Many mining companies in the Democratic Republic of Congo (DRC) have shut down their operations not only because of the disputes that are currently in the country, but also because of the world’s current economic situation, says head of training for peace programmes at the Institute of Security Studies, in Pretoria, Henri Boshoff.

“At the moment, there are about 25 000 unemployed miners in Katanga province alone. This has had a significant effect on the country and its economy. The DRC has had to borrow funds from the International Monetary Fund just to pay the salaries of the government officials.”

The political stability in the DRC remains volatile and recent efforts by Rwandan and Congolese armed forces to disband Rwandan Hutu rebels have fuelled tensions, says Boshoff.

Commenting on the effect of this instability on mining in the DRC, he says that, despite the unrest in the country, there are still seve- ral mines that are still running. Global diamond producer Gem Diamonds reports that because of the remoteness of its three mines, the company has not been severely affected by the DRC’s current situation.

Although Africa has some of the poorest countries in the world, it does not lack natu- ral resources. The continent boasts a rich mineral resource, which includes industrial and gem diamonds, cobalt, copper, crude oil, gold, silver, zinc, coal, columbite, tantalite and tin. The control and management of these resources often leads to insecurity in many countries, as the funds generated are abused.

Fighting over control of natural resources also prolongs the conflict. The mismanagement of natural resources by national governments is also a key driver of insecurity. The funds generated by the resources are often used for personal enrichment and the depend- ence of many African States on a limited number of natural resources has aggravated Africa’s postcolonial situation, says Boshoff.

He adds that the unrest is fuelled by greed. “There are government officials and key role-players that are making money out of the war. When the country is stabilised, these people will lose great amounts of money. They have the support of government and the military, so the chance that peace will come to the DRC is very small.”

Foreign nations’ and companies’ interests in African resources also lead to negative effects. Many foreign companies on the continent are primarily extractive. This means that the countries are seen as suppliers of raw materials, which are exported for processing to other countries. This prevents the esta- blishment of manufacturing and service industries in these countries, which inhibits job creation. The export taxes also create expenses for the country, which is chroni- cally strapped for revenue.

Meanwhile, French nuclear company Areva’s subsidiary, uranium explorer UraMin, reports that the company, although at peace with the government, is concerned about its uranium-excavating project Bakouma, in the Central African Republic (CAR). In 2007, violence broke out in the north and resulted in millions of refugees fleeing from their homes to neighbouring states as they were caught up in the crossfire between government troops and rebel forces.

The situation makes companies such as UraMin reluctant to invest in the region. The conditions that contribute to this reluctance to invest are, to a large extent, driven by the nature of the state. Further, the company adds that it hopes that these issues can be resolved in a peaceful manner. It believes that projects such as the Bakouma mine are needed to revive countries such as the CAR. Bakouma is due to start delivering uranium next year, with optimal production, about 2 600 t/y, expected over three years.

The country, which is branded as one of the poorest countries in the world, has other mining opportunities too, and most of its output is entirely produced by artisanal methods. Research and information database Human Security Gateway’s yearly review for 2008 reports that diamonds comprise the most important export of the CAR, accounting for 40% to 55% of export revenues, but an estimated 30% to 50% of the diamonds produced each year leave the country illegally. The location of the country, as well as the poor economic development, hinders it from legal export trade.

While many of these conflicts can be resolved and mechanisms can be put in place to resolve the long-term causes of insecurity on the continent, there are still some significant obstacles before change can be achieved. The negative perception of the political, societal and economic situation in Africa, weak leadership and poor governance, and the lack of regional coherence and identity create structural problems that continue the cycle of poverty and insecurity.