Author: Neil Sorensen

For Armel Nganzi, his work supporting the creation of a responsible minerals trade in the Democratic Republic of Congo (DRC) has always been more than just a job. “When I think of minerals, I think of a dream. A dream of someone who wants to get out of poverty… a dream of a country that wants to develop. So when I picture a mineral, I picture a dream of the future.”

There is an estimated $24 trillion in untapped mineral resources in the DRC. Competition for resources such as gold, tin, tantalum and tungsten has helped fuel two decades of conflict that has claimed millions of lives. Yet, these minerals also serve as a critical source of income for millions of Congolese who dream of a better life.

This film tells the story of how USAID and its local and international partners are developing a commercially viable, conflict-free supply chain for artisanal minerals from the DRC. To achieve this vision, USAID supports the formalization of access to land and subsurface mineral resources.

Using a market-based approach to break the link between conflict and the gold trade, the film follows the first ever shipment of certified conflict-free gold from a mine in South Kivu to the heart of Times Square in New York City, highlighting those working along the way to transform the minerals trade.

Additional Resources:

• Learn more here about the USAID funded Capacity Building for Responsible Minerals Trade Project, which helped establish and scale up responsible mineral supply chains in the DRC.
• Learn more here about the first shipment of conflict-free gold from the DRC to Zales and Kay Jewelers, two of the U.S.’ largest retailers.
• Click here to learn more about USAID’s Responsible Minerals Trade (RMT) Program.
• Check out “The Journey of Gold” a unique Virtual Reality experience that takes you deep inside Nyamurhale, an artisanal gold mine in the Democratic Republic of the Congo (DRC). Experience how artisanal gold is produced and meet the miners who are working to produce legal, safe, and conflict-free gold.
• Learn more here about how you can support responsible sourcing.

Gold from Conflict-Free Mines in Congo Sold in US Jewelry Stores

By Juliane Kippenberg Associate Director, Children’s Rights Division, Jo Becker Advocacy Director, Children’s Rights Division

People in the United States will now be able to buy jewelry made with “conflict-free” gold from Zales and Kay Jewelers, two of the nation’s largest jewelry retailers.

The RAGS (Responsible Artisanal Gold Solutions) Forum announced last week the first “conflict-free” supply chain from an artisanal mine in the Democratic Republic of Congo to US retailers. This is good news – even though the amount of gold coming this way may be small.

In the past, many mainstream jewelers have understandably avoided “conflict minerals” such as gold from the Congo because of its links with violent and abusive armed groups and elements of Congolese security forces. The RAGS initiative, supported by USAID and civil society groups, worked with a local mine in South Kivu to improve working conditions, address human rights issues, and ensure full traceability from the mine site to the retailer. The gold has been manufactured into earrings now sold by Signet Jewelers, the world’s largest diamond retailer and the parent company of Zales and Kay Jewelers.

By Terah U. DeJong, Country Director, Côte d’Ivoire, Property Rights and Artisanal Diamond Development (PRADD II) Project

What is formalization in the artisanal and small-scale mining (ASM) sector? Reflections from the first international gathering dedicated to ASM in over a decade.

Formalization was a key buzzword at the International Conference on Artisanal and Small-Scale Mining and Quarrying (ASM18) held Sep 11-13 in Livingstone, Zambia. But what does formalization really mean in practice?

In my remarks at the event, I tried to unpack the concept based on my experience running USAID’s Property Rights and Artisanal Diamond Development (PRADD II) project in Côte d’Ivoire over the last five years, offering the following definition:

ASM formalization is the process of collaborative rule-setting and rule enforcement across supply chain actors, governments and communities with the aim of enabling ASM to contribute to local and national peace and prosperity, both now and for future generations.

By thinking of formalization in this way, we avoid just counting licenses and miner cards, and instead look at the degree to which governments, communities, miners and buyers have a productive and collaborative relationship. This relationship must be built on a shared understanding of the legitimate role of ASM in national and local economies, and a shared strategy to regulate and promote it.

Here are 5 ways in which PRADD II tries to apply this in practice.

1. First, we emphasize the need to develop a deep and accurate understanding of ASM supply chains – who are the miners, who are the buyers, what are differences between them, what power dynamics mark their relationships, how are they socially embedded, who are their leaders… the list goes on. Learning must be ongoing, analytical and participatory.
2. Second, PRADD II sees collaborative and multi-level policy-making as key. By this we mean an inclusive process to define the vision, objectives and systems that will manage and promote ASM. The resulting policy must reflect the compromises and consensus about tough issues like licensing categories and revenue-sharing. Then, and only then, can resulting laws and regulations be realistic.
3. Third, PRADD II fosters structured dialogue between all actors to build trust, share information and make necessary adjustments to rules and their enforcement. It is surprising how often actors do not talk to each other and, thus, creating spaces for dialogue is key. And it’s important to recognize that it isn’t just governments who make the rules – communities make rules, buyer networks make rules, diggers make rules. Dialogue is the only way to ensure that these rules are in harmony and effectively implemented.
4. Fourth, PRADD II works on awareness-raising and norm-setting, so that actors have shared knowledge and a shared understanding when it comes to ASM and common challenges. Increased knowledge is beneficial not just to help actors comply with the laws, but also because it creates a shared “language.” For example, when miners and buyers both understand the principles of diamond valuation, conflict is reduced.
5. Fifth, PRADD II focuses on incentives – both positive and negative – to make sure everyone remains involved and committed. In Côte d’Ivoire, communities have a big incentive – a 12% tax that they take on the value of the first sale – to record production and ensure the diamonds pass through the mining cooperatives. PRADD II introduced technical assistance measures as incentives to miners. Of course, incentives must be carrots and sticks. The project encouraged authorities and communities to enforce their rules, fairly and equitably, as without consequences there is little reason to comply.

ASM18 was a great forum to share PRADD II experiences and learn from the hundreds of others working on the “formalization agenda”. With a clear vision and clear strategies to achieve formalization, the decade ahead bodes well for ASM, increasing the chances that it will truly live up to its development potential.

Click here to watch the videos for the PRADD II Program

Since making peace with the FARC in 2016, the Colombian government has pushed rural reform to the forefront of national dialogue by creating a new land administration authority, the National Land Agency, mandated to spearhead land formalization campaigns. Six out of every 10 parcels in Colombia are informally owned. The USAID-funded Ovejas pilot represents one of the government’s highest hopes for achieving the formalization targets set out in the Havana peace accord, which call for formalization of seven million hectares of land over the next decade.

The Ovejas pilot alleviates major time and cost burdens that prevent most rural landholders from seeking a valid title. It also gives the government an efficient tool to organize rural areas and demonstrate to the wider population that the government is behind them. The price tag: an estimated US$1.5 million, or 50% of what it would cost the government to do the same work using the old model. When the pilot wraps up later this year, it will be the government’s job to replicate it in other municipalities.

The following is an excerpt from an article posted on Thomson Reuters Foundation PLACE. Follow the link for the full article. 

By Lukasz Czerwinski, Land Tenure Specialist, Landesa

There is no question that land is a fundamental asset for food and beverage companies growing and buying agricultural commodities in Latin America, Africa and Southeast Asia. At the same time, investments in land can threaten the rights of local populations, creating significant risk for local communities and companies and investors alike.

Consider a hypothetical investment: a multinational company has leased 10,000 hectares of land and a production facility from the government to grow and process tea. As part of the agreement, the company committed to establishing an outgrower scheme by purchasing tea directly from smallholder farmers living in the surrounding villages and investing additional capital in equipment, technology and local infrastructure.