Sunday , March 16 2025

Major Player Pledges to Boost Local Procurement in DRC

A significant moment unfolded at the ongoing Investing in African Mining Indaba when a major mining company pledged to enhance its local procurement in the Democratic Republic of Congo (DRC) following insights from a local community organiser.This commitment was made at the conclusion of a session titled “Disruption Required – Time for a New Deal for Local Communities”, which explored how African communities often fail to fully benefit from mining investments in their areas.

Speaking during the panel discussion, African Natural Resources Watch’s Executive Director, Emmanuel Umpula Nkumba highlighted how the announcement of a mining project often sparks hope for development and employment. However, he noted that the reality frequently falls short, with the negative impacts such as poverty, pollution, displacement and human rights violations only becoming evident later.“It’s a grave issue. In many ways, the system has failed,” said David Sturmes-Verbeek, Co-Founder and Director of Partnerships & Innovation at The Impact Facility.

In response, Daniella Savic, Head of International ESG Compliance at Eurasian Resources Group (ERG) and the sole mining-company representative on the panel, outlined her company’s approach to community engagement across its operations, which employ 69,000 people in 12 countries.“We work to ensure that host communities have early and continuous participation in decisions that affect them. We take a multi-stakeholder approach, working closely with NGOs and ensuring workers have access to collective bargaining,” explained Savic.

Ziva Communities’ Executive Director, Omaojor Ogedoh in Nigeria described the evolving mining landscape in his country, where artisanal and small-scale mining is driving a resurgence after years of decline during the oil boom. “There have been positive impacts such as job creation, increased revenue and skills development but the negative effects have been perhaps even more significant, which is worrisome,” said Ogedoh.

He cited mass displacements, fatal accidents, and the Zamfara lead-poisoning disaster, which resulted in hundreds of deaths. “Another major impact is climate change,” added Ogedoh.

Sturmes-Verbeek pointed out that governments are expected to regulate the sector to benefit communities, yet gaps persist. Nkumba responded that the challenge lies not in legislation but in its implementation. “For me, the problem in the DRC is not the law. We have one of the most progressive mining laws in Africa. The challenge is that state agencies lack capacity, face conflicts of interest, and companies sometimes circumvent the regulations,” stated Nkumba.

Savic noted that, as ERG operates across 12 jurisdictions, it simplifies compliance by adhering to the highest community and environmental standards.“We are committed to the Copper Mark assurance framework in the Congo and we understand that ESG compliance is essential for integrating our mines into global supply chains,” noted Savic.

Nkumba then raised concerns about the quality of employment opportunities created by mining operations. “Yes, mines create jobs. But what kind of jobs?” he asked. “How much are local people earning? The highest-paid positions are often held by non-Congolese who don’t even reside in the country.”

Savic responded by emphasising ERG’s commitment to community investment.“In 2023, ERG distributed $7.3 billion in value, compared to $6.8 billion in revenue generated. And 97% of our workforce consists of nationals from the countries in which we operate,” explained Savic.

Sturmes-Verbeek noted that while building local capacity is frequently discussed, there is often little clarity on how to achieve it or the timelines involved. Nkumba concurred, asking, “How are we actively investing to change the shortage of skilled workers? We need concrete plans to develop these skills within a specific timeframe.”

At this juncture, Savic made a commitment to strengthen ERG’s local procurement strategy in the DRC. She ended, “I am proud to say that ERG commits to enhancing our local procurement strategy. We will need civil society’s support to ensure there is genuine community ownership.”

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