Monday, June 8, 2009

Gold In the Dominican Republic of Congo




Gold Mining


When it comes to the enormous wealth in natural resources found in Africa, as with the rest of the continent, the DRC is not lacking. The following case study examines the less than honourable role of one of the largest gold producers, AngloGold Ashanti. The company forms part of leading mining conglomerate Anglo American, along with Anglo Platinum, and De Beers –leading diamond producer, and others –all of who attract tireless amounts of global condemnation for the grave consequences of their compromises that impede upon the poorest of the poor. This is a study of how the DR Congo is one such place, where the capitalist driven corporation is extracting the gold that the ex-colonizers once did, and once again, it is to the detriment of the local people.



geitagold.com 2009


The neo-colonial ties to the gold mining industry are a problem that the world would probably prefer to ignore. The truth of the matter challenges the status quo in a modern world, where to some, being fashionable is a sign of success. Many a consumer will subconsciously seek to achieve this feat, which may be inescapably attached to obtaining that expensive watch or ring. The gold industry is fuelled by consumerist ideologies. The achievement of wealth or the ideological symbolism attached to finding the person with whom one wants to spend their lives with, among many other notions, are lovely; however if ‘we shoppers’ understood the human rights violations and exploitation behind our purchases, would we continue to support such a dirty industry?

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One area of concern in the DRC is the small town of Mongbwalu, where ethnic fighting in recent years has claimed the lives of some 2000 civilians (Davies 2005). Since war ended in 2003, the Government has been unable
to secure the area, which has lead to the rebel group, Nationalist and Integrationist Front (FNI) controlling the gold hotspot (HRW Summary 2005). The Journal of African Business together with the UN argue that the FNI is responsible for mass crimes against humanity in the forms of violence, murder and rape of women and children whilst “recourse profiteering” is taking place (Congo: Tragic History 2009).


This is where gold producer, AngloGold Ashanti, comes into the picture. They produce what is commonly called ‘blood gold’ or ‘dirty gold’, similarly to ‘blood diamonds’, which contributes to the amassing negative attention from non-profit organisations, human rights groups and other activists (No Dirty Gold 2004).



New York based Human Rights Watch (HRW) published an article in 2005 titled ‘The Curse of Gold’, which states that AngloGold had been involved entering into financial arrangements with the FNI, the armed rebel group that controls the Mongbwalu area where AngloGold Ashanti operates (HRW 2005). This rebel group is accused of committing ongoing and serious human rights violations in the forms that have been mentioned. Through AngloGold’s financial arrangements, it could be argued the mining conglomerate essentially has blood on its hands because of their aid that is assisting this rebel faction in payment for gold. They are not just moving dirty gold, but they are funding a rebel group to obtain it. Eventually this was admitted by the company, who stated, “there was a breach [of] principle in this instance, in that company employees yielded to the militia group FNI…” however, this was after publicly denying the initial allegations and after HRW released a report on them (Davies 2005).



AngloGold also publicly declares they follow the voluntary principle of Corporate Social Responsibility (CSR), which some argue, is principle that is used to prevent mandatory external investigations of their company (Curtis 2007, p. 12). Given the willingness to pay off rebels to gain access to the golden area, it is little wonder that these allegations are made. This is a clear example of using the weaknesses of Africa’s people to keep the well-off shareholders happy on their yachts and in their dream houses. Therefore it legitimises the argument that corporations like these, are the new colonisers of today. The argument can be strengthened by the voices of the local people who do not reap the benefits that DRC’s gold has to offer.


"We are cursed because of our gold. All we do is suffer. There is no benefit to us.”

-Congolese gold miner (HRW Summary 2005).


This “suffering” this gold miner mentions likely refers to the fighting in the area by rebel groups over past years, and it likely includes the foreign companies like AngloGold, who are the real beneficiaries, disregarding the poverty stricken locals who were born on the land. This miner understands that the want for gold, among the many other resources fought over in Africa, is a curse to the people who live there. Someone else who understands this, is another local man from the area, Salvatore Bulamuzi, who reportedly lost his two wives, parents, and five children because of the resource war that has gone on in the DRC’s north eastern region.



“I am convinced now…that the lives of Congolese people no longer mean anything to anybody. Not to those who kill us like flies, our brothers who help kill us or those you call the international community…Even God does not listen to our prayers any more and abandons us.”

-Salvatore Bulamuzi (Amnesty 2003, p. 3).


Furthermore, the company tries to reassure those involved or concerned with a public statement that says: “We strive to form partnerships with host communities, sharing their environments, traditions and values. We want communities to be better off for AngloGold Ashanti having been there (AngloGold Ashanti 2006).” However, somehow in this war torn region, where payouts funding the local militia are the preferred method for winning mining concessions, this principle is hard to believe. The first quarter of 2009 saw AngloGold’s earnings, despite global recession, soar to US$150 million, and the company, admits this is due to the increase of value (the weakening of local currencies probably because of the economic crisis) (AAP Finance 2009, p. 1).
The gold commodity’s value today in a capitalist market, in conjunction with its widespread availability to the average Westerner, as uncovered by this case study, highlights a new scramble for Africa through a corporate means in the DRC.


On top of this issue of company credibility, are also the issues of environmental damage, which are also debilitating lives of poor Africans through things such as cyanide poisoning, which is an area that goes beyond the scope of this study (Earthworks 2009).


The story of gold is an interesting one that somehow continues to make its huge profits for a few, giving them the power to continue exploitation. Nonetheless, it has caught the attention of the UN and human rights groups for violating human rights breeches. As many others agree, one can only hope for more international pressure to be administered so that the company will be forced to instigate heavy corporate reforms and submit to mandatory external investigations.


“Analysts suggest the resource wars in the DRC are partially fuelled by the fact that Western multi-nationals – with the help of host governments – are able to invade an underdeveloped nation, and take its wealth right out from under the feet of the general population...any Western mining project in the DRC should be looked upon with caution and scepticism.”

-John Laska ‘Towards Freedom’ (2009).




Reference List

AAP Finance 2009, ‘AngloGold Ashanti earns $US150m in first quarter’, AAP Finance News Wire, 15 May 2009, p. 1, Retrieved May 22, 2009, (ProQuest).

Amnesty 2003, ‘Document - Democratic Republic of Congo: "Our brothers who help kill us": Economic exploitation and human rights abuses in the east’, Amnesty International website, viewed 22 May 2009, PDF p. 3.


AngloGold Ashanti 2006, ‘Report to Society’, AngloGold Ashanti website, viewed May 15, 2009.


‘CONGO: Tragic History’ (n.a), Journal of African Business, February 1, 2009, Iss. 350, pp 56-58, Accessed May 15, 2009 (ProQuest).


Curtis, M 2007, Anglo American: The Alternative Report, War On Want website, Viewed 15 May, 2009.


Davies, E 2005, ‘Curse of Gold has fuelled slaughter and rape in Congo’, The

Independent, London: Jun 2, 2005, p. 19, Accessed 19 May 2009, (ProQuest).


Earthworks 2009, ‘Press Release’, viewed, May 22, 2009 .


HRW 2005, ‘The Curse of Gold’, Human Rights Watch website, viewed 15 May 2009.

Laska, J 2009, ‘Of Blood and Gold: How Canadian Mining Companies Loot the
Congo’, Towards Freedom website, viewed May14, 2009.

No Dirty Gold 2004, ‘Campaign Allies’, No Dirty Gold website, viewed 15 May, 2009.

2 comments:

  1. Nice article. But am pretty sure it is the Democratic Republic of Congo not Dominican Republic of Congo.

    ReplyDelete
  2. The Dominican Republic and the Democratic Republic of Congo are two very different cuntries.

    ReplyDelete