Policy recommendations

  • The European Union should allow ACP countries to maintain their sovereignty and policy space in relation to the appropriate use of their own natural resources. They should be able to use investment regulations, tariff barriers and export restrictions to promote equitable, local and sustainable economic development.
  • The European Commission through its development policy should stimulate resource-rich developing countries to implement their own industrial policies, to protect their infant industries by using legitimate barriers to trade, and by introducing environmental measures. This should allow resource-rich developing countries to move up the value chain, so that the added value to (semi) processed products will remain in the country of origin and would thus stimulate economic development.
  • Within its development budget the EU should allocate sufficient resources to the building of energy and environmental infrastructure to enable developing countries to stimulate economic development.
  • The EU should use its political and economic power to set clear rules in relation to the extraction of raw materials. Like suggested in the February 2011 RMI update an EU code of conduct for EU companies operating in third countries should be developed and measures should be taken to enforce such a code of conduct.
  • In order to provide for more transparency in the supply chain and to minimize the role of European companies in fuelling conflicts over resources, the EU should implement Country by Country reporting, following the US example of the Dodd Frank Act.
  • Within the EPA negotiations the EU should be more flexible as suggested in the RMI update and make sure developing countries can demonstrate the use of export taxes as a policy tool and therefore keep using them.
  • In all policy initiatives and actions elaborated on the basis of the strategy laid down in the Raw Materials Initiative that affect developing countries, DG Development should be closely involved, and ACP partner countries and civil society organisations should be consulted.

 

 

Case: Raw Materials Initiative

11-01-2012 Concerns over minerals from the Democratic Republic of the Congo

In the Democratic Republic of the Congo (DRC), some of the critical mineral raw materials that are essential to EU markets are mined. These critical minerals are used for i.e. electronic devices. MEPs Dan Jørgensen (S&D) and Syed Kamall (ECR) have expressed their concerns on the mining of these minerals in the DRC.

Abusive armed groups mine and trade these minerals illegally, and with the money they make, they purchase weapons. The conflict is thus indirectly maintained by the trade in critical minerals, also by EU companies, and holds back the development in the DRC. Jørgensen and Kamall both asked the Commission questions on how the Commission will face this problem. Whereas Jørgensen emphasizes the need for companies to meet the OECD due diligence standards when operating in conflict and high-risk areas, Kamall points out the role of the Commission in monitoring trade, awareness-raising and improving the welfare of the people in conflict-areas.

Fair Politics welcomes the questions from MEP Jørgensen and MEP Kamall. They clearly point out that trade in conflict minerals from the DRC is an obstacle for the development in the country and hence is incoherent with the EUs development objective and the Millennium Development Goals. To tackle the problem of conflict minerals, also more transparency is needed. The European Commission has recently made an proposal for country-by-country reporting: all European Union-listed or large unlisted oil, gas, mining and logging companies would have to disclose their payments to all governments of the countries where they do business. If this proposal gets adopted, it will be an important step towards transparency.

Another concern that Fair Politics has with regard to raw materials is that besides the problems of conflict and the lack of transparency, also trade as such should be taken into account. The current EU trade policy mainly seeks to secure Europes access to raw materials in third countries without leaving developing countries much space to protect their raw material resources and infant industries. This however is essential for sustainable development and economic growth. For instance, more trade barriers would mean less export, which would give developing countries a chance to process their raw materials and add value to the products that are eventually exported. Besides more taxes could be generated if tariff barriers are in place. If the economy and industries can be further developed, this could also contribute to peace.

As the questions seek for more coherent policies for development, both MEP Jørgensen and MEP Kamall are rewarded one point in our monitor system in the race for the Politician of the Year Award.

Monitor fair: S&D, ECR


Parliamentary questions
14 October 2011 E-009271/2011

Question for written answer
to the Commission
Rule 117
Dan Jørgensen (S&D)

Subject: Raw materials from the Democratic Republic of the Congo

The Commissions recent report entitled Tackling the Challenges in Commodity Markets and on Raw Materials (COM(2011)0025) notes that a large share of worldwide production of raw materials comes from only a handful of countries, of which the Democratic Republic of the Congo (DRC) is one.
Following on from the report, a Commission Memo (10/263) lists tantalum originating from the DRC as one of the fourteen critical mineral raw materials essential to EU markets, and predicts a 39 % increase in demand for tantalum from EU markets between 2006 and 2030.
Abusive armed groups, including the Congolese national army, make millions of dollars per year by illegally controlling and taxing the minerals trade in eastern DRC.
What provision is the Commission making to ensure that EU raw materials diplomacy requires EU companies which use critical mineral raw materials originating from conflict and high-risk areas, such as eastern DRC, to meet OECD due diligence standards?


Parliamentary questions
21 October 2011 E-009513/2011

Question for written answer
to the Commission
Rule 117
Syed Kamall (ECR)

Subject: Trade in minerals from the Democratic Republic of Congo

I have been contacted by a constituent who is concerned about the mining of minerals in the Democratic Republic of Congo (DRC). My constituent believes that the bulk of the minerals used in mobile phones and other electronic devices come from illegal mines in the eastern part of that war-torn country. She alleges that the income generated from the sale of these minerals, which include cassiterite, wolframite and coltan, is used by rebel groups to purchase weapons. She also claims that thousands of women in the DRC have been raped and killed in the power struggle over the mineral-rich land.
My constituent alleges that EU Member State ministers have opposed an initiative which would require publicly traded companies that have contracts in the DRC to report the amounts they pay to the government for access to minerals from the conflict zones.
My constituent is also concerned that the issue of blood minerals has not received as much media coverage as that of blood diamonds, with the result that many consumers are not aware that their mobile phone or laptop may contain minerals which were mined using forced labour.
Could the Commission confirm:
1. whether it is aware of the allegations made by my constituent?
2. whether it is monitoring the trade in minerals from the DRC?
3. what action it is currently taking to improve the welfare of the people who have been affected by the conflict in the areas in which the mineral mines are located?
4. what it is doing to raise awareness of the issue of blood minerals among users of computers and mobile phones?
5. what pressure it is putting on manufacturers of mobile phones and other electronic devices which use these minerals to ensure that they only contain components which have not been produced using minerals obtained by forced labour in illegal mines in the DRC?