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Guns, Money and Cell Phones

By Kristi Essick
06.11.2001
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The U.N. report documents the rebel groups' use of forced labor, illegal monopolies and civilian murder in their high-stakes game to extract this valuable resource. These accusations have not been taken lightly; several members of the U.N. panel that prepared the report have since received death threats. Uganda, Rwanda and Burundi have issued protests to the United Nations over the report, claiming it to be inaccurate and unfounded.

The pillaging of the Congo's natural resources is exacting a devastating human and economic toll, says Leonard She Okitundu, the Congo's minister for foreign affairs and international cooperation. He told the United Nations Security Council in early May that "a consensus was clearly emerging in the council and in the international community on the links between the shameless looting of Congolese natural wealth and the massacres of the Congolese people." The fighting, he reported, has led to "assassinations of civilians, deportations, torture, rape and deliberate spreading of HIV/AIDS," as well as the displacement of millions of refugees.

The U.N. report does not directly blame computer manufacturers and mobile phone makers for the bloody trade, citing instead the companies trading minerals as "the engine of the conflict in the DRC." But the high-tech industry's demand for tantalum clearly has fueled an increase in coltan mining worldwide - including in the Congo region. After all, the trading companies sell coltan to processing companies, which in turn sell to tantalum capacitor manufacturers - whose clients are none other than high-tech companies such as Ericsson, Intel and Nokia.

These companies deny any knowledge that tantalum originating in the Congo is used in their products. That's not surprising, considering how murky the supply chain out of the Congo is and how complicated the global trade in tantalum gets. The reality is that there's little way to prove that the tantalum used in our cell phones and laptops is or is not from the Congo. Still, 8 percent of the tantalum ore imported into the United States in 1999 came from the Congo, and that doesn't count the ore U.S. companies imported from Rwanda and Uganda that may have originated in neighboring Congo. And there is much more of the precious dirt where that came from. At the moment, about 15 percent of the world's supply of tantalum comes from Africa. (Australia is the biggest producer, accounting for about 70 percent of the global supply of tantalum-bearing ore.) But the Congo is sitting on a potential gold mine. The mineral-rich nation is tied with Canada in having the world's fourth-largest coltan reserve, according to research firm Roskill Information Services.

WORTH ITS WEIGHT IN GOLD
Coltan - which is found in 3 billion-year-old soils, like those in the Rift Valley region of middle Africa, western Australia and central Asia - has become a critical raw material in high-tech manufacturing. The tantalum extracted from the ore is used mainly to make tantalum capacitors, tiny components that manage the flow of current in electronic devices. Many semiconductors also use a thin layer of tantalum as a protective barrier between other metal coatings. The metal, which is also found in other minerals and can be extracted as a byproduct of tin refining, is used in the airline, chemical, pharmaceutical and automotive industries as well.

The market for the material is huge. Last year, about 6.6 million pounds of tantalum was used around the world, 60 percent finding its way into the electronics industry, where it can be found in products like mobile phones, computers, game consoles and camcorders. (The United States is the largest consumer of tantalum in the world, accounting for 40 percent of global demand.)

In 2000, demand for tantalum capacitors exploded in tandem with the mobile phone and PC markets, causing a severe shortage. Tantalum ore prices shot up, with per-pound charges for refined powder climbing from less than $50 to a peak of over $400 at the end of last year. Today, with demand softening worldwide, prices have fallen to around $100 a pound.

In response to the increased demand, coltan miners all over the world increased production. In the Congo region, both legitimate and rogue coltan merchants joined the rush. The boom brought in as much as $20 million a month to rebel groups, as well as independent factions, who were trading coltan mined mostly from northeastern Congo, according to the U.N. report. That money helps fuel the war.

PASSING THE BUCK
Tracing the coltan supply chain through the Congo is no simple task. Ore originating in the Congo often passes through at least 10 hands before it winds up in a cell phone or a VCR. One thing is certain: Rebels are involved in just about every step of the process until the coltan leaves the DRC.