Mineral wealth has been a driving force in the conflict. The
Congolese military and the rebel forces such as the ethnic Tutsi M23 movement
have taken over the mines and transportation networks and raked in hundreds of
millions of dollars. Villagers, including children, are rounded up and put to
work, often in virtual slavery. More than 60 workers were killed in a mine
collapse just last week. Rape is widespread, and women and girls are forced
into brothels in the mining areas.
Given the scope of the problem, the SEC measure is
relatively weak. It would not forbid manufacturers from using minerals from any
source; instead it would simply require about 6,000 companies to let consumers
know where the minerals originated. The U.S. Chamber of Commerce objects that the sourcing would be
prohibitively expensive, but the actions of many companies involved in the
trade belie that claim.
Intel Corp. (INTC) deserves particular
credit. It has committed to making “conflict-free” microchips by next year, and
has led a global effort to audit the smelting plants in the high-tech supply
chain that process the minerals (most are in Asia) to discover where the raw
materials originate. General Electric Co. (GE), Hewlett-Packard Co. (HPQ) and Motorola Solutions Inc. (MSI), among others, have joined in
the auditing program and helped create the Public-Private Alliance for Responsible Minerals Trade, which
works with nongovernmental groups and the U.S. government to promote a
Congolese mining
industry free of military and rebel control. Apple Inc.
(AAPL) was the first corporation to provide a list of the 175
smelters in its supply chain and require suppliers to use audited,
conflict-free smelters when possible. (Shame, however, on Mario and Luigi:
Nintendo Co. has made no effort toward responsible sourcing, according to the Enough Project, a nongovernmental group
that tracks crimes against humanity in Africa.)
These measures have had real success. According to the
Enough Project, armed groups’ revenue from tin, tantalum and tungsten is down
by 65 percent over two years. Still, much of the material is making its way
illegally out of the country. Rwandan mineral exports increased by 62 percent
in 2010, although domestic mining production only rose by 22 percent.
Some criticisms of the SEC rule are reasonable. One is that
it might hurt the hundreds of thousands of
small-scale “artisanal” miners in Congo whose families and
communities depend on meager income they can scavenge from the earth. Yet the
idea behind the rule and the industry efforts is to clean up the Congolese
industry and improve the welfare of workers, not to force manufacturers to look
elsewhere. It need not lead to a boycott if companies use due diligence.
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