Tag Archives: Congo uranium

The Global Gold Rush and Plunder of Congo

Since March 2020, record amounts of gold dug from artisanal mines in the conflict zones of Eastern Congo have been smuggled across the porous border with Uganda, where it is being stamped with fake certifications before being shipped to international markets in Dubai, Mumbai and Antwerp, according to Ugandan security officials, smugglers and traders. Much of the gold is reaching these overseas markets using cargo planes returning from Uganda after delivering Covid-19 aid and other essential supplies, according to plane manifests seen by The Wall Street Journal.

The trade in conflict gold isn’t new, but it has perhaps never been more lucrative: Gold prices at illegal and unregulated Congolese mines, where supply chains have been disrupted by coronavirus shutdowns and renewed violence between militant groups, have dropped over 40% since April 2020, according to local traders, while on global markets, prices are up by almost a third…Activists and U.N. investigators have long accused Uganda and several of Congo’s neighbors of being complicit in the plunder of Congolese gold…The calls to end the illicit trade grew louder last year after Uganda’s gold exports overtook coffee to become the leading export commodity for the first time—despite the country producing very little bullion.

U.N. investigators estimate that each month between 2 tons and 3 tons of Congo’s conflict gold—with a market value of over $100 million—is crossing the Ugandan frontier, passing border crossings patrolled by heavily armed guards, with metal fencing and razor wire erected to reduce the flow of people due to coronavirus fears…

Smugglers and police say the gold is secreted in trucks that are allowed to bypass coronavirus restrictions to deliver “essential goods” from fuel to food supplies. The yellow bars, weighing between 5 to 20 kilograms, are stuffed underneath truck cabins, inside battery compartments and emptied gasoline tankers. Once inside Uganda, the truckers sell the bars to traders who purchase forged documents in Kampala that disguise the gold’s origin.

The scramble is fueling violence in the eastern Congolese province of Ituri…Fresh spasms of violence have left more than 1,300 civilians dead since March 2020, in what the U.N. says may amount to war crimes. Some six million people are displaced. Armed groups are carrying out predatory raids on mines in search of gold.

In the meantime on Wall Street, on July 24, 2020, gold futures were priced at $1,897.50 a troy ounce eclipsing their August 2011 peak of $1,891.90. The coronavirus has ignited a global gold rush, with physical traders around the world trying to get their hands on more metal and individuals around the world ordering bars and coins.

Excerpts from Nicholas Bariyo and Joe Parkinson, Under Cover of Coronavirus Lockdown, a Booming Trade in Conflict Gold, WSJ, July 9, 2020, Gold Climbs to a High, Topping Its 2011 Record, WSJ, July 24, 2020

Congo Uranium and the CIA

America’s interest in the Congo—and, specifically, in the resource-rich south-eastern province of Katanga—was one of the best-kept secrets of the second world war. Beneath its verdant soil lay a prize that the Americans believed held the key to victory…The Germans, they feared, might be after it, too: uranium. Congo was by far the richest source of it in the world. As the architects of America’s nuclear programme (the “Manhattan Project”) knew, uranium was the atom bomb’s essential ingredient. But almost everybody else was kept entirely in the dark, including the spies sent to Africa to find out if the heavy metal was being smuggled out of the Congo into Nazi Germany.

The men—and one woman—charged with protecting America’s monopoly of Congolese uranium worked for the Office of Strategic Services (OSS), an organisation set up by President Franklin Roosevelt as the wartime intelligence agency, and the precursor to what in peacetime became the Central Intelligence Agency (CIA).

Shortly after the war ended the focus of America’s nuclear rivalry shifted. In 1949 the Soviet Union tested its own nuclear bomb, launching a new era for America, Congo and the rest of the African continent. Huge sums were pumped into Katanga to facilitate uranium export and to prop up Belgian defences. After Congo became independent in 1960 the CIA lingered there for decades to keep uranium and, later, other minerals out of Russian hands. Much of Congo’s tragic late-20th-century history is attributable to these machinations…. A little-known story, but one with a terribly familiar ring—and ultimately devastating consequences.

Excerpt from Congo’s uranium: Rich pickings, Economist, Aug. 27, 2016 (Book review of
Spies in the Congo: America’s Atomic Mission in World War II. By Susan Williams, 2017)

Fleas in the Barn: a Joseph Kabila et al. story

Inongo is the provincial capital of the Mai-Ndombe Province, a 13-million-hectare area located some 650 km northeast of Kinshasa, Demoractic Republic of Conglo, DRC.

The forests of Mai-Ndombe… are rich in rare and precious woods (red wood, black wood, blue wood, tola, kambala, lifake, among others). It is also home to about 7,500 bonobos, an endangered primate…The forests constitute a vital platform providing livelihoods for some 73,000 indigenous individuals, mostly Batwa (Pygmies), who live here alongside the province’s 1.8 million population, many of whom with no secure land rights.  Recent studies also have revealed that the province – and indeed the forests – boasts significant reserves of diamond of precious metals nickel, copper, oil and coal, and vast quantities of uranium lying deep inside the Lake Mai-Ndombe.

In an effort to save these precious forests, the World Bank in 2016 approved DRC’s REDD+ programmes aimed at reducing greenhouse gas emissions and fight forest’s deforestation and degradation, which it would fund to the tune of 90 million dollars annually.  The projects, which are currently estimated at 20, have since transformed the Mai-Ndombe Province into a testing ground for international climate schemes. And as part of the projects, indigenous and other local people caring for the forests and depending on them for their livelihoods were supposed to be rewarded for their efforts.

However, Marine Gauthier, a Paris-based expert who authored a report on the sorry state of the Mai-Ndombe forest, seems to have found serious flaws in these ambitious programmes.  The report, released a few days before the International Day of Forests on March 21, 2018 by the Rights and Resources’ Initiative (RRI), cited weak recognition of communities’ land rights, and recommended that key prerequisites should be addressed before any other REDD+ funds are invested.  In the interim, it said, REDD+ investments should be put on hold…..

Under the DRC’s 2014 Forest Code, indigenous people and local communities have the legal right to own forest covering an area of up to 50,000 hectares.Thirteen communities in the territories of Mushie and Bolobo in the Mai-Ndombe province have since asked for formal title of a total of 65,308 hectares of land, reports said, adding that only 300 hectares have been legally recognised for each community – a total of only 3,900 hectares.

Pretoria-based Donnenfeld added: “My guess is that the government is more interested in selling these resources to multinationals than it in seeing it benefit the community….Gauthier pointed out that…“REDD+ opens the door to more land-grabbing by external stakeholders appealed…. Local communities’ land rights should be recognised through existing legal possibilities such as local community forest concessions so that they can keep protecting the forest, hence achieving REDD+ objectives.”

Excerpts from DR Congo’s Mai-Ndombe Forest ‘Savaged’ As Landless Communities Struggle,  IPS, Apr. 17, 2018