ITSCI update on our work in North Kivu, DRC

The security situation in North Kivu is not uniform across the whole province, nor is it representative of the situation in other provinces across the DRC where ITSCI is working. Understanding this variation is crucial for anyone assessing risks from the region, as it highlights the need for a nuanced approach aiming to avoid general de-risking from sourcing minerals in the Great Lakes Region.

ITSCI in Masisi territory

In North Kivu Province, ITSCI operates in three territories: Lubero, Masisi, and Walikale (see maps in the Annexe). Since our update in May 2024[1], ITSCI activities remain suspended in Masisi territory [2], with large parts of the territory still under control by M23, including the trading towns Rubaya and Ngungu. Despite a ceasefire agreement currently in force between the Congolese National Army, FARDC, and the M23, sporadic fighting were recently reported in some Masisi frontlines between M23 and local non-state armed groups known as ‘Wazalendo’ or ‘Volunteers for the defence of the homeland’.

Areas west of Masisi territory and close to the border with Walikale territory, including the trading towns Masisi Centre and Nyabiondo, have to date remained under state control. This enables an ITSCI Field Officer to be present in that area and to continue to monitor the situation, including security at and around mine sites, as well as to collect and report information.

While the presence of non-state armed group Alliance of Patriots for a Free and Sovereign Congo (APCLS) is reported in those state-controlled areas within Masisi territory, there is currently no report of APCLS interfering in mining activities. This is the result of engagements led by ITSCI and other local stakeholders earlier this year to sensitise leaders of the Wazalendo, including APCLS, around traceability and due diligence procedures, after which they committed to not interfere in mining activities or collect illegal taxes on minerals.

The situation in North Kivu is complex and its portrayal can often miss the nuances of local history, politics, ethnic tensions, and cultural differences that shape the conflict. Understanding the region requires an appreciation of how these factors interact. Feedback from local civil society and other credible sources indicate that the situation in M23 controlled areas may be calmer than perceived and point out that addressing the current situation in Masisi requires a holistic approach that tackles underlying structural issues such as poor governance and weak institutions.[3]

 

Risks related to mineral fraud from Masisi territory

Despite the suspension of tagging at all sites in Masisi territory, there have been reports of artisanal miners continuing their activities at ITSCI mine sites in Masisi territory, including reported cases of mineral fraud. This is also the case on non-ITSCI ex-PE4731, where mining activities are reportedly ongoing. We continue to transparently document these risks via our incident reporting mechanism, and to share that information with ITSCI members and local stakeholders, including the government and state services.

For instance, we documented 18 incidents on the continuation of mining activities during the 2023 and 2024 suspensions of tagging in Masisi territory, the transport of untagged minerals and/or cases of mineral fraud. This includes records of 36 tonnes of minerals seized by North Kivu authorities, also reported by the Group of Experts on the Democratic Republic of the Congo (GoE), and a further 40 tonnes of minerals stored at mine sites in early 2024.[4]^,[5]

The current situation results in risks for ITSCI monitored sites in neighbouring areas, in particular other North Kivu territories, South Kivu Province, and Rwanda. Thus far, ITSCI monitored mine sites in Rwanda have shown no unprecedented changes in production levels. Yet, we acknowledge risks of cross-border fraud and continue to very closely monitor mining activities in those areas, and report plausibility risks, while implementing increased controls with mining companies and local exporters. A follow up statement will provide insights into our existing tag control mechanisms as well as new actions that ITSCI has introduced.

However, reports from our own observations as well as other local sources indicate that mining activities and therefore production levels in 3T mine sites in Masisi territory have generally decreased. Several factors explain this trend: there are currently no legal ways to trade minerals as state agents responsible for mineral tagging and ITSCI have suspended activities, and it is reported that many miners and traders have left the area.

 

Ongoing mining activities and ITSCI monitoring in Walikale territory

In Walikale territory, which is neighbouring both Masisi and Lubero territories, the situation is currently calm. Mining activities are ongoing normally, including mineral tagging by state services, with no unexpected fluctuation in production levels. The ITSCI field team in Walikale territory continues to actively support local stakeholders, by facilitating multi-stakeholder meetings and holding capacity building sessions for state agents and other stakeholders to raise their awareness on multiple topics including due diligence, traceability procedures and risk management.

Fragile situation in Lubero territory

In the past month, despite the ceasefire, advancements of non-state armed groups, including ADF-Nalu and the M23, were reported in Lubero Territory, taking control of certain localities. While there have been thus far no reports of direct interference in 3T mineral trade or control of ITSCI monitored mine sites, the presence of those armed groups led to local population, including artisanal miners, fleeing the area and therefore resulted in strong decrease in 3T mining activities.

Other minerals such as gold are more prominent than 3Ts in Lubero Territory and 3T production has always been marginal compared to neighbouring territories. Therefore, the current situation in Lubero has a negligible impact on 3T mineral supply chains in North Kivu and the DRC overall. ITSCI continues to have an on the ground presence in Lubero and to monitor the situation closely and to report incidents when they occur.

 

Other DRC provinces remain unaffected by the situation in Masisi

Aside from North and South Kivu Provinces mentioned above, ITSCI is also implemented in other provinces of the DRC including Maniema, Haut-Katanga, Tanganyika, Haut-Lomami, and Lualaba. Mining activities in those provinces are not impacted by the current conflict in Masisi territory. Tagging of minerals by state services, ongoing monitoring by ITSCI field team, risk reporting and discussions at local and provincial multi-stakeholder committees are taking place normally.

ITSCI does not support any generalised disengagement from the DRC or the Great Lakes Region due to the current suspension of ITSCI tagging or the armed conflict in Masisi territory. Such de-risking approach unfortunately results in stigmatising the ASM sector in CAHRA and will cause unnecessary harm for local mining communities.

 

The role of ITSCI

Suspension of ITSCI activities is not a process specific to North Kivu or the current situation. As a facilitation initiative, we have for the past 15 years worked on the implementation of the OECD Guidance in Conflict-Affected and High-Risk Areas, achieved through cooperative engagement with local, national and international stakeholder, and follow clear guidelines on the risks of armed group interference. Suspending ITSCI tagging may be necessary when risks cannot be mitigated and disengagement is the only appropriate action, in alignment with the recommendations of the OECD Guidance. Such process is coordinated with local governments responsible for implementing traceability.

We continue to engage with local stakeholders including mining operators and state services in North Kivu, to closely monitor the situation and to seek measures and solutions for mining activities within state-controlled areas in order to avoid disengagement from the area which is detrimental to local communities. We aim to increase emphasis on the need for company due diligence and suggested measures when communicating our first-hand, up-to-date information on risks to ITSCI members. ITSCI also continues to support companies with their due diligence, providing regular updates and guidance on the situation in North Kivu, for instance through direct engagement with ITSCI smelter members and training sessions of in-country exporters on risk management in Rwanda and the DRC. We will continue targeted support in the future.

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About ITSCI

ITSCI supports companies with their due diligence responsibilities in full alignment with the OECD Guidance recommendations by making available unique and credible first-hand information, supporting businesses to make appropriate and effective decisions. Due diligence is a dynamic, ongoing process, which improves over time. Our procedures are clear about the challenges involved in sourcing minerals from artisanal and small-scale miners (ASM) in the African Great Lakes region. In monthly reports that all full ITSCI members receive, there is detailed commentary on activities and updates on production, security and political developments or other issues relevant to the ASM supply chains under the scope of the programme.[6] We strongly believe that ongoing meaningful engagement in CAHRA is vital to avoid de-risking which can negatively impact local communities

Additional resources for more information

• Read our ITSCI Annual reports including updates on continuous improvements. The 2023 Annual report is now published.
• Review ITSCI whistleblowing policy and contact information
• Contact us at [email protected].
• For media enquiries, contact [email protected]

References

[1] https://www.itsci.org/2024/05/08/suspension-of-itsci-activities-in-masisi-territory-following-the-presence-of-non-state-armed-group-m23-in-rubaya-town/

[2] As a reminder, activities were suspended twice in 2023 as security issues required: Suspension in March 2023, resumption in May 2023, suspension in December 2023, resumption in April 2024.

[3] Michael Rubin (2024) M23 isn’t the problem, poor governance in the Democratic Republic of Congo is | American Enterprise Institute. Available at: https://www.aei.org/op-eds/m23-isnt-the-problem-poor-governance-in-the-democratic-republic-of-congo-is/

[4] UN Group of Experts (2024) Final report of the Group of Experts on the Democratic Republic of the Congo, https://documents.un.org/doc/undoc/gen/n24/118/80/pdf/n2411880.pdf

[5] This list is not exhaustive. ITSCI opened further incident reports indicating volumes of untagged minerals mined despite the suspension of activities and later identified and documented by state services during joint assessment visits with ITSCI.

[6] Kumi (2023) OECD Alignment Assessment of ITSCI, https://www.itsci.org/wp-content/uploads/2023/06/ITSCI-Alignment-Assessment-report.pdf . Page 13