Conflict-Free Mining Has Positive Impact in Community
After less than a year, benefits of local trade changes in the DRC can already be seen
In a unique move by authorities in the Democratic Republic of Congo (DRC) last December, 70% of tax revenue created by mineral exports is now returned to local territories to be used on the communities. This money is a reward to production territories for having mines that are involved in the conflict-free mineral trade and is to be used by them for development of their own business plans, such as the construction of a local community hall.
Companies that buy from the mines are also starting to give back to the community in support of the program. Smelters together with their suppliers are distributing hundreds of thousands of books to primary and secondary schools to create a strong bond with the community. They plan to continue to do business in the DRC in the future and they want to stimulate growth in the community through interaction with the schools.
Another part of the program is added improvements to the Provinces including road repairs and the increase of the reach of rail roads, to allow the growth of imports and exports stimulating the local economy even further.
The program has also created an ability for the minerals to be traced up stream which allows companies to establish due diligence and come into compliance with their conflict minerals reporting. This has become law for U.S. based, publicly traded companies that must adhere to Dodd-Frank 1502 and file their report by the end of this year.
If you are a company that is having trouble with this reporting stage, as many companies are, Source Intelligence is putting on a webinar with experts advice to help you file.