DRC

Closing mines put hundreds of thousands out of work

Article published on the 2009-02-16 Latest update 2009-02-16 11:00 TU

Artisanal miners in Mongwalu, north eastern DRC.
(Photo: AFP)

Plummeting copper and cobalt prices have hit the mining industry in Katanga province in the eastern Democratic Republic of Congo (DRC), putting hundreds of thousands of people out of work.

Bolstered by a burgeoning demand for rare minerals needed in the electronics and high-tech industry, many international corporations opened up shop in the eastern DRC region in the 1990s and early 2000s. Mining is the region’s primary economic activity, and in some areas, it’s the only source of employment.

But the recent collapse of copper and cobalt prices has forced many of these mines to close. The problem is compounded by the informal nature of the work, where mines employ few full-time miners, and instead purchase ore from independent “artisanal” miners.

“The official figures for those who are formally unemployed in Katanga are very low, something like 2,000, but that just reflects that very few miners are properly fully employed,” Patricia Feeney, director of Rights and Accountability in Development, a British NGO, told RFI, who added that some 200- to 300,000 artisanal miners are now out of work.

These miners were only making around 25 dollars (19.5 euros) per week when they were employed, Feeney explained, barely enough to support their families.

“The overall problem for the artisanal miners is normal traders aren’t buying as many minerals, and that’s left them destitute,” she continued.

The mining boom brought international investment to the DRC but few benefits, as the raw material is exported.

“The people who have made big amounts of money have been the traders and the larger trading companies of Africa,” Feeney said.

In December 2008, Anvil mining suspended its production and processing activities in Katanga. The Australian company, which is one of the leading copper producers in the DRC, announced that it would close the Dikulushi mine until further notice. Most of the 1,056 permanent and contract workers have been retrenched.

Anvil Mining says that this decision will save the company around two million dollars per month.

"The Dikulushi mine is uneconomical at present," explained Bill Turner, president and CEO of Anvil Mining, in a statement. "This decision has not been an easy one to make and is regrettable to our employees, communities that surround the mine and our stakeholders, but we believe that it is the best option to preserve our cash resources until market conditions improve."

With reports from the Inter Press Service.