full leased area. Industrial mining is not labour-intensive and AngloGold Ashanti is likely to employ a tiny fraction of the available workforce from in the local area.

The proposed mine is planned for an area that has seen bloody conflict, in a country where millions have been killed. Fighting has been driven by the struggle for mineral resources and armed groups still maintain a presence in Ituri, with hundreds of UN peacekeeping troops based in the district capital, Bunia. There are fears that the presence of the mine will provoke further community unrest in an unstable region of DRC.

AngloGold Ashanti’s application for mining rights in the area has recently been renegotiated as part of a national review of contracts. This new contract will reveal important information about the mine and outline the responsibilities of both the mining company and the government. Despite repeated requests from the community and CAFOD to AngloGold Ashanti, state-owned mining company OKIMO and the DRC government, local people were not involved in discussions about the terms of the new contract. The AGA contract prior to renegotiation was never published in full and it is unclear whether the newly renegotiated contract will be published once it is finalised.

Mining is one of the most environmentally damaging industries in the world, creating huge amounts of waste and using toxic chemicals such as cyanide. If poorly regulated and maintained, the chemicals from a mine’s activities can result in devastating pollution of waterways, destroying biodiversity and agricultural land. AngloGold Ashanti has not yet carried out an environmental and social impact assessment of the proposed mine site. The area includes richly bio-diverse equatorial rainforest.

Local communities have been given limited information regarding AngloGold Ashanti’s mine proposals and the possible impacts of the mine on their ways of life and livelihoods. At no time has the company – the third largest gold miner in the world – sought the consent of the people of Mongbwalu or the surrounding areas. This lack of information is leading to growing fear about displacement from their homes.

For interviews and further information about the launch press launch in Kinshasa on 25 January 2010 please contact Pascale Palmer ppalmer@cafod.org.uk +44 7785 950 585