As is now common knowledge, the mineral glut in the DRC has been more a source of pain rather than gain. Minerals have financed both corrupt governments and their cronies in Kinshasa and marauding rebel groups in the ungoverned corners of the vast country.

To over-simply the issue, reforms will have to tackle both angles of the problem, i.e. both Kinshasa and the plethora of armed groups will have to come clean with regard to the extraction and sale of mineral resources. Kinshasa’s hoarding of all the benefits from the trade provides a perverse legitimacy for armed groups to continue their illicit activities.

Jason Stearns, the author of Dancing In the Glory of Monsters [I highly recommend the book], has a post on the complexities surrounding conflict minerals in the DRC.

First, “cautious” is the operative word. The Congolese export ban (September 2010 – March 2011) and the US electronic industry’s embargo of untraced minerals (April 2011 – present) have caused major job losses in the Kivus, as well as played into the hands of a select elite of military commanders, including ICC-indictee Bosco Ntaganda. It is, however, important to point out that neither initiative was caused directly by the Dodd-Frank legislation in the US. Rather, the export ban was decreed by the Congolese presidency, while the industry embargo was an aggressive interpretation of the US legislation. Dodd-Frank call for companies to carry out due diligence and to report their findings; the OECD guidelines call on companies to minimize the risk of financing armed groups.

Secondly, the Malaysia Smelting Corporation (MSC), which I had reported as having signed a deal for the largest tin mines in the Kivus, has not yet officially concluded a deal. A large Congolese delegation visited Malaysia earlier this year, and MSC and their Belgian partners Traxys then came to meet with President Kabila. A “confidentiality agreement” was signed with MSC regarding the Sakima concessions in Maniema, a good place to start as most of the mines there are removed from the main areas of conflict. In addition, MSC has not yet given $10 million for certification an tracing schemes, although the mining minister says they have agreed to fund these initiatives.

More on this on Jason’s blog here.