DR Congo's $24 trillion fortune.DRC DRC Democratic Republic of Congo
DRC Down (Stage) Right Center
DRC Director(ate) of Reserve Components
DRC Disability Rights Commission (United Kingdom) ) is estimated to be some $24 trillion--equivalent to the GDP GDP (guanosine diphosphate): see guanine. of Europe and the US combined, but this vast region, larger than the whole of western Europe Western Europe
The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , remains staggeringly poor and underdeveloped. The country's mineral wealth is also the principal cause of the world's worst conflict since World War II. A peaceful DR Congo could transform Africa almost overnight, but is there a way out? M J Morgan reports.
The conflict in Eastern Congo remains as misunderstood, ignored and all but as forgotten as ever. The worst, in terms of loss of life, as well as the longest war of the 20th century, it has been waged for some 20 years and has cost, in the last decade alone, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the International Rescue Committee, around 4.5m lives (roughly the size of Denmark's population).
This death toll amounts to around 45,000 fatalities a month, making it equal to the most pessimistic estimates of the loss of life caused by the invasion and occupation of Iraq, not too mention substantially more sustained. This represents a mortality rate 85% higher than for the rest of sub-Saharan Africa (SSA (Serial Storage Architecture) A fault tolerant peripheral interface from IBM that transfers data at 80 and 160 Mbytes/sec. SSA uses SCSI commands, allowing existing software to drive SSA peripherals, which are typically disk drives. ) as a whole. However, a search on Google reveals more than 120,000 articles about Iraq yet less than 25,000 about Congo.
Extraordinary Mineral Wealth
The latest violence is an expression of the greed to exploit DR Congo's extraordinary wealth. Congo's coltan Noun 1. coltan - a valuable black mineral combining niobite and tantalite; used in cell phones and computer chips
mineral - solid homogeneous inorganic substances occurring in nature having a definite chemical composition is often identified as a major cause of the fighting. According to official figures, the country produces only 1% of the world's coltan, the colloquial col·lo·qui·al
1. Characteristic of or appropriate to the spoken language or to writing that seeks the effect of speech; informal.
2. Relating to conversation; conversational. name for the chemically similar columbite-tantalite and niobium niobium (nīō`bēəm), metallic chemical element; symbol Nb; at. no. 41; at. wt. 92.9064; m.p. about 2,468°C;; b.p. 4,742°C;; sp. gr. 8.57 at 20°C;; valence +2, +3, +4, or +5. ore, used to manufacture capacitors and the country's most profitable export, but the actual share of global coltan output may be much higher. DR Congo possesses some 80% of the world's coltan ore reserves. The rewards for whoever ultimately controls the reserves are unimaginably vast.
Additionally, the DR Congo produces significant quantities of diamonds, gold, cassiterite cassiterite (kəsĭt`ərīt), heavy, brown-to-black mineral, tin oxide, SnO2, crystallizing in the tetragonal system. , copper, cobalt (of which it has the world's largest reserves, although the trade is largely controlled by Zimbabwe), oil, tin, zinc, gold and coffee. The country has large reserves of uranium: it was Congolese uranium used for the Manhattan Project Manhattan Project, the wartime effort to design and build the first nuclear weapons (atomic bombs). With the discovery of fission in 1939, it became clear to scientists that certain radioactive materials could be used to make a bomb of unprecented power. U.S. that produced the world's first atomic bombs dropped on Japan. The vast country also has more than half of sub-Saharan Africa's timber stocks.
The country's principle mining concern is La Generale des Carrieres et des Mines (Gecamines) and its most valuable export is copper. Due to the incessant and savage fighting over recent decades, copper output has fallen from over 440,000t in 1989 to around 16,000t in 2003. In 2008, copper exports rebounded to around 365,000t.
Vast copper reserves, proven and probable, exist in the recently more peaceful Katanga province For other uses, see Katanga (disambiguation).
Katanga is the southern province of the Democratic Republic of the Congo, due under the new constitution to be replaced by four smaller provinces by February 2009. . But 45 of the 75 copper and cobalt treatment plants have closed in the province. Production has fallen from forecast levels as the world price for the metal fell, and mines closed. Copper ended the year around $3,000/t, down from a high of around $9,000/t.
Cobalt production for 2009 is estimated at 32,000t, half that forecast before prices collapsed as demand for electronic goods evaporates. Cobalt cathode ended the year around $16.50/lb down from a March high of $52.50/lb.
Commodities giant Glencore, dominant in Congo, has announced a $265m emergency loan, in the form of convertible debt, to Katanga Mining. The company, the world's largest producer of cobalt and Africa's largest producer of copper, has seen its shares lose 98% of their value on plummeting prices of both minerals and unless the company can raise a further capital this month, the bullish Glencore will assume a controlling stake.
Rival Camec, owner of the world's reputed biggest single cobalt mine, whose shares fell 90% in 2008, announced last November the mothballing Mothballing
The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working order so that production may be restored quickly if needed. of its copper and cobalt operations in DR Congo, citing the collapse in prices and faltering Chinese demand. The Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
- Chinese Soviet Republic
- Provisional Government of the Republic of China
- Reformed Government of the Republic of China
In return, China will receive some 10m tonnes of copper and 400,000 tonnes of cobalt. The Kinshasa government has welcomed the deal, saying that it comes with far fewer strings than previous aid deals, but critics argue that China will reap a lion's share of the investment dividends.
It has been estimated that the mineral reserves of DR Congo are worth some $24 trillion--equivalent to the GDP of Europe and the US combined.
The country has just completed a long-awaited review of 61 mining concessions, many of which had been negotiated in the highly unstable period 1996-2006.
This raises the prospect of an increased share of mineral profits for the impoverished country. No fewer than 57 of the companies involved have accepted the principle of renegotiation of their contracts with the current government and diluting their average 83% share of profits to something approaching a 50/50 split. The government remains optimistic the remaining companies will shortly follow suit.
Victor Kasongo, Congo's deputy minister of mines, has said that such an arrangement was "based on the standard international practice of countries such as South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and Zambia" although the September announcement of the privatisation of state miners such as Gecamines (copper) and Okimo (gold) may well be kept on hold for the time being.
In the short term, duties on exported minerals may be lowered to encourage falling exports. The review took place in response to a UN report in 2000 that found that some companies had paid bribes to secure contracts from the government or local warlords Warlords may refer to:
- The plural of Warlord, a name for a figure who has military authority but not legal authority over a subnational region.
- Warlords (arcade game) is also an arcade video game.
commence, lead off, start, begin - set in motion, cause to start; "The U.S. would increase state revenues from around $25m to some $184m.
In 2002, the DR Congo signed up to the Extractive Industries Transparency Initiative An Extractive Industries Transparency Initiative (or EITI) announced by UK Prime Minister Tony Blair at the World Summit on Sustainable Development in Johannesburg, September 2002, expressed as its aim to increase transparency over payments by companies to governments and to , which requires all revenues and payments by mining companies to be made public, assuaging at least some of the concerns about state corruption. This move is credited with attracting some $2.1bn in capital investment in 2006 and 2007.
The DR Congo posted GDP growth of around 6% in 2007 but the lack of infrastructure remains a critical problem and further growth appears difficult even in the event of a significant reduction in violence.
In a televised address, the DR Congo's President Kabila said: "Our objectives for 2009 will be and remain those given to the government when it was formed. First and foremost is the consolidation of peace and security, in particular in the east of the country." But until significant attention abroad is paid to the plight of the people of DR Congo there is little chance of anything other than a continuation to the world's most brutal war since 1945.
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|Title Annotation:||Mining in Africa; Democratic Republic of Congo|
|Comment:||DR Congo's $24 trillion fortune.(Mining in Africa)(Democratic Republic of Congo )|
|Author:||Morgan, M J|
|Date:||Feb 1, 2009|
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