The US government wants big investments in critical minerals in the Democratic Republic of Congo, while asserting that US companies will contribute to the region’s “peace, prosperity, and dignity.” But any meaningful contribution to economic development will need the US and Congolese governments to address persistent patterns of corruption and human rights abuses in the mining sector.
At a June 3 board meeting, the US Development Finance Corporation, a US government financial institution, added US$900 million into an existing $600 million investment in the Orion Critical Mineral Consortium, a New York-based fund. The consortium has announced several major investments in Congo, including a proposed stake in mines owned by the multinational company Glencore.
Home to vast deposits of critical minerals used for defense, artificial intelligence, transportation, and other industries, Congo has long struggled with corruption in its mining sector. During a public hearing prior to the board meeting, Human Rights Watch and Resource Matters, a Congo and Brussels-based group, urged consultation with Congolese communities and activists on human rights and corruption risks prior to finalizing investments.
We also expressed concern that, to facilitate an Orion-Glencore transaction, the US government might ease sanctions on Israeli businessman Dan Gertler. In 2017, the US Treasury Department sanctioned Gertler, who still receives royalty payments tied to production at two Glencore-owned mines, under the US Global Magnitsky Act. The Treasury Department stated that Gertler “has amassed his fortune through hundreds of millions of dollars’ worth of opaque and corrupt mining and oil deals” in Congo.
Easing sanctions on Gertler would undermine accountability for corruption in Congo and weaken the credibility of US anti-corruption sanctions worldwide. If the US government and investors really want to contribute to durable peace and prosperity in Congo, they should meaningfully tackle corruption and strengthen respect for human rights in the mining sector.
