Accused ex-Barclays chief quits Rio Tinto board

Yahoo – AFP, June 21, 2017

Former Barclays chief executive John Varley has been charged with "conspiracy
 to commit fraud" over emergency fundraising from Qatar during the financial
crisis (AFP Photo/Shaun CURRY)

Sydney (AFP) - Former Barclays chief executive John Varley quit as a director of mining giant Rio Tinto on Wednesday after being charged with conspiracy to commit fraud in Britain.

He was among four senior executives from the bank charged on Tuesday by Britain's Serious Fraud Office (SFO) following a five-year investigation over emergency fundraising worth billions of dollars from Qatar during the financial crisis.

The Anglo-Australian miner's chairman Jan du Plessis said he had the "highest regard" for Varley, who has been on the Rio board since 2011.

"I am very grateful for John’s outstanding contribution over the five or so years he has been on the board," he said.

"The board holds him in the highest regard and will miss his valuable insight. Personally, I am not only losing a senior independent director, but a close colleague, whose wisdom and support I am going to miss tremendously."

His resignation as a non-executive director and chair of the company's remuneration committee will take immediate effect.

Britain's SFO said the charges he faces relate to Barclays "capital raising arrangements with Qatar Holding LLC and Challenger Universal Ltd, which took place in June and October 2008".

It added that they also involve a US$3-billion loan facility made available to the State of Qatar acting through the country's Ministry of Economy and Finance in November 2008.

Barclays has said it was "considering its position", with the defendants due to appear before London's Westminster Magistrates' Court on July 3.

Swiss village gives extra tax from GlencoreXstrata to affected countries

Hedingen donates some of its 'commodity million' from Glencore back to countries where the company is accused of exploiting people and resources for mining

The Guardian, Rupert Neate, Monday 23 September 2013

Ivan Glasenberg paid Rüschlikon village 360m Swiss francs (£246m) in taxes
linked to Glencore's flotation in 2011. Photograph: Bloomberg/Getty Images

A Swiss village has voted to donate 110,000 Swiss francs (£75,000) of taxes paid by Ivan Glasenberg, the billionaire chief executive of GlencoreXstrata, to charities in countries where the London-listed mining and commodity trading company is accused of exploiting people and resources.

The people of Hedingen, a village near Zurich, voted 764 to 662 in favour of donating the money in a "clear sign of solidarity with those suffering the consequences of the extraction of raw materials". The village will donate 10% of the "commodity million" Swiss francs it received out of taxes paid by Glasenberg in relation to Glencore's flotation in London in 2011.

Samuel Schweizer, a member of the citizens' committee that proposed the donation, said the villagers felt obliged to give back some of the "extraordinary wealth to the people who should have received it in the beginning".

He added: "It is extraordinary that our small community got more than 1 million francs of extra tax money from Glencore extracting raw materials in a number of very poor countries, where it is accused of polluting, abusing labour and not paying much in taxes. We had a unique opportunity to raise public awareness. We felt we must share this with the people who are suffering from the operations of Glencore."

The money will be paid to non-governmental organisations working on humanitarian projects in the Democratic Republic of the Congo, Colombia and Bolivia.

Glasenberg, who is worth $6.7bn according to Forbes magazine, paid 360m Swiss francs (£246m) in taxes linked to the flotation to the village of Rüschlikon, where he lives, in 2011. The money has since been redistributed between Rüschlikon, Hedingen and other communities in the Canton of Zurich.

Five of the villages are following Hedingen's lead and voting on whether to donate the money to charity over the next three months.

Schweizer said pressure is building on Rüschlikon, which kept 50m Swiss francs of Glasenberg's taxes, to donate some of the money to charity. Residents of Rüschlikon, already dubbed "the richest village in Switzerland", last year voted down a motion to give some of the money to an African charity.

Instead villagers voted to cut the local tax rate by 7%.

Schweizer added that if other villages follow Hedingen's lead, Rüschlikon "will be pressured into reconsidering its decision". "We wish that Rüschlikon would act in the same way [as Hedingen].

"We hope that people will open their eyes to the danger that raw material extraction will be the next reputational time bomb for Switzerland," he said. "Political leaders have not learned anything from the disaster of [Switzerland's role at the heart of the] banking industry."

The Berne Declaration, a non-governmental organisation campaigning against Switzerland's role in hosting global commodity companies, said: "While the decision makers in the capital Berne consider our commodities industry still only a political reputation risk, the landmark decision in the rural-conservative Hedingen shows that on the ground Glencore and their competitors already have a real reputational problem in this country.

"Remarkably and correctly, the people of Hedingen assume that tax money is not automatically white, clean or legitimate. As citizens, they take responsibility for that which the government still shies away from."

A Glencore spokesman said: "We believe that Glencore's global presence and economic strength have a predominantly positive impact on the communities in which we operate. We seek out, undertake and contribute to activities and programmes designed to improve quality of life for the people in these communities. In 2012, Glencore spent over $200m investing in the sustainable development of the communities in which it operates.

"Glencore's tax strategy and payments play a vital role in our intention to achieve long-term sustainable development. We are committed to full compliance with all statutory obligations, full disclosure to tax authorities and reporting transparently in the tax payments that we make to the governments of the countries in which we operate."

Rio Tinto accused of environmental and human rights breaches

Native Mongolian herders angry that copper and gold mine is threatening fresh water supply and ecology

guardian.co.uk, Rupert Neate, Thursday 18 April 2013

The workers' accommodation area at the Oyu Tolgoi copper mine in the
South Gobi desert in Mongolia. Photograph: Adrian Bradshaw/EPA/Corbis

Protesters from around the world attacked mining company Rio Tinto for a string for alleged environmental and human rights breaches during a fiery meeting with shareholders in London on Thursday.

Native Mongolian herders claimed that a $5bn (£3.3bn) expansion of the company's Oyu Tolgoi copper and gold mine in the Gobi desert threatened the fresh water supply of hundreds of nomadic people and the area's unique ecology.

Sukhgerel Dugersuren, executive director of Mongolian civil society organisation Oyu Tolgoi Watch, said: "Water is a life and death resource. Rio Tinto is diverting water without the consent of the local community or the government.

"It is already evident that not only livestock but local communities are losing access to adequate water supply. Pasture ... [and] water resources are being taken from us and fenced in by the mine."

She claimed that a tailings pond used to collect waste material from the mine had leaked and told Rio's board that the local community demanded assurances that "there isn't going to be a catastrophe in the region".

Sam Walsh, Rio's new chief executive, said the company was committed to environmental protection and human rights and was closely monitoring the mine's development to "ensure our neighbours have a healthy and prosperous future".

At the company's annual meeting, Walsh said Rio recognised the importance of water and would draw water from a deep level aquifer, not from surface water. He said a seasonal river was being diverted around the mine, but the company would create a new spring for animal grazing and water collection further downstream.

Walsh said the mine, which is 34%-owned by the Mongolian government, would provide a massive boost to the local economy and could represent up to 36% of Mongolia's GDP.

Protesters also raised concerns about Rio's planned mines in Bristol Bay, Alaska, a controversial iron ore mine in Guinea, and a nickel and copper mine in Michigan.

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FBI arrest agent over bribery cover up claim in battle over $10bn mountain

EU deal to tackle mining corruption

FBI arrest agent over bribery cover up claim in battle over $10bn mountain

Frenchman is accused destroying evidence of how an Israeli billionaire gained control of a mountain rich in iron ore in Guinea

The Guardian, Ian Cobain, Tuesday 16 April 2013

Simandou in Guinea. The mountain is said to contain iron ore worth $10bn.

A battle over one of the world's richest mineral deposits has taken a dramatic turn after the FBI announced the arrest of a representative of the billionaire businessman who had acquired it in deal that raised eyebrows, even within the buccaneering world of African mining.

The arrest follows years of bitter claim and counter-claim over Simandou, a mountain in the remote interior of the impoverished west African country of Guinea that is so laden with iron ore that its exploitation rights are valued at around $10bn.

Beny Steinmetz, one of the world's wealthiest men, acquired the rights to extract half the ore at Simandou by pledging to invest just $165m to develop a mine at the mountain. Shortly afterwards, he sold half of his stake for £2.5bn. It was hailed as the most stunning private mining deal for decades: the world's finest untapped iron ore deposit, one worth billions of dollars, had been snapped up for a song.

After the wind of democratic change swept through Guinea, however – and after the US justice department decided to mount an investigation into circumstances in which the glittering prize at Simandou changed hands – that deal was appearing to look distinctly less attractive.

On Sunday evening, Frederic Cilins, an agent for Steinmetz's company, was arrested in Jacksonville, Florida, after federal agents had covertly recorded a series of meetings. The recording shows, it is alleged, that Cilins plotted the destruction of documents which it is claimed could have shown the Simandou exploitation rights were acquired after millions of dollars were paid in bribes to Guinea government officials.

Unknown to either Steinmetz or Cilins, the FBI launched an investigation in January into whether payments allegedly made on behalf of Beny Steinmetz Group Resources, the Guernsey-registered mining arm of the tycoon's business empire that acquired the rights, were in breach of the US Foreign Corrupt Practices Act.

According to a statement by an FBI special agent that was filed at the southern district court of New York yesterday, Cilins had been under surveillance during four meetings at Jacksonville airport with an individual who, it is claimed, had agreed to help the agency mount a sting operation. Sources familiar with the investigation say that this person was Mamadie Toure, the widow of Lansana Conté, the dictator who ruled Guinea for 24 years until his death in 2008.

Cilins, a 50-year-old Frenchman, was arrested by FBI agents shortly after the final meeting. He appeared in court on Monday facing three charges: interfering with a witness, obstructing a federal criminal investigation and conspiring to destroy evidence in a federal criminal investigation. The charges carry a penalty of up to 20 years' imprisonment.

According to the FBI agent's filed statement – which did not name BSG Resources – Cilins had in the past offered to pay $12m in bribes in order to influence the award of mining concessions. He had also paid out several million dollars, and had called the meetings in order to arrange for the destruction of documents concerning bribe payments and mining concessions.

"Cilins repeated the word 'urgently' several times," the statement claims. "Cilins told the CW [co-operating witness] that Cilins was asked to be present in person to witness the documents being burned in order to guarantee that nothing is left behind."

The filed complaint states that a federal grand jury is investigating whether an unnamed mining company and its affiliates – on whose behalf it claims Cilins has been working – allegedly transferred into the United States bribery money for the valuable mining concessions in Simandou.

After Cilins was remanded in custody, Mythili Raman, the US acting assistant attorney general, said: "The justice department is committed to rooting out foreign bribery, and we will not tolerate criminal attempts to thwart our efforts." BSG Resources confirmed that Cilins had worked for the company. Asked about the arrest and the bribery allegations, a spokesman declined to comment.

While Cilins was flying to Jacksonville last week, Steinmetz was embarking on litigation at the high court in London, accusing Mark Malloch-Brown, the former Foreign and Commonwealth Office minister and deputy secretary general of the United Nations, of being involved in a smear campaign against BSG Resources. Malloch-Brown and FTI Consulting, the city PR firm he works for, deny the allegation.

Guinea, a former French colony, has almost half of the world's bauxite reserves and significant reserves of iron ore, gold and diamond reserves, but the majority of its 11 million people live in poverty as a result of years of corruption that has deterred many would-be investors.

The rights to extract iron ore from Simandou had been held by Rio Tinto until late 2008 when Conté stripped the Anglo-Australian mining giant of half its stake. Apparently, the president signed the necessary paperwork while on his deathbed, one of the final acts of his dictatorial government. BSG Resources then acquired those rights, agreeing in return to invest $165m to develop what it described as "a world-class integrated mining project".

In April 2010, Steinmetz negotiated to sell half his company's stake – a quarter of the mountain's ore – to Vale of Brazil, the world's biggest iron ore miner. BSG Resources and Vale formed a joint venture company called VBG which would produce around 2m tons of iron ore a year.

When Vale agreed to pay $2.5bn, one veteran of African mining was quoted in the financial press as saying that Steinmetz had hit "the jackpot". The 57-year-old Israeli tycoon was estimated by Forbes magazine to have a net worth of $4bn. But while Steinmetz's corporation defended the deal in which it acquired the rights, others were highly critical: the African telecoms billionaire Mo Ibrahim, for example, asked publicly: "Are the Guineans who did that deal idiots, or criminals, or both?"

When Guinea's first democratic government was elected later in 2010, Alpha Condé, the new president, began scrutinising the terms of several mining concessions granted under Conté's rule. He focused firmly on the Simandou deal.

With the assistance of one of his advisers, the wealthy investor and philanthropist George Soros, the new president assembled a team of investigators who, it is understood, have unearthed a number of documents that shed light on the way in which the Simandou deal had been sealed.

There were reports that a number of luxury gifts and payments had been made to relatives and associates of Lansana Conté, and to senior officials in the short-lived military dictatorship that followed his death. They included claims that a gold-and-diamond encrusted miniature Formula One car was given to a former government minister. BSG Resources responded to this allegation by saying that the car was worth no more than $2,000, and had been given to the mining ministry, not an individual, in a ceremony that was held in public.

Claims that Conté had been given a diamond-studded gold watch, and that a substantial commission – as much as $2.5m – had been made to his wife, Mamadie Toure, were flatly denied.

The development of the mine stalled after Conde's election. During talks between BSG Resources, Vale and the government of Guinea – which were held in London last month – it became clear that the Steinmetz group's control of the Simandou rights were under threat, a situation that the company described as "bizarre".

During the talks, the president of BSG Resources was barred from Guinea, and Vale told its business partner that it would not be paying the $2bn that was outstanding on the $2.5bn deal.

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Bumi: Rothschild defeated in battle to oust board

BBC News, 21 February 2013 

Related Stories

• Bumi's bitter boardroom battle
• Bumi board fights Rothschild plan
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Nathaniel Rothschild was hopeful of
 regaining control of Bumi, a company
he helped found

Financier Nathaniel Rothschild has lost his bid to oust the current board of coal mining giant Bumi, the company he helped to found.

Chairman Samin Tan survived a vote to remove him but informed the board he was stepping down.

Mr Rothschild had wanted to rejoin the company and expel 12 of the 14 board members, including the chief executive and chairman.

Shareholders rejected his attempts and voted to remove just two members.

Chief executive Nick von Schirnding also managed to keep his post, with more than 60% of votes cast in his favour at the London meeting.

Mr Tan, who received 57% of votes in favour of hisretention, said he would resign once a new independent chairman was found.

The company said it would look for a new chairman "who has experience in, and is familiar to, the London market", according to a statement.

The two members who were ousted were Jean-Marc Mizrahi and Nalinkant Rathod.

Mr Rothschild set up Bumi with the influential Bakrie family, part of Indonesia's political and business elite, in 2011.

The deal was intended to offer international investors the chance to buy into natural resources assets in emerging markets while ensuring they were protected by UK market rules.

Fraud allegations

But the partnership, and relations with the Bakrie family, soured after Mr Rothschild called for a radical clean-up at the firm.

To make matters worse, he made allegations of potential misuse of development funds and other assets at the firm in September 2012.

Allegations of financial irregularities at Bumi's key Indonesian operating subsidiary, PT Bumi Resources - in which it owns 29% alongside the Bakrie family - first emerged that month, after Mr Rothschild received information from a whistleblower.

However, an investigation by legal firm Macfarlane, commissioned by the management of the London-listed parent company, said the evidence provided to Mr Rothschild comprised emails that had been obtained illegally.

Macfarlane said the claims that money intended to finance development of coal mines had been misappropriated could not be substantiated, in large part due to "the unwillingness of key parties to be interviewed and provide information".

Bumi's management said that it had referred the matter to the relevant authorities, including the Indonesian financial services authority, and the UK Serious Fraud Office.

Mr Rothschild quit the board in October.

Bumi's new chief executive, Mr Schirnding, has negotiated an amicable divorce with the Bakrie family, including the sale of its stake in PT Bumi Resources for $580m (£370m), and the family's divestment of its 24% in the London-listed company.

But the board warned that the deal would be scuppered if Mr Rothschild succeeded in retaking control of the company.

The company's share price has slumped 60% since it listed in 2011.

Related Articles:

Rothschild loses libel case, and reveals secret world of money and politics - New

Bumi Resources Rating Cut By Moody’s, Shares Fall

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Indonesia’s PT Bumi Starts Probe Following London Investigation

Rothschild Says Indonesia's Bumi Can Shake Up Coal World
Maligned at Home, Bakrie Group Is the Face of Indonesia Inc. Around the World

The company formed by the union of Bumi Resources and

Berau Coal Energy is looking to acquire coal mines around

the world and become a global giant, investor Nathaniel

Rothschild, left, said on Friday, Dec 17, 2010.

CNBC Admits We're All Slaves To Rothschild Central Bankers Global Government

Moody's may cut Portugal on growth, debt concerns (Dec 21, 2010)

Moody's slashes Ireland to Baa1, warns more may be ahead (Dec 17, 2010)

Moody's may cut Greek credit rating, puts on review (Dec 16, 2010)

Moody's warns it may downgrade Spain's debt (Dec 15, 2010)
Moody’s Threatens Credit Downgrades for Belgium, U.S. (Dec 14, 2010)

Matthew message (Channelled by Suzanne Ward, Feb 18, 2013)

"... The Rothschild faction of the Illuminati, which governed its empire from London and the Vatican, lost its media foothold along with its other powers in that part of the world. A section of the Illuminati’s Rockefeller faction, headquartered in Washington, DC, and New York City, still has influence on major media in the US as well as on Wall Street; and their lingering foothold in Congress is evident in the intransigence that has stagnated progress. ..."

S.Africa's richest man to give away half his fortune

Yahoo – AFP, Gianluigi Guercia, 30 January 2013

South African businessman Patrice Motsepe on May 07, 2008 in Sandton. 

Billionaire Motsepe announced Monday he would give half his family's fortune

to a charity, matching a pledge made by Bill Gates and Warren Buffett.

South African billionaire Patrice Motsepe announced Monday he would give half his family's fortune to a charity, matching a pledge made by Bill Gates and Warren Buffett.

"This is to be used during his lifetime and beyond... to improve the lifestyles, and living conditions, of poor, disabled, unemployed, women, youth, workers and marginalised South Africans," his wife Precious Motsepe said.

The mining tycoon becomes the first African to join the Giving Pledge, which challenges the world's wealthiest to give 50 percent or more of their fortune to charity.

Since Microsoft mogul Gates and investment guru Buffett launched the Pledge in 2010, more than 70 billionaires have joined.

Motsepe owns mining company African Rainbow Minerals and is Africa's eighth richest person with a fortune of $2.65 billion (1.96 billion euros), according to Forbes magazine.

His announcement, two days after his 51st birthday, makes him part of an illustrious club that includes Facebook founder Mark Zuckerberg, Netflix chief executive Reed Hastings, and Intel co-founder Gordon Moore.

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Africa is becoming more peaceful, despite the war in Mali


"The End of History"- Nov 20, 2010 (Kryon channeled by Lee Carroll)

“…  Africa

Let me tell you where else it's happening that you are unaware - that which is the beginning of the unity of the African states. Soon the continent will have what they never had before, and when that continent is healed and there is no AIDS and no major disease, they're going to want what you have. They're going to want houses and schools and an economy that works without corruption. They will be done with small-minded leaders who kill their populations for power in what has been called for generations "The History of Africa." Soon it will be the end of history in Africa, and a new continent will emerge.

Be aware that the strength may not come from the expected areas, for new leadership is brewing. There is so much land there and the population is so ready there, it will be one of the strongest economies on the planet within two generations plus 20 years. And it's going to happen because of a unifying idea put together by a few. These are the potentials of the planet, and the end of history as you know it.

In approximately 70 years, there will be a black man who leads this African continent into affluence and peace. He won't be a president, but rather a planner and a revolutionary economic thinker. He, and a strong woman with him, will implement the plan continent-wide. They will unite. This is the potential and this is the plan. Africa will arise out the ashes of centuries of disease and despair and create a viable economic force with workers who can create good products for the day. You think China is economically strong? China must do what it does, hobbled by the secrecy and bias of the old ways of its own history. As large as it is, it will have to eventually compete with Africa, a land of free thinkers and fast change. China will have a major competitor, one that doesn't have any cultural barriers to the advancement of the free Human spirit. …”

Indonesia's Bakries slam Rothschild Bumi resignation

Yahoo, AFP, 16 October 2012

Indonesia's powerful Bakrie family hit out at British tycoon Nathaniel Rothschild Tuesday after he resigned from the board of Bumi Plc, saying he was a "threat to all shareholders" of the mining firm.

In the latest saga of a row analysts say has attracted the attention of possible foreign investors in Indonesia, the Bakries said Rothschild should have quit earlier to avoid Bumi Plc's stock price from plunging.

"Mr. Rothschild is a threat to all shareholders who are fighting for the best interests of the company, and ultimately for themselves and the investors they represent," Bakrie Group spokesman Chris Fong said.

"There are no winners in this deal anymore, it's pure damage control."

Rothschild's resignation on Monday from Bumi, which he co-founded with the Bakries, came as its board considers a proposal by the Indonesian family to sever their ties with the company and buy its most productive Indonesian mines.

The long-running power struggle has seen the London-listed firm's shares slump more than 70 percent this year.

At the heart of the dispute is a Rothschild-backed probe into alleged financial irregularities at the Bakrie-founded Bumi Resources, Indonesia's largest coal miner, which is part-owned by Bumi Plc.

Bumi Resources is among a string of companies owned by the family of Aburizal Bakrie, one of Indonesia's wealthiest men and a likely candidate in presidential elections in 2014.

The 65-year-old is one of Indonesia's richest men with businesses spanning coal, telecommunications to construction.

But he is a highly divisive figure in Indonesia after one of his companies was linked to the triggering of a mud volcano near a gas drilling site in 2006.

The Bakries have offered to give up their 23.8 percent stake in Bumi and pay about $1.2 billion for its mines, which would leave Bumi Plc with no assets other than the cash from the deal.

In the resignation letter quoted by Dow Jones Newswires, Rothschild stated his vehement opposition to the Bakries' proposal.

He also said chairman Samin Tan appeared "determined to drive through the Bakries' proposal", a move he decried as a "disgrace" without first completing a probe into alleged financial irregularities at Bumi Resources.

The 41-year-old scion of a European banking dynasty also expressed his determination to fight for the company's investors from outside the board and said he regretted helping the Bakrie family list in London.

The offer for the break-up from the Bakries followed an investigation order by the Bumi Plc board in September over "potential financial and other irregularities", including a $637 million writedown of development funds and assets in Bumi Resources.

Rothschild was ousted as co-chair of Bumi Plc in March after calling for a "radical clean-up" of the Indonesian firm.

Analysts say the ugly battle has been carefully watched by potential foreign investors already wary of corruption and a lack of corporate governance in Indonesia.

"It had been hoped that the listing of Bumi Plc in London would create a new ethos," said Keith Loveard of Jakarta based consultancy firm Concord Consulting.

"Regrettably the reverse has occurred," he added.

Nat Rothschild has resigned as a non-executive director

of mining group Bumi. Photograph: Nick Harvey/WireImage

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Bakries Want Rothschild to Leave the Board of Bumi Plc

Australians Outraged by Billionaire’s Rant at the Working Poor

Jakarta Globe, August 31, 2012

This 2011 file photo shows Gina Rinehart, Chair of Hancock
Prospecting, speaking during a business session in Perth,
Australia. (EPA Photo/TONY MCDONOUGH) 

   

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Sydney. Australia’s Labor government on Friday condemned the world’s richest woman for claiming her fellow Australians were “lazy workers who drink and socialize too much.” Mining billionaire Gina Rinehart caused an uproar this week when she wrote in an industry magazine that anyone could make millions if they simply worked harder and spent less time drinking with friends.

Deputy Prime Minister Wayne Swan said Rinehart had insulted Australian workers by telling them to “get out of the pub and go and make billions.” Former prime minister Kevin Rudd said Rinehart was “just plain wrong” and that her call for a cut in the minimum wage would not reduce unemployment because “life is more complex than that.” Health Minister Tanya Plibersek said Rinehart should try living on the minimum wage before suggesting it should be cut.

Rinehart, 58, is the richest Australian with an estimated personal fortune of 29 billion Australian dollars ($28 billion).

When she took over the family firm in 1992, it had a handful of mining leases but not much else. Through astute joint ventures, Hancock Prospecting Pty Ltd was valued last year at more than 10 billion Australian dollars.

Her other wealth is tied up in other leases for mining iron ore and coal, Australia’s top two exports.

Deutsche Presse-Agentur

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Let's not forget the miners in DR Congo

RNW, Mélanie Gouby, Goma, 24 August 2012

(Photo: AFP)

Last week's tragedy at Lonmin’s Marikana mine in South Africa has drawn international attention on the deplorable working conditions of miners in that country. But was there any media coverage of the sixty people who died two weeks ago in a gold mine in the Democratic Republic of Congo (DRC)? Barely. 

Stretching into the depths of the mountain, a tunnel, carved by hand, is supported by a wooden structure like that on a set of an old Western movie. It gets dark very quickly as we move heads down into the tunnel. It’s hard to tell if our shortness of breath comes from the slight but unavoidable claustrophobic anxiety or the actual lack of oxygen down the well.

“With time, we actually forget about the dangers, even though they are real,” says Bisima, a 33-year-old miner working at the Nyabibwe pit in eastern DRC. “Mine collapse remains the greatest danger,” he says.

While Lonmin's Marikana mine carnage in South Africa got an incredible amount of coverage last week, only two weeks ago, 60 people died following a mine collapse in Pangoyi, in Ituri Province. However, there were barely any reports about the incident.

No safety measures

In the DRC, no one protests for better living conditions. Between the constant conflicts and extreme poverty, a human life does not hold much value.

“People risk their lives. This is our daily reality here in the DRC. In Nyabibwe, no miner wears a protective helmet or gloves,” says Fidel Bafilemba, a researcher for the American NGO Enough Project in the DRC.

Conditions are no better in the Ituri gold mine. “When we descend into the wells, there are no safety measures. The mine can collapse at any moment. And we work very hard, even at night. Those are not conditions for human beings to work in,” complains Patrick, a 20-year-old miner from Mubi in the Walikale region.

Abundant resources

Although the DRC has mineral resources that would make any Western country pale with envy, it remains one of the world's least developed countries. The nation is Africa's leading tin exporter and the fifth one in the world. Congo's subsoil holds 80% of the world’s coltan reserves. The metal is used in the manufacture of almost all electronic devices. Gold and diamonds are also present in abundance.

But miners often dig using only pickaxes and shovels, without any motorised tools. A number of mines have virtually no infrastructure whatsoever because they are informal and don't belong to any large industrial corporation. The miners sell the minerals to traders who take them to the cities of Goma or Bukavu, where they are purchased in bulk by foreign companies.

Blood minerals

Although few human rights organisations tackle the issue of working conditions in Congolese mines, many nevertheless campaign against the use of the infamous “blood diamonds” which are believed to finance armed rebel groups in the eastern part of the country.

In 2010, a coalition of non-governmental organisations, including Enough Project and Global Witness, successfully lobbied the US Congress to pass a law on blood diamonds. However, with the enforcement of the law, the mineral trade in the DRC has almost come to a standstill. Instead of investing in a system of traceability that would guarantee the “cleanness” of the minerals they purchased, American companies simply withdrew from the DRC.

As a result, the sales of minerals like coltan and cassiterite has dropped by 90%, and the living and working conditions of the miners have deteriorated further.

“We feel forsaken. People say that this law will help our country and stop the war, but we don’t see any difference. In fact, things are even worse today: there is still insecurity and we have no income,” says Safari, a 50-year-old miner in Nyabibwe.

"Cleaning"

In the last two years, numerous projects to “clean” the Congolese mining sector and guarantee the origin of the minerals have been launched by the United Nations, the United States of America and the International Conference for the Great Lakes Region. But these efforts were stumped by the M23 rebellion.

The rebellion takes its name from a 2009 peace accord which the rebels say was violated by Kinshasa. They were joined by hundreds of defectors from the Congolese army who walked out into the bush in support of fugitive Congolese General Bosco Ntaganda, wanted by the International Criminal Court on war crimes charges.

In Katanga, a province spared by the conflicts in southern DRC, a system of traceability has been put in place, allowing the trade of minerals to continue uninterrupted. However, working conditions in the Katanga mines have not improved.

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