!
Mapping'the'Illicit'Mineral'Trade:''
Identifying'the'Illicit'Supply'Chain'for'Diamonds,'Gold,'
and'Tantalum'Across'Contexts''
!
Megan!Bromberg,!Katherine!Hall,!Dana!Hoyes,!
Matthew!Tramonti,!and!Daniel!Gauthier!
!
!
Table of Contents
INTRODUCTION'
1!
DIAMONDS'
3!
SIERRA'LEONE'
CENTRAL'AFRICAN'REPUBLIC'
GUINEA'
COTE'D’'IVOIRE'
4!
12!
18!
24!
GOLD'
30!
DEMOCRATIC'REPUBLIC'OF'THE'CONGO'
COLOMBIA'
GHANA'
PERU'
32!
41!
49!
56!
TANTALUM'
64!
DEMOCRATIC'REPUBLIC'OF'THE'CONGO'
COLOMBIA'
65!
74!
CONCLUSION'
79!
REFERENCES'
82!
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Glossary of Acronyms
'
ASM! !
BECDOR!
CAMI! !
CAR! !
CFSI! !
CNDP! !
COGEAD!
DMCC! !
DRC! !
ELN! !
FARC! !
FARDC!
FDLR! !
FRPI! !
GVCs! !
HCSS! !
ICGLR! !
IIED! !
IPIS! !
KPCS! !
LMBA! !
MISCA!
MMG!
MMR! !
NACLA!
NDC! !
NMA! !
NRF!! !
PAC! !
PAMP! !
PARECO!
PMMC!!
PRADD!
RPA! !
RUF! !
SODEMI!
UAE! !
UN! !
USAID!!
WACAM!
Artisanal!and!Small=Scale!Mining!
Bureau!d’Évaluation!et!de!Contrôle!de!Diamants!et!d’Or!
DRC!Cadastre!Minier!
Central!African!Republic!!
Conflict=Free!Sourcing!Initiative!!
Congress!for!the!Defense!of!the!People!
Comité!de!Gestion!de!L’Exploitation!Artisanale!du!Diamant!
Dubai!Multi!Commodities!Centre!
Democratic!Republic!of!the!Congo!
National!Liberation!Army!
Revolutionary!Armed!Forces!of!Colombia!
Armed!Forces!of!the!Democratic!Republic!of!the!Congo!
Democratic!Forces!for!the!Liberation!of!Rwanda!
Resistant!Patriotic!Forces!of!Ituri!!
Groupements!à!Vocation!Coopérative!
The!Hague!Centre!for!Strategic!Studies!
International!Conference!on!the!Great!Lakes!Region!
International!Institute!for!Environment!and!Development!
International!Peace!Information!Service!
Kimberly!Process!Certification!Scheme!
London!Bullion!Market!Association!
Mission!internationale!de!soutien!à!la!Centrafrique!sous!conduite!africaine!
Ministry!of!Mines!and!Geology!
Ministry!of!Mineral!Resources!!
North!American!Congress!on!Latin!America!
Nduma!Defense!of!Congo!
National!Mining!Agency!
National!Retail!Federation!
Partnership!Africa!Canada!
Produits!Artistiques!Métaux!Précieux!
Coalition!of!Congolese!Patriotic!Resistance!
Precious!Metals!Marketing!Company!!
Property!Rights!And!Artisanal!Diamond!Development!!
Rwandan!Patriotic!Agency!
Revolutionary!United!Front!
Société!pour!le!Développement!Minier!en!Côte!d’Ivoire!
United!Arab!Emirates!
United!Nations!
United!States!Agency!for!International!Development!
The!Wassa!Associations!for!Communities!Affected!by!Mining
Introduction
This! study! was! undertaken! in! response! to! a! statement! of! work! issued! by! the!
Washington,! DC=based! INGO,! RESOLVE.! (hereafter,! the! client)! The! core! objective! of! the!
undertaking! was! to! trace! the! supply! chains! for! several! so=called! “conflict! minerals.”! In!
accordance! with! client! instructions,! research! focused! on! three:! diamonds,! gold,! and!
tantalum.! The! country! focus! of! the! study! was! diamonds! in! the! Central! African! Republic!
(CAR),!Cote!d’Ivoire,!Guinea,!and!Sierra!Leone;!gold!in!Colombia,!the!Democratic!Republic!
of! Congo! (DRC),! Ghana! and! Peru;! and! tantalum! in! Colombia! and! the! DRC.! Most! countries!
were! selected! based! on! their! high! volumes! of! mineral! extraction,! complicity! within! the!
illicit!trade,!and!the!quality!of!information!available.!The!report!includes!matrices!that!map!
the!supply!chain!of!illicit!minerals!in!these!countries,!and!corresponding!narrative!reports!
that!describe!their!movement!from!extraction!to!retail.!The!report!also!highlights!the!gaps!
in!knowledge!and!potential!pressure!points!along!the!supply!chains.!!
The!range!and!depth!of!research!on!these!minerals!varies!by!country.!In!some!cases,!
there! was! a! dearth! of! information,! or! what! could! be! found! was! dated.! Due! to! the! lack! of!
publicly! available! data! on! certain! actors! and! companies! involved! in! illicit! mining,! our!
sources! range! from! reports! from! prominent! government! and! NGO! publications,! to! news!
articles! and! information! garnered! from! social! media.! Our! major! sources! include!
publications! from! such! sources! as! Amnesty! International,! the! Enough! Project,! Human!
Rights! Watch,! Insight! Crime,! International! Consortium! of! Investigative! Journalists! (ICIJ),!
International!Peace!and!Information!Services!(IPIS),!Partnership!Africa!Canada!(PAC),!and!
United!States!Agency!for!International!Development!(USAID).!In!several!countries,!ongoing!
conflict! and! the! presence! of! organized! crime! groups! make! it! dangerous! to! collect!
information.!In!other!countries,!the!lack!of!infrastructure,!weak!governance!and!the!limited!
capacity! to! regulate! mining! activities! make! it! hard! to! independently! ascertain! prevailing!
conditions!on!the!ground.!!
!In! all! cases,! major! knowledge! gaps! were! found! at! the! end! user! and! retailer,! as! all!
minerals! become! difficult! to! trace! once! refined! or! processed.! There! are! some! costly!
“fingerprinting”! mechanisms! available! for! diamonds,! but! gold! and! tantalum! become!
impossible! to! trace! once! mixed! with! other! newly! mined! minerals.! The! refining! and!
!
1!
processing! stages! essentially! eliminate! the! traceability! of! minerals’! origins,! rendering!
refineries! and! processing! plants! the! critical! link! in! the! supply! chain! for! enforcing! due!
diligence!mechanisms.!The!international!community!has!taken!preliminary!steps!to!enforce!
third=party! supply! chain! audits! that! require! all! companies! along! the! supply! chain! to!
produce! verifiable! certificates! and! receipts! that! identify! the! minerals’! origins! and! all!
transactions! thereafter.! The! 2003! Kimberley! Process! Certification! Scheme! (KPCS)!
established!criminal!penalties!for!trade!in!uncertified!diamonds,!but!falls!short!because!of!a!
self=policing! system,! its! exclusion! of! cutting! and! polishing! centers! from! the! certification!
chain,! and! its! lack! of! mandatory! audits! at! international! trading! centers.! The! 2010! Dodd!
Frank!Act!requires!companies!to!report!on!their!use!of!conflict!minerals!from!the!DRC!and!
border! countries,! and! the! OECD! due! diligence! guidelines! provide! detailed!
recommendations!on!conflict=free!sourcing!for!countries!beyond!central!Africa.!While!the!
Kimberley! Process! and! Dodd! Frank! have! helped! to! decrease! the! trade! in! illicit! minerals,!
many! refiners! and! retailers! continue! to! take! advantage! of! loopholes! in! the! legislation,! or!
ignore!these!regulations!altogether.!Additionally,!a!good!number!of!companies!are!unable!
to! prove! the! origins! of! minerals,! and! loopholes! in! the! law! let! large! retailers! that! do! not!
control! production! off! the! hook! entirely.! While! third=party! certification! and! auditing!
mechanisms!are!important,!underlining!issues!of!transparency!and!accountability!continue!
to! plague! both! mineral! exporting! and! importing! countries.! Too! often,! insufficient! or!
unenforced!regulations,!weak!governance,!conflict,!corruption,!and!the!exploitation!of!both!
miners! and! their! homelands! compound! the! general! indifference! of! intermediaries! and!
refineries!for!those!involved!at!the!lowest!level!of!the!supply!chain.!
The!illicit!mineral!trade!is!a!global!issue!that!affects!all!countries,!as!illicit!or!conflict!
minerals!continue!to!unwittingly!end!up!in!our!jewelry,!phones,!and!laptops.!Whether!these!
minerals! come! from! unregulated! mines! that! use! child! labor! and! harm! the! environment,!
fund! the! insurgencies! of! armed! groups,! or! are! smuggled! into! neighboring! countries! by!
corrupt! government! officials,! the! illicit! mineral! trade! is! dependent! on! the! exploitation! of!
poverty! and! those! who! rely! on! the! mining! to! survive.! An! increased! momentum! towards!
supply!chain!transparency!is!encouraging,!but!the!greatest!challenge!lies!in!scaling!up!and!
enforcing! these! efforts! on! a! global! scale,! and! holding! both! local! and! international!
stakeholders!accountable.!
!
2!
Diamonds
Diamonds! are! one! of! the! world’s! most! coveted! natural! resources.! The! World!
Diamond! Council! estimates! that! USD! $13! billion! worth! of! rough! diamonds! are! produced!
every! year,! with! approximately! USD! $8.5! billion! from! Africa! alone! (approximately! 65!
percent).1!!
Diamonds! come! from! two! types! of! deposits:! primary! and! secondary.! Diamonds! in!
primary!deposits!are!contained!in!kimberlite!pipes,!and!are!extracted!through!open!pit!or!
underground! mining! operations.! In! contrast,! diamonds! found! in! secondary! deposits! are!
located! closer! to! the! surface! due! to! the! process! of! erosion.! Secondary! deposits! are!
extracted! through! alluvial! mining,! which! occurs! in! riverbed! and! coastal! regions.! ! Most! of!
the! problems! with! illicit! minerals! come! from! alluvial! diamond! mines! because! of! their!
“lootability.”! Alluvial! diamonds! are! found! close! to! the! surface,! making! them! readily!
obtainable,!easy!to!hide,!and!therefore!difficult!to!monitor!and!control.!
Over!the!past!decade,!governments!and!retailers!have!become!increasingly!vigilant!
about!diamonds!and!their!origins.!After!many!reports!criticizing!the!industry!for!its!use!of!
conflict=related!‘blood!diamonds,’!the!Kimberley!Process!Certification!Scheme!(KPCS)!was!
devised! in! 2003! to! stem! the! flow! of! rough! diamonds.! The! KPCS! aims! to! prevent! conflict!
diamonds! from! entering! the! legal! trade.! The! UN=mandated! process! ensures! that! only!
legitimate! and! conflict=free! rough! diamonds! are! imported! and! exported! though! the!
creation! of! a! government=issued! certificate.! As! of! April! 2016,! there! are! 74! KPCS!
participating!countries,!and!only!these!countries!are!permitted!to!import!or!export!rough!
diamonds.! However,! as! this! section! will! demonstrate,! the! KPCS! has! focused! primarily! on!
conflict=diamonds,! and! has! done! little! to! address! broader! issues,! including! the! trade! in!
illicit!diamonds!and!the!many!human!rights!violations!associated!with!it.!
'
!
3!
Sierra Leone
Sierra!Leone!is!known!for!its!complicated!history!with!conflict!minerals.!During!the!
civil! war! between! 1991! and! 2002,! the! rebel! group! Revolutionary! United! Front! (RUF)!
financed! its! campaign! against! the! government! through! the! smuggling! of! so=called! “blood!
diamonds.”!In!order!to!stem!the!flow!of!these!conflict!diamonds,!Sierra!Leone!ratified!and!
adopted!the!KPCS!in!2003.!Since!its!implementation,!legal!diamond!exports!in!Sierra!Leone!
have!risen!to!more!than!USD!$220!million!annually.2!!
The! Sierra! Leonean! diamond! fields! cover! an! area! of! about! 7,700! square! miles!
(roughly!one!quarter!of!the!country)!in!the!southeastern!and!eastern!parts!of!the!country.3!
The! mineral! industry! in! the! country! is! one! of! the! largest! income! earning! sectors,!
accounting!for!over!90!percent!of!export!revenues!in!2013.4!The!sheer!size!of!the!industry!
poses! significant! difficulties! for! enforcement.! The! Sierra! Leonean! Ministry! of! Mines! and!
Mineral! Resources! simply! lacks! the! logistical! capacity! to! consistently! monitor! all! mining!
locations.! In! addition,! much! of! the! illicit! mining! in! the! country! is! ignored! since! artisanal!
mining! is! primarily! a! subsistence! activity! in! Sierra! Leone! linked! to! greater! problems! of!
endemic! poverty.! While! the! system! for! legalizing! artisanal! mining! in! diamonds! has!
improved! and! incentives! to! obtain! a! license! are! relatively! high,! the! lack! of! resources! and!
oversight!for!the!KPCS!has!prevented!the!legislation!from!successfully!achieving!its!goals.!
Ongoing!reports!of!diamond!smuggling!out!of!the!country!or!entering!the!legal!supply!chain!
inside!Sierra!Leone!demonstrate!the!continued!challenges!the!country!faces!in!combatting!
the!illicit!diamond!trade!and!effectively!implementing!all!aspects!of!the!KPCS.!!!
!
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!
4!
Source'
Country'
Extraction''
Points'
Sierra&
Leone:'
'
Alluvial:(!
Kono'
Bo'
Kenema'
Pujehun'
'
Kimberlite:!
Kono''
Mining'Locations:5'
Concentrated&in&
Kono,&Kenema&and&
Bo&Districts&and&are&
mainly&situated&in&the&
drainage&areas&of&the&
Sewa,&Bafi,&Woa,&
Mano&and&Moa&
Rivers&
&
*Mining'Companies'
Who'are'NonF
Compliant'with'EITI'
procedures:6'
DTA&Diamonds&Ltd&&
Global&Trust&Fund&Ltd&&
Lohegrin&Resources&
Ltd&
&
Individuals:'
Most&illicit&diamonds&
are&either&stolen&
from&legal&mines&or&
mined&illegally&by&
individuals,&rather&
than&a&large&group,&
thus&making&them&
difficult&to&pinpoint&
&
'
!
Table!1.!Value!Chain!Matrix!for!Diamonds!in!Sierra!Leone!
Internal''
Domestic''
Export'
Processing'
Marketing'
Exit'Points'
Destination' &'Refining'
Selling'Locations:'
Kenema&Diamond&District&
&
Legal'Purchase'of'Illicit'
Diamonds:'
Illicit&diamonds&are&often&
traded&by&unliscensed&
banabana’s,&and&later&
bought&and&sold&by&legal&
dealers,&who&ascribe&KP&
Certificates&to&unverified&
diamonds&
'
*Registered'Diamond'
Dealer'(NonFCitizen):7'
Viral&B.&Desai&
Eddie&M.&Nunez&
Giovanni&Barbattini&
Rina&Yakuel&Kerzner&&
Israel&Bornstein&
Gregg&Parker&Lyell&
Avi&Marom&
'
'
'
'
'
'
&
&
Air:''
Lungi&Airport8&
&
Informal'Border'Crossings:9&
Smuggling&at&porous&borders&
into&Liberia&&&Guinea&&
&
Bo/Kenema:&&
Bo&Waterside&
(
Gbileh(–Dixon(Chiefdom:&
Gbalamuya,&Fodaya,&
Ketinka,Tanganie,&Magbengbe,&
Lamuray,&Layah,&Kambu,&
Kabaya,&Salatok,&Masiaya,&
Walibana,&Gbokofoi,&Funkudeh,&
Yeamidi,&Gberayeray,&Moforay,&
Lungba&
&
Kono:''
Mafindor(Chiefdom:((
Tofa&Wondeh,&Kelema,&
Gbegekor,&Wasaya,&Keledu,&
Gbaindadu,&Chaiseneh,&
Dendorbengu,&Kormborndu&
&
Gbanekandor(Chiefdom:(
Gbandu,&Gbakodu,&Mano,&
Kaardu,&Yigbema,&Konbondu,&
Dedonbenge&
5!
Illegal:''
India:(
Surat10&
&
Liberia:11(
Monrovia&
&
Guinea:12(
Banankoro&
Kerouané&
Macenta&
Conarky&
&
Legal:'
Swizerland&
EC&
UAE&
Israel&&
USA&
India&
&
Unknown&
&
Primary'
Retailer'
Unknown&
&
'
'
Source'
Country'
'
Extraction'
Points'
'
'
'
Internal'
Marketing'
*Registered'Diamond'
Dealer'(Citizen):13'
Mohamed&Abass&
Ousman&Barrie&
Alie&Fawaz&Hejazi&
Fadi&S.&Hamdan&
Alusine&Lamin&Bangura&
Alhaji&Kalilu&Burria&Jalloh&&
Osman&K.&Seisay&
Khalifa&Kamara&
Mohamed&A.&Skaikay&
Bashiru&Jalloh&
Mohamed&Janneh,&
Jihad&Saad&
Alhaji&Issa&Kanu&
Mohamed&H.&Shuman&
Abu&Bakarr&Bundu&
Sia&Jarieu&Bayoh&Morsay&
Alhaji&Cnteh,&
Mohamed&Abubakarr&
Yansaneh&
'
Domestic'Exit'
Points'
Smugglers:'
'
Sorie&Kamara,&Mustapha&
Kabba,&Abibatu&Kamara,&Ernest&
Bobhson,&Thambie&Alusine&
Sheriff,&Bashiru&Sheriff14&
John&Sheriff,&Olabode&
Babatunde&Olukammi15&
&
Types'of'‘Legal’'Export:''
Gaining&KP&certification&
through&selling&stolen&diamond&
to&licensed&dealer&or&by&falsely&
ascribing&location&of&mine;&Fake&
KP&Certificates&
&
*Licensed'Export'Companies:'
Ocean&Sand&Energy&Ltd.,&
Alexandria&Carmel&Diamonds&
Ltd.,&Agim&Nuhaj;&&Archetype&
Diamonds&(SL)&Limited;&H.&M.&
Diamonds;&
Basma,&Kassim;&Mohamed;&
Shour,&Shawke&B.;&Ebba,&
Tamba;&Entochema;&
Continental&Africa&Minerals&
Ltd.;&Amadex&(SL)&Ltd.;&Alcoc&&&
Partners&(SL)&Ltd.;&Blue&Stone&
Mineral&Company&(SL)&Ltd.;&
Munday&Investment&Company&
Ltd.'
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
'
Export'
Destination'
6!
'
'
Processing'
&'Refining'
'
Primary'
Retailer'
'
Supply&Chain:&
Mining%and%Extraction%Points%
The! majority! of! diamond! mines! are! concentrated! in! the! Kono,! Kenema! and! Bo!
Districts,! and! are! mainly! situated! in! the! drainage! areas! of! the! Sewa,! Bafi,! Woa,! Mano! and!
Moa! Rivers.! Almost! all! diamond! extraction! in! Sierra! Leone! is! done! through! artisanal! or!
smallDscale! alluvial! diamond! mining,! except! for! the! Koidu! Kimberlite! Project! in! the! Kono!
district.!
All! miners! are! required! to! obtain! a! license! from! the! National! Minerals! Agency!
(NMA)! in! Sierra! Leone! to! legally! mine! in! the! country.! Few! companies! actively! engage! in!
illicit! mining.! Instead,! most! illicit! diamonds! are! either! stolen! from! legal! mines! or! mined!
illegally!by!individuals,!making!them!difficult!to!identify.!If!the!NMA!finds!a!company!to!be!
nonDcompliant,! it! may! revoke! or! suspend! the! company’s! mining! license.! This! makes! all!
future! mining! activities! at! these! sites! illegal,! as! in! the! case! of! DTA! Diamonds! (SL)! Ltd.,!
Global!Trust!Fund!Ltd.,!and!Lohegrin!Resources!Ltd!in!2013.16!
The!remoteness!of!the!mines!greatly!hinders!the!government’s!ability!to!combat!the!
illicit! mining! of! diamonds.! The! Ministry! of! Mines! and! Mineral! Resources! (MMR),! the!
government!body!in!charge!of!monitoring!the!diamond!trade,!lacks!the!logistical!resources!
required! for! long! distance! monitoring! of! mining! sites.! For! example,! 71.1! percent! of!
individuals! surveyed! in! the! Kono! District! in! 2008! stated! that! illicit! diamond! mining! is!
greater! in! remote! areas,! and! a! senior! mines! official! opined! that! the! Mines! and! Minerals!
department! lacks! the! human! and! technical! capacity! to! cover! the! entire! diamondiferous!
region.17!
In!addition!to!lack!of!logistical!capabilities,!recent!reports!have!found!that!local!law!
enforcement!often!tolerates!illicit!mining!because!of!the!scarcity!of!economic!opportunities!
outside! of! the! mining! sector.! Illicit! miners! are! rarely! arrested,! resulting! in! a! lack! of!
information!as!to!where!the!illicit!mining!takes!place.!Often,!law!enforcement!officials!will!
confiscate!the!miners’!tools,!but!release!the!miners!themselves!after!they!pay!a!fine!or!bribe!
to!the!officials.18!!!
!
!
!
7!
Internal%Marketing%
Once! the! diamonds! have! been! mined,! they! are! generally! sold! to! an! unlicensed!
middleman,! known! as! banabana,! or! to! licensed! dealers! or! exporters.! Banabanas! play! a!
central! role! in! the! illicit! diamond! chain! in! Sierra! Leone! since! they! connect! all! other!
participants!in!the!legal!and!illegal!market!to!one!another.19!The!Mines!and!Mineral!Act!of!
2009!stipulates!that!diamonds!can!only!be!sold!from!a!licensed!miner!to!a!licensed!dealer,!
thereby!creating!a!clear!chain!of!custody!back!to!the!mine.20!However,!diamonds!traded!by!
unlicensed! middlemen! are! untraceable! and! pass! through! numerous! channels,! and! many!
diamonds!enter!the!legal!market!by!the!time!of!export.!!!
Because! of! the! government’s! inability! to! verify! the! mines! from! which! diamonds!
originated,! many! illicit! diamonds! find! their! way! into! the! legal! market.! Licensed! dealers!
facilitate! this! process! by! either! knowingly! or! unknowingly! entering! falsified! records! as!
genuine.!Therefore,!legal!dealers!could!be!implicitly!involved!in!the!illicit!diamond!trade.!In!
addition,!many!traders!have!individual!licenses!to!mine!diamonds,!and!are!thus!able!to!buy!
minerals! from! illegal! miners! and! then! sell! or! export! them! as! their! own! legally! obtained!
goods. 21 !According! to! records! obtained! on! the! government’s! online! repository,! most!
licensed!dealers!are!registered!in!Kenema,!Sierra!Leone's!main!diamond!market,!although!
illicit!diamond!trading!can!take!place!anywhere!in!which!diamonds!are!found.22!
%
Domestic%Exit%Points%&%Export%Destination%
Smuggling!remains!one!of!the!chief!problems!for!the!diamond!industry.!Sierra!Leone!
lacks!the!ability!to!effectively!monitor!its!borders!and!mining!sites.!A!2015!pilot!survey!on!
crossDborder! trade! from! Sierra! Leone! to! other! Mano! River! Union! countries! found! that!
goods,! including! diamonds,! are! regularly! smuggled! to! and! from! Sierra! Leone! through!
borders! in! the! Kono! district,! including! Gbaneh! Kandor,! Mafindor,! Toli,! Lei! and! Soa.! For!
example,!while!customs!officials!are!found!in!Koidu!City,!63!miles!from!the!Guinean!border,!
there! are! no! checkpoints! at! the! official! border! crossings! in! Kardu,! allowing! for! easy!
diamond!smuggling!to!and!from!Guinea.23!!!!!
The!most!recent!KPCS!review!mission!to!Liberia!in!March!2013!found!“evidence!of!
routine!smuggling!of!Sierra!Leonean!diamonds!and!their!certification!by!Liberia.”24!The!UN!
identified! a! number! of! smuggling! destinations,! including! Monrovia! in! Liberia,! and!
!
8!
Banankoro,! Kerouané,! Macenta,! and! Conakry! in! Guinea.! Beyond! this,! there! is! very! little!
information! published! regarding! the! arrest! or! prosecution! of! diamond! thieves! or!
smugglers.! What! little! information! that! could! be! found! was! identified! through! local! news!
sources,!such!as!Awoko*Newspaper*and!the!Concord*Times.!Awoko*reported!on!the!theft!of!
gold!and!diamonds!in!2015!by!seven!individuals!including!Sorie!Kamara,!Mustapha!Kabba,!
John! Sheriff,! Abibatu! Kamara,! Ernest! Bobhson! Thambie,! Alusine! Sheriff! and! Bashiru!
Sheriff.25!Also,! the! Concord* reported! on! the! 2014! theft! of! USD! $56,000! in! diamonds! by!
Olabode! Babatunde! Olukammi! and! John! Sannoh. 26 !It! is! difficult! to! determine! if! these!
individuals!were!lowDlevel!smugglers!or!affiliated!with!larger!smuggling!rings!since!there!is!
no!additional!information!regarding!their!situation.!!
In! addition! to! poorly! monitored! border! crossings,! some! of! the! biggest! diamond!
smuggling! operations! go! through! Lungi! International! Airport! in! Freetown.! Lungi! Airport!
lacks! the! proper! technology! to! effectively! detect! gemstones.27!The! implications! of! this!
deficiency!can!be!seen!globally—in!2009,!customs!officials!at!John!F.!Kennedy!International!
Airport! in! New! York! City! seized! nearly! USD! $1! million! worth! of! diamonds! from! Sierra!
Leone!after!the!carriers!could!not!produce!KPCS!certificates!for!the!minerals.28!!!
As! mentioned,! many& illicit! diamonds! enter! the! legal! supply! chain! in! Sierra! Leone.!
This! means! that! any! licensed! exporter! could! implicitly! facilitate! the! illicit! trade,! and! any!
country! of! export! could! be! a! destination! for! illicit! diamonds.! Among! Sierra! Leone’s! top!
diamond! exports! are! Switzerland,! the! European! Union,! the! United! Arab! Emirates! (UAE),!
Israel,!the!United!States,!and!India.29!There!have!also!been!instances!of!diamonds!exported!
with! fake! KPCS! certificates.! For! example,! in! 2014,! the! U.S.! State! Department! warned! the!
public!against!the!use!of!fake!certificates!and!fake!stones!originating!from!Sierra!Leone.30!
!
Refining%&%Primary%Retailer%
Once! diamonds! reach! the! polishing! stage,! they! are! no! longer! monitored! and! no!
longer! require! KPCS! certificates.! This! makes! polishing! centers! the! perfect! locations! for!
illicit! trading! to! occur.! For! example,! many! illicit! diamonds! from! Sierra! Leone! have! been!
found! in! polishing! centers! in! Surat,! India,! a! city! known! for! its! regulationDfree!
environment.31!The! jewelry! company! Brilliant! Earth! has! called! Surat,! “the! place! where!
blood!diamonds!go!to!forget!their!past,”!because!KPSC!certificates!are!either!nonDexistent!
!
9!
or! discarded! upon! arrival.32%Most! illicit! diamonds! have! entered! the! legal! market! and! are!
untraceable! by! the! time! of! sale.! The! World! Diamond! Council’s! selfDregulated! “System! of!
Warranties”!is!the!only!legal!guarantee!provided!to!diamond!suppliers.33%
&
Gaps&in&Information&&&Potential&Pressure&Points&
Comprehensive! information! on! the! illicit! diamond! trade! in! Sierra! Leone! is! sparse!
due! to! its! smallDscale! nature.! The! ease! of! hiding! and! smuggling! diamonds! and! the!
government’s! inability! to! track! the! supply! chain! and! monitor! porous! borders! continue! to!
undermine! the! mechanisms! put! forth! by! the! KPCS.! Lack! of! logistical! capabilities! also!
hinders! the! government’s! ability! to! maintain! consistent! and! upDtoDdate! data! on! mining!
activities,! especially! as! they! pertain! to! rural! areas.! This! is! further! complicated! by! the!
presence! of! banabanas,! who! impede! proper! tracing! of! diamonds! origins,! and! by! the!
numerous! transactions! that! occur! between! the! miner! and! the! final! diamond! dealer.!!
Researchers! at! the! Germany! Institute! for! International! and! Security! Affairs! suggest! that!
data!is!scarce!because!relatively!few!arrests!are!made.34!!!
In!addition!to!Sierra!Leone’s!inability!to!provide!consistent!monitoring,!there!is!little!
to!no!monitoring!of!the!industry!by!outside!organizations,!including!the!KPCS!itself.!Since!
the!end!of!the!Sierra!Leonean!Civil!War!in!2002,!research!on!the!illicit!diamond!trade!has!
generally! shifted! away! from! Sierra! Leone! to! countries! still! dealing! with! conflict! minerals,!
such! as! the! Central! African! Republic.! In! fact,! Sierra! Leone! is! now! considered! one! of! the!
better! KPCS! implementing! countries,! which! has! disincentivized! international! monitoring.!
While! there! is! no! doubt! that! significant! progress! has! been! made! in! Sierra! Leone,! it! is!
essential! that! outside! parties! with! the! ability! to! monitor! the! situation! continue! to! do! so.!
This!should!include!greater!responsibility!from!the!KPCS,!including!more!frequent!review!
missions,!such!as!the!mission!undertaken!in!Liberia!in!2013.!!
Another! issue! is! the! lack! of! transparency! on! the! part! of! the! Sierra! Leonean!
government.! Information! on! illicit! mines,! dealers,! and! exporters! discovered! or!
apprehended! by! mining! officials! is! not! publicly! available,! making! it! difficult! for! investors!
and! researchers! to! obtain! accurate! information! on! the! illicit! diamond! trade! within! the!
country.!The!government!has!taken!steps!to!increase!transparency!through!the!creation!of!
!
10!
the! Online! Repository! in! 2012,! which! contains! data! on! all! mineral! rights,! export! licenses!
and! related! payments! managed! by! the! NMA.35!However,! prevention! of! the! illicit! sale! and!
trade! of! diamonds! ultimately! lies! in! the! ability! and! willingness! of! the! government! to!
monitor!and!regulate!the!sector,!including!identifying!both!the!illicit!market,!and!those!who!
are! willing! to! incorporate! illicit! diamonds! into! the! formal! economy.! Law! enforcement!
agents! have! acknowledged! their! own! unwillingness! to! enforce! mining! regulations,! since!
artisanal!diamond!mining!is!largely!a!subsistence!activity!in!Sierra!Leone!linked!to!greater!
problems!of!endemic!poverty!in!the!country.!This!should!be!taken!into!consideration!when!
implementing!any!kind!of!enforcement!or!punishment!mechanisms,!as!many!miners!simply!
lack!alternative!options!for!their!economic!livelihoods.!Any!reform!must!take!these!greater!
human!rights!issues!into!consideration,!and!programs!attempting!to!formalize!and!legalize!
artisanal!mining!should!work!with,!rather!than!against,!those!at!the!bottom!of!the!supply!
chain.
!
11!
!
Central African Republic
!
The! Central! African! Republic! (CAR)! has! quickly! become! the! latest! example! of! a!
country!plagued!by!“blood!diamonds.”!One!of!the!poorest!countries!in!the!world,!the!CAR!is!
currently!engulfed!in!a!violent!civil!war!between!two!armed!groups:!Seleka!and!antiIbalaka.!
In!December!2012,!the!Muslim!rebel!group!Seleka!launched!an!armed!offensive!against!the!
central!government!in!Bangui,!culminating!in!the!overthrow!of!President!François!Bozizé!in!
March!2013.!In!response!to!the!Seleka!takeover,!Christians!and!Animists!formed!the!antiI
balaka! militia,! leading! to! violent! confrontations! and! hundreds! of! civilian! casualties! in! the!
first! few! months! of! the! conflict.! The! African! Union! (AU)! deployed! a! UN! mandated!
peacekeeping! mission,! MISCA! (Mission! internationale! de! soutien! à! la! Centrafrique! sous!
conduite! africaine)! to! work! with! a! French! contingency! to! prevent! further! escalation.!
Despite!these!measures,!the!situation!in!the!CAR!remains!highly!tense.!As!of!early!2016,!the!
country!is!split!into!two!main!zones!of!influence,!each!one!controlled!by!an!opposing!rebel!
alliance.!!
Diamond!exports!accounted!for!20!percent!of!total!fiscal!revenues!for!the!CAR!prior!
to!the!onset!of!the!civil!war!in!2012.36!The!mining!sector!is!crucial!for!the!Central!African!
economy.! At! the! onset! of! the! conflict,! both! rebel! groups! quickly! secured! the! country’s!
mining! sites! to! finance! their! military! campaigns.! Despite! the! implementation! of! the! KPCS!
ban!in!2013,!which!prohibited!all!diamond!exports!from!the!CAR,!illegal!mining!continues!
to!occur.!Though!the!rival!rebel!groups!signed!a!ceasefire!in!2014,!the!central!government!
in!Bangui!has!yet!to!recover!full!sovereignty!over!its!diamondIproducing!territories.!
!
!
!
!
!
!
!
!
!
!
!
12!
!
Source'
Country'
Central'
African'
Republic'
!Table!2.!Value!Chain!Matrix!for!Diamonds!in!the!Central!African!Republic!
Extraction''
Internal''
Domestic''
Export'
Processing'
Points'
Marketing'
Exit'Points'
Destination' &'Refining'
Mining'locations37:'
Ndélé%
Sam%Ouandja%Bria%%
Bangassou%%
Boda%%
Berberati%
Nola%%
Carnot%
Bouar%
%
Mining'companies:'
Société%Perrière%
Kamach%Mines%
Good%Speed%
Tala%Mining%
Mossoro%Mining%
%
Armed'Groups'in'
control'of'mining'
sites38:'
AntiEbalaka:'
Boda%
Berberati%
Nola%
Carnot%
Bouar%
Seleka:'
Bria%
Ndélé%
Sam%Ouandja'
Selling'points:'
Bangui%
%
Trading'companies*:'
Badica%(part%of%Groupe%
Abdoulkarim)%
Sodiam%
Sud%Azur%
ADR%
IAS%International%
Sino%Sango39%
%
%
%
Illegal%movements%through%
terrestrial%borders%and%illicit%
aerial%transit%(up%to%50%%of%
total%exports)40,%falsification%of%
certificates%of%origin%and%
exportation%through%trading%
companies%
%
Airport:'
Bangui%Airport%%
%
Border'crossings:'
Kenzou%%
Gamboula%%
Gbiti%
%
Exporters'tied'to'CAR’s'
diamonds:'
Minair%(part%of%Groupe%
Abdoulkarim)%
%
%
%
%
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
13!
Cameroon:'
Douala%
Sudan:'
Nyala%
DRC'
South'Sudan'
Chad'
Belgium:'
Antwerp%
(Kardiam,%
part%of%
Groupe%
Abdoulkarim)%
%
%
%
%
%
Primary'
Retailer'
Prior'to'
Unknown'
KCP’s'ban:'
'
Trading'
centres:'
Dubai%
Antwerp%
%
Cutting'and'
polishing'
centers:''
India%
(Gujarat%
province)41%
China%
(Guangdong%
province)42%
!
Supply&Chain&
Mining%&%Extraction%Points%
All!major!diamond!mines!in!the!CAR,!with!the!exception!of!Bangassou,!are!located!in!
Seleka! and! anti?balaka?controlled! territory.! Diamonds! extracted! in! Boda,! Berberati,! Nola,!
Carnot!and!Bouar!are!sold!directly!or!subject!to!taxation!under!anti?balaka!militias,!while!
those!in!Bria,!Ndélé!and!Sam!Ouandja!mines!are!similarly!controlled!by!Seleka.!!
The!primary!extractors!of!diamonds!in!the!CAR!are!artisanal!and!small?scale!miners!
(ASM).! Although! diamond! exports! are! prohibited! under! the! KPCS,! diamond! mining! and!
trade! within! the! CAR! is! still! a! legal! activity! regulated! by! the! Ministère! des! Mines! de! la!
République! Centrafricaine! (Ministry! of! Mines).! Artisanal! miners! are! required! by! law! to!
register!and!obtain!mining!licenses!from!the!Ministry!of!Mines.!However,!the!country!has!
only! legally! registered! five! percent! of! its! artisanal! miners.43!According! to! a! US! diplomatic!
cable!disclosed!by!WikiLeaks,!each!registration!costs!CFA!46,500!a!year!(about!USD!$100),!
which! constitutes! a! financial! burden! beyond! the! means! of! most! miners.44!Artisanal! and!
small?scale! miners! primarily! engage! in! alluvial! mining,! and! extract! diamonds! by! digging!
barehanded!or!with!rudimentary!tools!such!as!shovels.!Industrial!mining!is!less!prevalent!
in!the!CAR!because!a!thorough!exploration!of!the!country’s!subsoil!has!yet!to!be!conducted!
in! order! to! determine! the! existence! of! primary! diamond! deposits! of! greater! interest! to!
large?scale!mining!operations.!
Several!industrial!stakeholders!have!already!started!to!invest!in!the!mining!sector!of!
the!country.!Mining!companies!Société!Perrière,!Kamach!Mines,!Good!Speed,!Tala!Mining,!
and! Mossoro! Mining! were! all! operating! in! the! CAR! and! held! permits! for! diamond!
exploration!and!exploitation.!However,!these!companies!suspended!their!activities!in!2011!
following!the!outbreak!of!the!civil!war.!
!
Internal%Marketing%
%
The! diamond! trade! begins! with! mineral! collectors! (collecteurs)! who! buy! rough!
diamonds!in!towns!surrounding!ASM!sites.!These!traders!evaluate!the!diamonds,!and!act!as!
intermediaries! between! the! miners! and! the! few! bureaux, d’achat! (buying! houses)! of! the!
country.!Diamond!collectors!work!either!for!the!buying!houses!or!independently,!and!are!
!
14!
!
required!to!register!their!transactions!by!providing!a!copy!of!the!receipt!to!buying!houses,!
who! are! then! required! to! report! their! acquisitions! to! the! Bureau! d’Évaluation! et! de!
Contrôle! de! Diamants! et! d’Or! (BECDOR).! The! relationship! between! local! miners! and!
collectors! has! been! described! as! asymmetrical! due! to! the! gap! of! knowledge! that! exists!
between!the!two!parties!in!regards!to!the!market!value!of!extracted!diamonds.45!!
Most! rough! diamonds! end! up! in! Bangui’s! marketplace! and! a! few! other! provincial!
towns!after!buying!houses!purchase!them.!UN!experts!have!identified!two!main!dealers!of!
conflict!diamonds!in!the!CAR:!Abdoulkarim!Dan?Azoumi!for!the!buying!house!Badica,!and!
Raffi! Arslanian! for! Sodiam.46 !Mahamat! Oumarou,! Aboulkarim’s! brother,! has! also! been!
implicated!in!the!illicit!trade!of!diamonds!from!the!CAR!through!his!diamond!company!Sud!
Azur.!These!individuals!are!heading!illegal!networks!associated!with!armed!groups,!which!
purchase,! trade,! and! export! conflict! diamonds.! Other! buying! houses,! such! as! ADR,! IAS!
International,!and!Sino!Sango!are!also!involved!in!the!Central!African!diamond!trade!with!
often!little!transparency!on!their!supply!chains.47!!
!
Domestic%Exit%Points%&%Export%Destination%
Because!of!the!KPCS!ban!on!Central!African!diamonds,!thousands!of!carats!worth!of!
diamonds! are! stored! in! warehouses,! mainly! in! Bangui,! awaiting! the! end! of! the! embargo.!
Diamonds! are! also! smuggled! out! of! the! country! through! porous! borders! with! Cameroon,!
Chad,! the! DRC,! Sudan! and! South! Sudan,! all! of! which! are! either! exempt! from! the! mineral!
ban,!or!do!not!participate!in!the!KPCS.!Douala!in!Cameroon!and!Nyala!in!Sudan!are!known!
focal!points!for!the!trafficking!of!diamonds!from!the!CAR.!Once!transported!to!neighboring!
countries,!these!diamonds!receive!a!new!origin!through!falsified!documents,!or!are!shuffled!
with! diamonds! of! different! origin! in! order! to! be! legally! sold! in! global! diamonds! markets!
such!as!Antwerp!and!Dubai.48!!
Bangui!M'Poko!International!Airport!is!another!major!hub!in!the!illicit!trade!because!
of!its!inefficient!and!corrupt!customs!system.49!Minair,!an!aerial!transport!company!owned!
by!Abdoulkarim!Dan?Azoumi,!exports!thousands?worth!of!carats!illegally!each!year.!!
The! illicit! trade! of! Central! African! diamonds! has! also! allegedly! benefited! from! the!
opacity!of!the!global!banking!system.!In!2015,!the!French!newspaper!Le,Monde!reported!on!
the!role!of!HSBC!as!a!facilitator!of!the!illicit!Central!African!diamond!trade!by!transferring!
!
15!
!
funds! coming! from! the! illicit! networks! led! by! both! Abdoulkarim! Dan?Azoumi! and! Raffi!
Arslanian!offshore!in!shell!corporations.50!
!
Processing/Refining%&%Primary%retailer%
Upon!exiting!the!country,!diamonds!from!the!CAR!are!either!sold!unrefined,!or!sent!
to! major! cutting! and! polishing! centers! in! Belgium,! China,! the! UAE,! India,! or! China.51!The!
state!of!Gujarat!in!India!and!the!province!of!Guangdong!in!China!have!many!factories!that!
process!most!of!the!globally!produced!rough!diamonds.52!In!May!and!June!2014,!authorities!
in!Antwerp!seized!three!shipments!of!rough!diamonds!believed!to!be!from!the!CAR.!Despite!
the!KCPS!ban,!these!diamonds!had!first!been!traded!in!and!out!of!Dubai!before!ending!up!in!
Antwerp.! The! failure! of! the! UAE! to! identify! and! intercept! these! diamonds! raises! greater!
questions! about! the! willingness! of! major! refining! countries! to! enforce! KCPS! controls.53!!
Amnesty! International! found! that! in! trading! centers! such! as! Antwerp! and! Dubai,! it! is!
possible!to!smuggle!diamonds!into!refineries!and!then!export!them!under!the!KPCS.!This!is!
complicated!further!by!the!sheer!number!of!imports!and!exports!involved!in!the!process,!
which!leads!to!the!use!of!spot?checks!of!shipments!and!makes!the!verification!of!individual!
shipment!nearly!impossible.54!
!
Gaps&in&Information&&&Potential&Pressure&Points&
Due! to! the! fungible! nature! of! diamonds! in! the! region! caused! by! the! absence! of!
appropriate!fingerprinting,!it!is!difficult!to!map!the!illicit!trade!of!diamonds!in!its!entirety.!
From! their! extraction! in! artisanal! mines! to! the! retailers,! diamonds! change! hands! many!
times.! Moreover,! while! organizations! such! as! Amnesty! International! have! been! able! to!
pinpoint!smuggling!routes,!poor!governance!and!weak!border!controls!in!the!region!make!
it!difficult!to!track!precise!locations!and!the!methods!used!to!smuggle!illicit!minerals!out!of!
the! country.! The! presence! of! armed! groups! controlling! diamond! mines! and! the! links!
between! these! groups! and! international! trading! companies! adds! another! layer! of!
complexity!and!obscurity!to!the!supply!chain!of!Central!African!diamonds.!!
Substantive!research!by!Amnesty!International!has!contributed!to!the!international!
community’s! understanding! of! the! role! of! diamonds! in! fueling! conflict! in! ! the! CAR.!
!
16!
!
However,! more! can! be! done! to! understand! the! role! of! armed! groups! and! the! mining!
industries!they!control.!The!recent!initiative!by!the!KPCS!is!a!positive!step!forward!in!this!
regard.!The!KPCS!has!established!an!approach!to!monitoring!the!situation!in!the!CAR!that!
includes! determining! and! establishing! conflict?free! compliant! mining! zones,! monitoring!
and! facilitating! a! forensic! audit! of! stockpiles! before! any! part! of! current! stockpiles! is!
exported,! monitoring! and! analyzing! statistical! information! for! evidence! of! mixing! of!
production! from! compliant! and! non?compliant! zones,! and! reviewing! and! comparing!
footprint!data!for!future!proposed!diamond!shipments.!
The! end! of! the! supply! chain! suffers! the! most! from! incomplete! information,!
especially!when!it!comes!to!the!role!of!global!trading!centers.!Once!diamonds!are!smuggled!
out! of! the! country,! they! are! no! longer! traceable! and! can! be! freely! traded! on! the!
international! market.! This! makes! it! very! difficult! to! determine! from! where! and! by! whom!
they! have! been! sold! to! consumers.! Additional! pressure! could! be! applied! to! cutting! and!
polishing! centers! in! order! to! force! these! necessary! intermediaries! to! inquire! about! the!
origin!of!minerals!entering!their!factories.!If!the!domestic!political!situation!of!the!CAR!is!
still! too! fragile! to! expect! progress! in! terms! of! good! governance! in! the! mining! sector,!
incentives!favoring!ethical!supply!chains!could!be!broadened!to!processing!centers!in!order!
to!curtail!the!influence!of!illicit!networks.!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
17!
!
Guinea
!
Guinea! is! one! of! the! world’s! largest! diamond! producers.! The! country! became! a!
member!of!the!KPCS!in!2003,!and!remained!in!good!standing!until!reporting!unusually!high!
diamond! exports! between! 2006! and! 2008.! During! this! time,! production! spiked! from!
473,862!carats!in!2006!to!1,018,722!carats!in!2007!and!3,098,490!carats!in!2008.55!!Since!
then,!the!country!has!come!under!scrutiny!from!KPCS!officials,!as!well!as!the!UN!Group!of!
Experts! in! Cote! D’Ivoire,!for!its!lack!of!internal!control!and!inability!to!stop!the!export! of!
rough!diamonds!of!unknown!origin!into!the!legal!diamond!market.56!!
While! the! U.S.! has! partnered! with! Guinea! to! combat! the! illicit! diamond! trade,!
Guinean! officials! remain! unable! to! monitor! or! prevent! the! trade! in! many! diamondiferous!
regions! throughout! the! country.! Limited! logistical! capacity! and! government! enforcement!
and!low!incentives!for!legal!mining!are!among!the!most!detrimental!problems!the!industry!
faces.!Due!to!Guinea’s!inability!to!verify!diamonds!or!produce!tamper?proof!certificates,!the!
country!has!become!not!only!a!source!of!illicit!diamonds,!but!also!a!major!destination!for!
illicit! and! conflict! diamonds! in! the! region.! This! poses! greater! challenges! to! the!
implementation!of!the!KPCS!in!the!region!as!a!whole.!!!
!
!
!
!
!
!
!
!
!
!
!
!
18!
!
Table!3.!Value!Chain!Matrix!for!Diamonds!in!Guinea!
Internal''
Domestic''
Export'
Processing'
Marketing'
Exit'Points'
Destination' &'Refining'
Source'
Country'
Extraction''
Points'
Guinea!
!
Kimberlite:!!
Guinée'
Forestière'
and'the'
southern'
half'of'
HauteD
Guinée'
!
Alluvial:(
Kissidougo
uDMacenta'
Region;'
Kérouané'
Region;'
KindiaD
Télimélé'
Region;!
ForécariahD
Coyah'
Region'
!
'
Alluvial:57'
The!main!known!diamond!
deposits!are!situs!in!the!
prefectures!of!Krouan,!
Kissidougou!and!Macenta,!
along!the!rivers!Raoul,!Milo!
and!Diani!.!Other!diamond!
discoveries!have!been!made!in!
western!Guinea,!especially!
west!of!Kindia!and!
sporadically!to!Forcariah.58!
!
Issues:'
Clandestine!Mining59,!
unregulated!&!unregistered!
mining!due!to!lack!of!
infrastructure,!government!
sanctioned!parcels!that!
appear!“inactive”!on!but!are!
the!site!of!active,!illegal!
mining,!lack!of!inspectors!at!
mining!sites60!!
!
Individuals:'
Most!illicit!diamonds!are!
either!stolen!from!legal!mines!
or!mined!illegally!by!
individuals,!rather!than!a!large!
group,!thus!making!them!
difficult!to!pinpoint!
Dealers:''
Clandestine!and!stolen!diamonds!
are!sold!via!informal!sellers!
(banabanas)!who!purchase!the!
illicit!diamonds,!and!resell!them!
in!other!provinces!to!government!
sanctioned!brokers,!who!are!able!
to!then!sell!the!diamonds!in!the!
gemstone!buying!house!in!
Conakry61!
!
Issues:'
False!Kimberley!Process!
Certifications,!lack!of!government!
capacity!to!monitor!or!access!
most!the!active!mining!sites,!
inability!to!produce!tamperPproof!
certificates!of!origin,62!far!
distance!of!diamond!regions!from!
the!capital,!high!numbers!of!illicit!
diamonds!entering!the!formal!
economy!from!Guinea!and!
bordering!countries,63!inability!of!
government!officials!in!Conakry!
to!trace!artisanally!produced!
diamonds!that!show!up!for!
export64!
!
Ebola!outbreak!worsened!lack!of!
internal!controls65!
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
19!
Exporters'
Suspected'of'
Illicit'Activity*:'
Rufex,!Sigma!
Diamond66!
'
Legal'Export'of'
Illicit'Diamonds:!!
Most!Illicit!
Diamonds!enter!
into!legal!
channels!
through!weak!
KP!certification!
regulations!and!
are!thus!
“legally”!
exported!
!
!
Legal:67'
Belgium!
Israel!
UAE!
Switzerland!
Thailand!
'
!
Unknown!
Primary'
Retailer'
Unknown!
!
!
Supply&Chain:&
Mining%&%Extraction%Points%
Guinea’s! diamond! deposits! and! kimberlites! are! located! mainly! in! the! southeast!
rainforest!of!Guinée!Forestière!and!the!southern!half!of!the!Haute=Guinée!savannah,!with!
others! located! in! the! west! near! Conakry.68!All! of! Guinea’s! kimberlites! are! found! in! the!
Kenema=Man!domain,!while!alluvial!deposits!can!be!found!in!the!Forécariah=Coyah,!Kindia=
Télimélé,! Kissidougou=Macenta,! and! Kérouané! regions! along! the! Raoul,! Milo! and! Diani!
Rivers.69!Almost! all! of! Guinea’s! diamond! extraction! comes! from! artisanal! and! small=scale!
(ASM)!miners!working!in!alluvial!mining!deposits.!
All!miners!are!required!to!obtain!a!mining!“authorization”!license!from!the!Ministry!
of! Mining! and! Geology! (MMG),! the! main! governmental! organization! charged! with!
regulating!the!Guinean!mining!industry.!However,!despite!these!regulations,!illicit!mining!
still!persists!throughout!the!country,!and!goes!largely!unnoticed!by!government!monitoring!
officials.!According!to!the!US!Agency!for!International!Development,!illicit!mining!can!take!
one!of!three!main!forms:70!
1.
2.
Unauthorized!mining!within!a!designated!artisanal!diamond=mining!zone.!!
Unauthorized! mining! that! takes! place! outside! of! the! designated! artisanal!
mining!zone!and!within!an!industrial!or!semi=industrial!concession.!!
3.
Mining!activities!conducted!outside!of!any!zone!–!artisanal!or!industrial!–!that!
has!been!explicitly!designated!for!diamond!mining.!
!
The!biggest!challenge!to!combatting!Guinea’s!illicit!diamond!mining!is!the!inability!
of!the!Prefectoral!Directorate!of!Mines,!the!office!charged!with!monitoring!regional!mines!
under!the!direction!of!the!National!Directorate!of!Mines,!to!properly!monitor!parceled!sites.!
In! addition,! parcels! are! generally! unaffordable! for! local! communities! (costing! 2,500,000!
GNF!or!USD!$357!per!parcel),!incentivizing!unlicensed!mining.71!
%
Internal%Marketing%
!
Among! the! many! stakeholders! in! the! Guinean! diamond! sector! are! the! diggers!
(creuseurs),!the!“masters”!who!finance!the!diggers,!the!collectors!who!buy!stones!from!the!
masters,! and! the! comptoirs! in! Conakry! who! buy! stones! from! the! other! three! groups.72!
According!to!the!Guinean!Mining!Code,!all!four!groups!are!expected!to!register!for!a!license!
!
20!
!
from!the!MMG.73!However,!much!like!Sierra!Leone,!Guinea!also!deals!with!the!presence!of!
unlicensed! dealers,! or! ‘banabanas.’! These! informal! sellers! purchase! illicit! diamonds! and!
resell!them!in!other!provinces.!The!informal!sellers!sell!the!illicit!diamonds!to!government=
sanctioned!brokers,!who!then!sell!the!diamonds!to!dealers!in!the!gemstone=buying!house!in!
Conakry.! The! six! key! participants! in! the! mining! industry! are! largely! intertwined.!
Banabanas!buy!diamonds!from!illicit!diggers,!sell!to!legal!Agents!Collecteurs!or!Comptoirs,!
and! later! enter! the! legal! market! through! obtaining! KPCS! certificates! by! any! one! of! these!
licensed!dealers.!!
Figure!1.!The!Internal!Diamond!Market!in!Guinea74!
!
Diggers/Creuseurs:!!
• Extract!diamonds!
from!pits!!
Masters!or!Title!Holders:!
• Finance!operating!costs!
• Sell!diamonds!and!take!
a!portion!of!the!profit!!
Agents!Collecteurs:!
• Authorized!to!buy!
and!sell!diamonds!
from!artisanal!
operations!
Comptoirs!d’Achat:!
• Allowed!to!buy,!import,!
and!export!diamonds!
obtained!by!artisanal!
operations!
Informal!Sellers!(banabanas):!
• Purchase!and!resell!illicit!
diamonds!from!various!
regions!
!
Bureau!National!d’Expertise:!
• Manages!the!marketing!of!
artisanal!diamond!mining!!
• Determines!export!value!and!
tax!!
• Verifies!the!origin!of!
!
diamonds!
•
! cross=border! smuggling! of!
Guinea! faces! significant! difficulties! in! preventing! the!
illicit!diamonds!to!and!from!the!country.!For!example,!in!2014!the!UN!found!evidence!that!
smuggled!Ivorian!diamonds!had!entered!the!legal!market!in!Guinea,!indicating!the!ease!in!
which! diamonds! can! gain! legal! certification! in! the! country.! The! UN! officials! also! visited!
buying! houses! in! Banankoro,! Kerouané! and! Macenta,! where! legal! diamond! traders!
confessed!to!buying!and!certifying!illicit!diamonds.75!!
Officers! of! the! Comité! de! Gestion! de! L’Exploitation! Artisanale! du! Diamant!
(COGEAD),! the! government! branch! in! charge! of! enforcing! the! diamond! chain! of! custody,!
have! described! their! own! inability! to! support! the! government’s! diamond! certification!
mandate.!Most!notably,!COGEAD!agents!claim!they!lack!the!capacity!to!access!most!active!
mining!sites,!or!to!produce!tamper=proof!certificates!of!origin.76!The!2014!Ebola!outbreak!
further!contributed!to!this!problem!by!increasing!the!lack!of!internal!controls!and!creating!
loopholes!exploited!by!smugglers!and!illicit!dealers.77!
!
21!
!
!
Domestic%Exit%Points%&%Export%Destinations%
The! majority! of! illicit! diamonds! in! Guinea! enter! the! legal! market! by! the! time! of!
export,! thus! making! them! difficult! to! identify.! According! to! the! most! recent! export! data!
from!2011,!Guinea!legally!exports!diamonds!to!Belgium,!Israel,!Switzerland,!Thailand,!and!
the! UAE.78!Due! to! a! lack! of! current! information,! it! is! unclear! whether! Guinean! exporters!
such! as! Rufex! and! Sigma! Diamond,! who! have! been! suspected! by! the! UN! for! trading! and!
exporting! illicit! diamonds! of! Ivorian! origin! in! the! past,! are! still! exporting! illicit! diamonds!
today.79!!!
Diamond!smuggling!is!a!less!prevalent!issue!in!Guinea.!However,!there!is!evidence!
that!low=value!diamonds!from!Guinea!are!smuggled!into!Sierra!Leone.!Notably,!researchers!
from!the!Max!Planck!Institute!for!the!Study!of!Societies!found!that!banabanas!will!observe!
market! prices! in! neighboring! countries! and! sell! their! diamonds! accordingly.! Their! in=
country!research!uncovered!that!Sierra!Leonean!banabanas!in!particular!have!worked!with!
miners!along!the!Guinean!border.!These!Guinean!miners!are!able!to!easily!cross!into!Sierra!
Leone!in!order!to!sell!their!diamonds!to!investors.80!
%
Refining%&%Primary%Retailer:%
Since! most! illicit! diamonds! from! Guinea! are! exported! with! KPCS! certificates,! it! is!
nearly! impossible! for! processing! centers! or! retailers! to! recognize! them.! In! addition,! little!
information!is!available!on!illicit!diamonds!that!have!been!smuggled!out!of!the!country!or!
exported!before!entering!the!legal!market.!
!
Gaps&in&Information&&&Potential&Pressure&Points&
The! biggest! gaps! in! information! lie! in! the! government’s! inability! to! monitor!
diamond! mines,! coordinate! certification! schemes,! and! produce! tamper=proof! certificates.!!
Guinean! officials! have! openly! discussed! their! inability! to! control! mining! sites! or! borders,!
thus!leaving!the!legal!market!susceptible!to!exploitation!by!illicit!dealers.!The!certification!
system!is!of!particular!concern!due!to!the!ease!with!which!buyers!and!traders!may!commit!
forgery.! Certificates! are! printed! on! simple! A4! sheets! of! paper! and! are! then! signed! and!
!
22!
!
stamped! by! COGEAD! officials.81!Little! information! is! available! on! the! illicit! trade! simply!
because! mining! officials! lack! the! ability! to! collect! data,! prosecute! offenders,! or! identify!
illegitimate!certificates.!
USAID! has! sought! to! mitigate! these! deficiencies! in! the! mining! cadastre! system! in!
recent! years! through! the! implementation! of! the! Property! Rights! And! Artisanal! Diamond!
Development!(PRADD)!and!PRADD!II!programs.!PRADD!ran!from!2008!until!2009,!and!was!
one! of! the! first! development! projects! undertaken! by! the! US! government! relating! to! the!
KPCS!and!artisanal!diamond!mining!challenges.!The!project!has!strengthened!the!ability!of!
the! MMG! to! legally! register! diamonds! in! Forécariah! through! the! use! of! e=tablets! and!
specially!configured!software.!This!has!allowed!mining!officials!to!register!diamonds!in!the!
field! and! to! transmit! the! data! instantaneously! to! better! locate! diamonds! with! invalid!
licenses.82!Previously,! only! one! staff! member! and! one! volunteer! monitored! more! than! 20!
mining! sites! in! the! region,! resulting! in! a! strong! disregard! for! laws! and! regulations! in! the!
region,!whereas!now!around!80!percent!of!miners!register!their!findings!with!the!MMG.83!
While! this! program! has! made! a! significant! impact! on! the! illicit! mining! industry! in!
Forécariah,! it! has! done! little! to! improve! the! rampant! illicit! trade! in! the! rest! of! Guinea.! In!
order!to!effectively!combat!the!illicit!diamond!trade,!the!capacity!of!the!MMG!needs!to!be!
expanded! in! all! regions.! This! cannot! be! done! by! the! government! of! Guinea! alone,! and!
should! continue! to! be! undertaken! by! the! US! and! other! partners! who! are! able! to! train!
officials! and! support! mining! procedures! in! the! country.! Once! internationally! funded!
programs! are! sustainable! in! the! country,! processes! should! be! developed! to! turn! over!
operations! to! the! Guinean! government.! Until! then,! information! will! remain! sparse,! and!
diamonds!will!continue!to!enter!the!legal!market!with!ease.!
!
!
!
!
!
!
!
23!
!
Cote D’ Ivoire
Over!the!past!decade,!Cote!D’Ivoire!has!been!flagged!as!a!major!producer!of!conflict!
diamonds.! Industrial! mining! companies! operated! in! Cote! d’Ivoire! until! the! late! 1970’s!
when!the!main!diamond!deposits!were!deemed!exhausted.!After!the!departure!of!foreign!
investments!from!the!diamond!fields!of!Séguéla!and!Tortiya,!mining!shifted!from!primarily!
industrial!production!to!almost!exclusively!artisanal!and!small=scale!mining!(ASM).!Despite!
this! decrease! in! investment,! overall! production! steadily! increased! from! 204,826! carats!
annually!in!1975!to!300,000!carats!in!the!early!2000’s.84!It!is!probable!that!the!illegal!influx!
of!diamonds!from!neighboring!countries,!Guinea,!Liberia,!and!Sierra!Leone!contributed!to!
this!boost!in!Ivorian!production.!!
In!spite!of!this!progress,!over!the!past!decade!Cote!D’Ivoire’s!diamond!industry!has!
become!increasingly!illicit!due!to!the!country’s!violent!political!turmoil.!Diamonds!played!a!
significant!role!in!fueling!the!conflict,!as!rebel!groups!were!able!to!maintain!control!of!the!
diamond=rich! north.! This! led! the! UN! and! KPCS! to! ban! the! export! of! Ivorian! diamonds! in!
2004.!After!the!end!of!the!civil!war!in!2014,!the!UN!decided!to!lift!the!embargo!on!Ivorian!
diamonds.! A! transition! plan! –! agreed! to! by! the! UN! and! the! Ivorian! government! –! is!
currently! under! implementation! in! order! to! establish! a! legitimate! diamond! supply! chain!
and!curb!the!illicit!trade.!
!
!
!
!
!
!
!
!
!
!
!
!
24!
!
Table!4.!Value!Chain!Matrix!for!Diamonds!in!Cote!D’!Ivoire!
Source'
Country'
Côte'
d’Ivoire'
Extraction''
Points'
Mining'locations:!!
!
Séguéla!85!
Bobi!
Toubabouko!Legbo!
Rivière!Sequéla!
Diaraban!Marahoué!
(riv.)!!
Zuenoula!!
!
Tortiya!
!
'
Internal''
Marketing'
*Trading'companies:!
Sodemi86!
(Société!d’Etat!pour!le!
Développement!Minier!
de!Côte!d’Ivoire,!stateL
owned!company)!
Carbon!Holdings!SARL!
(buying!house)!
Transactys!SA!(buying!
house)!
Domestic''
Exit'Points'
Illegal:!
Unknown''
Liberia!
Guinea!
!
Mali!
Seaport:'!
Ghana!
Port!of!Abidjan!!
(has!a!single!container!scanner,! India!
which!is!used!exclusively!for!
!
89
goods!being!imported) !
Legal:!
Belgium!
!
Border'crossings:!
!
!
Smuggled!at!borders!into!!
!
*Traders:!
Liberia,!Guinea,!and!Mali!
Lack!of!data,!
Sékou!Niangadou!
(inability!to!control!forests!and! Côte!d’Ivoire!
(leads!an!illicit!network!
waterways,!insufficient!human! was!banned!
which!controls!almost!
and!material!capacity!of!the!
from!the!KPC!
exclusively!the!diamond! Ivorian!customs!administration,! until!2014!
sector!in!Séguéla,!and!is!
absence!of!night!time!border!
responsible!for!smuggling! patrols90,!systematic!
all!rough!diamonds!
racketeering!by!the!military!
produced!there!to!
and!law!enforcement!bodies!at!
neighboring!countries);!
border!checkpoints)!!
Issiaka!Ouattara87!
!
(Wattao),!controls!and!
!
receives!majority!of!
bribes!in!Séguéla!for!
“security!services”!
*Indicates!Possible!Association!with!Illicit!Activity!
Airport:!
Abidjan!Airport88!
!
!
!
Export'
Processing'
Destination' &'Refining'
25!
Primary'
Retailer'
Unknown'
!
Supply&Chain!
Mining%&%Extraction%Points%
Diamonds!in!Cote!d’Ivoire!are!found!in!alluvial!deposits!in!the!northern!part!of!the!
country! near! the! cities! of! Séguéla! and! Tortiya.! The! alluvial! nature! of! Ivorian! diamonds!
explains!the!surge!in!ASM!following!the!withdrawal!of!mining!companies!in!the!1970’s.!!!
ASM! is! strictly! regulated! in! Cote! d’Ivoire.! The! Ouattara! administration! has! taken!
several!steps!towards!improving!the!regulation!of!the!mining!sector,!including!revising!the!
1995!mining!code,!which!was!widely!considered!outdated!and!offered!little!legal!certainty!
to!miners.!Ouattara’s!reform!sought!to!curb!illegal!mining!and!provide!a!legal!framework!
for! the! operation! of! GVCs! (Groupements! à! Vocation! Coopérative);! villageRbased! mining!
cooperatives! which! constitute! one! of! the! most! widespread! basalRunits! of! diamond!
production.!!
Since!the!2014!mining!code!reform,!mining!permits!are!issued!by!the!Ministère!de!
l’Industrie! et! des! Mines.! To! receive! a! permit,! the! requester! must! fulfill! the! following!
requirements:! “(1)! retain! a! team! of! engineers! and! mining! geologists! with! extensive!
professional! experience! in! mining;! (2)! retain! a! technical! construction! manager! with! a!
number! of! years! of! experience;! and! (3)! maintain! available! bank! reserves! in! a! leading!
financial! institution! in! Cote! d’Ivoire.”91!These! daunting! requirements! contribute! to! the!
marginal!increase!in!registration!of!artisanal!miners,!despite!the!2014!lift!of!the!KPCS!ban!
on! Ivorian! diamonds.! Regardless! of! overall! progress! compared! to! the! previous! mining!
code,! the! 2014! law! allows! for! several! legal! loopholes.! Emery! Mukendi! Wafwana! &!
Associates,! an! African! international! law! firm,! deemed! the! reform! insufficient! to! meet!
international! standards! on! the! security! of! mining! titles,! the! definition! of! clear!
administrative! authorities! in! the! sector,! and! the! promotion! of! a! stable! environment! for!
international! investors.92 !Moreover,! the! short! duration! for! semiRindustrial! exploitation!
authorizations,!set!to!only!four!years,!does!not!provide!a!solid!legal!framework!for!ASM.!
!
Internal%Marketing%
Illicit! activities! have! continued! to! proliferate! since! the! political! turmoil! and!
lawlessness!of!the!early!2000’s.!The!departure!of!diamond!buying!houses!and!intermediary!
!
26!
!
traders!at!the!beginning!of!the!civil!war!in!2002!drastically!reduced!the!income!of!Ivorian!
artisanal! miners! because! of! the! lack! of! prospect! for! their! products. 93 !Illicit! networks!
quickly! filled! this! vacuum! and! provided! opportunity! for! artisanal! miners.! The! informal!
trade! in! diamonds! was! also! strengthened! due! to! the! disappearance! of! registered! traders!
who!were!previously!able!to!make!the!junction!between!local!miners!and!those!higherRup!
on!the!diamond!value!chain.!The!lifting!of!the!KPCS!ban!in!2014!and!the!relative!stability!in!
the! northern! provinces! are! likely! to! revitalize! the! mining! sector,! which! declined! rapidly!
after! 2007.! However,! prospective! studies! on! Ivorian! subsoil! have! yet! to! be! conducted! in!
order!to!determine!the!extent!of!the!remaining!diamond!reserves.!!
Once!mined,!diamonds!are!sold!from!miners!to!intermediary!traders.!These!traders!
were! prohibited! from! exporting! diamonds! until! 2014.! This! step! of! the! diamond! supply!
chain! in! Cote! d’Ivoire! is! perhaps! the! most! obscure! and! would! benefit! from! further!
investigation.! In! 2014,! the! Ivorian! government! announced! the! opening! of! buying! centers!
for!diamonds!to!better!monitor!business!practices,!facilitate!the!transition!of!diamonds!into!
the! formal! economy,! and! to! better! regulate! the! domestic! market.! In! 2015,! the! Ivorian!
government! authorized! Carbon! Holdings! SARL! and! Transactys! SA! to! legally! export!
diamonds! from! the! country,! becoming! the! first! two! international! buying! houses! to!
reintegrate!Ivorian!diamonds!into!the!global!value!chains.94!
During!the!embargo!period,!UN!experts!and!Ivorian!civil!society!groups!designated!
Malian!businessman!Sékou!Niangadou,!and!the!former!warlord,!now!lieutenantRcolonel!in!
the! Ivorian! military,! Issiaka! Ouattara! (“Wattao”),! as! coRleaders! of! an! illicit! diamond!
extracting! network! and! trade! from! Séguéla! and! Tortiya.95!Although! these! two! individuals!
have! been! named! publicly! and! repeatedly! on! both! the! international! and! domestic! stage,!
they!allegedly!pursue!their!unlawful!activities!in!total!impunity.!The!UN!reported!in!2015!
that,!in!spite!of!attempts!to!legalize!the!mining!sector,!the!illicit!network!led!by!Niangadou!
still! controls! a! monopoly! over! sales! of! rough! diamonds! in! Seguela,! and! is! responsible! for!
smuggling!almost!all!the!rough!diamonds!produced!in!Seguela!to!neighboring!countries.96!!!
!
Domestic%Exit%Points%&%Export%Destination%
Due! to! insufficient! border! controls,! Cote! d’Ivoire! has! trouble! monitoring! illicit!
transport!of!diamonds.!CrossRborder!smuggling!is!the!major!modus!operandi!employed!for!
!
27!
!
the!illicit!export!of!diamonds.!In!2015,!a!UN!report!identified!several!shortcomings!of!the!
Ivorian!customs!administration,!including!the!government’s!inability!to!control!forests!and!
waterways,!insufficient!personnel!and!funds,!the!absence!of!nighttime!border!patrols,!and!
the!systematic!racketeering!by!military!and!law!enforcement!bodies!at!border!checkpoints.!
The!same!report!noted!the!insufficient!control!of!departing!passengers!at!FélixRHouphouëtR
Boigny! International! Airport! in! Abidjan,! which! allows! for! the! aerial! trafficking! of!
diamonds.97 !Maritime! borders! also! suffer! from! a! lack! of! proper! oversight! –! only! one!
container!scanner!was!used!in!the!port!of!Abidjan!in!2015,!and!it!was!exclusively!devoted!
to!the!control!of!imported!goods.98!
The!previous!ban!of!Ivorian!diamonds!to!the!international!market!has!made!data!on!
export! destinations! difficult! to! find.! UN! experts! have! noted! that! rough! diamonds! from!
Séguéla! have! been! smuggled! across! the! border! to! Guinea! and! integrated! into! the! legal!
supply! chain! of! Guinean! diamonds.99!Other! neighboring! countries! such! as! Ghana,! Liberia,!
Mali,! and! Sierra! Leone! are! thought! to! be! destinations! for! illicit! transRnational! trading!
networks.! Since! 2014,! Belgium! has! become! an! export! destination! for! the! legal! trade! of!
Ivorian! diamond,! but! due! to! the! discovery! of! Ivorian! diamonds! with! falsified! certificates,!
questions!have!been!raised!regarding!the!country’s!simultaneous!involvement!in!the!illicit!
trade! as! well.100!The! UAE! is! another! global! hub! for! the! diamond! trade,! and! according! to!
diplomatic! cables! published! by! WikiLeaks,! has! been! associated! with! the! illegal! trade! of!
Ivorian!diamonds.101!
!
Processing/Refining%&%Primary%retailer%
To!date,!publicly!available!sources!have!been!unable!to!identify!possible!cutting!and!
polishing! centers! for! Ivorian! diamonds.! According! to! the! newspaper! Times! of! India,! the!
reopening! of! the! Ivorian! diamond! sector! was! of! interest! to! many! Indian! diamantaires,!
pointing!to!the!possibility!of!Ivorian!diamonds!being!processed!in!Gujarat!state,!India.102,103!
Regardless,!the!Indian!embassy!in!Abidjan!does!not!list!any!imports!of!Ivorian!diamonds.104!
The!end!of!the!supply!chain!for!Ivorian!diamonds!remains!obscure.!The!traceability!
of! diamonds! originating! from! Cote! d’Ivoire! suffers! from! a! lack! of! information! at! the!
domestic! level! when! diamonds! are! illegally! exported,! making! it! difficult! to! identify! end!
consumers.!!
!
28!
!
Gaps&in&Information&&&Potential&Pressure&Points&
There! is! a! clear! gap! of! knowledge! regarding! external! steps! of! the! diamond! supply!
chain! in! Cote! d’Ivoire.! While! information! regarding! the! precise! locations! of! mines! and!
geomorphology!of!different!deposits!in!the!country!exist,!it!becomes!increasingly!difficult!
to!track!diamonds!once!they!leave!the!country.105!Future!efforts!to!fill!these!gaps!should!be!
focused!in!situ!before!diamonds!join!illicit!trading!networks.!Once!diamonds!change!hands!
many!times,!traceability!ceases!to!be!feasible.!The!presence!of!smugglers!and!unregistered!
traders! linked! to! organized! crime! in! Séguéla! indicate! that! Ivorian! diamonds! are! being!
introduced!into!the!informal!economy,!but!little!remains!known!about!relevant!actors.!!
Programs! such! as! the! PRADD! II! project! implemented! by! USAID! and! the! Friends! of!
Cote!D’!Ivoire!have!attempted!to!mitigate!these!problems!by!creating!greater!transparency,!
improving!the!efficiency!of!the!mining!sector,!and!reducing!the!number!of!illicit!diamonds!
that! enter! the! international! market.! In! Cote! D’! Ivoire,! PRADD! II! has! helped! 21! mining!
communities!create!conflict!mediation!processes!and!procedures,!as!well!as!introduce!local!
communities! to! registration! procedures.! PRADD! II! has! also! introduced! agricultural!
development! programs! aimed! at! diversifying! the! livelihoods! of! mining! communities! and!
reduce!exploitation!by!diamond!collectors!in!Seguela.!These!programs!should!continue!to!
increase!transparency!and!promote!a!free!and!fair!diamondRtrading!environment,!although!
their!longRterm!effects!still!remain!to!be!seen.106!
Another!commonality!of!diamond!trafficking!in!West!Africa!is!the!lack!of!responsible!
policies! regarding! diamonds! of! uncertified! origins! in! processing! countries.! If! cutting! and!
polishing!centers!in!India!or!China!recorded!the!origin!of!gems!entering!their!factories,!it!
would!greatly!enhance!the!overall!knowledge!on!the!illicit!value!chain!of!Ivorian!diamonds.!
Fingerprinting! initiatives,! such! as! the! proposal! made! by! the! South! African! firm! Mintek! to!
the!Ivorian!government!to!fingerprint!diamonds!seized!by!Malian!authorities!and!alleged!to!
be!from!Ivorian!origin,!could!help!to!better!monitor!illegal!movements!of!rough!diamonds!
throughout!the!supply!chain.107!
!
!
!
!
29!
!
Gold
!
Until!recently,!the!gold!industry!was!essentially!a!secretive!business,!and!little!was!
known!about!how!the!mineral!was!produced!or!how!its!prevalence!affected!the!livelihoods!
of!those!living!in!its!goldRrich!countries.!Most!illicit!gold!mining!is!done!through!artisanal!
and! smallRscale! mining! (ASM).! ASM! produces! about! 10! to! 15! percent! of! the! world’s! gold,!
and! employs! an! estimated! 10! to! 15! million! miners.108 !ASM! refers! to! informal! mining!
activities!carried!out!with!lowRquality!machinery,!often!involving!the!use!of!handRtools!and!
mercury,! which! can! be! very! detrimental! to! both! the! environment! and! the! miners.!
Compared! to! largeRscale! industrial! mining,! ASM! is! generally! performed! at! unregulated!
mines,!and!is!far!more!laborRintensive,!dangerous,!and!inefficient.!In!many!cases,!this!form!
of!mining!has!led!to!the!use!of!child!labor!and!exploitation!by!organized!crime!groups,!who!
use!their!illicit!networks!to!take!advantage!of!the!miners’!economic!insecurities.!!
Due! to! its! small! size,! gold! can! easily! be! smuggled! across! porous! borders! and!
concealed! from! customs! officials.! The! use! of! fake! certificates! and! purchase! receipts! is!
common! in! the! illicit! industry,! and! in! many! areas,! weak! governance! and! poor! regulation!
mechanisms! allow! for! gold’s! effortless! transportation.! Gold! is! also! difficult! to! trace.! Once!
gold! gets! mixed! with! other! newly! mined! minerals,! it! becomes! impossible! to! decipher! its!
origin.! Organizations! such! as! the! London! Bullion! Market! Association! (LBMA)! and! the!
Responsible! Jewellery! Council! have! tried! to! raise! their! certification! standards,! and! use!
third! party! auditors! to! ensure! the! compliance! of! companies! to! their! Responsible! Gold!
Guidance! principles.! While! these! guidelines! are! respectable,! their! sourcing! rules! are!
voluntary,!and!therefore!companies!that!do!not!comply!face!no!repercussions.!In!2012,!the!
Peruvian! newspaper! El! Comercio! accused! one! of! the! Responsible! Jewellery! Council’s!
members,! the! Swiss! metalRrefinery! Produits! Artistiques! Métaux! Précieux!(PAMP),! of!
purchasing!illicit!gold!from!unknown!Peruvian!sources,!demonstrating!how!even!the!best!
certification!schemes!are!not!completely!reliable.109!!
Jewelry! alone! makes! up! nearly! 50! percent! of! the! world’s! gold! demand.110!While!
some! jewelers! such! as! Tiffany! and! Sterling! have! begun! proactive! conflictRfree! programs,!
other!large!retailers!have!fought!for!limited!regulation.!For!example,!Target!and!Walmart!
pushed!for!a!loophole!in!the!SEC’s!conflict!mineral!rules!in!2012.!This!loophole!kept!Target,!
!
30!
!
Walmart,!and!other!large!companies!from!having!to!disclose!whether!or!not!their!products!
contained! conflict! minerals! because! these! companies! do! not! control! their! product’s!
manufacturing.111,112!This! big! legislative! victory! for! large! retailers! has! encouraged! the!
continuation! of! the! illicit! gold! trade,! and! allows! companies! to! continue! to! ignore! their!
connection! to! exploitative! and! dangerous! work.! Despite! efforts! to! increase! transparency!
within!the!gold!supply!chain,!ignorance,!fake!documentation,!weak!regulation!mechanisms,!
and! tracing! difficulties! allow! companies! to! continue! to! operate! and! trade! in! the! informal!
economy.!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
31!
!
Democratic Republic of the Congo
The! illicit! gold! trade! in! the! Democratic! Republic! of! the! Congo! (DRC)! continues! to!
undermine! the! country’s! prospects! for! peace! and! stability.! Over! 20! years! of! conflict! has!
enabled!armed!rebel!forces!and!corrupt!local!officials!to!take!advantage!of!Congolese!gold!
miners.!UN!experts!estimate!that!about!eight!to!12!tons!of!gold,!worth!approximately!USD!
$400! million,! are! smuggled! out! of! the! country! each! year.113!Most! illicit! gold! mining! is!
concentrated! in! the! DRC’s! eastern! provinces,! where! unauthorized! army! personnel! and!
rebel!groups!control!over!half!of!the!estimated!800!artisanal!gold!mines.114!!
The! eastern! DRC’s! underdevelopment! is! closely! linked! to! illicit! trade,! political!
instability,! and! corruption.! Limited! law! enforcement! and! regulatory! capacity! have! a!
pernicious! impact! on! the! mineral! sector.! The! presence! of! rebel! groups,! the! use! of! child!
labor!and!forced!labor,!hazardous!working!conditions,!and!environmental!degradation!are!
among! the! many! problems! associated! with! gold! mining! in! the! eastern! DRC.! The!
overarching!lack!of!security!presents!a!major!threat!to!all!gold!miners,!many!of!whom!face!
robbery!and!illegal!taxation!from!the!army!and!rebel!groups!that!control!the!mines,!as!well!
as! from! corrupt! state! agents! who! require! bribes! to! allow! the! minerals! to! be! traded.!
Government! complicity! and! a! high! 13! percent! gold! export! tax! (compared! to! one! to! five!
percent! in! surrounding! countries)! further! discourage! miners! from! bringing! gold! into! the!
formal!economy.!The!DRC!is!a!member!of!the!International!Conference!on!the!Great!Lakes!
Region!(ICGLR)!Regional!Certification!Mechanism,!which!requires!that!each!member!state!
implement! a! verification! and! mine! inspection! scheme.! Despite! movements! towards!
implementation,! numerous! loopholes! exist.! The! most! important! loophole! allows! the!
Congolese!government!to!keep!from!following!through!with!its!constitutional!obligation!to!
remit!40!percent!of!its!gold!revenues!back!to!the!provinces.115!
!
!
!
!
!
!
32!
!
Table!5.!Value!Chain!Matrix!for!Gold!in!the!Democratic!Republic!of!the!Congo!
Source'
Country'
Extraction''
Points'
DRC:%
%
Eastern:)
North'Kivu'
South'Kivu'
Katanga'
Maniema'
%
Orientale)
Province:)
Ituri'
%
'
Illicit'Mining'
Locations:'
North'Kivu'
Ping%
Lubero%%
Beni%%%
Rutshuru%
Walikale%
'
South'Kivu'
Shabunda%
Kalehe%
Mwenga%
Fizi%
'
Maniema'
Punia%%
Lubutu%
Maiko%National%Park%%
%
Katanga'
Kalemie%
Mitwaba%
Pweto%
Maelmba%
Nkulu%%
Manono%
Ituri'
Irumu%%
Mambasa%
Internal''
Marketing'
Illicit'Gold'
Market'
Locations:'
North'Kivu:%%
Manguredjipa%%
Kasugho%
Bunyatenge%%
Ndjingala%
Mubi%
Kibua%
Butembo%
Goma%
%
South'Kivu:%
Mulungu%
Bukavu%
Uvira%
%
Maniema:'
Salambila%
Bikenge%
%
Ituri:'
Djalasiga%%
Aru''
Bunia116,2%
''
'
%
Domestic''
Exit'Points'
*Airport:'
New%CongoCom%Air%
(owner%Evariste%
Shamamba)%
%
*Border'Crossings:''
Uvira%→%Bujumbura,%
Burundi%
%
Bungana%→%Kisoro,%
Rwanda'
'
*Exporters'by'location:'
Kinshasa:%
SatisRessources%
Centauris%
Metal%Aurum%
Eda%Velma%
%
Bukavu:%
DTA%
Mining%Congo%
Namukaya%
Cavichi%
%
Kisangani:%
Metal%Arum%
Centauris%
Eda%Velma%
Divas%
!
!
33!
Export''
Destination'
Uganda:'Kampala,%
Ariwara%
'
Burundi:%Bujumbura%%
%
South'Sudan:%Juba%
'
Tanzania:'Kigoma,%Dar%
Es%Salaam%
%
Rwanda:%Kisoro%
'
Kenya117'
'
*Airport:'
Entebbe%Airport,%
Uganda118%
'
Exporter,'Sibtein'
Alibhai%–considered%to%
be%a%key%channel%
behind%illicit%gold%
exports%from%Africa%
and%Dubai.%%Owns%AR%
Gold,%Alfa%Gold%(DRC),%
Alfa%Gold%Corp%(Dubai)%
&%Alfa%Gems%Corp%
(Mozambique)119%%
Processing'&'
Refining'
*Refiners:'
UAE:'Dubai'
Kaloti%Jewelry%
International;%
Ramp%
International;%
Al%Refaa%Trading;%
Viren%Jewellers;%
Economic%
Exchange%Centre;%
Cavichi%Jewellery;%
Sakshi%
Jewellery120%
%
Switzerland'
mostly%sent%to%
UAE,%but%some%
may%still%go%to%
Switzerland%
%
Others'linked'to'
DRC'illicit'gold:'
Almalyk%Mining%
and%Metallurgical%
Complex;%
Asaka%Riken%Co%
Ltd.;%
Bangko%Sentral%
ng%Pilipinas;%
Caridad;%
Primary'
Retailer'
Swiss'
Banks:'
UBS%
Credit%
Suisse%
'
UAE:'Dubai%
souks'
'
Users:''
Banks%
Electronics%
Dentistry%
Jewelers%
)
India'
'
China'
%
A%significant%
amount%of%
manufacturin
g%is%done%in%
India%and%
China%for%sale%
to%jewelry%
manufacturer
s%and%retailers%
in%the%US%and%
Europe.121%
!
Source'
Country%
%
!
!
Extraction'
Points%
Internal'
Marketing%
Armed'Groups'in'
control'of'mining'
sites:'
'
North'Kivu:%
FARDC;%
FDLR;%(Leader:%
Sylvestre%
Mudacumura);%
Mai%Mai/Sheka%aka%
NDC%(Leader:%Sheka%
Ntabo%Ntaberi);%%
'
South'Kivu:%
FARDC;%
Raïa%Mutomboki;%
Mai%Mai%
Yakutumba;%%
FDLR%%
'
Katanga:'''
FRPI%%
FARDC%%
Mai%Mai%Bakata%
Katanga%
%
Maniema:%
FARDC;%%%
MaicMai%Simba%
(General%Mando)%
'
*Trading'
Companies:'
Farrel%Trade%&'
Investment%
Corporation%&''
Machanga%Ltd.%
(both%owned%by%
Rajendra%Vaya%
Kumar.%His%
trading%
associates%are%
Jigar%Kumar,%
Jamnadas%Vasanji%
Lodhia%and%his%
son%Kunal);%
Ntahangwa%
Mining%(Burundi%c%
owned%by%
Mutoka%
Ruganyira);%
Silver%Minerals%
(Uganda%owned%
by%Madadali%
Sultanali%Piran);%
Mineral%Impex%
Uganda%
(associated%with%
Rajendra%Vaya%
Kumar);%%
Mining%Congo;%
%
%
'
Domestic'
Exit'Points%
Export'
Destination%
Processing'&'
Refining%
Butembo:%
'
Glory%Minerals%
%
Bunia:%%
MetauxPrecieux%
%
*Exporters'tied'to'DRC'
gold:'
'
Uganda:%
Westcorp%Mining;%
Treasure%Highland%Caves%
Kenya:%
Skyhawk%International%
Ltd.;%
Ushindi%Exports%Ltd.%%
Burundi:%
Burkenrode%(owned%by%
Mutoka%Ruganyira%who%is%
associated%with%Rajendra%
Kumar);%%
Golden%Gold%(ownerc%
Karim%Somji,%exports%on%
behalf%of%AR%Gold,%owner%c%
Sibtein%Alibhai);%
SCEEMB;%
Ntahangwa%Mining;%
Etablissement%Jeanc
Jbeili122%
'
Others'linked'to'
DRC'illicit'gold:%
Cendres%&%
Métaux%SA;%%
Chugai%Mining;%
Colt%Refining;%
Daejin%Indus%Co.%
Ltd;%
DaeryongENC;%
Do%Sung%Corp.;%
FSE%Novosibirsk%
Refinery;%
Hwasung%CJ%Co.%
Ltd.;%
Inner%Mongolia%
Qiankun%Gold%
and%Silver%
Refinery%Share%
Co.%Ltd.;%
Jiangxi%Copper%
Company%Ltd.;%
Korea%Metal%Co.%
Ltd.;%
Kyrgyzaltyn%JSC;%
Lingbao%Jinyuan%
Tonghui%Refinery%
Co.%Ltd.;%
Moscow%Special%
Alloys%Processing%
Plant;%
'
34!
Primary'
Retailer%
'
!
Source'
Country%
%
Extraction'
Points%
Ituri:''
FRPI%%
FARDC%%
Mai%Mai%Bakata%
Katanga%%
'
Internal'
Marketing%
Domestic'
Exit'Points%
*Trading'
'
Companies:''
DTA;%
Glory%Minerals;%
AR%Gold%c%(owned%
by%Sibtein%
Alibhai);%
Etablissement%
Namukaya%aka%
Congocom%
(owned%by%
Evariste%
Shamamba)123%%%
Midas%All%
Minerals%(owned%
by%Sameer%
Bhimji)124%
%
ConflictQFree'
Trading'
companies:'
Banro%
Corporation;%%
AngloGold;%
Ashanti/%
Randgold%
Resources125'
Export'
Destination%
Processing'&'
Refining%
'
Others'linked'to' '
DRC'illicit'gold:%
Navoi%Mining%and%
Metallurgical%
Combinant;%
OJSC%Kolyma%
Refinery;%
Prioksky%Plant%of%
NoncFerrous%
Metals;%
Sabin%Metal%
Corp;%
SAMWON%
METALS%Corp.;%
So%Accurate%
Group,%Inc.;%
SOE%Shyolkovsky%
Factory%of%
Secondary%
Precious%Metals;%
The%Great%Wall%of%
Gold%and%Silver%
Refinery%of%
China;%
Tongling%
nonferrous%
Metals%Goup%Co.,%
Ltd;%
Torecom126%
'
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
35!
Primary'
Retailer%
!
Supply&Chain:&
Concentrating+
!
The! eastern! DRC! provinces! of! North! and! South! Kivu,! Katanga,! and! Maniema,!
dominate!the!illicit!gold!mining!trade,!where!more!than!50!armed!groups!remain!in!conflict!
with! Congolese! forces.127!In! both! North! and! South! Kivu,! the! Democratic! Forces! for! the!
Liberation! of! Rwanda! (FDLR)! and! the! Armed! Forces! of! the! Democratic! Republic! of! the!
Congo! (FADRC)! control! the! majority! of! gold! mines,! with! FADRC! controlling! almost! 80!
percent!of!the!mines!in!North!Kivu!alone.128!Another!prominent!rebel!group!in!North!Kivu!
is! the! Nduma! Defence! Coalition! (NDC),! also! known! as! Mai! Mai! Sheka.! In! 2011,! Congolese!
authorities!issued!an!arrest!warrant!for!the!NDC’s!leader,!Sheka!Ntabo!Ntaberi,!for!crimes!
against! humanity,! but,! as! of! early! 2016,! he! remains! at! large.129!Other! armed! groups,! like!
Raïa! Mutomboki! and! Mai! Mai! Yakutumba! control! many! gold! mines! in! South! Kivu,! along!
with!the!FDLR!and!FADRC.!
The! Resistant! Patriotic! Forces! of! Ituri! (FRPI)! maintain! a! large! presence! in! Ituri!
(Oriental! Province)! and! Katanga! Province,! along! with! the! FADRC! and! Mai! Mai! Bakata!
Katanga.! Maniema’s! mine! sites! are! largely! free! from! militarization,! with! the! exception! of!
the! FADRC! and! the! Mai! Mai! Simba! under! the! control! of! General! Mando.130!Despite! the!
prevalence! of! conflict! among! these! groups,! economic! alliances! are! common! and! have!
occurred!among!the!NDC,!FADRC!elements,!Raïa!Mutomboki,!and!Mai!Mai!Simba,!as!these!
groups! rely! heavily! on! the! trade! of! gold! and! weapons! to! finance! their! operations.! While!
militias!take!the!first!cut!of!the!profits,!the!buyers!and!exporters!who!take!the!biggest!risks!
by!falsifying!receipts!and!certificates!and!illegally!smuggle!gold!into!neighboring!countries!
stand!to!make!the!most.!
+
Internal+Marketing+
According!to!International!Peace!Information!Service!(IPIS),!North!Kivu!is!home!to!
the! busiest! gold! trading! centers! in! the! region,! especially! in! the! territories! of! Lubero! and!
Walikale.! In! 2014,! several! kilos! of! gold! were! traded! on! a! weekly! basis! in! Bunyatenge,!
Kasugho,! Kibua,! Manguredjipa,! Mubi,! and! Ndjingala.! Kibua’s! location! along! the! main! road!
!
36!
!
leading!to!the!provincial!capital!of!Goma!makes!it!a!prime!area!for!groups!like!the!NDC!to!
set!up!barricades!and!levy!illegal!taxes!on!traders.131!
There! are! numerous! active! trading! companies! in! the! DRC.! While! some! companies,!
such!as!Banro!Corporation!and!AngloGold!Ashanti!have!been!audited!by!the!LBMA!and!can!
claim! conflict]free! status,! certificate! forgery! still! occurs.! Many! companies,! such! as! Mining!
Congo,! Glory! Minerals! and! Namukaya! allegedly! buy! gold! from! rebel]controlled! mines.132!
The!export!companies!Mineral!Impex!and!Silver!Mineral!have!also!been!cited!for!trading!in!
illicit!DRC!gold,!but!use!false!certificates!to!claim!the!gold!comes!from!elsewhere,!such!as!
South! Sudan! where! the! export! tax! is! only! one! percent. 133 !According! to! several! UN!
investigations! in! 2012,! four! individuals,! Rajendra! Vaya! Kumar,! Jigar! Kumar,! Jamnadas!
Vasanji! Lodhia! and! Mutoka! Ruganyira,! owned! the! major! trading! houses! in! Uganda! and!
Burundi.!These!trading!houses!are!known!to!partner!with!Congolese!exporters,!and!to!have!
financial! relationships! with! armed! groups.134!Despite! financial! sanctions,! the! freezing! of!
bank!accounts,!and!travel!bans,!these!individuals!allegedly!still!operate!in!the!region.135!
+
Domestic+Exit+Points+&+Export+Destination+
Because!of!its!small!size,!gold!is!easily!smuggled!into!Burundi,!Kenya,!South!Sudan,!
Tanzania! and! Uganda.! Lack! of! effective! verification! policies! and! widespread! local!
corruption! also! allow! companies! and! individuals! to! easily! transport! illicit! gold! out! of! the!
DRC.! While! some! gold! is! smuggled! on! the! ground! near! border! the! cities! of! Bujumbura,!
Burundi!and!Kisoro,!Rwanda,!other!smugglers!use!air!travel.!Uganda’s!Entebbe!Airport!is!
known! to! allow! individuals! to! carry! on! illicit! gold.! Evariste! Shamamba,! a! known! gold!
trader,! owns! New! CongoCom! Airlines! and! Establissement! Namukaya.! Despite! undergoing!
UN!sanctions!in!2007!for!his!involvement!in!exporting!illicit!gold,!Shamamba!is!alleged!to!
operate! under! various! corporate! names,! making! it! harder! to! trace! his! continued!
involvement! in! the! illicit! trade.136!According! to! the! Wall! Street! Journal,! up! to! 50! kilos! of!
conflict! gold! can! pass! through! customs! with! fraudulent! documents,! as! long! as! a! licensed!
local! dealer! is! listed! on! accompanying! paperwork.137 !This! effectively! hides! the! gold’s!
source!and!allows!for!free!movement.138 !Several!export!companies,!such!as!Burkenrode!in!
Burundi,!have!been!tied!to!DRC!gold!and!renowned!high]volume!illegal!traders.!Exporters!
based! in! Bujumbura! and! Kampala! have! controlled! the! business! for! many! years! and! have!
!
37!
!
been!known!to!pre]finance!Congolese!suppliers!and!offer!above]market!prices!in!order!to!
ensure!their!loyalty.139!!
One! of! the! most! important! players! in! the! illicit! supply! chain! is! Sibtein! Alibhai,! a!
Canadian! national! who! serves! as! a! key! channel! for! shipments! to! Dubai.140!Alibhai! owns!
companies!in!the!DRC,!Dubai,!and!Mozambique,!and!has!been!connected!to!Machenga!Ltd.!
owner,!Rajendra!Vaya!Kumar,!and!to!Golden!Gold!owner!Karim!Somji,!who!has!been!cited!
for! smuggling! in! the! DRC.141!These! individuals! have! all! been! red]flagged! by! the! UN,! but!
difficulties! in! tracing! supply! chains! and! their! connections! to! high]level! Congolese!
politicians!allow!them!to!continue!to!act!with!impunity.142 !
Figure&2.&Common&Gold&Trade&Routes&in&the&DRC&
!
!
Refining+&+Primary+Retailer+
Most! Congolese! gold! ends! up! in! Dubai! for! refining,! where! the! Dubai! Multi!
Commodities! Centre! (DMCC)! has! instituted! mandatory! requirements! for! responsible!
sourcing. 143 !Despite! past! certifications! of! compliance! with! the! DMCC,! in! 2015,! Kaloti!
Jewellery! International! was! de]listed! for! not! having! met! due! diligence! requirements.! The!
DMCC! did! not! provide! specific! reasoning! for! their! loss! of! status,! but! in! 2014,! a! former!
auditor! from! Ernst! and! Young! alleged! that! DMCC! and! Kaloti! colluded! to! hide! sizeable!
!
38!
!
amounts!of!gold!originating!from!high]risk!or!unknown!sources.144!KEMET,!an!electronics!
company,!conducted!a!Conflict!Mineral!Report!in!2014!to!verify!the!origins!of!their!refiners’!
minerals,!and!were!unable!to!verify!whether!28!of!their!85!gold!refiners!were!tied!to!DRC!
conflict! gold,! further! revealing! issues! with! traceability! and! compliance! at! the! point! of!
refining.145!!!
Dubai! is! known! for! its! local! market! (“souk”)! where! no! one! questions! the! gold’s!
origin,!and!licit!and!illicit!gold!are!mixed!into!scrap!bars!and!sold!for!cash!to!jewelers!and!
traders.146!!A!large!amount!of!unrefined!Dubai!gold!goes!to!India!in!the!form!of!jewelry,!and!
quickly! becomes! untraceable! because! of! India’s! lax! requirements! on! sourcing.! In! 2012,!
Congolese! conflict! gold! refined! in! Dubai! was! often! sold! to! Swiss! banks,! such! as! UBS! and!
Credit!Suisse.!These!banks!are!commonly!known!as!“bullion!banks,”!and!hold!gold!in!vaults!
for! investors! without! accounting! for! the! origin.147!Among! the! primary! retailers! in! the!
supply! chain! are! jewelry,! electronics,! and! dental! companies,! but! after! refining,! it! is!
impossible!to!tell!where!DRC!gold!actually!ends!up.!!
!
Gaps&in&Information&&&Potential&Pressure&Points&
Constant! shifts! in! security,! production,! and! world! market! prices! make! up]to]date!
information! on! the! Congolese! gold! supply! chain! difficult! to! find.! Due! to! the! nature! of!
conflict,! armed! groups! may! lose! power! or! move! to! new! areas,! making! it! difficult! to! pin!
down! supply! routes.! The! lack! of! capacity! to! verify! the! origins! of! Congolese! gold,! coupled!
with! the! falsification! of! certificates,! further! complicate! the! problem.! Another! major!
challenge!is!simply!separating!the!licit!from!the!illicit!gold,!as!many!allegations!stem!from!
word! of! mouth! rather! than! documented! evidence.! Even! in! cases! where! Congolese!
authorities! catch! fake! certificates,! companies! quickly! devise! workarounds! to! continue!
importing! gold,! such! as! changing! company! names! and! securing! alternative! smuggling!
routes.148!
The! biggest! gaps! in! information! pertain! to! primary! retailers! and! end! users.! Gold!
from! multiple! sources! is! processed! in! refineries,! rendering! the! origin! untraceable.! The!
inability!to!trace!gold,!as!well!as!the!use!of!fake!receipts!and!illicit!intermediaries,!makes!
greater!transparency!essential,!and!supply!chains!should!be!made!public!so!that!consumers!
!
39!
!
are!better!informed!about!the!origins!of!their!products.!All!refiners,!traders,!and!exporters!
should! be! required! to! conduct! yearly! audits! that! entail! certified! copies! of! bank! transfers!
and/or! chain! of! custody! documentation.! This! will! increase! the! need! for! supply! chain!
evaluations!from!third]party!auditors,!and!would!inevitably!lead!to!new!jobs!in!this!field.!
Unlike! most! countries,! the! supply! chain! of! conflict! minerals! in! the! DRC! has! been!
thoroughly! studied.! IPIS! and! Enough! Project! have! been! particularly! active! in! this! regard.!!
Starting!in!2007,!IPIS!partnered!with!DRC!Cadastre!Minier!(CAMI),!the!group!responsible!
for! the! DRC’s! mining! concessions,! as! well! as! other! Congolese! mining! services! and!
representatives! from! local! civil! society! organizations,! to! create! a! system! to! monitor! ASM!
activities!and!the!involvement!of!armed!groups!and!criminal!networks!in!the!illicit!mining!
trade.! It! is! unclear! whether! IPIS! will! continue! to! produce! maps,! as! none! have! been!
published!since!2014.!The!relationships!IPIS!has!fostered!with!local!mining!organizations!
and!civil!society!groups!are!essential!to!fill!the!gaps!in!knowledge!about!supply!chains!and!
set!the!standard!for!such!research.!However,!such!efforts!are!dependent!on!the!availability!
of!generous!funding.149!There!is!far!more!to!be!done!to!gain!a!deeper!understanding!of!the!
entirety! of! the! problem.! Closer! alliances! between! actors! like! IPIS! and! local! mining!
organizations! are! critical,! the! latter! having! the! most! to! gain! from! increased! mining!
formalization.!!!!
While! the! DRC! has! moved! toward! full! implementation! of! the! ICGLR! Regional!
Certification!Mechanism,!conflict!and!corruption!will!undoubtedly!continue!to!undermine!
these!efforts.!In!the!DRC,!the!13!percent!export!tax!makes!smuggling!gold!or!falsifying!its!
origin!far!more!lucrative!than!legal!mining.!Reducing!this!tax!to!bring!it!closer!to!the!rates!
in!the!region!can!lead!to!more!formalized!mines,!but!it!is!questionable!how!far!it!will!go!to!
stem!corruption.!Regardless!of!the!DRC’s!efforts!towards!mine!formalization,!the!ongoing!
conflict,! weak! governance,! and! general! impunity! make! peace! and! governmental!
transparency!essential!for!bringing!mines!and!miners!into!the!formal!economy.!
&
&
&
!
40!
!
Colombia
As!the!18th!largest!gold!producing!country!in!the!world,!Colombia!produced!44!tons!
of! gold! in! 2015.150!However,! experts! estimate! that! up! to! 80! percent! of! Colombian! gold! is!
mined!illegally.!Rising!gold!prices!over!the!last!decade!has!led!to!growth!in!both!the!formal!
and!informal!gold!mining!sectors,!thereby!incentivizing!the!involvement!of!criminal!groups!
in! the! industry.151!According! to! President! Juan! Manuel! Santos,! illicit! gold! is! a! $2.5! billion!
industry,! and! has! officially! surpassed! cocaine! trafficking! as! the! largest! illicit! export! in!
Colombia.152!Every! year,! the! Colombian! government! loses! large! sums! of! tax! revenue! and!
royalties! as! gold! continues! to! be! exported! outside! of! the! formal! economy.! Low! levels! of!
compliance! with! legal! obligations! plague! even! legal]title! holders.! According! to! the! 2011]
2012! Mining! Census,! 65! percent! of! mining! operations! do! not! pay! royalties! to! the!
government,! with! 37! percent! of! these! operating! legally.153 !Illegal! mining! is! extremely!
widespread,! occurring! in! 233! municipalities! within! the! country.154!This! illicit! mining! has!
resulted! in! over! 16,700! hectares! of! deforestation! and! the! contamination! of! at! least! 19!
rivers.155!!
Rebel! groups! and! criminal! neo]paramilitary! groups! control! many! of! Colombia’s!
illegal! mines.! These! groups! frequently! exploit! local! populations! in! order! to! finance! their!
respective! operations.! Through! extortion! and! forced! labor,! groups! such! as! the! leftist!
Revolutionary!Armed!Forces!of!Colombia!(FARC),!the!National!Liberation!Army!(ELN),!Los!
Urabeños,! and! Los! Rastrojos! continue! to! profit! from! illicit! gold! mining.! Peruvian! website!
Ojo!Público!estimates!that!half!of!Colombia’s!illicit!gold!is!associated!with!organized!crime!
and! rebel! groups.156!The! rest! of! the! illegal! gold! industry! consists! of! artisanal! miners! who!
lack! formal! mining! titles! or! environmental! licenses.! The! International! Institute! for!
Environment! and! Development! (IIED)! estimates! that! more! than! 314,000! Colombians!
directly! depend! on! ASM! and! medium]scale! mining! (MSM),! however! the! real! number! is!
likely! much! higher.157!The! Colombian! government! remains! unable! to! maintain! control! of!
either! the! illicit! gold! industry! or! its! regions! controlled! by! rebel! and! criminal! groups,! and!
despite! multiple! initiatives! by! successive! governments,! continues! to! be! unsuccessful! at!
formalizing!ASM.!
!
41!
!
Table!6.!Value!Chain!Matrix!for!Gold!in!Colombia!
Source'
Country'
Extraction''
Points'
Internal''
Marketing'
Domestic''
Exit'Points'
Export'
Destination'
Processing'
&'Refining'
Primary'
Retailer'
Colombia:)
)
Gold)Belts:)
Segovia'Belt'
Choco'Belt'
Middle'
Cauca'Belt'
Antioquia'
Batholith'
'
Antioquia'Department)
(most)illicit)mining)occurs)
in)this)region))–)Segovia,)
Buritica,)El)Bagre,)
Zaragoza,)Nechi,)Rionegro,)
Venecia,)Anori,)Yarumal,)
Titiribi,))
Caldas'DepartmentC)
Marmato,)))
Choco'Department'
(Urabenos)most)
prominent)here158))
Valle'del'Cauca)
Department''
Risaralda'Department)–)
Quinchia)'
Guainia'department'
Tolima'Department'–)La)
Colusa'
North'Santander'
Department'Gramalote)
Cauca'Department'Suarez)
Amazonas'Department'
Caqueta'Department'
Cordoba'Department'
Huila'Department'
Santander'Department'
Narino'Department'
Huila'Department'
Putumayo'Department'
*Traders:'
Barrenquila:)PraxIT)Ltd.)–)
Contact:)Dao)Hawkins159)
Bogota:)Serexoil)
Naesk)PLC160)Y)Contact:)Jose)
Ignacio)Pena)Castellanos)
RoYMa)Commodities)–)CEO:)
Wilson)Rodriguez161)
Villegas)y)Cia.)–)CEO:)Carlos)
Villegas162)
Medellin:)EJL)Ingeniera)
Ltda)
Dimco)–)CEO:)Sebastian)
Ospina163)
Pereira:)Torres)&)Torres)–)
CEO:)Noberto)Torres164)
)
Smuggled'INTO'Colombia'
from:))
Venezuela)
Panama)
Mexico)
Chile165'
'
Issues:'
Extortion)by)
criminal/armed)groups))
Fake)intermediaries)and)
front)companies)supply)
illegal)gold)
Esmeraldas'Province:))
border)smuggling)
into)Ecuador)then)
out)of)Ecuador)on)
commercial)air)
flights166'
)
Air'Transport:'
Illegal)gold)
transferred)via)air)
with)legal)documents)
)
Corrupt)
politicians/judges)
allow)for)illegal)
transport/don’t)
prosecute))
)
*Official'
export'data:'
USA)(74%))
Switzerland)
(19%))
India)(5.1%))
UAE)(1.4%)167)
)
Illicit'known'to'
go'to:'
Miami,)Zurich,)
Rome,)Dubai)
'
Exporters:'
(play)crucial)
role)by)
introducing)
illegal)gold)into)
legal)market))
Goldex168)
Giraldo)y)
Duque169)
!Most)
exporters)
based)in)
Medellin,)
closer)to)mines)
US:''
Republic)
Metals)Corp.)
(receive)40%)
of)gold);)
Metalor)
Technologies)
USA)–)linked)
to)Goldex)
Case))
)
Switzerland:))
Metalor)
(receive)20%)
of)gold)170)
)
UAE:'
Kaloti)
)
Italy:'
Italpreziosi171)
)
India'
)
Unknown'
'
Uses:''
Banks)
Jewelers))
Electronics))
!
42!
!
'
Source'
Country'
'
'
'
Extraction'
Points'
ASM:))
Drug)traffickers,)terrorist)
organizations,)
Paramilitary)groups)
~80%)of)gold)exported172)
)
LSM:''
Canadian:))
Atico;)Gran)Colombia;)
Continental)Gold;)
Colombian)Mines)
Corporation;)Batero;)
B2Gold;)Sunward)
Resources;)Bellhaven;)Eco)
Oro;)Seafield;)Red)Eagle)
Mining173)
)
Colombian:))
Mineros)SA,)Minincol,)
Torrebruma)&)Realmonte)
(both)owned)by)Jorge)
Piedro)Rengel)174)
South)African:)AngloGold)
Ashanti)(ASA))
'
'
Internal'
Marketing'
'
'
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
'
Domestic'Exit'
Points'
43!
'
Export'
Destination'
'
'
Processing'
&'Refining'
'
Primary'
Retailer'
'
!
Supply&Chain:&
Concentrating+
!
+
According!to!the!IIED,!gold!can!be!found!in!44!percent!of!Colombia’s!departments.175!
The! country’s! gold! belts—Segovia,! Choco,! Middle! Cauca,! Antioquia! and! Batholith—
encompass!much!of!the!Northern!and!Western!parts!of!the!country.176!Gold!production!is!
highest! in! the! departments! of! Antioquia! and! Chocó! followed! by! Bolivar,! Caldas,! Cauca,!
Córdoba,! Tolima,! Valle! del! Cauca,! Nariño,! Santander,! Huila! and! Putumayo. 177 !Alluvial!
mining,!the!process!of!extracting!gold!from!the!beds!of!creaks,!rivers!and!streams,!is!most!
prevalent! in! departments! along! the! Pacific! Coast! while! hardTrock! mining! is! dominant!
elsewhere. 178 !Most! illegal! gold! mining! occurs! in! the! Antioquia! Department,! where!
significant!areas!are!under!the!control!of!the!FARC!and!Los!Urabeños.179!Additionally,!Los!
Urabeños!have!established!a!stronghold!in!the!Chocó!Department!bordering!Panama.180!
!Illegal!gold!mining!in!Colombia!involves!human!rights!abuses,!such!as!forced!labor,!
human! trafficking,! and! poor! working! conditions! for! miners.! According! to! the! North!
American!Congress!on!Latin!America!(NACLA),!guerilla!and!paramilitary!groups!either!run!
mines! themselves! or! charge! locals! a! ‘protection! fee’! that! allows! them! to! mine! or! bring! in!
machinery.181!Similarly,!armed!groups!frequently!charge!locals!for!equipment!or!take!a!cut!
of!the!mining!profits.!In!addition,!armed!groups!have!forcibly!removed!local!populations!in!
order!to!build!more!mines.!!
!
Many! AfroTColombian! and! indigenous! communities! consider! mining! to! be! an!
‘ancestral’!activity!deeply!engrained!in!their!identity!and!traditional!way!of!life.!Under!the!
1991! constitution,! ethnic! groups! legally! have! priority! over! mining! activities! inside! their!
respective!lands.!However,!the!ability!to!exercise!these!rights!is!often!outside!the!scope!of!
communities’! organizational! and! financial! capacities.! Furthermore,! public! information! at!
government! agencies! in! Bogotá! is! often! difficult! for! community! leaders! to! access.! Under!
former!President!Uribe,!9,000!mining!titles!were!granted!in!national!parks!and!indigenous!
reserves.182!According!to!the!IIED,!lack!of!legal!enforcement!has!led!to!80!percent!of!mining!
licenses!granted!without!the!proper!consultation!of!indigenous!communities.183!!
+
+
!
44!
!
Internal+Marketing+
!
Once!gold!is!extracted!and!concentrated!in!these!regions,!it!is!transported!to!larger!
cities!for!export.!Medellin!is!a!major!destination!for!gold!due!to!its!relative!proximity!to!the!
mines.!Other!exporters!receive!gold!from!fake!intermediaries!and!front!companies.!Armed!
groups!create!these!companies!as!facades!for!the!real!business!of!money!laundering.!Gold!
is! also! smuggled! into! Colombia! for! export! from! other! Latin! American! countries! such! as!
Chile,!Panama,!and!Venezuela.184!As!in!the!concentration!phase,!extortion!by!armed!groups!
occurs!throughout!the!domestic!transportation!of!gold.!In!addition,!fake!intermediaries!and!
front!companies!are!created!to!supply!traders!with!illicit!gold!under!the!guise!of!legality.185!
+
Domestic+Exit+Points+&+Export+Destination+
Colombian! exporters! play! a! crucial! role! in! the! supply! chain! by! introducing! illegal!
gold!into!the!legal!market.!This!generally!occurs!when!illicit!gold!is!transported!out!of!the!
country! by! air! with! legal! documents.! In! other! instances,! corrupt! politicians,! judges,! and!
customs! officials! have! allowed! illicit! gold! to! leave! the! country! freely.! Exporters! such! as!
Giraldo! y! Duque! and! Goldex! are! involved! in! this! process.! Goldex,! the! country’s! second!
largest! gold! exporter,! is! currently! facing! money! laundering! and! extortion! charges! by! the!
Colombian! authorities,! along! with! accusations! of! having! ties! to! narcoTparamilitary!
organizations.186!The! Finance! Ministry! found! that! 90! percent! of! Goldex’s! gold! suppliers!
were!not!related!to!the!mining!industry!in!any!way,!some!of!who!were!actually!homeless!or!
deceased.187!John! Hernandez,! the! CEO! of! Goldex,! is! accused! of! laundering! over! USD! $970!
million,!the!largest!moneyTlaundering!scheme!in!Colombian!history.188!
According! to! the! Observatory! of! Economic! Complexity,! Colombia! exports! its! gold!
primarily!to!India,!Switzerland,!UAE,!and!the!U.S.!It!is!difficult!to!trace!the!exact!percentage!
of!illicit!gold!that!is!unknowingly!included!in!official!export!statistics.!Once!the!illicit!gold!
passes! through! the! supply! chain! to! refineries,! it! is! mixed! with! legally! mined! gold,! and! is!
therefore! almost! impossible! to! detect.! Furthermore,! gold! is! also! smuggled! out! of! the!
country.!The!Esmeraldas!Province!on!the!Ecuadorian!border!is!a!known!domestic!exit!point!
for! smuggling.189!Once! in! Ecuador,! the! gold! is! then! exported! via! commercial! flights! to!
international!refineries.190 !
+
!
45!
!
Refining+&+Primary+Retailer+
!
The! U.S.Tbased! Republic! Metals! Corporation! refines! approximately! 40! percent! of!
Colombia’s! gold! while! Switzerland’s! Metalor! refining! another! 20! percent.191!Additionally,!
Colombian!authorities!claim!that!Goldex!sent!over!30!tons!of!gold!to!companies!belonging!
to! the! London! Bullion! Market! Association! (LMBA)! and! laundering! over! USD! $970! million!
between!2010!and!2014.192!Refineries!in!Dubai,!Miami,!Rome,!and!Zurich!are!also!known!to!
import! illicit! Colombian! gold.193!Given! the! challenge! of! tracing! gold! to! its! origin! once! it! is!
refined,! it! is! difficult! to! identify! retailers! that! use! illicit! gold! from! Colombia! in! their!
products.!!
!
Gaps&in&Information&&&Potential&Pressure&Points&
&
The! main! barrier! to! accessing! information! regarding! the! illicit! gold! industry! in!
Colombia! is! the! lack! of! security! in! goldTrich! regions.! Many! of! Colombia’s! gold! mines! are!
found!in!territories!controlled!by!armed!groups,!thus!making!it!difficult!for!researches!and!
government! officials! to! collect! accurate! data.! This! is! especially! true! in! border! regions!
where! little! is! known! about! where! and! how! armed! groups! may! be! smuggling! gold! out! of!
Colombia.!Poor!levels!of!education,!a!lack!of!managerial!and!technical!skills,!and!informal!
payments! and! accounting! procedures! amongst! ASM! miners! contribute! to! the! difficulty! in!
supply! chain! traceability.194!The! largest! gaps! in! information! are! found! in! the! primary!
retailers!of!Colombia’s!illicit!gold.!It!is!important!to!note!that!some!information!discovered!
was! found! through! unofficial! sources! such! as! the! business! marketplace! Tradekey! and!
business! directory! Go4WorldBusiness.! Without! the! use! of! these! sources,! accurate!
knowledge!on!gold!traders!within!Colombia!is!hard!to!find.!!
&
Due!to!the!lack!of!state!sovereignty!in!regions!controlled!by!criminal!organizations!
and! rebel! groups,! it! is! difficult! to! uncover! specific! names! of! individuals! and! traders!
involved! in! the! concentrating! and! internal! marketing! of! Colombia’s! illicit! gold.! With! the!
possibility!of!exTcombatants!turning!to!mining!as!a!source!of!income,!mining!has!surfaced!
as! an! important! issue! in! the! peace! talks! that! began! in! 2015! between! the! Colombian!
government!and!the!FARC!and!the!ELN.!This!development!could!lead!to!greater!regulation!
over! the! country’s! gold! mines. 195 !If! the! peace! talks! are! successful,! the! Colombian!
!
46!
!
government! will! have! to! implement! a! program! to! incorporate! the! organizations’! illicit!
mines!into!the!formal!sector!to!prevent!a!power!vacuum!from!forming!in!the!industry.!!
!
To! combat! the! integration! of! illicit! gold! into! the! legal! market,! the! Colombian!
government! should! enact! due! diligence! measures! at! the! intermediary! level! to! adequately!
investigate!the!validity!of!gold!traders.!Until!the!government!is!capable!of!preventing!the!
use! of! fake! intermediaries! and! front! companies,! unwitting! exporters! will! continue! to! be!
complicit! in! money! laundering,! fund! armed! groups! and! aid! in! the! introduction! of! illegal!
gold!into!the!supply!chain!where!it!then!becomes!nearly!impossible!to!trace.!!
The!government!should!continue!to!introduce!and!enforce!formalization!initiatives!
that! address! the! different! needs! of! both! ethnic! groups! and! scales! of! mining.! Legally,! the!
government!must!distinguish!between!large!and!smallTscale!mining.!The!current!‘one!size!
fits!all’!approach!outlined!in!the!2001!Mining!Code!increases!asymmetry!between!large!and!
smallTscale!mining,!giving!the!upper!hand!to!LSM!when!requesting!mining!concessions!and!
licenses,! and! increasing! tension! between! the! two. 196 !President! Santos’! 2013! National!
Formalization! Policy! has! provided! new! incentives! for! formalization! with! the! goal! of!
revising!ineffective!regulations.!The!policy!aspires!to!formalize!40!percent!of!all!mining!by!
2019!with!complete!formalization!by!2032.197!Additionally,!improved!cooperation!between!
indigenous! groups! and! the! national! government! can! increase! local! awareness! of! the!
formalization!process.!!
To! effectively! formalize! ASM,! the! government! needs! to! provide! miners! with!
financing!opportunities!in!order!to!make!formalization!an!economically!realistic!option.!In!
addition! to! financial! assistance,! the! government! should! provide! the! technical! and! legal!
support! necessary! for! miners! to! operate! their! mines! with! social,! financial! and!
environmental! responsibility.! ASM! organizations! need! to! be! strengthened! for! efficient!
coordination!between!miners!and!the!government!so!that!future!policies!incorporate!local!
input.! An! integrated! topTdown! and! bottomTup! approach! is! necessary! for! an! effective! and!
sustainable!formalization!process.!International!gold!buyers!can!also!leverage!their!power!
and! help! implement! artisanal! and! smallTscale! conflictTfree! gold! standards! while! fostering!
relationships! between! artisanal! miners! and! international! gold! consumers! that! can! be!
mutually! beneficial.! Ethical! jewelry! supply! chains! have! begun! to! support! ASM!
organizations! in! the! production! of! traceable! and! responsibly! mined! gold.! Ethical!
!
47!
!
certifications! have! been! incentivized! through! premium! payouts,! fair! prices! and! access! to!
credit. 198 !For! instance,! the! Fairmined! certification,! developed! by! the! Alliance! for!
Responsible!Mining,!is!active!in!Colombia!certifying!Cooperativa!Agrominera!del!Municipio!
de!Iquira!and!La!Llanada.199!
Given!the!recent!formalization!policy,!increased!dialogue!between!the!government!
and!armed!groups,!global!initiatives!regarding!ethical!supply!chains,!and!Colombia’s!desire!
for! OECD! membership,! the! time! is! ripe! for! Colombia! to! make! viable! strides! towards! the!
successful!formalization!of!ASM.!
!
!
48!
!
Ghana
Ghana!is!one!of!the!highest!gold!producing!countries!in!the!world,!ranking!second!
amongst!those!in!Africa,!producing!roughly!94!tons!of!gold!annually.200 !Compared!to!many!
African!countries,!Ghana!is!considered!politically!stable,!having!held!consecutive!free!and!
fair!elections!for!over!two!decades.201!!The!gold!market!in!Ghana!is!increasingly!appealing!
for!many!traders!and!refineries!that!prefer!to!source!from!secure!democracies,!rather!than!
from! warTtorn! countries.! However,! an! estimated! oneTthird! of! Ghana’s! gold! is! mined! in!
artisanal!and!smallTscale!mines,!which!are!commonly!operated!by!illegal!miners!known!as!
galamsey.202!!
Due!to!high!levels!of!corruption,!the!central!government!remains!unable!to!control!
this!robust!informal!mining!sector.!Over!one!million!Ghanaians!directly!participate!in!ASM,!
while! an! additional! 4.4! million! are! considered! to! be! dependent! on! the! industry. 203!!
Artisanal! miners! often! lack! the! proper! training! and! equipment! to! mine! gold! responsibly,!
leading! to! widespread! environmental! degradation! in! the! country.! As! of! 2014,! illegal! gold!
mining! has! polluted! approximately! 75! percent! of! Ghana’s! waterways. 204 !Furthermore,!
while! ASM! provides! economic! opportunities! to! many! rural! Ghanaians,! it! also! facilitates!
various!human!rights!abuses,!such!as!the!use!of!child!labor.!
!
!
!
!
!
49!
!
Table!7.!Value!Chain!Matrix!for!Gold!in!Ghana!
Source'
Country'
Extraction''
Points'
Internal''
Marketing'
Domestic''
Exit'Points'
Export'
Destination'
Processing'
&'Refining'
Primary'
Retailer'
Ghana:'
'
Note:"
Ghana’s"gold"
belt"
encompasses"
the"Eastern"
portion"of"
the"country,"
cities"include:"
Bolgatanga,"
Wa,"Cape"
Coast,"Accra,"
Sunyani,"
Kumasi,"
SekondiA
Takoradi"'
'
Mines:'
Ashanti"
Goldfields’"
Obuasi"mine"
produces"
over"50%"of"
Ghana’s"gold"'
'
'
'
'
Regions'
Kyebi"
East"Region"
Offin"River"
Central"Region""
Birim"River"
Kibi"Township"
"
Towns'
DunkwaAonAOffin"
Twifo"Praso"
Bempong"Agya"
Appiah"
Nikwanta"
Kyekyewere"
Diaso"
Bawdie"
Bibiani"
Tarkwa"
Obuasi"
Prestea"
Dumasi"
Jacobu"
"
Government'owned:'
PMMC"–"POSSIBLE"good"
pressure"point"due"to"
control"of"other"
companies"
'
*Traders205:'
Greater'Accra:'
Ghana"Gold"Trading"Center206"
Jopaf"Gold"Limited"
Ghana"Gold"Pure"
Soda"Ice"
Africa"Gold"Brokers"Consult"Ltd."
Commerz"General"Ghana"Ltd.""
Deco"Metal"Miners"Ghana"Ltd."
EMCIP"Towers"Ltd.""
Harbour"Equity"Partners"
(exports"to"US"market)"
Impex"Gold"Company"Ltd."(buys"
direct"from"local"miners,"local"
kings"and"authorities)"
Jopaf"Gold"Limited""(buy"from"
small"scale"miners,"export"to"
US,"Japan,"Korea,"Australia,"UK,"
Switzerland,"France,"Israel)"
Karmans"Holdings"Ltd"
Keegan"Resources"
West"Africa"Precious"Metals"
(WAPMIDA)"
Niza"Mining"Group"
Spongy"Gold"
"
Ashanti:'
Obausidia"Gold"Mining"Limited""
Maxcue"Company"Ltd.""
"
Transport:""
Kotoka"
International"
Airport"(exporting"
gold"without"
official"
documentation"is"
daily"
occurrence)207"
"
Ghana'Imports'
Gold'from:"
Togo"(65%)"
Benin"(35%)208"
*Official'
export'data209:'
South"Africa"
(45%)"
UAE"(27%)"
Switzerland"
(21%)"
Hong"Kong"
(2.8%)"
Netherlands"
(2.3%)"
Lebanon"(1.3%)"
Turkey"(.93%)"
India"(.73%)"
"
Switzerland:'
PAMP""
Metalor""
'
UAE:'
Kaloti"
Jewelry"
International""
Emirates"
Gold""
"
South'Africa:'
Randgold"
India:"
Kundan210""
"
Unknown'
'
Uses:''
Banks"
Jewelers""
Electronics""
!
50!
!
'
'
Source'
Country'
Extraction'
Points'
Other'mining'
sites:''
Nkroful,"
Ashanti"
Iduapriem,"
Bibiani,"
Nsutu,"
Tarkwa,"
Bogoso,"
Akyempim,"
Kenyasi,"
Brong"Ahafo,"
New"Abirem,"
Ayanfuri,"
Nkwakaw'
'
*Smaller'Companies:'
Geodrill"Ltd.;"
Hagnela"Mining"
Company"Ltd.;"Kwalas"
Mining"Enterprise;"
La"Source"Development,"
Nana"Adaku"Adai"Mining""
Group,"Red"Back"Mining,"
Adamus,"Chirano,"Ghana"
Manganese,"Goldfields,"
Golden"Star,"Newmont,"
Perseus"
'
Issues:'
90%"of"Ghana’s"gold"
mines"are"not"
formalized"and"operate"
illegally211"
"
Police"corruption"–"
being"paid"off"by"illegal"
miners212"
"
Foreign"(mostly"Chinese"
and"Indian)"workers"
smuggle"in"machinery"
making"mining"more"
efficient"than"galamseys(
(ASM"miners)"who"only"
have"spades"
'
!
'
'
Internal'
Marketing'
'
Domestic'Exit'
Points'
Kumasi:'
'
Solid"Rock"GH"Ltd.""
'
Kasoa:'
Christian"Quao"
"
Ashanti:'
Obausidia"Gold"Mining"Limited""
Maxcue"Company"Ltd.""
"
Nkwakaw:'
Purity"Gold"Limited"
"
Dunkwa:'
Max"Max"Gold"Buying"Agent"
Ahenema"Gold"Buying"&"
Refining"Centre"
Igbal"GoGo"Co"Ltd.""
Nhyira"Gold"Buying"&"Refining"
"
Tarkwa:'
Mospacka"Gold"Ltd.""
"
Unknown:'
EAAryeetey"Enterprise"
Kobiprime"Enterprises"
"
"
"
'
51!
'
Export'
Destination'
'
'
Processing'
&'Refining'
'
Primary'
Retailer'
'
!
'
Source'
Country'
'
'
'
'
Extraction'
Points'
Internal'
Marketing'
Only"Ghanaians"can"get"
licenses"for"smallAscale"
gold"mining""!"Tension"
between"local"people"
and"foreign"workers""can"
lead"to"violence213"
Four'largest'exporters:'
AA"Minerals"
Asanka"
Asap"Vasa"
Guldrest"
"
Many"gold"buying"agents"loan"
galamseys"
money/equipment214"
"
PMMC"(has"about"700"licenses"
buying"agents)–"no"procedures"
around"buying"gold"mined"with"
child"labor215"
'
Domestic'Exit'
Points'
'
Export'
Destination'
'
'
'
!
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
52!
'
Processing'
&'Refining'
'
'
Primary'
Retailer'
'
!
Supply&Chain&
Concentrating+
!
Ghana’s! gold! belt! spans! much! of! the! eastern! part! of! the! country,! lying! along! its!
borders! with! Cote! D’Ivoire! and! Burkina! Faso,! and! the! Coast! of! Guinea.! The! main! mining!
cities!in!this!region!are!Accra,!Bolgatanga,!Cape!Coast,!Kumasi,!Sunyani,!and!Wa.216!The!rise!
in!gold!prices!in!the!last!decade!has!led!to!a!massive!influx!of!Chinese!workers!to!Ghana.!
Under! Ghanaian! law,! only! Ghanaian! citizens! can! receive! mining! licenses,! making! all!
ChineseNrun! mines! illegal. 217 !Furthermore,! the! Chinese! bring! machinery! not! used! by!
traditional!Ghanaian!miners.!This!machinery!involves!the!use!of!dangerous!chemicals,!such!
as! mercury,! which! devastate! the! environment,! contaminate! drinking! water,! and! expose!
miners!to!mercury!poisoning.218!!
!
While!legal!institutions!exist!to!distribute!mining!licenses,!a!large!majority!of!mines!
remain!unlicensed.219!It!is!difficult!for!many!galamseys!to!acquire!licenses!due!to!the!high!
costs! and! bureaucratic! inefficiencies.! Furthermore,! it! is! impossible! to! obtain! licenses! in!
areas!where!largeNscale!international!corporations!have!already!claimed!rights!to!mine!the!
land.220!!
+
Internal+Marketing+
!
Once!the!gold!is!extracted,!galamseys!transport!the!minerals!to!local!traders,!or!the!
traders! buy! them! directly! from! the! miners.! These! local! traders! sell! the! gold! to! larger!
traders!in!Ghana’s!major!mining!towns!and!cities!like!Accra,!Ashanti,!Dunkwa,!Kumasi!and!
Turkwa.!The!gold!is!then!exported!to!international!gold!trading!companies,!or!to!refineries!
abroad.221!Ghanaian!gold!is!often!traded!multiple!times!before!it!leaves!the!country,!making!
it!difficult!to!trace!its!extraction!origin.!Traders!at!the!bottom!of!the!supply!chain,!who!buy!
directly! from! or! near! the! mines,! are! highly! reliant! on! cash! advances! from! their! clients.!
Similarly,! gold! traders! also! “sponsor”! individual! miners,! and! provide! them! with! the!
necessary! machinery! and! operational! funds.! In! doing! so,! these! miners! are! then! forced! to!
sell!their!gold!only!to!these!traders.!Due!to!the!lack!of!access!to!formal!financial!assistance!
such! as! bank! loans,! miners! are! dependent! on! traders! for! their! economic! wellbeing,! and!
often!sell!gold!below!the!market!value.222!Ghana!requires!traders!to!obtain!trading!licenses!
!
53!
!
from! the! governmentNowned! trading! company! and! licensing! authority,! Precious! Metals!
Marketing! Company! (PMMC).! Currently,! PMMC! licenses! approximately! 700! buying!
agents.223!However,! the! company! does! not! have! procedures! and! regulations! in! place! to!
prevent!the!use!of!child!labor.!
+
Domestic+Exit+Points+&+Export+Destination+
!
According! to! a! 2015! Human! Rights! Watch! report,! the! Ghanaian! government! has!
registered!only!17!legal!smallNscale!gold!exporters.224!Therefore,!any!exporter!not!licensed!
through!PMMC!is!considered!illegal.!The!PMMC!also!exports!gold!for!smaller!traders!with!a!
fee!of!0.5%!of!the!global!gold!price.225!Despite!these!legal!operations,!illegal!gold!smuggling!
occurs!regularly!at!Kotoka!International!Airport!in!Accra,!where!gold!is!exported!without!
official!documentation.226!The!main!export!destinations!include!Hong!Kong,!India,!Lebanon,!
the!Netherlands,!South!Africa,!Switzerland,!Turkey,!and!UAE.227!The!four!largest!Ghanaian!
exporters!are!AA!Minerals,!Asanka,!Asap!Vasa!and!Guldrest.228!
+
Refining+&+Primary+Retailer+
!
Once! exported,! refineries! abroad! receive! the! gold.! Many! refiners! source! artisanal!
and! smallNscale! Ghanaian! gold,! including:! Produits! Artistiques! Métaux! Précieux! (PAMP)!
and! Metalor! in! Switzerland,! Kaloti! Jewelry! International! in! Dubai,! Kundan! in! India,! and!
Randgold!in!South!Africa.229!Once!the!Ghanaian!gold!is!mixed!with!gold!from!other!origins!
and!refined,!it!becomes!impossible!to!trace!to!specific!retailers.!The!major!buyers!of!refined!
gold!are!companies!involved!in!banking,!jewelry,!and!electronics!industries,!most!of!whom!
have!little!to!no!knowledge!of!their!gold’s!potentially!illicit!origins.!!!!
&
Gaps&in&Information&&&Potential&Pressure&Points&
&
It! is! challenging! to! determine! the! precise! names! of! individuals! and! companies!
affiliated! with! ASM! due! to! their! informal! nature! and! lack! of! official! licensing.! A! similar!
difficulty! arises! once! Ghanaian! gold! moves! farther! down! the! supply! chain! to! refineries.!
Furthermore,! while! informal! sources! such! as! Facebook! and! an! online! Ghanaian! business!
!
54!
!
directory! offer! interesting! information! on! the! supply! chain! of! illegal! Ghanaian! gold,! the!
credibility!of!these!sources!can!be!disputed.!!
PMMC!can!play!a!vital!role!in!preventing!illegal!gold!from!entering!the!global!market!
because!of!its!central!role!in!both!the!trade!and!export!of!gold.!Ghana’s!active!civil!society!
can! also! be! utilized! to! publicly! ‘name! and! shame’! the! PMMC! into! enforcing! human! rights!
standards,! and! to! prevent! the! purchase! and! export! of! gold! sourced! through! child! labor.!!
Ghanaian! civil! society! groups! should! continue! to! grow! their! partnerships! with!
international! NGOs,! such! as! those! with! the! Alliance! for! Responsible! Mining! (ARM)! and!
Solidaridad.! In! addition,! a! coalition! of! civil! society! groups! should! initiate! a! dialogue!
between! the! government! of! Ghana,! commercial! interests! groups,! and! ASM! miners! to!
establish! mutually! beneficial! formalization! procedures.! The! Wassa! Associations! for!
Communities!Affected!by!Mining!(WACAM)!and!Ghana!National!Association!of!Small!Scale!
Miners! (GNASSM)! are! just! two! of! many! civil! society! groups! that! can! be! involved! in! this!
dialogue.! Government! representatives! should! include! the! Ministry! of! Health,! Ministry! of!
Mines!and!Ministry!of!Lands!and!Natural!Resources.!LargeNscale!mining!corporations,!such!
as!AngloGold!Ashanti,!must!also!be!involved!in!the!conversation,!as!their!presence!makes!it!
impossible!for!many!ASM!miners!to!obtain!permits.!!
In! the! past,! the! government! attempted! to! solve! the! problem! by! destroying! mines!
and!machinery.!However,!this!strategy!created!deeper!cleavages!between!ASM!miners!and!
the!government,!rather!than!encouraged!their!cooperation.!A!goodNfaith!dialogue!would!be!
a! step! in! the! right! direction! for! the! Ghanaian! mining! sector,! and! could! potentially! have!
positive!effects!on!both!the!Ghanaian!economy!and!the!livelihoods!of!artisanal!and!smallN
scale! miners.! Even! without! an! immediate! formalization! plan,! it! is! important! to! have!
consistent! dialogue! and! information! sharing! between! all! levels! of! society! in! order! to!
achieve!sustainable!gold!mining!reform!in!Ghana.!!
!
&
!
!
!
55!
!
Peru
Peru!is!the!sixth!largest!gold!producer!in!the!world.230!Despite!2,700!percent!growth!
in!the!Peruvian!mining!sector!between!2003!and!2014,!the!situation!of!many!Peruvian!gold!
miners! remains! unchanged.231!According! to! Verité,! a! U.S.Nbased! research! group,! over! 20!
percent! of! Peru’s! gold! is! produced! illegally! by! ASM,! using! extraction! techniques! that!
destroy!forests!and!pollute!rivers.232!Furthermore,!it!is!estimated!that!21!percent!of!Peru’s!
surface!area!is!currently!subject!to!mining!concessions.!Approximately!16!percent!of!that!
total! occurs! in! the! informal! sector,! where! nearly! 100,000! miners! work! in! a! completely!
unregulated!fashion.233!!
While!most!of!Peru’s!mining!sector!consists!of!legal,!largeNscale!industrial!ventures,!
human!rights!violations!are!common,!and!evidence!from!the!Society!for!Threatened!People!
reveals! that! Peru’s! formal! mining! industry! does! less! to! stem! poverty! than! illegal! mining!
operations.234!Despite! regulations! that! required! all! illegal! miners! to! obtain! permits,! pay!
taxes,!and!follow!environmental!laws!by!September!2013,!not!a!single!company!had!done!
so.! These! laws! led! to! a! nationwide! strike,! which! ended! in! government! negotiations! to!
rewrite!the!laws!to!make!the!legalization!process!easier.!While!thousands!of!miners!have!
applied! for! legal! status! to! hold! formal! land! titles,! no! one! has! managed! to! complete! the!
complicated! accreditation! process.! Despite! government! efforts! to! shut! down! unregulated!
mining!by!raiding!mine!sites!and!confiscating!equipment,!illicit!mining!continues!to!grow!
and!miners!remain!dependent!on!the!industry!to!survive.235!
!
&
&
&
&
&
&
&
!
56!
!
Table!8.!Value!Chain!Matrix!for!Gold!in!Peru!
Source'
Country'
Peru'
'
'
'
'
!
Extraction''
Points'
Internal''
Marketing'
Domestic''
Exit'Points'
Mining'Towns:'
Madre&de&Dios&&
Puno&
Arequipa236&
&
*Mining'companies:&&
Empresa&Minera&&&
Suwit&Mining&&&
Services;&
Hydrocarbons;&
Minerales&del&Sur237&
&
In&some&areas,&Russian,&
Chinese&and&Brazilian&
armed&groups&purchase&
concessions&and&force&
individuals&to&work.238&
'
Trade'Center:'
Cusco&
'
Trade'Companies'under'
investigation:&
Minera&Tambopata&SAC;&
Minerales&del&Sur;&
InformationOstelle&Peru&e.V.;&
E&M&Company&SAC:&(Owned&by&
Miguel&Zinanyuca);&
Universal&Metal&Trading&
(Director:&Luis&Zavaleta&Vargas)&
AS&Peru&&&CIA&SAC;&
Akam&Asset;'
Menor&Gold&Trading;&&
Los&Poderosos;&&
Royal&Gold;&
Oro&Fino;&
Giovanni&Gold;239&
Compañía&Minera&San&Serafín;&
Empresa&Comercializadora&de&
Minerales&Rivero;&&
Axbridge&Gold;&Comercializadora&
de&Minerales&Rivero,&&
C.G.&Koening,&&
Mining&&&Energy&Solutions,&
Holding&Minero&del&Peru&Ares&
Gold240&
&
Lima,'Peru'(air);'
Callao,'Peru'(sea)'
'
Airports:'
Jorge&Chávez&
Airport,&Lima&
&
Madre&de&Dios&
Airport&
&
Highways'&'
Border'crossings'
for'smuggling:'
Interoceanic&
Highway;&&
&
Highway&from&
Altiplano&in&Puno&
to&Bolivia.241&
&
Smuggling&from&
Madre&de&Dios&to&
Bando&and&Beni&
regions&in&Bolivia&
as&well&as&to&La&
Rinconada&and&La&
Paz.242&
&
57!
Export'
Destination'
Processing'&'
Refining'
*Official'
*Refiners:'
export'data243:' US'
South&Africa&
Atomic&Gold;&
(45%)&
Republic&
UAE&(27%)&
Metals&Corp.;&&
Switzerland&
World&
(21%)&
Precious&
Hong&Kong&
Metals;&
(2.8%)&
NTR&Metals;&
Netherlands&
Kaloti&Metals&
(2.3%)&
&&Logistics&
Lebanon&(1.3%)& '
Turkey&(.93%)&
Canada'
India&(.73%)&
Johnson&
&
Matthey&
&
Italy'
Italpreziosi&
S.p.A.&
&
Switzerland&&
Valcambi&
ArgorO
Heraeus&&
PAMP&
(owner:&MKS)&&
Metalor244&
&
Primary'
Retailer'
Unknown'
'
Uses:''
Banks&
Jewelers&&
Electronics&&
!
'
Source'
Country'
'
'
'
Extraction'
Points'
Individuals'involved'in'
illicit'mining:'
Oleg&Lipin:&owner&of&
Empresa&Minera&&&
Suwit&Mining&&&
Services;&
Gregoria&Casas&&&
CasasOBaca&family;&
Yi&Yuanguang;&&
Peter&Ferrari;&and&&
David&EbenezerOGeorge&
Boisson245&
'
'
Internal'
Marketing'
&
&
&
'
'
Export'
Destination'
'
!
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
'
Domestic'Exit'
Points'
58!
'
'
Processing'&'
Refining'
'
Primary'
Retailer'
'
!
Supply&Chain&
Concentrating+
Madre! de! Dios! and! Puno! are! well! known! for! their! illicit! gold8mining! operations.!!!
Armed! groups! easily! exploit! those! who! live! and! mine! in! these! locations! due! to! limited!
support!and!regulation!from!the!Peruvian!government.!In!spite!of!the!requirement!for!all!
miners!to!obtain!a!permit!to!legally!extract!gold!from!any!concession,!many!miners!cannot!
afford! the! necessary! documents,! despite! having! worked! the! same! land! for! years. 246!
According! to! the! Peruvian! Environment! Ministry,! 16! to! 18! tons! of! gold! are! extracted!
annually!from!Madre!de!Dios!alone,!with!unregulated!mining!expanding!at!an!annual!rate!
of!6,145!hectares!per!year.!247,!248!
!
The!lack!of!government!control!in!Madre!de!Dios,!Puno,!and!Arequipa!has!opened!a!
space!for!organized!crime!groups!and!prospectors!from!Brazil,!China,!and!Russia!to!further!
corrupt!the!mining!trade.!Despite!the!fact!that!illegal!mining!helps!miners!earn!a!living,!it!
also! renders! them! dependent! on! the! intermediaries,! landowners,! and! drug! cartels! that!
finance!these!operations,!often!leading!miners!into!a!cycle!of!debt!and!inescapable!bonded!
labor.!Numerous!illicit!activities!and!human!rights!issues!such!as!human!trafficking,!forced!
labor,! child! labor,! land! rights! violations,! and! hazardous! working! conditions! are! prevalent!
throughout!these!mining!communities.!!!
!
Several! mining! companies! have! been! cited! for! extracting! and! exporting! illicit! gold!
from! these! areas,! including! Empresa! Minera! and! Suwit! Mining! Company,! Hydrocarbons,!
and!Minerales!del!Sur.!!Minerales!del!Sur!is!the!main!gold!mining!and!exporting!company!in!
Puno,!with!a!second!agency!in!Madre!de!Dios.!It!has!been!cited!for!shipping!illegal!gold!to!
Metalor!in!Switzerland.249!Oleg!Lipin,!a!renowned!Russian!gold8trader!who!owns!Empresa!
Minera!and!Suwit!Mining!Company,!has!been!known!to!operate!both!legal!and!illegal!mines,!
thereby!enabling!him!to!cover!up!the!magnitude!of!his!illicit!exports.250!!
Internal+Marketing+
Of!the!120!registered!Peruvian!metal!export!companies,!60!have!been!investigated!
for!alleged!offenses!of!financing!illegal!mining,!tax!fraud,!and!money!laundering.251!Despite!
these!allegations,!the!absence!of!independent!supervising!agencies!has!made!full8company!
audits! impossible.! Most! allegations! stem! from! Peruvian! newspapers.! Notably,! the!
!
59!
!
newspaper!El#Comercio#alleges!that!most,!if!not!all!gold!exploited!from!Madre!de!Dios!is!still!
rooted!in!illegal,!informal,!or!destructive!activities.252!
!
The!companies,!Los!Poderosos,!Royal!Gold,!and!Oro!Fino,!have!been!investigated!by!
the!Public!Ministry!and!Office!for!Money!Laundering!for!illicit!dealings!and!fraud,!allegedly!
selling! 25! tons! of! illegal! gold! to! Switzerland! in! 2011.253!El# Comercio! reported! that! Royal!
Gold! exports! illicit! Peruvian! gold! to! US8based! buyers,! NTR! Metals,! Kaloti! Metals,! and!
Atomic! Gold! in! Italy.254!In! 2011,! E&M! Company! SAC! owner,! Miguel! Zinanyuca,! was! found!
transporting!12!kilos!of!illicit!gold!in!his!car,!which!he!claimed!to!be!holding!for!a!friend.!!
Since!then,!E&M!has!been!investigated!for!exporting!gold!from!suspicious!sources!in!Peru!
and!has!been!linked!to!the!notorious!Casas8Baca!family!who!control!a!large!proportion!of!
gold!production!in!Madre!de!Dios.!Despite!their!contributions!to!community!development!
in!Madre!de!Dios,!the!Casas!family!has!been!cited!for!illegal!medium!and!large8scale!mining!
activities!without!the!appropriate!environmental!mining!certifications.255!
!
Since!informal!miners!cannot!provide!receipts!to!certify!the!gold’s!legality,!they!are!
beholden! to! the! acopiadores! (middle8men)! or! the! processing! plants,! which! will! take! the!
gold!without!a!receipt,!but!at!a!lower!price.!Processing!plants!and!acopiadores!pay!for!fake!
receipts! from! facturadores,# the! intermediaries! who! provide! these! fraudulent! purchase!
receipts.! Gold! often! passes! through! several! acopiadores! before! it! is! sold! directly! to! large8
scale!buyers!and!export!companies!who!then!sell!the!gold!on!the!international!market.256!
Domestic+Exit+Points+
!
Most!of!the!gold!in!the!Madre!de!Dios!region!is!smuggled!through!the!Jorge!Chávez!
International!Airport!in!Lima,!through!the!Madre!de!Dios!airport!in!the!Amazon,!along!the!
Interoceanic! Highway! into! Brazil,! and! along! the! highway! from! Puno! to! Bolivia.! There! are!
two! well8known! gold! trading! routes! from! Peru! to! Bolivia.! One! route! runs! from! Madre! de!
Dios,!where!the!gold!is!mainly!mined!along!the!rivers,!into!the!Bolivian!regions!of!Bando!
and! Beni.! The! other! runs! from! La! Rinconada! to! La! Paz.! La! Rinconada! is! situated! in! the!
Andes!near!the!Suches!River!in!Bolivia,!and!accounts!for!a!large!amount!of!Peruvian!gold!
production.!Gold!that!is!not!smuggled!to!La!Paz!is!often!transported!to!the!city,!Juliaca,!in!
the! Puno! Region,! and! from! there! it! is! brought! to! Lima! for! export.! In! December! 2013,!
Peruvian! customs! officers! found! a! storage! container! in! the! country’s! main! port! of! Callao!
!
60!
!
with! 508! kilograms! of! gold! ingots! valued! at! USD! $18! million.! Six! companies! were!
implicated!for!attempting!to!export!the!illicit!gold!to!refiners!in!the!U.S.!and!Italy,!including!
Comercializadora!de!Minerales!Rivero,!C.G.!Koening,!Mining!&!Energy!Solutions,!Giovanni!
Gold,!Holding!Minero!del!Peru,!and!Ares!Gold.257,!258!
!
Export+Destination&
Half!of!the!Peruvian!gold!exports!are!shipped!to!Switzerland.259!In!response!to!the!
growth!in!smuggling,!Swiss!and!Peruvian!authorities!launched!a!‘Better!Gold!Initiative’!in!
November!2013,!which!included!certificates!of!origin!and!guarantees!that!certain!minimum!
social,!environmental,!and!labor!standards!were!being!met.!The!‘Better!Gold!Initiative’!is!a!
private8public! partnership! among! the! Swiss! Better! Gold! Association! and! the! Swiss! State!
Secretary! of! Economic! Affairs,! but! has! made! little! impact! on! curbing! informal! Peruvian!
mining.260!Notably,! Swiss! refinery! Metalor! stopped! trading! with! several! Peruvian! trading!
companies,! such! as! E&M! and! AS! Peru! &! CIA! SAC,! due! to! this! initiative.! However,! these!
companies! shifted! exports! to! U.S.! companies! Atomic! Gold! and! NTR! Metals. 261 !Several!
traders!in!Miami!have!also!been!cited!for!dealing!in!illicit!gold,!including!Republic!Metals,!
which!has!been!linked!to!the!Sánchez8Paredes!family,!who!were!convicted!for!drug!dealing!
and!money!laundering!in!2012.262!
Processing/Refining+and+Primary+Retailers+
As! of! 2014,! four! major! Swiss! refineries,! Valcambi,! Metalor,! PAMP,! and! Argor!
Heraeus,!received!at!least!half!of!Peru’s!gold,!while!the!rest!was!sent!to!U.S.,!Canadian,!and!
Italian!refineries.!The!Swiss!refineries!have!all!been!cited!for!receiving!gold!from!numerous!
illicit!mining!companies,!but!thus!far,!Metalor!is!the!only!known!refinery!to!cut!ties!with!its!
Peruvian!traders.263!Kaloti!Metals!&!Logistics!is!a!gold!acquisition!company!based!in!Miami!
that!is!associated!with!parent!company!Kaloti!Jewellrey!Group!in!Dubai.!In!2013,!when!gold!
was!found!and!confiscated!at!the!Peruvian!port!of!Callao,!it!was!discovered!that!some!of!the!
cargo!was!intended!for!Kaloti.264!
The! Italian! firm! Italpreziosi! was! named! in! connection! to! a! money! laundering! case!
stemming!from!a!seizure!of!illegal!gold!exported!by!Giovanni!Gold!in!2014.!It!has!also!been!
linked! to! the! controversial! Sánchez8Paredes! family. 265 !The! Canadian! refinery! Johnson!
!
61!
!
Matthey!has!over!30!operations!around!the!world!and!was!found!to!have!purchased!over!
171!tons!of!illicit!gold!from!Peruvian!exporters!between!2012!and!2014.266!!
Once! the! gold! reaches! the! refineries,! the! supply! chain! becomes! difficult! to! follow.!
Gold! from! all! over! the! world! is! mixed! together,! making! the! origins! impossible! to! trace.!
While!more!refineries!and!traders!are!undergoing!investigations!for!charges!relating!to!the!
sale! of! illicit! Peruvian! minerals,! the! lack! of! capacity! to! effectively! monitor! mining!
companies!and!the!regular!use!of!fake!receipts!allows!many!mining!companies!to!operate!
with!impunity.!!
!
Gaps&in&Information&&&Potential&Pressure&Points&
&
As! mentioned,! the! major! gaps! in! the! illicit! supply! chain! lie! at! the! end! user! and!
retailer.!However,!the!use!of!fake!receipts!and!the!lack!of!sufficient!government!capacity!to!
monitor!the!gold8mining!regions!have!also!created!knowledge!gaps!at!the!beginning!of!the!
supply!chain.!Not!only!has!the!Peruvian!government!failed!to!regulate!mining!in!Madre!de!
Dios! and! Puno,! but! its! punitive! response! to! illicit! mining! through! police! destruction! of!
mining! equipment! hurts! local! miners! more! than! those! higher! up! the! supply! chain.! These!
actions! often! push! miners! further! into! the! forest,! making! them! harder! to! regulate,! and!
encourages!the!creation!of!new!smuggling!and!trade!routes!for!illicit!gold.267!!
The! Peruvian! government’s! inability! to! monitor! mining! operations! means! that!
refineries!must!undertake!genuine!due!diligence!processes!that!ensures!transparency!and!
reliable! certification! mechanisms! for! their! gold.! The! fact! that! Peruvian! exporters! have!
simply!shifted!exports!from!Switzerland!to!US!and!Italian!refineries!reveals!not!only!their!
lax! standards,! but! also! a! clear! lack! of! concern! for! the! gold’s! origin.! All! refineries! should!
make! strong! commitments! to! tracing! their! supply! chains,! and! should! publish! all! of! the!
names!of!their!suppliers!and!mining!companies,!as!well!as!the!results!of!their!due!diligence!
assessments.!Refineries!should!also!support!small!companies!that!use!ethical!practices!and!
standards,!and!perform!yearly!audits!to!ensure!these!standards!are!upheld.268 !
!
Despite!the!general!awareness!that!essentially!all!gold!produced!in!Madre!de!Dios!is!
illegal,! little! has! been! done! to! eradicate! the! numerous! organized! crime! groups! from! the!
area.! Some! evidence! has! revealed! collusion! between! government! officials! and! criminal!
!
62!
!
groups,!as!well!as!contracts!between!large8scale!mining!operations!and!police!forces!that!
ignore! ongoing! human! rights! abuses.269!Instead! of! prosecuting! wealthy! middlemen! and!
landowners,! the! government! targets! impoverished! miners.! Going! forward,! enforcement!
efforts! must! focus! on! organized! criminal! networks! that! enable! illegal! mining! and! sustain!
ongoing!human!rights!violations.!!!
State!solutions!have!failed!to!recognize!the!root!cause!of!ASM,!which!is!the!lack!of!
economic! opportunities! for! isolated! communities.! Due! to! increased! profits! from! mining!
investments,! the! government! should! be! investing! in! the! mining! sector! to! improve! the!
monitoring! of! the! gold8producing! region,! and! reform! the! formalization! process! of! illicit!
mines! in! a! manner! that! does! not! diminish! the! livelihoods! of! the! miners.! The! government!
should!protect!populations!that!rely!on!gold!mining,!and!guarantee!their!right!to!prior!and!
informed!consent.270!Since!most!miners!are!involved!in!the!illicit!gold!industry!due!to!the!
lack!of!economic!opportunities,!government!and/or!foreign!investments!must!be!made!in!
capacity! building! for! the! miners! that! allow! them! to! find! work! outside! of! the! mining!
industry.271!Until! there! is! complete! government! buy8in! and! accountability! for! those! at! the!
top! of! the! supply! chain,! illicit! gold! mining! will! continue! in! Peru! without! regard! for! the!
destruction!of!both!the!land!and!its!inhabitants.!!!
&
&
&
&
&
&
&
!
63!
!
Tantalum
Tantalum!is!a!heat8resistant!chemical!element!that!contains!high!levels!of!electronic!
waves.!Tantalum!is!usually!refined!from!coltan8tantalite!(‘coltan’),!a!black!powdery!mineral!
ore! found! primarily! in! central! Africa,! South! America,! and! Australia.! In! the! 21st! century,!
tantalum! is! used! to! make! the! capacitors! for! most! home! electronic! products,! such! as!
smartphones,! laptops,! televisions,! digital! cameras,! and! videogames,! as! well! as! industrial,!
aerospace,!and!medical!devices.!!
!
Over! the! past! 15! years,! coltan! mining! has! shifted! away! from! the! large8scale!
industrialized!operations!in!countries!like!Australia,!Brazil,!and!Canada,!towards!artisanal!
and! small8scale! mining! in! central! Africa,! particularly! in! the! eastern! provinces! of! the!
Democratic! Republic! of! the! Congo! (DRC).! As! the! demand! for! products! that! use! tantalum!
and!other!minerals!has!increased,!more!people!have!moved!to!the!eastern!DRC!to!work!in!
these! artisanal! mines.! In! recent! years,! coltan! ore! has! also! been! illegally! mined! in! the!
Amazon! region! in! Colombia,! and! sold! on! the! black! market.! Armed! groups! such! as! the!
Democratic!Forces!for!the!Liberation!of!Rwanda!(FDLR)!in!the!DRC!and!the!Revolutionary!
Armed!Forces!of!Colombia!(FARC)!control!coltan!mines!and!sell!the!mineral!to!help!finance!
their!insurgencies!against!the!central!governments.!In!other!instances,!corrupt!government!
officials! and! military! personnel! profit! from! the! illicit! trade! by! illegally! taxing! miners! and!
traders.! Coltan! frequently! passes! through! many! middlemen! and! is! often! smuggled! across!
poorly! controlled! borders,! particularly! between! the! DRC! and! Rwanda! and! between!
Colombia!and!Venezuela.!Eventually,!the!ore!is!sold!to!smelters!in!Asia,!Europe,!and!North!
America.! Once! coltan! is! smelted! into! tantalum! at! the! refiners,! its! origins! are! nearly!
impossible!to!trace.!
!
Several! initiatives! have! been! put! in! place! to! prevent! the! flow! of! conflict! minerals!
into!the!tantalum!supply!chain.!Section!1502!of!the!Dodd8Frank!Act!requires!U.S.!retailers!
to!report!annually!on!whether!their!products!use!conflict!minerals!from!the!DRC.272!Many!
major!electronics!companies!work!with!the!Conflict!Free!Sourcing!Imitative!(CFSI)!auditing!
program,! while! others! have! implemented! the! “closed8pipe”! system! of! the! Solutions! for!
Hope! Project.! Such! initiatives! have! made! significant! strides! in! removing! conflict! minerals!
from!the!tantalum!supply!chain,!although!the!illicit!trade!still!persists.!
!
64!
!
Democratic Republic of the Congo
The! eastern! provinces! of! the! Democratic! Republic! of! the! Congo! (DRC)! are! rich! in!
many!of!the!world’s!most!valuable!minerals,!including!coltan!ore.!The!Congolese!share!of!
global! coltan! exports! has! increased! steadily! over! the! past! decade.! In! 2014,! the! US!
Geological! Survey! (USGS)! ranked! the! DRC! as! the! world’s! second! largest! producer! of!
tantalum! behind! Rwanda,! with! a! mine! production! of! 180! tons. 273 !Much! of! the! illicit!
activities!in!the!eastern!DRC!coltan!trade!can!be!traced!to!decades!of!civil!war!and!political!
instability!in!the!Central!Africa!region.!Other!issues,!such!as!the!endemic!problems!of!local!
corruption! and! poor! governance,! have! also! rendered! the! Congolese! coltan! trade! highly!
vulnerable! to! illicit! activities! and! exploitation.! While! the! Second! Congolese! War! officially!
ended!in!2003,!fighting!continues!between!the!Armed!Forces!of!the!Democratic!Republic!of!
Congo!(FADRC)!and!the!many!rebel!groups!that!operate!in!the!east.!Both!rebel!groups!and!
the!FADRC!have!profited!from!the!illicit!trade!of!coltan!and!other!minerals.!!
A!significant!quantity!of!coltan!in!the!eastern!DRC!is!mined!at!artisanal!and!small8
scale!(ASM)!mining!sites.!Teams!of!miners!clear!jungle,!dig!into!the!soil,!and!extract!coltan!
ore!using!simple!shovels,!picks,!and!sometimes!their!bare!hands.274!ASM!mines!can!employ!
as!many!as!thousands!of!people,!but!are!not!subject!to!international!or!national!regulatory!
systems,! and! usually! involve! a! number! of! human! rights! abuses! and! illicit! activities,!
including! dangerous! and! unhealthy! working! conditions,! the! use! of! child! labor,! and!
environmental! degradation.! Despite! low! wages,! ASM! is! often! the! only! source! of! stable!
income!for!the!residents!of!the!areas.!The!remoteness!of!the!mining!sites,!the!lack!of!basic!
infrastructure!such!as!roads,!electricity,!and!water,!and!the!presence!of!rebel!groups!make!
the!miners!particularly!isolated!from!government!oversight!and!vulnerable!to!abuse!from!
outsiders.! Coltan! minerals! often! pass! through! many! middlemen,! and! are! frequently!
smuggled!from!the!DRC!into!Rwanda!by!land!and!water.!Eventually,!the!mineral!is!exported!
from!Africa!to!smelters!throughout!the!world,!who!refine!coltan!into!tantalum!and!sell!it!to!
capacitor!makers!and!major!retailers.!
!
65!
!
Source'
Country'
Extraction''
Points'
DRC:'
'
Eastern'
provinces:'
North&Kivu'
South&Kivu'
Katanga'
Maniema'
'
'
'
'
'
Eastern'DRC'
Artisanal'Mining'
Locations:275'
'
North'Kivu'
Bibatama&D3&
Bibatama&MHI&
Birambo&&
Birumbi/Kashovu&
Bundjali&
Bwanga/Lukala&
Gakombe&D4&
KamataleB
Mugunga&
karuba&Bugoroba&
Koyi&
Luwowo&/&Gasasa&
Rwangara&
'
South'Kivu'
Biriki&
mule&Itara&
Ndumba&
Rambo&Buhiza&
RusumbaB
Kakenge&
Tchongo&boma&
Mukubwa&
'
!
Table!9.!Value!Chain!Matrix!for!Tantalum!in!the!DRC!
Internal''
Domestic''
Export'
Processing'&'Refining'
Marketing'
Exit'Points'
Destination'
Eastern'DRC'
selling'
locations:276'
'
North'Kivu:&&
Bikoka&
Bududiya&
Isange&
Karuba&
Mabunda&
Mabuo&
Manguredjipa&
Ngungu&
Centre&
Rubaya&
&
South'Kivu:'
Lulingu&
Luza&
Mulungu&
Mwenga&
Nyambembe&
Pont&Hombo&
Shabunda&
center&
Tchonka&
'
'
&
Main'Trading'
Centers:&&
Bukavu&&
Goma&
&
Border'
Crossings:''
Kibumba&→&
Rwanda277&
&
Yungu&beach&in&
Yakutumba&→&
Kigoma&
(Tanzania),&
Burundi278&
&
Rubaya&→&
Goma&(via&ITG&
cemetery)&→&
Rwanda279&
&
Lulingu,&
Shubaya&→&
Goma&(by&
plane)280&
&
Idjwi&Island&
(Lake&Kivu)&→&
Rwanda&
&
Tanzania:&&
Dar&es&
Salaam&&
(Port&of&Dar&e&
Salaam)&
&
Kenya:&
Mombasa&
66!
List'of'ConflictLFree'Smelters:281''
Changsha&South&Tantalum&Niobium&Co.,&
Ltd.&(China);&
Conghua&Tantalum&and&Niobium&Smeltry&
(China);&
D&Block&Metals,&LLC&(USA);&
Duoluoshan&(China);&
Exotech&Inc.&(USA);&
F&X&ElectroBMaterials&Ltd.&(China);&
FIR&Metals&&&Resource&Ltd.&(China);&
Global&Advanced&Metals&Aizu&(Japan);&
Global&Advanced&Metals&Boyertown&
(USA);&
Guangdong&Zhiyuan&New&Material&Co.,&
Ltd.&(China);&
H.C.&Starck&Co.,&Ltd.&(Thailand);&
H.C.&Starck&GmbH&Goslar&(Germany)&
H.C.&Starck&GmbH&Laufenburg&
(Germany);&
H.C.&Starck&Hermsdorf&GmbH&(Germany);&
H.C.&Starck&Inc.&(USA);&
H.C.&Starck&Ltd.&(Japan);&
H.C.&Starck&Smelting&GmbH&&&Co.&KG&
(Germany);&
&
Primary'
Retailer'
Electronic&
components&
such&as&
capacitors&in&
portable&
phones,&
pagers,&PCs,&
automotive&
electronics&
(60B70%);&
Super&alloys&
for&jet&engine&
and&turbine&
components&
(10%);&
Chemical&
equipment&
(10%);&Carbide&
cutting&tools&
(~5%)282&
&
Solutions'for'
Hope'
Members:'283'
AVX;&
BlackBerry;&&
Coopérative&
Des&Artisanaux&
Miniers&du&
Congo&(CDMC);&
!
'
Source'
Country'
'
!
'
'
Extraction'
Points'
Katanga'
Bovu&
Kahungwe&
Luba&carrier&
Luyi&premier&
Lwela&
Mahende&1&
Mahende&2&
Malewa&
Mbulamiti&
Ombelwa&
Usinikorege&
&
Armed'Groups'in'
control'of'mining'
sites:'
'
North'Kivu:&
FARDC;&
Mai&Mai&UPLD&
Mai&Mai&PARECO&
'
South'Kivu:'
FARDC&
Raïa&Mutomboki''
'
'
'
'
'
'
'
Internal'
Marketing'
&
&
&
'
Domestic'Exit'
Points'
'
'
Export'
Destination'
'
67!
'
'
Processing'&'Refining'
Primary'
Retailer'
Hengyang&King&Xing&Lifeng&New&
Materials&Co.,&Ltd.&(China);&
HiBTemp&Specialty&Metals,&Inc.&(USA);&
Jiangxi&Dinghai&Tantalum&&&Niobium&Co.,&
Ltd.&(China);&
Jiangxi&Tuohong&New&Raw&Material&
(China);&
JiuJiang&JinXin&Nonferrous&Metals&Co.,&
Ltd.&(China);&
Jiujiang&Tanbre&Co.,&Ltd.&(China);&
Jiujiang&Zhongao&Tantalum&&&Niobium&
Co.,&Ltd.&(China);&
KEMET&Blue&Metals&(Mexico);&
KEMET&Blue&Powder&(USA);&
KingBTan&Tantalum&Industry&Ltd.&(China);&
LSM&Brasil&S.A.&(Brazil);&
Metallurgical&Products&India&Pvt.,&Ltd.&
(India);&
Mineração&Taboca&S.A.&(Brazil);&
Mitsui&Mining&&&Smelting&(Japan);&
Molycorp&Silmet&A.S.&(Estonia);&
Ningxia&Orient&Tantalum&Industry&Co.,&
Ltd.&(China);&
Plansee&SE&Liezen&(Austria);&
QuantumClean&(USA);&
Resind&Indústria&e&Comércio&Ltda.&
(Mexico);&
RFH&Tantalum&Smeltry&Co.,&Ltd.&(China);''
F&X;&
FairPhone;&
Flextronics;&
Foxconn;&
Global&
Advanced&
Metals&(GAM);&
HP;&Intel;&
Mining&
Minerals&
Resources&
(MMR);&
Motorola&
Mobility;&
Motorola&
Solutions;&
Nokia'
!
'
'
Source'
Country'
'
'
Extraction'
Points'
'
Internal'
Marketing'
'
'
Domestic'Exit'
Points'
'
Export'
Destination'
'
'
'
Processing'&'Refining'
Solikamsk&Magnesium&Works&OAO&
(Russia);&
Taki&Chemicals&(Japan);&
Telex&Metals&(USA);&
Tranzact,&Inc.&(USA);&
Ulba&Metallurgical&Plant&JSC&
(Kazakhstan);&
XinXing&HaoRong&Electronic&Material&
Co.,&Ltd.&(China);&
Yichun&Jin&Yang&Rare&Metal&Co.,&Ltd.&
(China);&
Zhuzhou&Cemented&Carbide&(China)&
&
KEMET’s'List'of'Known'facilities'
processing'conflict'minerals'for'DRC'
Conflict'Undeterminable'Products:284'
Aluminum&Polymer&Surface&Mount&
Capacitors&(AO);&
Tantalum&NonBSurface&Mount&
Capacitors;&
Ceramic&NonBSurface&Mount&Capacitors;&
Film&and&Paper&Surface&Mount&
Capacitors;&
Film&and&Paper&NonBSurface&Mount&
Capacitors;&
Electrical&Filters;&
Machinery&for&Battery&and&Capacitor&
Production;&
Electrical&Magnetic&Transformers;&
Electrical&Chokes&&&Coils;&
Inductors&
'
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
68!
'
Primary'
Retailer'
'
!
Supply&Chain&
Concentrating++
In! the! DRC,! coltan! is! found! primarily! in! the! eastern! provinces! of! North! and! South!
Kivu,!Ituri,!Maniema!and!Katanga.285 !The!Congolese!government!in!Kinshasa!exercises!very!
little! control! over! these! mineralFrich! provinces.! Dense! and! impassable! jungle! divides! the!
DRC! between! east! and! west,! and! infrastructure! and! transportation! between! the! western!
capital!and!the!eastern!provinces!is!underdeveloped,!inefficient,!and!often!nonexistent.286!
The! provinces! of! North! and! South! Kivu! are! the! center! of! coltan! mining,! and! contain!
numerous! ASM! coltan! mines.! In! North! Kivu! for! example,! mines! in! Masisi,! Kalehe! and!
Walikale! territories! employ! thousands! of! miners.! Mining! also! occurs! in! the! protected!
Kahuzi!Biega!National!Park!in!South!Kivu,!resulting!in!significant!environmental!pollution,!
deforestation,!and!the!slaughter!of!the!park’s!wildlife!to!feed!the!workforce.287!
Several!armed!rebel!groups!operate!in!the!eastern!provinces!and!maintain!control!
over! coltan! mines.! The! International! Peace! Information! Service! (IPIS)! estimated! in! 2013!
that!over!half!of!the!ASM!miners!in!the!eastern!DRC!work!in!areas!where!rebel!groups!are!
present.288!As! such,! rebel! groups! exploit! artisanal! mines! for! funding! in! their! campaigns!
against!the!national!DRC!government.!IPIS!found!that!Nduma!Defense!of!Congo!(NDC)!and!
the! Democratic! Forces! for! the! Liberation! of! Rwanda! (FDLR)! retain! control! over! large!
mining!areas!in!North!Kivu,!while!the!rebel!group!Raïa!Mutomboki!interfered!in!110!mines!
in!South!Kivu.289 !Other!rebel!groups!involved!in!the!illicit!coltan!trade!are!the!Coalition!of!
Congolese!Patriotic!Resistance!(PARECO),!Congress!for!the!Defense!of!the!People!(CNDP),!
and!the!Mai!Mai!“selfFdefense”!militias.!Elements!within!the!DRC’s!military,!the!FARDC,!also!
exploit!the!mines!in!the!region!and!contribute!to!the!illicit!trade!of!coltan.!For!example,!IPIS!
found! that! the! FADRC! collects! ‘war! contributions’! (money)! from! the! miners! and! mining!
communities!that!it!controls!in!South!Kivu.290!Corruption!in!the!eastern!provinces!remains!
rampant,!and!traders!often!bribe!local!Congolese!officials!in!order!to!export!the!mineral!out!
of!the!country.!Low!government!wages!for!Congolese!officials!and!military!personnel!has!
also!contributed!to!the!corruption!in!the!coltan!trade.!
!!
!
!
69!
!
Internal+Marketing+
Once! extracted! from! the! earth,! coltan! ore! passes! through! many! middlemen! and!
trading! centers! before! it! reaches! the! smelters! in! Asia,! Europe,! and! North! America.! Small!
traders/transporters!(negociants)!buy!the!coltan!ore!directly!from!the!miners!and!sell!it!to!
larger!trading!firms!(comptoirs)!in!the!Congolese!cities!of!Goma!and!Bukavu.!According!to!
the!Enough!Project,!the!negociants-usually!transport!the!minerals!“on!their!backs,!by!large!
trucks,!and/or!by!planes!in!sacks!the!size!of!small!garbage!bags.”291!The!comptoirs!sort!and!
process!the!ore!at!trading!houses!called!maisons-d’achat!and-sell!it!to!buyers!in!neighboring!
countries! like! Rwanda.! Because! of! the! high! costs! of! obtaining! official! licensing,! the! vast!
majority! of! negociants! trading! houses! operate! outside! the! law.! For! example,! the! Enough!
Project! found! in! 2009! that! only! ten! percent! of! transporters! in! Bukavu! were! officially!
licenced.292!While!comptoirs-will!ask!the!transporters!if!they!have!purchased!minerals!from!
rebel!groups,!it!is!easy!to!lie!about!the!origins.!Comptoirs!have!also!been!found!to!purchase!
coltan!directly!from!rebel!groups,!particularly!the!FDLR.293!!
!
Domestic+Exit+Points+&+Export+Destination&+
Because! of! the! prevalence! of! smuggling! and! the! secrecy! of! many! comptoirs,! little!
information! exists! on! precise! border! crossings! and! domestic! exit! points! for! coltan! in! the!
DRC.!The!two!major!cities!of!Goma!and!Bukavu!are!known!to!house!many!comptoir!trading!
houses,! where! coltan! ore! is! sold! to! international! smelters.! The! NGO! International! Alert!
listed! seven! main! commercial! routes! for! minerals! from! Ituri! and! the! Kivus! towards! East!
Africa!and!the!Indian!Ocean,!including:294!
Figure&3.&Common&Tantalum&Trade&Routes&in&the&DRC&
!
!
70!
!
The! porous! nature! of! the! DRCFRwandan! border! has! facilitated! crossFborder!
smuggling! of! coltan! into! Rwanda.! For! example! in! 2013,! traders! and! mining! officials! in!
Goma! told! the! UN! Working! Group! of! Experts! on! the! DRC! that! tantalum! ore! mined! in!
Rubaya,! North! Kivu! was! smuggled! by! truck! at! a! small! borderFcrossing! in! Goma! called!
Makoro.295!According! to! the! report,! smuggling! “normally! involves! transferring! bags! of!
tantalum! between! trucks! close! to! the! border! and! paying! for! it! in! cash! to! Congolese! and!
Rwandan!soldiers!stationed!at!the!transit!point.”296!The!UN!Working!Group!also!reported!
that!local!boatmen!engage!in!nighttime!smuggling!of!minerals!from!the!DRC!to!Rwanda!via!
Lake!Kivu!and!the!Ruzizi!River.297!Smuggling!also!occurs!via!the!Idjwi!Island!on!Lake!Kivu!
between!the!two!countries.298!!
It!is!worth!noting!that!strong!evidence!exists!that!Rwanda!is!directly!involved!in!the!
illicit! coltan! trade.! A! 2002! UN! report! found! that! as! much! as! 70! percent! of! the! coltan!
exported!from!eastern!Congo!at!the!time!was!being!mined!“under!the!direct!surveillance!of!
Rwandan! Patriotic! Army! (RPA)! mining! détachés! and! evacuated! by! aircraft! from! airstrips!
near! mining! sites! directly! to! Kigali! or! Cyangugu.”299!More! recently,! Rwanda! continues! to!
maintain!significant!military!influence!over!the!eastern!DRC!provinces!in!order!to!combat!
Hutu! rebel! groups! like! the! FDLR.! The! Rwandan! military! has! taken! advantage! of! deficient!
local! governance! in! eastern! DRC! in! order! to! reap! profits! from! the! local! mineral! trade.!
Furthermore,!the!DRC!taxes!exports!of!tantalum!concentrates,!but!Rwanda!does!not.!This!
creates! a! strong! financial! incentive! for! exporters! to! smuggle! coltan! across! the! DRCF
Rwandan!border,!and!claim!that!coltan!mined!in!the!DRC!is!actually!mined!in!Rwanda.300!
According! to! The! Hague! Center! for! Strategic! Studies! (HCSS),! Rwanda’s! reported! coltan!
production! has! grown! significantly! since! the! country! began! its! involvement! in! the!
Congolese! Civil! War! in! 1999.301 !These! findings! suggest! that! the! closeness! of! the! two!
countries’! reported! coltan! production! could! very! well! be! the! result! of! “leakage”! of! DRC!
coltan!to!Rwanda.!!
!
Processing/Refining+and+End+Users+
Smelters!in!Asia,!Europe,!and!North!America!extract!the!tantalum!from!the!ore!and!
then! sell! the! refined! material! to! producers! of! capacitors,! circuit! board! assemblers,! and!
manufacturers! of! semiFconductors! and! components.302!The! end! retailer! purchases! these!
!
71!
!
components,!such!as!the!tantalum!capacitors,!to!assemble!their!products.!Major!electronics!
retailers! include! Acer,! Apple,! Canon,! Dell,! Ericsson,! HP,! IBM,! Lucent,! Motorola,! Nokia,!
Panasonic,! Samsung,! Sony,! and! Toshiba.! Other! uses! include! medical! devices,! such! as!
defibrillators,!and!the!aerospace!industry,!such!as!blade!turbines!and!missiles.!
Once!smelted,!the!origins!of!the!coltan!ore!are!difficult!to!trace.!Therefore,!conflict!
mineral! initiatives! have! focused! on! tracing! the! coltan! before! it! reaches! the! processing!
phase.!The!ConflictFFree!Sourcing!Initiative!(CFSI),!for!example,!offers!companies!and!their!
suppliers!an!independent,!third!party!audit!to!determine!which!smelters!and!refiners!can!
be! validated! as! “conflictFfree,”! in! line! with! current! global! standards.303!AVX! Corporation!
and!Motorola!Solutions!developed!the!Solutions!for!Hope!Project!in!2011,!which!involves!a!
“closed!pipe”!tracking!and!regulatory!system.304!The!closedFpipe!system!uses!a!defined!set!
of! key! suppliers,! including! ASM! mines,! smelters,! component! makers,! and! end! users.305!
Initially! launched! in! the! Katanga! province,! the! Solutions! for! Hope! Project! expanded! into!
North!Kivu!in!2014.306!
!
Gaps&in&Information&&&Potential&Pressure&Points!
!
While! numerous! international! organizations! have! studied! the! DRC! coltan! trade,!
gaps!still!exist!in!the!supply!chain.!ASM!is!highly!transient!and!lacks!the!regular!oversights!
of! industrialized! mining.! The! DRCFRwanda! border! is! notoriously! porous,! particularly!
around! Lake! Kivu,! and! border! crossings! and! customs! offices! are! easily! avoided.! Minerals!
that!are!smuggled!under!the!supervision!of!FADRC!military!personnel!or!armed!groups!are!
inherently! difficult! to! trace.! For! example,! Global! Witness! reported! that! FARDC! personnel!
frequently!use!civilians!to!smuggle!minerals!into!Rwanda,!and!these!smugglers!often!accept!
jail! time! and! large! fines! when! caught! instead! of! revealing! the! names! of! the! ultimate!
beneficiaries! for! fear! of! reprisals. 307 !Such! challenging! circumstances! make! uncovering!
specific! individuals! involved! in! the! illicit! trade! especially! onerous.! Also,! the! trade! routes!
from!mines!in!eastern!DRC!to!the!points!of!export!are!mostly!unpaved!roads,!and!are!thus!
challenging!to!effectively!navigate!or!regulate.!!
!
Several!potential!pressure!points!exist!along!the!DRC!coltan!supply!chain.!A!number!
of! NGOs! and! retailers! have! begun! implementing! an! audit! process! to! verify! the! origins! of!
!
72!
!
tantalum! before! it! reaches! the! smelters.! For! example,! Apple’s! 2016! Conflict! Minerals!
Report!stated,!“100!percent!of!the!identified!smelters!and!refiners!in!Apple’s!supply!chain!
for! current! products! were! participating! in! an! independent! third! party! conflict! minerals!
audit!(“Third!Party!Audit”)!program.”308!!
!
Other! efforts! by! international! governments,! regional! organizations,! and! nonF
governmental!organizations!have!tried!to!increase!the!levels!of!transparency!in!the!coltan!
supply!chain.!The!2010!DoddFFrank!legislation!has!significantly!impacted!the!illicit!mineral!
trade! in! eastern! DRC.! The! financial! reform! bill! contains! a! section! requiring! U.S.Fbased!
companies! to! disclose! whether! its! products! might! contain! conflict! minerals! from! the!
DRC.309!The! Enough! Project! reported! in! 2014! that! DoddFFrank! has! accelerated! reform! in!
the!DRC!mineral!supply!chain,!and!that!conflict!free!mining,!including!coltan,!is!expanding!
across!the!eastern!DRC.310!In!2014,!the!International!Conference!on!the!Great!Lakes!Region!
(ICGLR)!launched!a!minerals!certificate!program!in!which!mineral!exports!that!are!proven!
to!be!“conflict!free”!are!approved!for!exportation.311!The!ICGLR!certificate!scheme!includes!
mineral!tracking!from!mine!site!to!export,!regional!mineral!tracking!via!an!ICGLR!database,!
independent! third! party! audits,! and! an! ICGLR! independent! mineral! chain! auditor. 312!
Another!system!uses!“bagging!and!tagging”!where!only!bags!of!conflict!free!coltan!are!given!
a!green!tag!and!allowed!to!be!sold!to!processers.313!!
!
Sustainable! progress! in! preventing! the! illicit! trade! of! tantalum! will! best! occur!
through! significant! conflict! resolution! and! peacebuilding! efforts! in! the! warFtorn! eastern!
provinces!of!the!DRC.!The!ongoing!conflicts!and!immense!humanitarian!catastrophe!in!the!
region!prevent!substantial!reforms!to!the!Congolese!mining!sector.!While!more!mines!are!
being! labeled! “conflictFfree,”! the! continued! presence! of! armed! groups! in! the! eastern!
provinces! presents! major! security! threats! to! ASM! coltan! miners.! The! disarmament,!
demobilization,! and! reintegration! of! armed! groups! like! the! FDLR! will! undoubtedly! go! a!
long!way!towards!curbing!the!illicit!coltan!trade.!Corruption!in!the!mining!sector!and!the!
unofficial! “taxes”! levied! on! miners! by! Congolese! governmental! officials! and! FADRC!
personnel!further!impede!the!DRC’s!ability!to!control!the!mineral!trade.!While!third!party!
auditing!and!international!regulatory!systems!are!beneficial,!the!overwhelmingly!complex!
and! volatile! problems! that! beset! the! eastern! DRC,! prevent! meaningful! oversight! of! the!
coltan!trade!from!occurring.!!
!
73!
!
Colombia
Known! locally! as! “black! sand,”! Colombia! possesses! significant! reserves! of! gold,!
tungsten,!and!coltan.!ASM,!illicit!activities,!and!conflict!dominate!coltan!mining!in!Colombia.!
Due! to! the! presence! of! armed! groups! like! the! longstanding! FARC! and! lowFlevel! drug!
smugglers,! the! Colombian! government! struggles! to! exert! authority! over! its! coltanF
producing! areas.! In! recent! years,! the! FARC! has! sold! illegally! mined! coltan! on! the! black!
market! to! fund! its! guerilla! campaign! against! the! central! government! in! Bogotá.314!Taking!
advantage! of! the! severe! lack! of! government! control! in! the! mostly! indigenous! Amazon!
region!in!the!country’s!southeast,!the!FARC,!various!paramilitary!groups,!and!international!
drug! cartels! control! and! exploit! illegal! coltan! mines.! Local! reports! have! shown! that! the!
FARC! and! other! armed! groups! are! also! involved! in! crossFborder! smuggling! of! coltan! and!
other!valuable!minerals!across!the!poorly!monitored!ColombiaFVenezuela!border.315!
In! Colombia,! the! presence! of! armed! groups,! lack! of! government! control,! and!
underdeveloped! infrastructure! in! the! Amazon! region! make! information! on! the! coltan!
supply!chain!difficult!to!trace.!There!is!strong!evidence!of!the!existence!of!a!black!market!
for!coltan!in!Colombia!and!Venezuela,!and!information!on!the!mining!and!transportation!of!
the!mineral!remains!obscure.!
!
74!
!
Source'
Country'
Colombia(and(
Venezuela:(
(
Amazon(
region,(
Colombia4
Venezuelan4
Brazil(border,(
Indigenous(
lands(
'
'
'
'
Table!10.!Value!Chain!Matrix!for!Tantalum!in!Colombia!
Extraction''
Internal''
Domestic''
Export'
Points'
Marketing'
Exit'Points'
Destination'
Colombia'Mining'Locations:'
Colombian'Departments:'
Guainía((
Vichada((
Vaupés316((
Puinawai(Natural(Reserve317(
Cerro(Tigre(
Zancudo(Guacamaya(
(
(
Venezuelan'Mining'Locations:''
Amazonas(State((
Bolivar(State318((
Parguaza((town(on(Orinoco(River)319(
(
Armed'Groups'in'control'of'mining'sites'
and'smuggling'routes:'
Colombia'
FARC(
Sinaloa(Cartel320(
Cifuentes(Villa(family(
(
Venezuela'
FARC((Amazonas(State321)(
(
International'Companies'involved'in'
mining:'
*Korea(TPC(Development(de(Venezuela322(
*Global(Impact(USA323(
*Hawk(Enterprises324'
Colombia(
Guaviare(River(
→(Puerto(
Inírida325((
(
*Indicates!Possible!Association!with!Illicit!Activity!
!
!
75!
Rivers:'
Guaviare(River(
(Colombia)(
Orinoco(Rover(
(Colombia4
Venezuela(border)(
(
Towns'
El(Burro(
(Venezuela)(→(
Puerto(Carreño(
(Colombia)(across(
Orinoco(River326(
Unknown'
'
Brazil*((
(claimed(as(
Brazilian(coltan(
exports,(
Brazilian(
smelters)(
(
Processing'
&'Refining'
Primary'
Retailer'
Switzerland:'
PAMP((
Metalor((
'
UAE:'
Kaloti(
Jewelry(Intl.((
Emirates(
Gold((
(
South'
Africa:'
Randgold(
India:(
Kundan327((
(
Unknown:
Consumer'
electronic(
products(
Medical(
technology(
Defense(
industry(
Aviation(
industry(
!
Supply&Chain&&
Concentrating+
!
Colombia’s!coltan!deposits!are!located!deep!in!the!Amazon!region!along!the!border!
with!Venezuela!and!Brazil!in!the!departments!of!Guainía,!Vichada,!and!Vaupés.!One!of!the!
most! important! locations! is! the! Puinawai! Natural! Reserve! in! the! Guainía! Department,!
where! mining! of! any! kind! is! illegal! under! the! Colombian! mining! code! because! of! its!
designation!as!a!natural!preserve.328!Despite!its!illegality,!coltan!mining!in!Puinawai!has!led!
to! the! exploitation! of! the! native! Puinawai! tribe,! and! to! environmental! degradation! in! the!
reserve.329 !
!
Internal+Marketing+
The!internal!marketing!of!coltan!in!Colombia!is!difficult!to!determine.!According!to!
the! International! Consortium! of! Investigative! Journalists! (ICIJ),! guerrillas! control! the!
mines,!armed!paramilitaries!control!the!path!that!miners!take!to!sell!their!minerals!on!the!
Guaviare!River,!and!narcoTtrafficking!gangs!transport!the!mineral.330!As!the!minerals!pass!
from! group! to! group,! they! become! increasingly! difficult! to! trace.! According! to! the!
Colombian!magazine!Semana,!local!criminals!often!levy!a!“tax”!on!miners!that!can!reach!as!
high!as!$2,500!per!ton!extracted.331!
!
Domestic+Exit+Points+&+Export+Destination+
&
The! ColombiaTVenezuela! border! is! notoriously! porous! along! the! Amazon! due! to!
significantly! limited! government! control! and! high! levels! of! local! corruption.! This! has!
created! space! for! illegally! mined! coltan! to! be! transported! between! the! countries! with!
relative!ease.!Like!Colombia,!the!Venezuelan!government!maintains!limited!control!over!its!
interior! Amazonian! region,! such! as! Amazonas! State,! which! is! home! to! many! indigenous!
groups!and!contains!significant!coltan!reserves.332!Because!of!the!region’s!important!coltan!
deposits,!the!FARC!is!known!to!extort!local!miners!on!the!Venezuelan!side!and!smuggle!the!
mineral!into!Colombia,!where!it!is!sold!on!the!black!market.333!
Specific! exit! points! and! export! destinations! of! Colombian! coltan! are! difficult! to!
pinpoint! given! the! density! of! the! jungle! and! the! security! concerns! in! the! Amazon! region.!
!
76!
!
The! Guaviare! River! is! a! tributary! of! the! Orinoco! River! that! borders! Colombia! and!
Venezuela,! and! is! frequently! used! to! smuggle! coltan! and! other! minerals! between! the! two!
countries.! To! access! the! river,! miners! sometimes! transport! their! minerals! by! foot,! often!
taking!hidden!paths!deep!in!the!jungle!to!avoid!roadways!with!military!and!police!patrols.!
Smugglers! are! known! to! use! small! motorboats,! called! pangas,! to! transport! the! minerals!
between! Colombia! and! Venezuela.334!ICIJ! reported! on! a! coltan! mine! on! the! banks! of! the!
Orinoco! River! in! the! Venezuelan! town! of! Parguaza! in! which! crossTborder! trade! often!
occurs.!Miners!interviewed!in!Parguaza!told!ICIJ!that!Colombian!“buyers”!come!to!the!town!
on!motorbikes,!then!take!the!minerals!to!the!port!of!El!Burro,!where!they!take!a!motorboat!
that! leaves! them! in! Puerto! Carreño,! Colombia,! just! 15! minutes! across! the! Orinoco! River!
from!Venezuela.335!From!there,!the!minerals!make!their!way!to!the!major!cities!of!Colombia!
for! exportation.! The! local! port! town,! Inírida! in! Guainía,! is! believed! to! be! a! transit! center!
where!smuggled!coltan!from!the!Amazon!region!is!sent!to!the!rest!of!Colombia.336!
Local! and! international! actors! play! a! role! in! the! Colombian! coltan! trade.! In! 2011,!
Colombian!and!U.S.!officials!accused!the!FARC!of!working!with!the!Sinaloa!Cartel!in!Mexico!
to!profit!from!the!coltan!trade!in!Colombia.!While!both!groups!have!relied!heavily!on!drug!
trafficking!in!the!past,!Colombian!police!believe!that!the!groups!have!recently!shifted!to!the!
exploitation!of!coltan!mining!and!other!minerals!in!order!to!diversify!their!income,!and!for!
the! Sinaloa! Cartel! to! expand! its! already! entrenched! ties! with! Colombia. 337 !In! 2014,!
Colombian! authorities! arrested! the! soTcalled! “coltan! czar”! Juan! Jose! Rivera! Suarez,! who!
facilitated! the! sale! of! coltan! for! the! FARC! and! the! National! Liberation! Army! (ELN).338!
According!to!the!Colombian!newspaper!El&Tiempo,!Suarez!used!a!legal!company!to!export!
shipments! of! illegally! mined! coltan! and! other! minerals! in! protected! indigenous! reserves,!
and! then! sold! them! to! companies! in! the! U.S.! where! they! were! used! to! make! electronic!
products.339!
!
Refining+&+Primary+Retailer+
&
Colombian!coltan!is!shipped!to!international!smelters!where!it!is!refined!and!made!
into! tantalum.! The! refined! tantalum! is! sold! to! producers! of! capacitors,! circuit! board!
assemblers,! and! manufacturers! of! semiTconductors! and! components.! However,! there! is!
little! information! on! which! smelters! refine! Colombian! coltan,! and,! subsequently,! which!
!
77!
!
retailers!purchase!capacitors!and!other!products!that!include!Colombian!coltan.!According!
to!ICIJ,!Brazil!could!be!a!destination!for!Colombian!coltan.340!Brazil!is!home!to!a!number!of!
coltan! smelters! that! refine! ore! from! around! the! world,! and! it! is! possible! that! Colombian!
coltan!ore!could!end!up!in!Brazilian!smelters!due!to!the!proximity!of!the!two!countries,!and!
their!poor!border!controls.!
!
Gaps&in&Information&&&Potential&Pressure&Points&
!
Like!in!the!eastern!DRC,!coltan!in!Colombia!is!linked!to!illicit!activity,!exploitation!of!
miners,! and! conflict.! However,! comprehensive! information! on! important! facets! of! the!
coltan! supply! chain! in! Colombia,! such! as! precise! mining! locations,! smuggling! routes,! and!
domestic! exit! points,! remains! largely! unknown.! The! lack! of! government! control! over! the!
vast!Amazon!region,!along!with!the!dense!jungle!terrain,!and!the!presence!of!the!FARC!and!
other! armed! groups,! pose! significant! challenges! to! the! study! of! coltan! mining! in! the!
Colombia.! Much! of! the! available! information! comes! from! Colombian! news! sources! and!
reports! from! investigative! journalists,! as! well! as! information! provided! by! local! police!
departments.! While! there! is! evidence! that! coltan! mined! in! Colombia! has! entered! the!
legitimate!tantalum!supply!chain,!precise!information!on!how!this!occurs!remains!obscure,!
along! with! additional! gaps! in! knowledge! regarding! the! smelting! of! Colombian! coltan.! In!
2012,!the!Wall!Street!Journal!reported!that!the!Colombian!government!is!planning!to!allow!
legal! firms! to! bid! for! the! rights! to! mine! coltan! and! other! “strategic! minerals.”341!Allowing!
legal!industrialized!coltan!mining!would!be!challenging!given!the!environmental!risks!and!
the!indigenous!rights!inscribed!in!Colombian!law,!but!could!disrupt!an!important!source!of!
income!for!the!FARC!and!other!armed!groups.!!
!
In! July! 2015,! the! FARC! announced! a! unilateral! ceasefire! with! the! Colombian!
government,! and! comprehensive! peace! talks! began! in! Havana! shortly! after.342!In! recent!
years,!illegal!mining!has!become!a!major!source!of!financing!for!the!FARC,!along!with!the!
more!wellTknown!methods!of!drug!trafficking!and!kidnapping.!The!FARC’s!engagement!in!
the! peace! talks! with! Bogotá! could! lead! to! more! government! control! over! the! FARC!
territory,!greater!security!in!the!Amazon!region,!and!better!tracking!of!illicit!coltan!mining!
and!trading.!!!!!
!
78!
!
Conclusion
!
While!the!international!community!has!made!strides!in!reducing!the!trade!of!illicit!
and! conflict! minerals! through! the! implementation! of! policies! such! as! the! KCPS! and! the!
DoddTFrank! Act,! there! are! still! numerous! obstacles! to! implementing! these! regulations! in!
countries! dealing! with! issues! such! as! poor! infrastructure,! internal! conflict,! and! endemic!
poverty.! In! researching! the! supply! chains! of! precious! minerals,! information! has! been!
particularly! difficult! to! obtain! due! to! the! informal! nature! of! illicit! mining.! Across! the!
various! countries! and! minerals! researched,! several! common! themes! emerged.! First,!
national!governments!often!lack!the!capacity!to!regulate!and!control!mining!locations,!and!
struggle! to! effectively! monitor! their! borders.! Second,! international! regulators! lack! the!
ability! to! trace! illicit! minerals! beyond! the! processing! or! refining! stage.! Third! there! are!
widespread!deficiencies!of!research!on!illicit!activities!and!the!enforcement!of!regulations!
due!to!everTchanging!information!on!the!ground.!
!
The! difficulties! countries! face! to! monitor! or! control! mining! locations! is! associated!
with!a!wide!range!of!issues.!As!seen!in!the!cases!of!Colombia!and!the!DRC,!endemic!conflict!
can! inhibit! the! ability! of! government! officials! to! access! mining! locations.! This! difficulty! is!
also! attributed! to! the! remoteness! or! inaccessibility! of! many! mining! locations.! In! many!
cases,!governments!lack!the!logistical!capacity!to!adequately!monitor!mines!due!to!limited!
access! to! advanced! mining! software,! or! to! understaffed! field! offices.! The! inability! to!
monitor! mining! sites! has! created! loopholes! in! the! illicit! trade.! For! example,! the! Guinean!
government’s!inability!to!verify!the!origin!of!its!country’s!diamonds!or!to!produce!tamperT
proof! certificates! has! allowed! illicit! diamonds! to! enter! the! legal! market.! Porous! borders!
have! also! proven! to! be! particular! problematic.! In! many! of! the! countries! researched,!
minerals! are! easily! transported! across! undermanned! and! unregulated! border! crossings.!!
For!instance,!the!DRCTRwanda!border!is!highly!porous,!and!border!crossings!and!customs!
offices!are!easily!avoided.!!!
These! examples! demonstrate! that! the! greater! issues! of! weak! infrastructure,!
government! control,! and! rule! of! law! all! play! a! part! in! allowing! the! continued! presence! of!
illicit!minerals.!In!order!to!combat!these!issues,!it!is!important!to!build!partnerships!with!
thirdTparty! organizations! that! possess! the! resources! and! acumen! to! effectively! improve!
!
79!
!
government!capacities.!This!can!be!achieved!either!through!government!intervention,!or!by!
building!partnerships!with!local!interest!groups.!Guinea!and!the!DRC!have!benefitted!from!
such!programs!in!the!past—Guinea!in!partnership!with!the!US!Government,!and!the!DRC!in!
partnership!with!the!International!Peace!Information!Service!(IPIS)!and!Enough!Project.!In!
Guinea,!USAID!through!the!Property!Rights!and!Artisanal!Diamond!Development!(PRADD)!
project! was! able! to! increase! monitoring! capacities! and! expand! the! number! of! mining!
officials,! as! well! as! introduce! more! technologically! advanced! monitoring! processes.! This!
has! allowed! mining! officials! to! register! diamonds! in! the! field! and! transmit! the! data!
instantaneously,!and!to!better!locate!diamonds!with!invalid!licenses.!The!new!technology!
has!resulted!in!over!80!percent!of!miners!registering!their!diamond!findings!with!Guinea’s!
Ministry! of! Mines! (MMG)! in! Forécariah.343!In! the! DRC,! the! IPIS! and! Enough! Project! were!
able! to! partner! with! DRC! Cadastre! Minier! (CAMI)! and! other! local! Congolese! mining!
representatives! to! create! a! system! to! monitor! artisanal! gold! mining! activities! and! the!
involvement! of! armed! groups! and! criminal! networks! in! the! illicit! mining! trade.344!Such!
partnerships! are! essential! to! capacity! building.! Closer! alliances! between! actors! like! IPIS!
and!local!mining!organizations!are!critical!to!filling!gaps!in!knowledge!about!supply!chains,!
especially! since! local! mining! organizations! have! the! most! to! gain! from! increased! mining!
formalization.!!
!
While!insufficient!internal!controls!contribute!to!the!illicit!mineral!problem,!another!
major!area!for!improvement!is!better!regulation!and!enforcement!in!polishing!and!refining!
centers.! While! unrefined! minerals! can! be! traced! to! identify! their! origin,! “fingerprinting”!
mechanisms!become!impossible!for!gold!and!tantalum!in!particular,!once!the!minerals!are!
mixed! with! other! newlyTmined! minerals.! In! addition,! various! organizations! and! diamond!
retailers!have!criticized!the!KPCS!for!its!failure!to!include!cutting!and!polishing!centers!in!
the! certification! chain.! ! Many! illicit! diamonds! are! also! able! to! legally! enter! the! market! in!
cities! like! Surat,! India! due! to! weak! enforcement! of! the! KPCS! and! discarded! certificates.!
Additional!monitoring!at!the!refining!stage!is!vital!to!ensure!legal!and!conflictTfree!minerals!
globally.!!For!instance,!Canada!has!recently!initiated!laserTinscribed!tracking!numbers!for!
diamonds!to!enhance!traceability!that!could!be!used!by!international!cutting!and!polishing!
centers.345!While! such! mechanisms! would! be! ideal! for! verifying! the! minerals! as! “conflictT
free,”! precautions! must! be! taken! to! prevent! this! technology! from! falling! into! the! wrong!
!
80!
!
hands,! and! ensure! that! it! is! made! affordable! for! small! legal! operations! without! financial!
assistance.!
Further! progress! must! also! be! made! towards! increased! incorporation! of! artisanal!
and! smallTscale! miners! into! certification! and! ‘fingerprinting’! processes! in! a! way! that!
addresses! their! needs! while! remaining! economically! feasible.! For! example,! the!
organization! Fairmined,! created! by! the! Association! for! Responsible! Mining,! has! worked!
with!community!organizations!in!over!ten!countries!to!develop!managed!community!gold!
mines! that! guarantee! a! fair! price! for! minerals! and! employ! market! incentives! for!
responsible! mining.! Fairmined! is! also! backed! by! a! thirdTparty! certification! and! audit!
system! that! certifies! the! gold! meets! global! standards! for! responsible! practice. 346 !By!
partnering! with! local! community! organizations,! miners,! refiners,! traders,! manufacturers,!
and!retailers,!Fairmined!has!been!able!to!create!a!model!that!encompasses!all!levels!of!the!
supply!chain.!!&
Major! retailers! and! consumers! have! significant! leverage! to! push! for! transparency!
and!accountability!due!to!their!control!of!the!demand!for!minerals!and!electronic!products.!!
End!users!and!retailers!must!place!greater!pressure!on!known!refiners!and!middlemen!to!
conduct! independently! verifiable! supply! chain! audits,! and! to! publish! their! findings!
regardless!of!federal!loopholes.!It!is!up!to!retailers,!civil!society!groups,!and!media!outlets!
to!name!and!shame!companies!that!do!not!conform!to!due!diligence!guidelines,!or!to!stop!
purchasing!from!these!companies!altogether.!
Closing! the! gaps! in! information! relies! on! a! range! of! actors! across! all! levels! of! the!
supply!chain.!While!there!is!no!one!size!fits!all!solution!to!combatting!the!illicit!trade,!it!is!
clear! that! greater! regulation! is! needed! from! both! source! countries! and! international!
trading! centers.! Greater! regulation! at! the! polishing! and! refining! levels! in! particular! is!
essential.! Many! minerals! become! untraceable! once! they! are! mixed,! preventing! retailers!
from! fully! verifying! their! minerals! as! legal! and! conflictTfree.! In! some! cases,! the!
disappearance! of! minerals! from! the! formal! economy! occurs! even! earlier! when! criminal!
networks! and! smugglers! monopolize! minerals.! While! many! barriers! to! ethical! supply!
chains!remain,!continued!global!awareness!from!stakeholders!throughout!the!supply!chain!
can!improve!transparency!and!prevent!the!introduction!of!illicit!and!conflict!minerals!into!
the!international!market.!
!
81!
!
!
!
References
!
!
!
!
1!World&Diamond&Council,&“Diamond&Fact&Sheet,”&
11!UN!Security!Council,!“Letter!dated!16!May!2014!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1521!(2003)!
concerning!Liberia!addressed!to!the!President!of!
the!Security!Council,”!23!May!2014,!S/2014/363!
https://www.worlddiamondcouncil.org/download/r
esources/&
documents/Fact%20Sheet%20(The%20Diamond%20
Industry).pdf!
12!Ibid!
2!Kimberley!Process,!“Sierra!Leone,”!2016;!
13!Government!of!Sierra!Leone,!“GoSL!Online!
kimberleyprocess.com/en/sierraTleone![Accessed!
March!1,!2016]!
Repository”!2016;!
sierraleone.revenuesystems.org![Accessed!April!1,!
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3!Ministry!of!Mines!and!Mineral!Resources,!“Key!
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slminerals.org/keyTminerals/![Accessed!April!2,!
2016]!
14!Awoko!Newspaper,!“Sierra!Leone!News:!Gold!
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September!2015;!awoko.org/2015/09/22/sierraT
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4!BermúdezTLugo,!Omayra.!“The!Mineral!Industry!
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December!2015.!
http://minerals.usgs.gov/minerals/pubs/country
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15!Concord!Times,!“In!$46,000!Diamond!Fraud…”!
June!2014;!slconcordtimes.com/inT46000T
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5!Ministry!of!Mines!and!Mineral!Resources,!“Key!
16!Awoko!Newspaper,!“Sierra!Leone!News:!
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[Accessed!April!1,!2016]!
National!Minerals!Agency!hunt!13!mining!
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awoko.org/2013/10/11/sierraTleoneTnewsT
nationalTmineralsTagencyThuntT13TminingT
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6!Awoko!Newspaper,!“Sierra!Leone!News:!National!
Minerals!Agency!Hunt!13!Mining!Companies,”!
October!2013;!awoko.org/2013/10/11/sierraT
leoneTnewsTnationalTmineralsTagencyThuntT13T
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17!Wilson,!Sigmund!A.,!“Sierra!Leone's!Illicit!
Diamonds:!The!Challenges!and!the!Way!Forward,”!
GeoJournal,!Vol.!76,!No.!3!(2011),!pp.!191T212.!
7!Ibid!
8!Wilson,!Sigismond!Ayodele,!“Diamonds!in!Sierra!
18!Engwicht,!Nina,!“After!Blood!Diamonds:!The!
Leone,!A!Resource!Curse?”!European!University!
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erd.eui.eu/media/wilson.pdf![Accessed!March!1,!
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Moral!Economy!of!Illegality!in!The!SierraTLeonean!
Diamond!Market,”!The!Max!Planck!Institute!for!
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forthcoming,!10.!
9!International!Growth!Center,!“Pilot!Survey!on!
19!Ibid,!12!
Cross!Border!Trade!from!Sierra!Leone!to!Other!
Mano!River!Union!Countries,”!December!2015;!
theigc.org/wpTcontent/uploads/2016/01/MahoiT
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2016]!
20!Government!of!Sierra!Leone!“Mines!and!Mineral!
Act!2009”!January!2010;!sierraT
leone.org/Laws/2009T12.pdf![Accessed!April!3,!
2016]!
21!Engwicht,!Nina,!“The!Black!Market!as!a!Grey!
10!Guha!Ray,!Shantanu,!“The!Blood!Diamonds!of!
Zone,”!The!Max!Planck!Institute!for!the!Study!of!
Societies,!January!2015;!
https://www.mpg.de/9093473/W005_culture_so
ciety_070T077.pdf![Accessed!March!1,!2016]!
Surat,”!India!Today,!May!2011;!
indiatoday.intoday.in/story/highTdemandT
diamondTtradersTinTindiaTimportTstonesTfromT
africaTkillingTfields/1/137301.html![Accessed!
April!2,!2016]!
!
!
!
!
!
!
22!Government!of!Sierra!Leone,!“GoSL!Online!
33!World!Diamond!Council,!“System!of!
Repository”!!
Warranties,”!2014;!
worlddiamondcouncil.org/download/resources/!
23!International!Growth!Center,!“Pilot!Survey!on!
Cross!Border!Trade!from!Sierra!Leone!to!other!
Mano!River!Union!Countries”!!
documents/System%20of%20Warranties%20WD
C%202014.pdf![Accessed!March!1,!2016]!
24!UN!Security!Council,!“Letter!dated!16!May!2014!
34!Vorrath,!Judith,!“From!War!to!Illicit!Economies:!
from!the!Chair!of!the!Security!Council!Committee!
Established!Pursuant!to!Resolution!1521!(2003)!
Concerning!Liberia!Addressed!to!the!President!of!
the!Security!Council,”!23!May!2014,!S/2014/363!!
Organized!Crime!and!StateTbuilding!in!Liberia!and!
Sierra!Leone,”!German!Institute!for!International!
and!Security!Affairs,!November!2014;!
https://www.swpT
berlin.org/fileadmin/contents/products/research
_papers/2014_RP13_vrr.pdf![Accessed!March!20,!
2016]!
25!Awoko!Newspaper,!“Sierra!Leone!News:!Gold!
and!Diamond!Theft…!Accused!put!on!Stiff!Bail,”!
September!2015;!awoko.org/2015/09/22/sierraT
leoneTnewsTgoldTandTdiamondTtheftTaccusedTputT
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35!Government!of!Sierra!Leone,!“GoSL!Online!
Repository”!!
26!Concord!Times,!“In!$46,000!Diamond!Fraud…”!!
36Amnesty!International,!“Chains!of!Abuse:!The!
27!Létourneau,!Josée!and!Ian!Smilie,!“Diamond!
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Central!African!Republic,!May!2015.!Pg.!6.!
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Partnership!Africa!Canada,!February!2006.!Pg!7;!
pacweb.org/Documents/annualTreviewsT
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37!Ibid!
38!International!Crisis!Group,!“Dangerous!Little!
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Diamonds’!Seized!at!JFK,”!NBC!New!York,!April!13,!
2009;!
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2013,!Pg.!16T17;!
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29!Kimberley!Process,!“Sierra!Leone!Annual!Report!
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http://www.kimberleyprocess.com/en/sierraT
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30!US!Department!of!State,!“Fraud!Warning!and!
Fake!Kimberley!Process!Certificates!for!Sierra!
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http://www.state.gov/r/pa/prs/ps/2014/05/22
5925.htm![Accessed!March!1,!2016]!
40!The!World!Bank!Oil!Gas!and!Mining!Policy!
Division,!“A!Comprehensive!Approach!to!Reducing!
Fraud!and!Improving!the!Contribution!of!the!
Diamond!Industry!to!Local!Communities!in!the!
Central!African!Republic,”!November!2010.!
31!Ray,!Shantanu!Guha,!“The!Blood!Diamonds!of!
Surat”!!
41!Asia!Times,!“Gujarat’s!‘Diamond’!Riots!Expose!
32!K.,!Greg,!“Surat,!India:!Where!Blood!Diamonds!
Hard!Facts!of!Indian!Political,”!September!1,!2015;!
lifeatimes.com/2015/09/gujaratsTdiamondTriotsT
exposeThardTfactsTofTindianTpoliticalTlife!
[Accessed!March!5,!2016]!
go!to!Forget!Their!Past,”!Brilliant!Earth,!January!
11,!2013;!
http://www.brilliantearth.com/news/suratTindiaT
whereTbloodTdiamondsTgoTtoTforgetTtheirTpast/!
[Accessed!March!30,!2016]!
42!Hsu,!Tao!and!Andrew!Lucas,!“Jadeite!
Manufacturing!and!Trading!Hubs!in!Guangdong,!
!
!
!
83!
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!
!
China,”!Gemological!Institute!of!America,!August!
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Assessment!of!Guinea”!Fact!Sheet!2012T3129,!
November!2012.!!
56!Ibid!!!
43!Ibid,!Pg.!31!
57!Chircico,!Peter!et.!al,!“Alluvial!Diamond!
44!WikiLeaks,!“Diamonds!in!the!CAR:!Deleterious!
Resource!Potential!and!Production!Capacity!
Assessment!of!Guinea,”!U.S.!Geological!Survey,!
April!2014.!
to!Development,”!January!20,!2010;!
wikileaks.org/plusd/cables/10BANGUI9_a.html!
[Accessed!March!27,!2016]!
58!Extractive!Industries!Transparency!Initiative,!
45!Ibid,!Pg.!15!
“EITI!Guinea,”!2016;!itieT
guinee.org/index.php?rubrique=guinee![Accessed!
April!1,!2016]!
46!United!Nations!Security!Council,!“Security!
Council!Committee!Concerning!Central!African!
Republic!Lists!One!Entity,!Three!Individuals!
Subject!to!Measures!Imposed!by!Resolution!2196!
(2015)!,”!August!20,!2015;!
http://www.un.org/press/en/2015/sc12018.doc.
htm![Accessed!April!1,!2016],!Joan!Tilouine,!“HSBC!
et!les!diamants!de!Centrafrique,”!February!14,!
2015;!lemonde.fr/evasionT
fiscale/article/2015/02/14/hsbcTetTlesTdiamantsT
deTcentrafrique_4576780_4862750.html!
[Accessed!April!1,!2016]!
59!US!Agency!for!International!Development,!
“Property!Rights!And!Artisanal!Diamond!
Development!Pilot!Program!T!Guinea!Quarter!1!
Progress!Report!(FebruaryTMay!2008),”!June!
2008.!Pg.!18.!!
60!Partnership!Africa!Canada,!“Diamonds!Without!
Borders:!An!Assessment!Of!The!Challenges!Of!
Implementing!And!Enforcing!The!Kimberley!
Process!Certification!Scheme,”!November!2010.!!
Pg.!14T15!
47reliefweb.int/sites/reliefweb.int/files/resources
61!US!Agency!for!International!Development,!
/Gold%20and%20diamonds%20in%20the%20Ce
ntral%20African%20Republic.pdf!(pp.!16T17)!
“Property!Rights!And!Artisanal!Diamond!
Development!Ii!(Pradd!II)!Diagnostic!Study!Of!
Property!Rights!And!Artisanal!Diamond!Mining!In!
The!Prefecture!Of!Forécariah,!Guinea,”!March!
2014.!Pg.!14.!!!
48!Amnesty!International,!“Chains!of!Abuse,”Pg.!5!
49!Ibid,!Pg.!42!
50!Tilouine,!Joan!“HSBC!et!les!diamants!de!
62!UN!Security!Council,!“Letter!dated!14!April!2014!
Centrafrique,”!February!14,!2015;!
lemonde.fr/evasionT
fiscale/article/2015/02/14/hsbcTetTlesTdiamantsT
deTcentrafrique_4576780_4862750.html!
[Accessed!April!1,!2016]!
from!the!ViceTChair!of!the!Security!Council!
Committee!established!pursuant!to!resolution!
1572!(2004)!concerning!Côte!d’Ivoire!addressed!
to!the!President!of!the!Security!Council,”!14!April!
2014,!S/2014/266.!Pg.!38.!!
51!Amnesty!International,!“Chains!of!Abuse,”!Pg.!49!
63!UN!Security!Council,!“Letter!dated!11!October!
52Asia!Times,!“Gujarat’s!‘Diamond’!Riots!Expose!
2013!from!the!Chair!of!the!Security!Council!
Committee!established!pursuant!to!resolution!
1572!(2004)!concerning!Côte!d’Ivoire!addressed!
to!the!President!of!the!Security!Council,”!14!
October!2013,!S/2013/605.!Pg.!25.!!
Hard!Facts!of!Indian!Political!Life,”!September!1,!
2015;!atimes.com/2015/09/gujaratsTdiamondT
riotsTexposeThardTfactsTofTindianTpoliticalTlife!
[Accessed!March!1,!2016],!Gemological!Institute!of!
America,!“Jadeite!Manufacturing!and!Trading!
Hubs!in!Guangdong,!China,”!August!14,!2014;!
gia.edu/giaTnewsTresearchTjadeiteTtradingT
centersThsu![Accessed!March!3,!2016]!
64!Létourneau,!Josée!and!Ian!Smilie,!“Diamonds!
and!Human!Security!Annual!Review!2008,”!
Partnership!Africa!Canada,!October!2008.!Pg!21.!
65!UN!Security!Council,!“Letter!dated!13!April!2015!
53!Amnesty!International,!“Chains!of!Abuse,”!Pg.!
Resource!Potential!and!Production!Capacity!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!13!April!
2015,!S/2015/252.!Pg.!33.!!
!
!
49T50!
54!Ibid,!Pg.!54!
55!US!Geological!Survey,!“Summary!of!the!Diamond!
!
84!
!
!
!
66!UN!Security!Council,!“Letter!dated!20!April!2011!
1572!(2004)!concerning!Côte!d’Ivoire!addressed!
to!the!President!of!the!Security!Council,”!14!April!
2014,!S/2014/266.!Pg.!38.!!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!27!May!
2011,!S/2011/271.!Pg.!54.!!
76!Ibid!
77!UN!Security!Council,!“Letter!dated!13!April!2015!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!13!April!
2015,!S/2015/252.!Pg.!33.!!
67!Kimberley!Process,!“2011!Annual!Report!on!
Guinea,”!2011;!kimberleyprocess.com/en/guinea!
(Accessed!April!1,!2016)!!
68!US!Geological!Survey,!“Alluvial!Diamond!
Resource!Potential!and!Production!Capacity!
Assessment!of!Guinea,”!Scientific!Investigations!
Report!2012–5256,!Version!1.1,!April!2014,!Pg.!7.!!
78!Kimberley!Process,!“Rapport!Annuel!2011!De!La!
Guinee!Sur!Le!Processus!De!Kimberley,”!2013;!
kimberleyprocess.com/en/guinea!(April!7,!2016)!
69!Ibid!
79!UN!Security!Council,!“Letter!dated!20!April!2011!
70!US!Agency!for!International!Development,!
“Policy!Review:!The!Artisanal!Diamond!Mining!
Sector!In!The!Republic!Of!Guinea,”!Property!Rights!
And!Artisanal!Diamond!Development!(PRADD)!
Pilot!Program,!November!2008,!Pg.!11.!!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!27!May!
2011,!S/2011/271.!Pg.!54.!!
71!US!Agency!for!International!Development,!
80!Engwicht,!Nina,!“After!Blood!Diamonds:!The!
“Diagnostic!Study!Of!Property!Rights!And!
Artisanal!Diamond!Mining!In!The!Prefecture!Of!
Forécariah,!Guinea,”!Property!Rights!And!
Artisanal!Diamond!Development!(PRADD)!Pilot!
Program,!March!2014,!Pg.!Vi.!!
Moral!Economy!of!Illegality!in!The!SierraTLeonean!
Diamond!Market,”!The!Max!Planck!Institute!for!
the!Study!of!Societies,!MPIfG!Discussion!Paper,!
forthcoming,!18.!
81!UN!Security!Council,!“Letter!dated!14!April!2014!
72!Partnership!Africa!Canada,!“Diamonds!Without!
Borders:!An!Assessment!Of!The!Challenges!Of!
Implementing!And!Enforcing!The!Kimberley!
Process!Certification!Scheme,”!November!1T4,!
2016,!Pg.!21.!!
from!the!ViceTChair!of!the!Security!Council!
Committee!established!pursuant!to!resolution!
1572!(2004)!concerning!Côte!d’Ivoire!addressed!
to!the!President!of!the!Security!Council,”!14!April!
2014,!S/2014/266.!Pg.!38.!
73EI!SourceBook,!“Amended!2011!Mining!Code,”!
82!US!Agency!for!International!Development,!
Republic!of!Guinea,!2011;!
eisourcebook.org/cms/June%202013/Guinea%2
0Mining%20Code%20(in%20French%20&%20E
nglish)%20as%20amended%202011.pdf!
[Accessed!March!28,!2016]!
“Pradd!II!Snapshot:!Registration!Of!Diamonds!In!
Forecariah,”!July!31,!2015.!
83!Ibid!
84US!Geological!Survey,!“Reconnaissance!
Investigation!of!the!Rough!Diamond!Resource!
Potential!and!Production!Capacity!of!Côte!
d’Ivoire,”!2013,!Pg.!15;!
pubs.usgs.gov/sir/2013/5185/pdf/sir2013T
5185.pdf![Accessed!March!26,!2016]!
74!US!Geological!Survey,!“Alluvial!Diamond!
Resource!Potential!and!Production!Capacity!
Assessment!of!Guinea,”!Scientific!Investigations!
Report!2012–5256,!Version!1.1,!April!2014,!Pg.!7;!
and!US!Agency!for!International!Development,!
“Diagnostic!Study!of!Property!Rights!and!Artisanal!
Diamond!Mining!in!The!Prefecture!of!Forécariah,!
Guinea,”!Property!Rights!And!Artisanal!Diamond!
Development!(PRADD)!Pilot!Program,!March!
2014,!Pg.!14.!!
85!US!Geological!Survey,!“Geological!Information:!
Cote!D’!Ivoire,”!1995;!mrdata.usgs.gov/majorT
deposits/showTofr20051294.php?rec_id=2247!
[Accessed!April!1,!2016]!
86!Dejong,!Terah,!“Diamond!Mining!in!Cote!D'!
Ivoire:!Programming!Options!for!the!Artisanal!
Sector,”!September!2013,!Pg.!8;!
75!UN!Security!Council,!“Letter!dated!14!April!2014!
from!the!ViceTChair!of!the!Security!Council!
Committee!established!pursuant!to!resolution!
!
!
!
85!
!
!
!
ddiglobal.org/login/resources/diamondTminingT
inTcoteTdTivoire.pdf![Accessed!March!21,!2016]!
98!Ibid!
99!Ibid,!Pg.!33!
87!Connection!Ivorienne,!“Côte!d’Ivoire!Wattao!et!
100!Belgian!Foreign!Affairs,!Foreign!Trade!and!
le!Malien!Sékou!Niangadou!accusés!de!violer!
l’embargo!sur!le!diamant,”!April!24,!2014;!
connectionivoirienne.net/98683/coteTdivoireT
wattaoTsekouTniangadouTaccusesTviolerT
lembargoTdiamantTonu![Accessed!March!27,!
2016]!
Development!Cooperation,!“Grâce!à!la!Belgique,!la!
Côte!d’Ivoire!peut!à!nouveau!relancer!son!
commerce!de!diamants,”!December!16,!2014;!
diplomatie.belgium.be/en/!
Newsroom/news/press_releases/foreign_affairs/
2014/12/ni_161214_ivoorkust_diamanten.jsp!
[Accessed!March!20,!2016]!
88!UN!Security!Council,!“Letter!dated!13!April!2015!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!13!April!
2015,!S/2015/252,!Pg.!30.!
101WikiLeaks,!“Belgium:!Federal!Police!Diamond!
Officers!Say!Dubai!Cooperation!Key!For!Kimberley!
Process,”!April!17,!2009;!
wikileaks.org/plusd/cables/09BRUSSELS578_a.ht
ml![Accessed!April!21,!2016]!
89!Ibid!
102!The!Economist,!“India's!Diamond!Industry!
90!Ibid,!Pg.!10!
Faces!Hard!Times,”!November!11,!2016;!
economist.com/news/!
91!Wafwana,!Emery!Mukendi,!Jonathan!van!
Kempen!and!Linda!Gieskes,!“Overview!and!
preliminary!analysis!of!the!New!Mining!Code!of!
Côte!d’Ivoire,”!August!21,!2014,!Pg.!6;!
lexology.com/library/detail.aspx?g=d525a005T
6b1dT49e8T968aT15e703b7e052![Accessed!March!
1,!2016]!
asia/21678202TworldsTmostTremarkableTcottageT
industryTunderTpressureTindiasTdiamondT
industryTfacesThardTtimes![Accessed!March!21,!
2016]!
103!Thomas,!Melvyn!Reggie,!“Diamantaires!Eyeing!
Ivory!Coast!for!Rough!Imports,”!The!Times!of!
India,!May!2,!104;!
timesofindia.indiatimes.com/city/surat/Diamanta
iresTeyeingTIvoryTCoastTforTroughT
imports/articleshow/34546667.cms![Accessed!
March!24,!2016]!
92!Ibid,!Pg.!9!
93Dejong,!Terah,!“Diamond!Mining!in!Cote!D'!
Ivoire:!Programming!Options!for!the!Artisanal!
Sector,”!Pg.!10!
94UN!Security!Council,!“Letter!dated!13!April!2015!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!13!April!
2015,!S/2015/252,!Pg.!32.!
104!Embassy!of!India,!“India!–!Cote!d’Ivoire!
95!Connection!Ivorienne,!“Les!ex!rebelles!proT
Investigation!of!the!Rough!Diamond!Resource!
Potential!and!Production!Capacity!of!Côte!
d’Ivoire,”!2013,!Pg.!15;!
pubs.usgs.gov/sir/2013/5185/pdf/sir2013T
5185.pdf![Accessed!March!26,!2016]!
Economic!Relations,”!2015;!
eoiabidjan.org/page/display/143[Accessed!March!
24,!2016]!
105!US!Geological!Survey,!“Reconnaissance!
Ouattara!encore!accusés!de!violer!l’embargo!sur!le!
diamant,”!April!24,!2014;!
connectionivoirienne.net/98683/coteTdivoireT
wattaoTsekouTniangadouTaccusesTviolerT
lembargoTdiamantTonu![Accessed!April!1,!2016]!
106!USAID,!“Program!Brief:!PRADD!II,”!January!1,!
96!Security!Council,!“Letter!dated!13!April!2015!
2016;!usaidlandtenure.net/projects/praddT
2/praddT2TprogramTbrief![Accessed!April!2,!2016]!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!13!April!
2015,!S/2015/252,!Pg.!32.!
107!Security!Council,!“Letter!dated!13!April!2015!
from!the!Chair!of!the!Security!Council!Committee!
established!pursuant!to!resolution!1572!(2004)!
concerning!Côte!d’Ivoire!addressed!to!the!
President!of!the!Security!Council,”!13!April!
2015,!S/2015/252,!Pg.!33!
97!Ibid,!Pg.!25T30!
!
!
!
86!
!
!
!
108United!Nations!Environment!Programme.!
20Congo%20Conflict%20Gold%20Rush%20redu
ced.pdf![Accessed!April!1,!2016]!
“Reducing!Mercury!in!Artisanal!and!SmallTScale!
Gold!Mining!(ASGM),”!Global!Mercury!Partnership,!
September!2015;!
unep.org/chemicalsandwaste/Metals/!
116!IPIS,!“Analysis!of!the!interactive!map!of!
artisanal!mining!areas!in!Eastern!DR!Congo:!May!
2014!update,”!May!2014;!ipisresearch.be/wpT
content/uploads/2014/04/20141031T
Promines_analysis.pdf![Accessed!March!21,!2016]!
GlobalMercuryPartnership/ArtisanalandSmallT
ScaleGoldMining/tabid/3526/Default.asp!
[Accessed!April!1,!2016]!
117!Ruben!de!Koning!and!the!Enough!Team,!
109Boyd,!Stephanie.!"Who’s!to!Blame!for!Peru’s!
GoldTMining!Troubles?!T!The!New!Yorker."!The!
New!Yorker.!The!New!Yorker,!28!Oct.!2013;!
newyorker.com/business/currency/whosTtoT
blameTforTperusTgoldTminingTtroubles![Accessed!
April!1,!2016]!
“Striking!Gold:!How!M23!and!its!allies!are!
infiltrating!Congo’s!gold!trade,”!Enough!Project,!
October!2013;!
enoughproject.org/files/StrikingGoldTM23T
andAlliesTInfiltratingTCongoTGoldTTrade.pdf!
[Accessed!March!21,!2016]!
110!Ibid.!
118!Partnership!Africa!Canada,!“All!that!Glitters!is!
Not!Gold”!
111!Bariyo,!Nicholas,!Francesca!Freeman,!and!Liam!
Pleven.!"Inside!Congo's!Link!in!the!Gold!Chain."!
The!Wall!Street!Journal.!Dow!Jones!&!Company,!
Inc.,!April!14,!2013.!!
119!Badilemba,!F.!&!Lezhnev,!S.!Enough!Project,!
112Schwartz,!Ariel.!"Walmart,!Target!Don't!Have!
Not!Gold”!
“Congo’s!Conflict!Gold!Rush”!!!
119!Partnership!Africa!Canada,!“All!that!Glitters!is!
To!Reveal!Conflict!Mineral!Connections."!Co.Exist,!
August!2012;!fastcoexist.com/1680446/walmartT
targetTdontThaveTtoTrevealTconflictTmineralT
connections![March!1,!2016]!
120!Ruben!de!Koning!and!the!Enough!Team,!
“Striking!Gold:!How!M23!and!its!allies!are!
infiltrating!Congo’s!gold!trade,”Enough!Project,!
October!2013;!
enoughproject.org/files/StrikingGoldTM23T
andAlliesTInfiltratingTCongoTGoldTTrade.pdf!
[Accessed!March!20,!2016]!
113This!consolidated!figure!is!based!on!estimates!
from!the!U.N.!Group!of!Experts,!the!International!
Peace!
Information!Service!(IPIS),!and!Enough!Project!
calculations.!The!U.N.!Security!Council!Group!of!
Experts!report!from!2014!estimated!that!9.78!
metric!tons!of!gold,!valued!at!between!$383!and!
$409!million,!was!smuggled!from!Congo!in!2013.!!
Found!in!Badilemba,!F.!&Lezhnev,!S.!Enough!
Project,!“Congo’s!Conflict!Gold!Rush:!Bringing!gold!
into!the!legal!trade!in!the!Democratic!Republic!of!
the!Congo,”!April!2015;!
enoughproject.org/files/April%2029%202015%2
0Congo%20Conflict%20Gold%20Rush%20reduce
d.pdf![Accessed!April!1,!2016]!
121Enough!Team.!“From!Child!Miner!to!Jewelry!
Store:!The!Six!Steps!of!Congo's!Conflict!Gold,”!Rep.!
Enough!Project.!Enough!Project,!March!27,!2016.!!
122!Partnership!Africa!Canada,!“All!that!Glitters!is!
Not!Gold”!!
123!Ruben!de!Koning!and!the!Enough!Team,!
“Striking!Gold:!How!M23!and!its!allies!are!
infiltrating!Congo’s!gold!trade,”!Enough!Project,!
October!2013;!
enoughproject.org/files/StrikingGoldTM23T
andAlliesTInfiltratingTCongoTGoldTTrade.pdf!
[Accessed!April!1,!2016]!
114!Partnership!Africa!Canada,!“All!that!Glitters!is!
124!Southern!African!Resource!Watch!(SARW).!
Not!Gold:!Dubai,!Congo!and!the!Illicit!Trade!of!
Conflict!Minerals,”!May!2014;!
pacweb.org/images/PUBLICATIONS/All%20That
%20Glitters.pdf![Accessed!April!1,!2016]!
“Congo’s!Golden!Web:!the!people,!companies!and!
countries!that!profit!from!the!illegal!!trade!in!
Congolese!gold,”!SARW!and!OSISA,!May!2014;!
sarwatch.org/sites/!
115Badilemba,!F.!&Lezhnev,!S.!Enough!Project,!
sarwatch.org/files/Publications_docs/congogold3
web.pdf![Accessed!April!1,!2016]!
“Congo’s!Conflict!Gold!Rush:!Bringing!gold!into!the!
legal!trade!in!the!Democratic!Republic!of!the!
Congo,”!April!2015;!
enoughproject.org/files/April%2029%202015%!
!
!
!
87!
!
!
!
125!Badilemba,!F.!&!Lezhnev,!S.!Enough!Project,!
ns_docs/congogold3web.pdf![Accessed!March!21,!
2016]!
202015%20Congo%20Conflict%20Gold%20Rush
%20reduced.pdf!![Accessed!March!1,!2016]!
136Ruben!de!Koning!and!the!Enough!Team,!
“Congo’s!Conflict!Gold!Rush”!
“Striking!Gold:!How!23!and!its!allies!are!
infiltrating!Congo’s!gold!trade,”Enough!Project,!
October!2013;!
enoughproject.org/files/StrikingGoldTM23T
andAlliesTInfiltratingTCongoTGoldTTrade.pdf!
[Accessed!March!1,!2016]!
126!KEMET,!“Conflict!Minerals!Disclosure,”!Rep.!
Washington,!DC:!United!States!Securities!and!
Exchange!Commission,!2015.!Print.!
127!Buchanan,!Elsa.!"Battle!for!Control!of!the!DRC:!
Who!Are!the!Armed!Forces!of!the!DRC!(FADRC)?"!
International!Business!Times!RSS,!IBTimesCo.,!
Ltd.,!October!29,!2015;!
http://www.ibtimes.co.uk/battleTcontrolTdrcT
whoTareTarmedTforcesTdrcTfardcT1526295!
[Accessed!March!21,!2016]!
137!Bariyo,!Nicholas,!Francesca!Freeman,!and!Liam!
Pleven.!"Inside!Congo's!Link!in!the!Gold!Chain."!
The!Wall!Street!Journal.!Dow!Jones!&!Company,!
Inc.,!April!14,!2013;!
http://www.wsj.com/articles/!
SB1000142412788732382030457841027327066
3086![Accessed!March!1,!2016]!
128!International!Peace!Information!Service,!
“Mineral!Supply!Chains!and!Conflict!Links!in!
Eastern!Democratic!Republic!of!the!Congo,”!OECD,!
2015.!OECD!Guidelines!for!Multinational!
Enterprises.!OECD,!November!19,!2015.!!
138!Geenen,!Sara,!“African!Artisinal!Mining!from!
the!Inside!Out:!Access,!norms!and!power!in!
Congo’s!gold!sector.”!New!York:!Routledge,!2006.!
129!Buchanan,!Elsa.!"Battle!for!Control!of!the!DRC”!
139!Ruben!de!Koning!and!the!Enough!Team,!
“Striking!Gold:!How!M23!and!its!allies!are!
infiltrating!Congo’s!gold!trade,”Enough!Project,!
October!2013;!
enoughproject.org/files/StrikingGoldTM23T
andAlliesTInfiltratingTCongoTGoldTTrade.pdf!
[Accessed!April!1,!2016]!
130Ruben!de!Koning!and!the!Enough!Team,!
“Striking!Gold:!How!M23!and!its!allies!are!
infiltrating!Congo’s!gold!trade,”Enough!Project,!
October!2013;!
enoughproject.org/files/StrikingGoldTM23T
andAlliesTInfiltratingTCongoTGoldTTrade.pdf!
[Accessed!April!1,!2016]!
140!Partnership!Africa!Canada,!“All!that!Glitters!is!
Not!Gold”!
131International!Peace!Information!Service,!
“Analysis!of!the!interactive!map!of!artisanal!
mining!areas!in!Eastern!DR!Congo:!May!2014!
update,”!May!2014;!ipisresearch.be/wpT
content/uploads/2014/04/20141031T
Promines_analysis.pdf![Accessed!March!20,!2016]!
141Ruben!de!Koning,!“Striking!Gold”!
132!!Partnership!Africa!Canada,!“All!that!Glitters!is!
144!“City!of!Gold:!Why!Dubai’s!first!conflict!gold!
142!Partnership!Africa!Canada,!“All!that!Glitters!is!
Not!Gold”!
143!!!Ibid.!
audit!never!saw!the!light!of!day,”!Global!Witness,!
February!2014;!
globalwitness.org/sites/default/files/library/dub
ai_gold_layout_lr.pdf![Accessed!April!1,!2016]!
Not!Gold”!
!133Badilemba,!F.!&Lezhnev,!S.!Enough!Project,!
“Congo’s!Conflict!Gold!Rush”!
134!Enough!Team,!“From!Child!Miner!to!Jewelry!
145!KEMET,!“Conflict!Minerals!Disclosure,”!Rep.!
Store:!The!Six!Steps!of!Congo's!Conflict!Gold,”!Rep.!
Enough!Project.!Enough&Project,!October!25,!2012;!
http://www.enoughproject.org/reports/childT
minerTjewelryTstoreTsixTstepsTcongosTconflictT
gold![Accessed!March!1,!2016]!
Washington,!DC:!United!States!Securities!and!
Exchange!Commission,!2015.!
146Bariyo,!Nicholas,!Francesca!Freeman,!and!Liam!
Pleven.!"Inside!Congo's!Link!in!the!Gold!Chain."!!
135Southern!African!Resource!Watch!(SARW).!
147!Enough!Team,!“From!Child!Miner!to!Jewelry!
“Congo’s!Golden!Web:!the!people,!companies!and!
countries!that!profit!from!the!illegal!!trade!in!
Congolese!gold,”!SARW!and!OSISA,!May!2014;!
sarwatch.org/sites/sarwatch.org/files/Publicatio
148!Partnership!Africa!Canada,!“All!that!Glitters!is!
Store:!The!Six!Steps!of!Congo's!Conflict!Gold”!!
Not!Gold”!
!
!
!
88!
!
!
!
149!International!Peace!Information!Service,!
160!TradeKey,!“NAESK!PRD,”!2016;!
“Analysis!of!the!interactive!map!of!artisanal!
mining!areas!in!Eastern!DR!Congo:!May!2014!
update,”!May!2014;!ipisresearch.be/wpT
content/uploads/2014/04/20141031T
Promines_analysis.pdf![Accessed!April!1,!2016]!
tradekey.com/company/NAESKTPLCT
6305459.html![Accessed!March!21,!2016]!
161!TradeKey,!“Ro!Ma!Commodities,”!2016;!
tradekey.com/company/ROTMATCOMMODITIEST
5121820.html![Accessed!March!21,!2016]!
150!World!Gold!Council,!“Interactive!gold!mining!
162!Go!for!World!Business,!“Villegas!y!Sia,”!2016;!
map,”!June!18,!2015;!gold.org/goldT
mining/interactiveTgoldTminingTmap![Accessed!
April!1,!2016]!
colombia.go4worldbusiness.com/search/member
details.asp?objid=97037&objtype=ID![Accessed!
March!21,!2016]!
151!Christina!Echavarra.!“’What!is!legal?’!
163!TradeKey,!“DIMCO,”!2016;!
Formalising!artisanal!and!smallTscale!mining!in!
Colombia.”!International!Institute!for!
Environment!and!Development,!September!2014;!
responsiblemines.org/files/!
tradekey.com/company/dimcoT873473.html!
[Accessed!March!21,!2016]!
164!TradeKey,!“Torres!and!Torres!Ltd.,”!2016;!
tradekey.com/company/TorresTampTTorresT
LTDAT3566127.html![Accessed!March!21,!2016]!
What_Is_legal_T_Cristina_Echavarria.pdf![Accessed!
April!1,!2016]!
165!Andrew!Willis.!“Gold!Trading!Firm!Probed!in!
152!James!Bargent!and!Michael!Norby.!“Blood!gold:!
Colombia!Cocaine!Laundering!Case.”!Bloomberg,!
May!26,!2016;!
bloomberg.com/news/articles/2014T05T23/goldT
tradersTinvestigatedTinTcolombianTcocaineT
laundering![Access!March!1,!2016]!
from!conflict!zones!in!Colombia!to!jewelry!stores!
in!the!US.”!Al!Jazeera,!November!18,!2015;!
america.aljazeera.com/articles/2015/11/18/bloo
dTgoldTcolombia.html![Accessed!March!21,!2016]!
153!Christina!Echavarra.!“’What!is!Legal?”!!
166!Fabiola!Torres!Lopez.!“Ecaudor’s!dirty!gold!is!
154!Cecilia!Jamasmie.!“About!80%!of!Colombia’s!
transported!to!the!US!on!commercial!flights.”!
Ecuador&Review,&September!1,!2015;!
ecuadorreview.com/inTdepthT
ecuador/investigations/ecuadorsTdirtyTgoldTisT
transportedTtoTtheTusTonTcommercialTflights/!
[March!21,!2016]!
gold!output!comes!from!illegal!miners!–!gov’t.”!
Mining.com,!August!27,!2015;!mining.com/aboutT
80TofTcolombiasTgoldToutputTcomesTfromTillegalT
minersTgovt/![Accessed!March!20,!2016]!
155!Ibid.!
167!The!Observatory!of!Economic!Complexity,!
156!Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
“Colombia,”!2016;!
atlas.media.mit.edu/it/profile/country/col/!
[Accessed!March!1,!2016]!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015;!insightcrime.org/newsTanalysis/tracingT
colombiaTboliviaTecuadorTillegalTgoldTtoTus!
[Accessed!March!21,!2016]!
168!Elyssia!Pachio.!“Crime!Ring!Laundered!$1!
Billion!in!Colombia!Gold!Exports.”!Insight!Crime,!
January!19,!2015;!insightcrime.org/newsT
briefs/crimeTringTlaunderedTaTbillionTinT
colombiaTgoldTexports![Accessed!March!1,!2016]!
157!Christina!Echavarra.!“’What!is!legal”!!
158!Michael!Lohmuller.!“Arrests!Point!to!Urabenos’!
Evolving!Role!in!Colombia’s!Illegal!Mining.”!
Insight!Crime,!December!7,!2015;!
insightcrime.org/newsTbriefs/arrestsTpointTtoT
urabenosTevolvingTroleTcolombiaTillegalTmining!
[Accessed!March!1,!2016]!
169!James!Bargent!and!Michael!Norby.!“Blood!gold:!
from!conflict!zones!in!Colombia!to!jewelry!stores!
in!the!US.”!Al!Jazeera,!November!18,!2015;!
america.aljazeera.com/articles/2015/11/18/bloo
dTgoldTcolombia.html![Accessed!March!1,!2016]!
159!TradeKey,!“PraxIt!Ltd.,”!2016;!
170!Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
tradekey.com/company/PraxITTLtdT
5094170.html![Accessed!March!21,!2016]!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015;!insightcrime.org/newsTanalysis/tracingT
!
!
!
89!
!
!
!
colombiaTboliviaTecuadorTillegalTgoldTtoTus!
[Accessed!March!21,!2016]!
tradersTinvestigatedTinTcolombianTcocaineT
laundering!
171!Ibid.!
185Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015.!insightcrime.org/newsTanalysis/tracingT
colombiaTboliviaTecuadorTillegalTgoldTtoTus.!
172!Groups!include:!FARC,!led!by!El!Paisa;!ELN;!Los!
Urabenos!gang,!Rastrojos!drug!trafficking!and!
paramilitary!organization!
173!“Placing!Bets!on!Colombia.”!Mining.com,!May!
186!James!Bargent!and!Michael!Norby.!“Blood!gold:!
20,!2013;!mining.com/web/placingTbetsTonT
colombia/![Accessed!April!21,!2016]!
from!conflict!zones!in!Colombia!to!jewelry!stores!
in!the!US.”Al!Jazeera,!November!18,!2015.!
america.aljazeera.com/articles/2015/11/18/bloo
dTgoldTcolombia.html.!
174Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015.!insightcrime.org/newsTanalysis/tracingT
colombiaTboliviaTecuadorTillegalTgoldTtoTus.!
187!Matthew!Bristow!and!Andrew!Willis.!“Gold!CEO!
Hunteed!in!$930!Million!Colombia!Laundering!
Case.”!Bloomber,!January!16,!2015.!
bloomberg.com/news/articles/2015T01T
16/colombianTgoldTtradersTarrestedTinT970mT
launderingTcase!
175!Ibid.!
176!Grupo!Tierra!Verde,!“Platinum!Mines!For!Lease!
&!Gold!Mining!Leases!in!Choca!Colombia,”!2014;!
grupotierraverde.com/platinumTminesTforT
lease.html![Accessed!April!1,!2016]!
188Ibid.!
189!Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
177!Echavarra!,!Christina,!“’What!is!legal?”!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015.!insightcrime.org/newsTanalysis/tracingT
colombiaTboliviaTecuadorTillegalTgoldTtoTus.!
178!Ibid.!
179!Caracol!Radio,!“Continuan!enfrentamientos!
entre!grupos!armados!en!Antioquia,”!January,!17!
2016;!
caracol.com.co/radio/2016/01/17/nacional/145
2992304_553026.html![Accessed!March!12,!2016]!
190!Fabiola!Torres!Lopez.!“Ecaudor’s!dirty!gold!is!
transported!to!the!US!on!commercial!flights.”!
EcuadorReview,&September!1,!2015.!
ecuadorreview.com/inTdepthT
ecuador/investigations/ecuadorsTdirtyTgoldTisT
transportedTtoTtheTusTonTcommercialTflights/!
180!Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015;!insightcrime.org/newsTanalysis/tracingT
colombiaTboliviaTecuadorTillegalTgoldTtoTus!
[Accessed!March!2,!2016]!
191!Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
Fabiola!Torres!Lopez.!“Tracing!Latin!America’s!
Illegal!Gold!to!the!US.”!Insight!Crime,!August!5,!
2015.!insightcrime.org/newsTanalysis/tracingT
colombiaTboliviaTecuadorTillegalTgoldTtoTus.!
181!Kari!Lydersen!and!Adriana!CardonaTMaguigad.!
“Survival,!Profit,!and!War:!The!Many!Faces!of!Gold!
Mining!in!Colombia!(Pt.1).”!National!American!
Congress!on!Latin!America,!November,!9!2015;!
nacla.org/news/2015/11/09/survivalTprofitTandT
warTmanyTfacesTgoldTminingTcolombia![Accessed!
March!25,!2016]!
192Ibid.!
193!Oscar!Castilla!C.,!Nelly!Luna!Amancio!and!
Fabiola!Torres!Lopez.!“Dirty!Gold:!Chasing!the!
trace!of!the!London!Bullion!Market.”!Ojo!Publico.!
June!9,!2015.!ojoTpublico.com/dirtyTgoldTchasingT
theTtraceTofTtheTlondonTbullionTmarket/!
182!Ibid.!
194!Christina!Echavarra.!“’What!is!legal?”!
183!Christina!Echavarra.!“’What!is!legal?”!!
195!Ibid.!
184!Andrew!Willis.!“Gold!Trading!Firm!Probed!in!
Colombia!Cocaine!Laundering!Case.”!Bloomberg,!
May!26,!2014.!
bloomberg.com/news/articles/2014T05T23/goldT
196!Ibid.!!
197!International!Institute!on!Environment!and!
Development,!“Participation!as!policy:!time!to!
formalize!artisanal!and!smallTscale!mining!in!
!
!
!
90!
!
!
!
Colombia,”!February,!2015;!
pubs.iied.org/pdfs/17280IIED.pdf?![Accessed!
April!1,!2016]!
atlas.media.mit.edu/en/profile/country/gha/!
[Accessed!April!1,!2016]!
209!Ibid.!
198!Ibid.!
210!Human!Rights!Watch,!“Precious!Metal,!Cheap!
199!Alliance!for!Responsible!Mining,!“ARM!
Labor”!
Globally,”!2015;!
responsiblemines.org/ProyectoARM/!
211!“Going!for!Gold!–!Short!Documentary!about!
mapa?lang=en![Accessed!March!26,!2016]!
Ghana’s!illegal!mining.”!September!28,!2014.!
youtube.com/watch?v=GxonRUAGc0I!!
200!World!Gold!Council,!“Interactive!gold!mining!
212!Ibid.!
map,”!June!18,!2015;!gold.org/goldT
mining/interactiveTgoldTminingTmap![Accessed!
March!1,!2016]!
213!“The!price!of!gold:!Chinese!mining!in!Ghana!
documentary!–!The!Guardian!Investigates.”!
YouTube,!April!24,!2013.!
youtube.com/watch?v=ohrrE1rjzLo.!
201!Freedom!House,!“Freedom!in!the!World:!
Ghana,”!2015;!
freedomhouse.org/report/freedomT
world/2015/Ghana![Accessed!April!1,!2016]!
214!Human!Rights!Watch,!“Precious!Metal,!Cheap!
Labor”!
215!Ibid.!
202!Human!Rights!Watch,!“Precious!Metal,!Cheap!
216!Ibid.!
Labor:!Child!Labor!and!Corporate!Responsibility!
in!Ghana’s!Artisanal!Gold!Mines,”!2015;!
hrw.org/sites/default/files/report_pdf/ghana051
5_forinsertlr2_0.pdf![Accessed!March!25,!2016]!
217!YouTube,!“The!price!of!gold:!Chinese!mining!in!
Ghana!documentary!–!The!Guardian!Investigates,”!
The!Guardian,!April!24,!2013;!
youtube.com/watch?v=ohrrE1rjzLo!
203!Buxton,!Abbi,!“Ghana:!a!local!dialogues!on!
artisanal!and!smallTscale!mining!(ASM).”!Institute!
for!Environment!and!Development,!2015;!
iied.org/ghanaTlocalTdialogueTartisanalTsmallT
scaleTminingTasm![Accessed!March!1,!2016]!
218!Ibid.!
219!Human!Rights!Watch,!“Precious!Metal,!Cheap!
Labor”!
220!Ibid.!
204!Al!Jazeera,!“Ghana!environment!pays!cost!of!
illegal!mining,”!June,!24!2014;!
aljazeera.com/video/africa/!
221!Ibid.!
222!Ibid.!
2014/06/ghanaTenvironmentTpaysTcostTillegalT
miningT20146246421633733.html.![Accessed!
March!21,!2016]!
223!Ibid.!
224!Ibid.!
225!Ibid.!
205businessghana.com/portal/directory/index.ph
p?op=getSubDirectoryContents&category=Gold%
20Mining&cat_id=14&subcategory=Gold%20Mini
ng&id=136!
226!GhanaWeb,!“Gold!smuggling!spikes!as!GRA!
facebook.com/GhanaTGOLDTTradingTCenterT
177041745684336/.!!
seizes!$18m!worth!of!the!commodity,”!February!
22,!2016;!
ghanaweb.com/GhanaHomePage/business/GoldT
smugglingTspikesTasTGRATseizesT18mTworthTofT
theTcommodityT417690.![Accessed!April!1,!2016]!
207!“Gold!smuggling!spikes!as!GRA!seizes!$18m!
227!The!Observatory!of!Economic!Complexity,!
206!“Ghana!Gold!Trading!Center.”!Facebook.!
“Ghana”!
worth!of!the!commodity.”!!GhanaWeb,!February!
22,!2016.!
ghanaweb.com/GhanaHomePage/business/GoldT
smugglingTspikesTasTGRATseizesT18mTworthTofT
theTcommodityT417690.!
228!Human!Rights!Watch,!“Precious!Metal,!Cheap!
Labor”!
229!Ibid.!
208!The!Observatory!of!Economic!Complexity,!
230!Dick,!Warren!&!Naidoo,!Prinesha.!“UPDATE:!
!
!
World!top!10!gold!producers!–!countries!and!
“Ghana,”!2016;!
!
91!
!
!
!
miners.”!Mineweb.!February!3,!2015;!
http://www.mineweb.com/regions/europeTandT
middleTeast/updateTworldTtopT10TgoldT
producersTcountriesTminers/!(Accessed!April!21,!
2016)!
Living!in!Peru,!January!8,!2014;!
peruthisweek.com/newsTauthoritiesTconfiscateT
us18TmillionTofTillegalTgoldTinTperuT101923!
[Accessed!March!1,!2016]!
241!JKC!de!Courcy,!"REGION:!Arrival!of!the!MetalT
231PricewaterhouseCoopers,!“2013!Mining!
smuggling!Cartels?,"!Courcy’s!Intelligence,!January!
2014;!
courcyint.com/component/k2/item/59291T
arrivalTofTtheTmetalTsmugglingTcartels![Accessed!
March!21,!2016]!
Industry.!Doing!Business!in!Peru,”!S.3,!2013.!
232!Society!for!Threatened!Peoples!(STP),!“The!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru,!
”March,!2014;!
assets.gfbv.ch/downloads/stp_report_gold_march
2014.pdf![Accessed!February!1,!2016]!
242!Society!for!Threatened!Peoples!(STP),!“The!
233DuprazTDobias,!Paula.!"US!Companies!
243!Ibid.!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
Importing!Dirty!Gold!from!Illegal!Mining!
Operations!in!Peru."!Earth!Island!Journal.!7!Jan.!
2015;!
earthisland.org/journal/index.php/elist/eListRea
d/us_companies_importing!
244!Society!for!Threatened!Peoples!(STP),!“The!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
245!Society!for!Threatened!Peoples!(STP),!“The!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!!
_dirty_gold_from_illegal_mining_operations_in_per
u/![March!28,!2016]!
246Wells,!Miriam.!"Breaking!Down!the!Chain!of!
234!Society!for!Threatened!Peoples!(STP),!“The!
Illegal!Gold!in!Peru."!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
247Álvarez,!José!et!al.!(2011):!«Mineríaaurífera!en!
Madre!de!Dios!y!Contaminación!con!mercurio!–!
Una!
235!Elbein,!Saul.!"Grim!Prospects!for!Sustainable!
Miners!in!Peru."!Grim!Prospects!for!Sustainable!
Mining!in!Peru.!Aljazeera!America,!21!September!
2015;!
america.aljazeera.com/multimedia/2015/9/PeruT
mining.html![Accessed!March!1,!2016]!
bomba!de!tiempo»,!Lima,!Ministerio!del!Ambiente,!
in:!URL:!cdam.minam.gob.pe/novedades/!
mineriamadrededios.pdf!
,!11.2.2014,!p.15.!
236!Wells,!Miriam.!"Breaking!Down!the!Chain!of!
248Yong,!Ed!(2013):!«GoldTMining!in!Peru!is!much!
Illegal!Gold!in!Peru."!!Insight!Crime,!October!2013;!
insightcrime.org/newsTanalysis/breakingTdownT
theTchainTofTillegalTperuvianTgold![Accessed!
February!10,!2016]!
worse!than!anyone!thought»!in:!URL:!http:!//!
phenomena.nationalgeographic.com/2013/10/28
/goldTminingTinTperuTisTmuchTworseTthanT!!
237!Carlson,!Olivia,!et!al.!"Land!and!Livelihoods:!
anyoneTthought/,!11.2.2014.!
NGOs,!Conflict,!and!Extraction!in!Peru,"!2015;!
https://digital.lib.washington.edu/researchworks
/handle/1773/33277![Accessed!March!11,!2016]!
249Le!MatinDimanche!(2012):«La!Suisse!
raffinel’orillégal!de!Madre!de!Dios»!in:!URL:!
terredeshommessuisse.ch/sites/default/files/mat
in_dimanche_23sept2012.pdf,!20.2.2014.!
238!Verite,!"From!the!Field:!Behind!the!Scenes!of!
the!Gold!Report."!!September!2013;!
verite.org/vision/september2013/fromthefield!
[Accessed!February!27,!2016]!
250!Society!for!Threatened!Peoples!(STP),!“The!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”Mar.!
2014.!Web!15!Feb!2016.!
<assets.gfbv.ch/downloads/stp_report_gold_marc
h2014.pdf>!
239!Society!for!Threatened!Peoples!(STP),!“The!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
240!Chase,!Rachel.!"Authorities!Confiscate!US$18!
!
Million!of!Illegal!Gold!in!Peru."!Peru!This!Week.!
!
!
92!
!
!
!
251El!Comercio!(2014):!«Compañía!en!paraíso!
261!Society!for!Threatened!Peoples!(STP),!“The!
252!Society!for!Threatened!Peoples!(STP),!“The!
262!Hicken,!Melanie,!and!Blake!Ellis.!"These!U.S.!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!Mar.!
2014.!Web!15!Feb!2016.!
<assets.gfbv.ch/downloads/stp_report_gold_marc
h2014.pdf>!
Companies!Hide!Drug!Dealers,!Mobsters!and!
Terrorists."!CNN.!Cable!News!Network,!December!
9,!2015;!
money.cnn.com/2015/12/09/news/shellT
companiesTcrime/>![Accessed!February!14,!2016]!
253!El!Comercio!(2013):!«Fiscalía!investiga!por!
263!Society!for!Threatened!Peoples!(STP),!“The!
lavado!a!empresas!que!reciben!oro!extraído!por!
Goya!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
Casas»!in:!URL:!elcomercio.pe/peru/lima/fiscaliaT
investigaTlavadoTempresasTqueTrecibenT!
264!Ibid.!
oroTextraidoTgoyaTcasas_1TnoticiaT1642345,!
5.3.2014.!
Companies!Hide!Drug!Dealers,!Mobsters!and!
Terrorists."!!
254!El!Comercio!(2012):!„Exportadoras!de!oro!a!
266!Society!for!Threatened!Peoples!(STP),!“The!
Suiza!financieron!a!clanes!de!minería!ilegal!en!
Madre!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
de!Dios»!in:!URL:!
inforegion.pe/portada/139648/exportadorasTdeT
oroTaTsuizaTfinanciaronaTclanesTdeTmineriaTilegalT
enTmadreTdeTdios/,5.3.2014.!
267DuprazTDobias,!Paula.!"US!Companies!
255DuprazTDobias,!Paula.!"On!the!Ground!in!the!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
fiscal!del!Caribe!es!investigada!por!nexos!con!
minería!ilegal»,!12.2.2014.!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!!
265!Hicken,!Melanie,!and!Blake!Ellis.!"These!U.S.!
Importing!Dirty!Gold!from!Illegal!Mining!
Operations!in!Peru."!!
268!Society!for!Threatened!Peoples!(STP),!“The!
Battle!Against!Prohibited!Mining."!Peruvian!
Times.!1!Oct.!2013.!Web.!08!Apr.!2016.!
<peruviantimes.com/21/onTtheTgroundTinTtheT
battleTagainstTillegalTmining/20434/>.!
269!Ibid.!
256Wells,!Miriam.!"Breaking!Down!the!Chain!of!
271Wells,!Miriam.!"Breaking!Down!the!Chain!of!
270!Ibid.!
Illegal!Gold!in!Peru."!!
Illegal!Gold!in!Peru."!!
257!JKC!de!Courcy,!"REGION:!Arrival!of!the!MetalT
272!US!Securities!and!Exchange!Commission,!
“DoddTFrank!Wall!Street!Reform!and!Consumer!
Protection!Act,!Section!1502,”!H.!R.!4173,!January!
5,!2010.!
smuggling!Cartels"!
258!Chase,!Rachel.!"Authorities!Confiscate!US$18!
Million!of!Illegal!Gold!in!Peru."!Peru!This!Week.!
Living!in!Peru,!8!Jan.!2014.!Web.!14!Apr.!2016.!
<peruthisweek.com/newsTauthoritiesTconfiscateT
us18TmillionTofTillegalTgoldTinTperuT101923>.!
273!Gettleman,!Jeffrey.!“The!Price!of!Precious:!The!
minerals!in!our!electronic!devices!have!bankrolled!
unspeakable!violence!in!the!Congo.”!National&
Geographic.!October!2015;!
ngm.nationalgeographic.com/2013/!
259!Society!for!Threatened!Peoples!(STP),!“The!
responsibility!of!the!gold!refineries!in!human!
rights!violation!and!illegal!activities!in!Peru.”!Mar.!
2014.!Web!15!Feb!2016.!
<assets.gfbv.ch/downloads/stp_report_gold_marc
h2014.pdf>!
10/conflictTminerals/gettlemanTtext![Accessed!
February!21,!2016]!
274Fagge,!Nick.!“Picks,!pans!and!bare!hands:!How!
miners!in!the!heart!of!Africa!toil!in!terrible!
conditions!to!extract!the!rare!minerals!that!power!
your!iPhone.”!Daily!Mail.!October!22,!2015;!
dailymail.co.uk/news/!
260!JKC!de!Courcy,!"REGION:!Arrival!of!the!MetalT
smuggling!Cartels?"!
!
!
!
93!
!
!
!
articleT3280872/iPhoneTmineralTminersTAfricaT
useTbareThandsTcoltan.html![Accessed!March!1,!
2016]!
sfhtantalum/participants/![Accessed!March!1,!
2016]!
284!KEMET!Corporation,!“Conflict!Minerals!
275!Steven!Spittaels!&!Filip!Hilgert.!“Analysis!of!the!
Disclosure!and!Report,”!May!29,!2015;!
kemet.com/Lists/!
interactive!map!of!artisanal!mining!areas!in!
Eastern!DR!Congo”!International!Peace!
Information!Service.!!Antwerp,!November!2013;!
srz.com/files/upload/!
FileStore/FY2015_Q4_ConflictTMineralsT
Report.pdf![Accessed!March!2,!2016]!
285!Hayes,!Karen!&!Burge,!Richard.!“Coltan!Mining!
Conflict_Minerals_Resource_Center/IPIS_Analysis_
of_the_Interactive_Map_of_Artisanal_Mining_Areas
_in_Eastern_DRC%20.pdf![Accessed!March!1,!
2016]!
in!the!Democratic!Republic!of!Congo:!
How!tantalumTusing!industries!can!commit!to!the!
reconstruction!of!the!DRC.”!Fauna!&!Flora!
International,!2003;!
tierra.rediris.es/coltan/coltanreport.pdf!
[Accessed!March!2,!2016]!
276!Ibid.!
277!Enough!Project,!“Congo:!Key!Minerals!
Smuggling!Ring!is!in!Good!Health!in!Goma.”!
October!23,!2012;!enoughproject.org/files/CNDPT
SmugglingTDispatch.pdf![Accessed!March!2,!2016]!
286!Enough!Project,!“Roots!of!the!Crisis!T!Congo“!
enoughproject.org/conflict_areas/eastern_congo/
rootsTcrisis;![Accessed!April!1,!2016]!!
278!United!Nations!Environment!Programme!
287!International!Alert!,!“The!Role!of!the!
“Experts’!background!report!on!illegal!
exploitation!and!trade!in!natural!resources!
benefitting!organized!criminal!groups!and!
recommendations!on!MONUSCO’s!role!in!fostering!
stability!and!peace!in!eastern!DR!Congo,”!April!15,!
2015;!postconflict.unep.ch/publications/!
Exploitation!of!Natural!Resources!in!Fuelling!n!
Prolonging!Crises!in!the!DRC,”!January!2010;!
internationalT
alert.org/sites/default/files/publications/!
Natural_Resources_Jan_10.pdf![Accessed!February!
21,!2016]!
UNEP_DRCongo_MONUSCO_OSESG_final_report.pd
f![Accessed!March!1,!2016]!
288!International!Peace!Information!Service!
“Analysis!of!the!interactive!map!of!artisanal!
mining!areas!in!Eastern!DR!Congo:!May!2014!
update,”!May,!2014;!ipisresearch.be/wpT
content/uploads/2014/04/20141031T
Promines_analysis.pdf![Accessed!March!1,!2016]!
279!Security!Council,!“Letter!dated!22!January!2014!
from!the!Coordinator!of!the!Group!of!Experts!on!
the!Democratic!Republic!of!the!Congo!addressed!
to!the!President!of!the!Security!Council,”!January!
23,!2014,!S/2014/42!2015!
289!Ibid,!Pg.!9!
280!Ibid.!
290!Ibid.!
281!ConflictTFree!Sourcing!Initiative,!“ConflictTFree!
291!Lezhnev,!Sasha!&!Prendergast,!John.!“From!
Tantalum!Smelters,”!2016;!
conflictfreesourcing.org/!
Mine!to!Mobile!Phone:!The!Conflict!Minerals!
Supply!Chain.”!Enough!Project.!November!9,!2009;!
enoughproject.org/publications/mineTmobileT
phone?page=show![Accessed!February!21,!2016]!
conflictTfreeTsmelterTprogram/smelterTrefinerT
lists/tantalumTtesting/![Accessed!March!1,!2016]!
282!Business!for!Social!Responsibility!“Conflict!
292!Ibid.!
Minerals!and!the!Democratic!Republic!of!Congo:!
Responsible!Action!in!Supply!Chains,!Government!
Engagement!and!Capacity!Building,”!May!2010;!
bsr.org/reports/!
293!Mezzofiore,!Gianluca.!“Anonymous!Accuses!
Traxys!of!'Blood!Trading'!in!Lead!Ore!and!Coltan!
with!DR!Congo.”!International!Business!Times.!
June!12,!2012;!ibtimes.co.uk/anonymousTtraxysT
drTcongoTcoltanTleadToreT351164![Accessed!
March!1,!2016]!
BSR_Conflict_Minerals_and_the_DRC.pdf![Accessed!
February!21,!2016]!
283!Solutions!for!Hope.!“List!of!Participating!
294!International!Alert,!“The!Role!of!the!
Companies,”!solutionsTnetwork.org/siteT
Exploitation!of!Natural!Resources!in!Fuelling!n!
!
!
!
94!
!
!
!
Prolonging!Crises!in!the!DRC.”!International!Alert;!
internationalT
alert.org/sites/default/files/publications/!
in!eastern!Congo,”!May!2013;!
globalwitness.org/en/campaigns/democraticT
republicTcongo/puttingTprinciplesTpractice/!
[Accessed!February!22,!2016]!
Natural_Resources_Jan_10.pdf![Accessed!April!1,!
2016]!
308!Apple!Inc.,!“Conflict!Minerals!Report,”!March!
30,!2016;!apple.com/supplierTresponsibility/!
295!Security!Council,!“Letter!dated!22!January!2014!
from!the!Coordinator!of!the!Group!of!Experts!on!
the!Democratic!Republic!of!the!Congo!addressed!
to!the!President!of!the!Security!Council,”!January!
23,!2014,!S/2014/42!2015!!
pdf/Conflict_Minerals_Report_2016.pdf![Accessed!
April!1,!2016]!
309!Browning,!Lynnley!“Companies!Struggle!to!
Comply!With!Rules!on!Conflict!Minerals.”!New!
York!Times.!September!7,!2015;!
nytimes.com/2015/09/08/business/dealbook/co
mpaniesTstruggleTtoTcomplyTwithTconflictT
mineralsTrule.html![Accessed!April!1,!206]!
296!Ibid,!Pg.!42!
297!Ibid,!Pg.!43.!
298!Global!Witness,!“Putting!principles!into!
practice!Risks!and!opportunities!for!conflictTfree!
sourcing!in!eastern!Congo,”!May!2013;!
globalwitness.org/en/campaigns/democraticT
republicTcongo/puttingTprinciplesTpractice/!
[Accessed!March!1,!2016]!
310!Enough!Project,!“The!Impact!of!DoddTFrank!
and!Conflict!Minerals!Reforms!on!Eastern!Congo’s!
Conflict,”!June!2014;!
enoughproject.org/files/Enough%20Project%20T
%20The%20Impact%20of%20DoddT
Frank%20and%20Conflict%20Minerals%20Refor
ms%20on%20Eastern%20Congo%E2%80%99s
%20Conflict%2010June2014.pdf![Accessed!March!
1,!2016]!
299!Ibid.!
300!The!Hague!Centre!for!Strategic!Studies!“Coltan,!
Congo!&!Conflict,”!June!5,!2013;!
hcss.nl/reports/coltanTcongoTandTconflict/125/!
[Accessed!April!1,!2016]!
311!Organization!for!Economic!Cooperation!and!
Development,!“The!Mineral!Certification!Scheme!
of!the!International!Conference!on!the!Great!Lakes!
Region!(ICGLR),”!2014;!
oecd.org/investment/mne/49111368.pdf!
[Accessed!April!1,!2016]!
301!Ibid.!
302Ibid.!
303!ConflictTFree!Sourcing!Initiative,!“About!the!
ConflictTFree!Sourcing!Initiative,”!2014;!
conflictfreesourcing.org/about/![Accessed!April!1,!
2016]!
312!RESOLVE,!“Summary!of!InTRegion!Initiatives!
that!Support!ConflictTFree!Minerals!Sourcing,”!
September!21,!2012;!resolv.org/siteT
ppa/files/2012/06/SummaryTofTInTregionT
InitiativesT09.21.12.pdf![Accessed!March!1,!2016]!
304!Organization!for!Economic!Cooperation!and!
Development,!“Solutions!for!Hope,”!May!2012;!
oecd.org/investment/investmentfordevelopment
/50473472.pdf![Accessed!April!1,!2016!
313!Clynes,!Tom.!“Is!There!Even!Such!a!Thing!as!
ConflictTFree!Minerals?”!September!7,!2015;!
takepart.com/feature/2015/09/04/conflictTfreeT
minerals![Accessed!February!11,!2016]!
305!Solutions!for!Hope!Project,!“‘Solutions!for!
Hope’!Tantalum!Project!Offers!Solutions!and!
Brings!Hope!to!the!People!of!the!DRC,”!solutionsT
network.org/siteTsfhtantalum/![Accessed!March!
1,!2016]!
314!Carl!Meachem,!Douglas!Farah,!Robert!Lamb.!
“Colombia:!Peace!and!Stability!in!the!Post!Conflict!
”!Center!for!Strategic!and!International!Studies,!
March!2014;!
csis.org/files/publication/140304_Meacham_Colo
mbia_Web.pdf![Accessed!March!22,!2016]!
306!Enough!Project,!“Motorola!Solutions!and!AVX!
Expand!Solutions!for!Hope!in!Democratic!Republic!
of!the!Congo.”!March!13,!2014;!
enoughproject.org/news/motorolaTsolutionsTandT
avxTexpandTsolutionsThopeTdemocraticTrepublicT
congo![Accessed!March!1,!2016]!
315!Emilia!DíazTStruck!and!Joseph!Poliszuk.!
307Global!Witness,!“Putting!principles!into!practice!
“Venezuela!emerges!as!new!source!of!‘conflict’!
minerals.”!The!International!Consortium!of!
Investigative!Journalists,!March!4,!2012;!
!
!
Risks!and!opportunities!for!conflictTfree!sourcing!
!
95!
!
!
!
icij.org/projects/coltan/venezuelaTemergesTnewT
sourceTconflictTminerals![Accessed!April!1,!2016]!
326!StruckTDiaz,!Emilia!&!Poliszuk,!Joseph.!
“Venezuela!emerges!as!new!source!of!‘conflict’!
minerals”!!
316!O’Gorman,!Joey.!“Record!amount!of!coltan!
seized!from!guerrilla!smugglers.”!Colombia!
Reports.!September!13,!2012;!
colombiareports.com/recordTamountTofTcoltanT
seizedTfromTguerrillaTsmugglers/![Accessed!
March!12,!2016]!
327!Human!Rights!Watch,!“Precious!Metal,!Cheap!
Labor”!
328!International!Comparative!Legal!Guides,!
“Colombia!Mining!Law,”!2016;!iclg.co.uk/practiceT
areas/miningTlaw/miningTlawT2016/Colombia!
[Accessed!March!1,!2016]!
317!Crone,!Jack.!“Colombia!sends!600!special!forces!
troops!in!massive!Black!Hawk!helicopter!assault!
on!illegal!Amazon!rainforest!mines.”!Daily!Mail,!
May!11,!2015;!dailymail.co.uk/news/articleT
3077281/ColombiaTsendsT600TspecialTforcesT
troopsTmassiveTBlackTHawkThelicopterTassaultT
illegalTAmazonTrainforestTmines.html![Accessed!
April!1,!2016]!
329!Tobella,!Alba,!“'Beaches'!from!illegal!mining!
scar!Colombia's!Amazon,”!Phys!Org,!Dcember!18,!
2015;!phys.org/news/2015T12TbeachesTillegalT
scarTcolombiaTamazon.html![Accessed!March!1,!
2016]!
330!Gomez,!Ignacio.!“Colombia’s!blackTmarket!
coltan!tied!to!drug!traffickers,!paramilitaries”!
318!Fox,!Edward,!“FARC!Set!to!Exploit!Venezuela!
'Conflict!Mineral,'”!InSight!Crime,!March!12,!2012;!
insightcrime.org/newsTanalysis/farcTsetTtoT
exploitTvenezuelaTconflictTmineral![Accessed!
March!11,!2016]!
331!Semana,!“La!guerrapor!el!coltan”!November!21,!
319!StruckTDiaz,!Emilia!&!Poliszuk,!Joseph,!
Venezuelan!Military!to!Poach!Coltan!Mines,”!
PanAm!Post,!April!17,!2015;!
panampost.com/thabataT
molina/2015/04/17/intelTleakTfarcToutgunT
venezuelanTmilitaryTtoTpoachTcoltanTmines/!
[Accessed!March!21,!2016]!
2009;!semana.com/nacion/articulo/laTguerraT
coltan/110119T3![Accessed!March!1,!2016]!
332!Molina,!Thabata,!“Intel!Leak:!FARC!Outgun!
“Venezuela!emerges!as!new!source!of!‘conflict’!
minerals”!!
320!InSight!Crime,!“Sinaloa!Cartel!Expands!
Influence!in!Colombia,”!March!2,!2012;!
insightcrime.org/newsTanalysis/sinaloaTcartelT
expandsTinfluenceTinTcolombia![Accessed!April!2,!
2016]!
333!Fox,!Edward,!“FARC!Set!to!Exploit!Venezuela!
'Conflict!Mineral,'”!InSight!Crime,!March!12,!2012;!
insightcrime.org/newsTanalysis/farcTsetTtoT
exploitTvenezuelaTconflictTmineral![Accessed!April!
1,!2016]!
321!Molina,!Thabata.!“Intel!Leak:!FARC!Outgun!
Venezuelan!Military!to!Poach!Coltan!Mines.”!
PamAm!Post.!April!17,!2015;!
panampost.com/thabataT
molina/2015/04/17/intelTleakTfarcToutgunT
venezuelanTmilitaryTtoTpoachTcoltanTmines/!
[Accessed!April!1,!2016]!
334!Gomez,!Ignacio,!“Colombia’s!blackTmarket!
coltan!tied!to!drug!traffickers,!paramilitaries”!
335!Emilia!DíazTStruck!and!Joseph!Poliszuk.!
“Venezuela!emerges!as!new!source!of!‘conflict’!
minerals”!
322!StruckTDiaz,!Emilia!&!Poliszuk,!Joseph.!
“Venezuela!emerges!as!new!source!of!‘conflict’!
minerals”!!
336!Gomez!,!Ignacio.!“Colombia’s!blackTmarket!
coltan!tied!to!drug!traffickers,!paramilitaries”!
323!Ibid.!
337!InSight!Crime,!“Sinaloa!Cartel!Expands!
Influence!in!Colombia,”!March!2,!2012;!
insightcrime.org/newsTanalysis/sinaloaTcartelT
expandsTinfluenceTinTcolombia![Accessed!March!
1,!2016]!
324!Ibid.!!
325!Gomez,!Ignacio.!“Colombia’s!blackTmarket!
coltan!tied!to!drug!traffickers,!paramilitaries.”!The!
Center!for!Public!Integrity.!March!4,!2012;!!
publicintegrity.org/2012/03/01/8284/colombiaT
sTblackTmarketTcoltanTtiedTdrugTtraffickersT
paramilitaries![Accessed!April!1,!2016]!
338KyraGurney.“Colombia!Captures!'Coltan!Czar'!
Linked!to!FARC,”!InSight!Crime,!November!24,!
2014;!!insightcrime.org/newsTbriefs/colombiaT
!
!
!
96!
!
!
capturesTczarTofTcoltanTwithTfarcTelnTties!
[Accessed!April!1,!2016]!
339!El!Tiempo,!“Caeficha!de!lasFarc!y!Eln!en!
millonarionegocio!de!coltán!y!uranio,”!November!
21,!2014;!eltiempo.com/politica/justicia/caeT
fichaTdeTlasTfarcTyTelnTenTmillonarioTnegocioTdeT
coltanTyTuranio/14867845![Accessed!April!1,!
2016]!
340!Emilia!DíazTStruck!and!Joseph!Poliszuk.!
“Venezuela!emerges!as!new!source!of!‘conflict’!
minerals”!
341!Molinski,!Dan,!“Colombia!to!Wage!Battle!
Against!Illegal!Coltan!Mining,”!The!Wall!Street!
Journal,!March!12,!2012;!
wsj.com/articles/SB10001424052702304537904
577277902985836034![Accessed!March!1,!2016]!
342!BBC!News,!“Colombia!Farc!rebels!call!unilateral!
ceasefire,”!July!8,!2015;!bbc.com/news/worldT
latinTamericaT33450816![Accessed!March!12,!
2016]!
343US!Agency!for!International!Development,!
“Pradd!II!Snapshot:!Registration!Of!Diamonds!In!
Forecariah,”!July!31,!2015;!
http://www.usaidlandtenure.net/documents/pra
ddTiiTsnapshotTregistrationTdiamondsTforecariah!
[Accessed!March!11,!2016]!
344Internationl!Peace!Information!Service,!
“Analysis!of!the!interactive!map!of!artisanal!
mining!areas!in!Eastern!DR!Congo:!May!2014!
update,”!May!2014;!!ipisresearch.be/wpT
content/uploads/2014/04/20141031T
Promines_analysis.pdf![Accessed!March!1,!2016]!
345!Brilliant!Earth,!“Tracking!and!Certification,”!
2016;!brilliantearth.com/conflictTfreeTdiamondT
certification/![Accessed!April!1,!2016]!
346!Fairmined,!“What!is!Fairmined,”!2016;!
fairmined.org/whatTisTfairmined/![Accessed!April!
15,!2016]!
!
97!