War in Eastern DRC Threatens Gold Mining in Central Africa

Warring factions took control of some diamond mining operations in the eastern part of DRC, likely with the intent of selling gold to finance their operations.

According to industry group Jewelers of America (JA), the legislation that seeks to target the importation of gold and other minerals from the DRC and nine surrounding countries, could encourage jewelry companies to avoid trading in gold from the region, in order to bypass the issue completely.

JA is referring to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Saying that it strongly believes in the goals of this legislation, but at the same time very concerned that the unintended consequence of the bill “will help no one, and end up hurting legitimate miners and their communities."

JA plans to work with the U.S. Securities and Exchange Commission (SEC) regulators as well as industry and non-industry stakeholders to ensure that implementation achieves its goals, without hurting jewelry businesses or the very communities in DRC and neighboring countries that it is meant to benefit and protect.

The named by the Dodd-Frank Act names the following countries: Angola, Burundi, Central African Republic, Congo, Democratic Republic of Congo, Sudan, Tanzania, Uganda, Rwanda and Zambia.

JA called on its members to voluntarily ask their suppliers to affirm to them, in writing, their commitment to the responsible sourcing of gold.

The association and its members are actively encouraging gold suppliers to do what they can, within their spheres of influence, to ensure that none of the gold jewelry products they sell has contributed—in any way—to the funding of any current conflicts or wars.