III. EXECUTIVE SUMMARY (RÉSUMÉ EXÉCUTIF) 1. Introduction and methodology The audit is performed in accordancee with the National Congolese Certification standard CTC (Certified Trading Chains), from which a number of criteria have been inserted in the Regional Certification Mechanism (RCM) designed by the ICGLR. The audit relies on the following document: Manuel de Certification des Minerais de la Filière Stannifère en RD Congo Principes, Lignes Directrices et Standards Version 0 du 22 février 2011. The principles that have guided the audit also follow the ISO norm 19011:2002 and the audit guidelines produced by Dr. Nellie Mutemeri 21. It also refers to the auditor guidelines produced by the CTC project 22, which describe the certification process step by step. The results of the audit are based on interviews with key stakeholders of the artisanal mining sector in Lubumbashi, Haut-Katanga Province, and Busanga, Lualaba Province, on the collection of documents in the field, on analyses of documents related to the artisanal mining in DRC, and on exchanges with the delegation members having an extended knowledge of the specific issues of the sector. This report describes the results for the 21 criteria of the CTC certification system. Recommendations complete the analysis; they are aimed at guiding potential actions to improve compliance with each of the criteria. 2. Implementation of the mission The baseline audit comprised the following elements: 1. Kick-off meetings to introduce the objectives of the audit and present the audit delegation at the SAESSCAM in Lubumbashi and Mines Department, SAESSCAM, CEEC, Civil Society and the Previous Provincial Governor in Kolwezi; 2. Site visits of the Busanga mine and interviews with local stakeholders;. Upon return to Lubumbashi, meetings were hold with the CEEC, the mining company the cooperative.. Summary of company and cooperative information Busanga is situated around 100 km north of Kolwezi, at the river Lufupa in the foothills of the Katanga Plateau. The landscape is characterised by savannah and forests. The artisanal exploitation happens within the exploitation permit PE 261. The mining companies The Générale des Carrières et des Mines (GECAMINES S.A.) is the owner of the Mining licence PE 261. Partner of GECAMINES is Mining Mineral Resources (MMR Sprl) acting as buyer for the mineral produced by the members of the cooperative. GECAMINES and MMR have created Société d Exploitation de la Cassitérite au Lualaba (SECAKAT Sprl) as a Joint-Venture for the planed industrial production. SECAKAT is not active in the small-small mining sector. 21Assistance for conducting Compliance Audits of Mining Sites in the Democratic Republic Congo, DRC (based on Inception Report by Dr Nellie Mutemeri, 2010: Certification Audits; report for OGMR and BGR) 22Complément d'informations au manuel de certification CTC de la filière artisanale stannifère de la RDC Directives à destination des auditeurs pour l'évaluation de base et l'audit de certification de mines artisanales selon les standards CTC, par Nathalie Sterbik, février 201. Thomas Neu Projekt-Consult GmbH Page
The cooperative MMR collaborates with the Coopérative Minière et de Développement du Katanga (COMIDEK). COMIDEK was founded in 2008, it is active in the T sector and it is a member of the Fédération des Coopératives Minières au Lualaba (FECOMIKAT). In March 2016, COMIDEK counted round about 600 members in Busanga. It is the only cooperative at Busanga and it buys the entire production of the artisanal miners, even from the independent ones. The production There are three different quarries at Busanga: Manguier (A, B and C), Ciel Ouvert and Mashamba. The majority of the miners work either at Manguier or at Ciel Ouvert. They work in teams of four to six people per shaft, on six days a week year-round. The mining is underground and primary ore is exploited. After the removal of the overburden, the miners dig shafts down to 12 m depth (sometimes more than 0m below ground level) more or less directly into the bedrock. They bring up bags of ore, which they crush either in the quarry or at the washing site. They collect the production of the day until the afternoon, when a truck of MMR arrives and collects the miners with their production and drops them at the washing site. Here the miners extract the ore from the rocks using hydro-gravimetric separation. They use small plastic basins to wash the material in the pond. The system consists of two ponds that are used rotationally. The water is pumped from the river and after one pond has been used for two to three weeks it is left, so the sediments can settle at the ground and the water can evaporate and drain away in the soil. After it has been washed the ore is dried on metal plates over fire, purified again and finally sold to the cooperative in 50 kg bags for.5cdf /kg (March 2016). SAESSCAM supervises the sale, registers the sold production in the itsci logbook and seals the bags with the itsci MINE - tags. All treatment happens completely manually and no chemical or toxic products are used. Some women work at the washing site and wash the artisanal miners ore and recycle the cassiterite dust they collect around the drying site. Busanga produced an average 5 t cassiterite per month in 2016. An individual miner could therefore produce around 60 kg per month. Thomas Neu Projekt-Consult GmbH Page
. Summary of the audit findings The Tableau 5 below gives an overview of the baseline audit results. Standard Principle 1: transparency 1.1 Criminal organizations 1.2 Corruption and fraud 1. Political organizations 1. Publishing of payments 1.5 Legality 1.6 Traceability Principle 2: working conditions 2.1 Child labor 2.2 Association Initial grade Actual grade Comments New comments New information are green coloured As there are no armed groups or illegal organisations present at or near the mine sites, no relations with such groups exist. In addition, there are written policies or statements at the level of the company and the cooperative prohibiting the support of such organisations. The company has a policy regarding the fight against corruption and fraud and the topic is mentioned in the contract with the cooperative.. There are no links with or support for political organisations. No extortion by state agents has been encountered. The company and the cooperative both have written commitments prohibiting to get involved with the politics of the DRC. GECAMINES, SECAKAT and MMR publish all their payments to the government in the framework of EITI. COMIDEK does not publish their payments but they accept independent audits. And COMIDEK introduce OHADA. The company pays all taxes, fees and charges foreseen by the law (proven by an EITI audit document). The cooperative pays some fees but no proof has been provided. itsci is established and applied. The risk of mixing the production of Busanga with that of another provenience is very low as the site is well secured.. The site is well secured and children are not allowed inside. No child has been seen at or near the mine. The cooperative asks the miners for their voter registration cards as proof of their majority and register the date of birth in the membership files. There is a labour union at MMR and a committee of artisanal miners at COMIDEK. The latter had been established by the cooperative when there was a dispute about the price paid to the miners for the cassiterite. However, according to the artisanal miners, the committee does not help them much in their Thomas Neu Projekt-Consult GmbH Page 5
collective negotiations. Members of COMIDEK have to sign that they will not participate in demonstrations against the cooperative or the company. 2. Salaries MMR fixes the salaries according to the Congolese law. The salaries of COMIDEK s agents and the income of the artisanal miners are considerably higher than the minimum wage. Principle : security.1 OHS 2.2 Access to information 2. Security guards. Human rights.5 Rescue plan The mine sites are provisionally secured; accidents happen from time to time; if they happen, the company and the cooperative take care of the medical treatment. The cooperative distribute protective gear and inform the artisanal miners. But they are not convinced. There is a dispensary at MMR s base. There are sanitary facilities near the quarries. There are two signs banning some risky practices. There are regular sensitization meetings called café matinal. COMIDEK and SAESSCAM distribute written information to their agents. There are policemen of the Police des Mines as well as private guards of the company. Their number is sufficient to protect the installations and the workers. The employees of MMR and the artisanal miners know their rights; the company has a human rights policy. The cooperative is also involved this field.. A formal risk assessment has not yet been performed. An official intervention plan has also not yet been developed. However, there are regular controls of the sites. A risk assessment study and risk management plan is part of the feasibility study (based on the Australian norm JORC) written by MMR for the JV). The artisanal miners know whom to alert in case of an accident. Principle : community development.1 Local consultations.2 Support to local companies. Development plan 2 Consultations with the local communities do happen, but irregularly and only when the need arises. The mines supply their needs locally as far as possible, but there is no policy or programme regarding the support of local enterprises. The new Governor has clear ideas for the development. A plan for the new province is in work. The development projects are agreed upon with the community representatives. Most of the projects are not yet implemented. Thomas Neu Projekt-Consult GmbH Page 6
. Land tenure Consultations with local authorities on the land use have taken place and there are no conflicts. Principle 5: environment 5.1 Impact assessment 2 5.2 Management plan 1 An EIA has been conducted by GECAMINES as part of the feasibility study (based an Australian standard JORC) for the planed industrial mining production by JV SEKACAT It must be assured that small-scale mining is sufficiently considered. A plan for the waste management must be part of the feasibility study (based an Australian standard JORC) for the planed industrial mining production by JV SEKACAT. It must be assured that small scale mining is sufficiently considered. There is system for the waste management at the level of the washing facility. 5. Rehabilitation It is assumed that GECAMINES has provisions for the rehabilitation upon closing. Cost for mine closure and rehabilitation must be part of the feasibility study (based an Australian standard JORC) for the planed industrial mining production by JV SEKACAT. It must be assured that small-scale mining is sufficiently considered. Tableau 5 : Summary of the audit findings 5.2: EMP for mining 5.1: EIA.: FPIC.: Development plan 1.1: Criminal 5.. Closure and 1.2: Corruption and fraud 2 1 0 1.: Illegal funding of 1.: Declaration of 1.5: Compliance with 1.6: Traceability.2: Local content 2.1: Child labour.1: Community.5: Safety audit.: Human rights. Safety training.1: OSH.2: OSH 2.2: Association and 2.: Fair wages Tableau 6: Summary of the audit findings for the Busanga Mines Thomas Neu Projekt-Consult GmbH Page 7
5. Conclusions The compliance with the standards 1 and 2 has already reached quite high levels. The performance with regards to the standards, and 5 has still to be enhanced as a continuous task. The manual production of the small-scale mines can be easily higher if only some few steps will be realized to mechanise cassiterite treatment process. The feasibility study based an Australian standard JORC concerns the planed industrial mining production by JV SEKACAT. It must also include the small-scale mining in the same area. The fact that these plans exist and their implementation has started shows that the company is aware of at least some of the problems. The role of the cooperative as supporter and the capacity of SAESSCAM as assistant must be reinforced. They are on a good way but they must continue to train the teachers that means to enable their employees to inform and to consult the small-scale miners concerning health and safety, wealth, and technique. The BGR project should continue the training for SAESSCAM and possibly also offer the same training to the supervisors of the cooperatives. The auditor proposes the certification of the Busanga mines. With 72 points the Busanga mines have an average of. points and the minimum is points. But it must be clearly said that there is still a lot of tasks to be done in continuous activities: Health and safety, security o Risk evaluation and intervention plan in case of accidents o Information and training concerning the use of personal safety equipment o Information in local language o Security pf closed mining areas; Planning for development of the local communities; Planning for a standardise contact to the communities; Integration of the small-scale mining aspects in the feasibility study for the planed industrial production such as environmental impact, waste management, closure and rehabilitation including budgets Thomas Neu Projekt-Consult GmbH Page 8