Conflict Minerals Rule Fails to Curb Congo Violence: GAO Report

A GAO report reveals that a U.S. SEC rule on conflict minerals disclosure has not mitigated violence in the Democratic Republic of Congo. Instead, violence persists in the mining regions. The report also points out the rule's ineffectiveness in neighboring countries, with ongoing challenges in tracing minerals.

A U.S. congressional watchdog report indicates that a 2012 SEC rule requiring companies to disclose their use of specific conflict minerals has failed to reduce violence in the Democratic Republic of Congo (DRC). Armed groups are still vying for control over eastern DRC gold mines, according to the U.S. Government Accountability Office (GAO).

The GAO added that the rule has had little to no impact in neighboring nations and has been linked to increased violence, especially near informal small-scale gold mining sites. The rule encompasses minerals such as tantalum, tin, tungsten, and gold, with gold being notably hard to trace and easy to smuggle; the DRC is the largest producer of tantalum globally.

Disagreements arise as the SEC contested parts of the GAO's findings and methodology. However, amendments from the GAO did not significantly alter the overall conclusions. Last year, the GAO mentioned some U.S. firms purchasing resources from the DRC were not adhering to disclosure standards, with evidence of local armed groups profiting from mining activities.

(With inputs from agencies.)