Metals, Minerals, and Mining: How the CCP Fuels Conflict and Exploitation in Africa

1[House Hearing, 119 Congress]2[From the U.S. Government Publishing Office]34                                 ______56     METALS, MINERALS, AND MINING: HOW THE CCP FUELS CONFLICT AND7                         EXPLOITATION IN AFRICA89=======================================================================1011                                HEARING1213                                 OF THE1415                         SUBCOMMITTEE ON AFRICA1617                               BEFORE THE1819                      COMMITTEE ON FOREIGN AFFAIRS20                     U.S. HOUSE OF REPRESENTATIVES2122                    ONE HUNDRED NINETEENTH CONGRESS2324                             FIRST SESSION2526                               __________2728                             March 25, 20252930                               __________3132                            Serial No. 119-73334                               __________3536        Printed for the use of the Committee on Foreign Affairs3738Available: http://www.foreignaffairs.house.gov, http://docs.house.gov,39                       or http://www.govinfo.gov4041                          ______4243             U.S. GOVERNMENT PUBLISHING OFFICE44 60-388 PDF          WASHINGTON : 20254546                      COMMITTEE ON FOREIGN AFFAIRS4748                    BRIAN J. MAST, Florida, Chairman49MICHAEL T. McCAUL, Texas             GREGORY W. MEEKS, New York,50CHRISTOPHER H. SMITH, New Jersey         Ranking Member51JOE WILSON, South Carolina           BRAD SHERMAN, California52SCOTT PERRY, Pennsylvania            GERALD E. CONNOLLY, Virginia53DARRELL ISSA, California             WILLIAM R. KEATING, Massachusetts54TIM BURCHETT, Tennessee              AMI BERA, California55MARK E. GREEN, Tennessee             JOAQUIN CASTRO, Texas56ANDY BARR, Kentucky                  DINA TITUS, Nevada57RONNY JACKSON, Texas                 TED LIEU, California58YOUNG KIM, California                SARA JACOBS, California59MARIA ELVIRA SALAZAR, Florida        SHEILA CHERFILUS-McCORMICK,60BILL HUIZENGA, Michigan                  Florida61AUMUA AMATA COLEMAN RADEWAGEN,       GREG STANTON, Arizona62    American Samoa                   JARED MOSKOWITZ, Florida63WARREN DAVIDSON, Ohio                JONATHAN L. JACKSON, Illinois64JAMES R. BAIRD, Indiana              SYDNEY KAMLAGER-DOVE, California65THOMAS H. KEAN, JR, New Jersey       JIM COSTA, California66MICHAEL LAWLER, New York             GABE AMO, Rhode Island67CORY MILLS, Florida                  KWEISI MFUME, Maryland68KEITH SELF, Texas                    PRAMILA JAYAPAL, Washington69RYAN K. ZINKE, Montana               GEORGE LATIMER, New York70JAMES C. MOYLAN, Guam                JOHNNY OLSZEWSKI Jr, Maryland71ANNA PAULINA LUNA, Florida           JULIE JOHNSON, Texas72JEFFERSON SHREVE, Indiana            SARAH McBRIDE, Delaware73SHERI BIGGS, South Carolina          BRADLEY SCOTT SCHNEIDER, Illinois74MICHAEL BAUMGARTNER, Washington      MADELEINE DEAN, Pennsylvania75RYAN MACKENZIE, Pennsylvania7677              James Langenderfer, Majority Staff Director78                 Sajit Gandhi, Minority Staff Director79                                 ------8081                         SUBCOMMITTEE ON AFRICA8283               CHRISTOPHER H. SMITH, New Jersey, Chairman84MARIA ELVIRA SALAZAR, Florida        SARA JACOBS, California, Ranking85RONNY JACKSON, Texas                     Member86BILL HUIZENGA, Michigan              SHEILA CHERFILUS-McCORMICK,87AUMUA AMATA COLEMAN RADEWAGEN,           Florida88    American Samoa                   JONATHAN JACKSON, Illinois89JIM BAIRD, Indiana                   PRAMILA JAYAPAL, Washington90                                     JOHNNY OLSZEWSKI, Maryland9192                 Joe Foltz, Subcommittee Staff Director93                         C  O  N  T  E  N  T  S9495                              ----------9697                            REPRESENTATIVES9899                                                                   Page100Opening Statement of Subcommittee Chairman Christopher Smith.....     1101Opening Statement of Subcommittee Ranking Member Sara Jacobs.....     3102103                               WITNESSES104105Statement of Sasha Lezhnev, Senior Policy Advisor on Behalf of106  the Sentry.....................................................     5107  Prepared Statement.............................................     8108Statement of Thierry Dongala, Founder, Accountable Africa........    21109  Prepared Statement.............................................    25110Statement of Joseph Mulala Nguramo, Nonresident Fellow, Atlantic111  Council Scowcroft Center.......................................    28112  Prepared Statement.............................................    31113Statement of Obert Bore, Responsible Business and Human Rights114  Program Lead, Zimbabwe Environmental Law Association...........    37115  Prepared Statement.............................................    42116117                                APPENDIX118119Hearing Notice...................................................    76120Hearing Minutes..................................................    78121Hearing Attendance...............................................    79122123                        Materials for the Record124125Statement for the Record submitted by Rep. Cherfilus-McCormick...    80126Material for the Record, submitted by Mr. Manareldin (Manar)127  Zarroug, Chairman, Omnia Ventures & Al Faisalia Limited........    82128129     METALS, MINERALS, AND MINING: HOW THE CCP FUELS CONFLICT AND130                         EXPLOITATION IN AFRICA131132                              ----------133134                        Tuesday, March 25, 2025135136                  House of Representatives,137                             Subcommittee on Africa138                              Committee on Foreign Affairs,139                                                    Washington, DC.140141    The subcommittee met, pursuant to notice, at 10:03 a.m., in142room 2200 Rayburn House Office Building, Hon. Christopher Smith143(chairman of the subcommittee) presiding.144    Mr. Smith. The subcommittee will come to order.145    The purpose of this hearing is to examine the role of146Chinese-owned enterprises in fueling conflict, instability, and147human rights abuses in Africa, particularly in the mining148sector.149    I do yield to myself for an opening statement.150151             OPENING STATEMENT OF CHRISTOPHER SMITH152153    I, again, want to thank everyone for being here, especially154our very distinguished witnesses, and so many others who are155very much interested in these very pertinent issues that,156unfortunately, are leading to great loss of life and all kinds157of human rights abuse. So, thank you for being here.158    The extraction of valuable minerals has long been a double-159edged sword for many African nations. While these resources160hold the potential for economic development, their exportation,161particularly in manners irresponsible or under corrupt regimes,162has often fueled violence and instability.163    The Democratic Republic of Congo has vast mineral wealth,164especially in cobalt and gold, and other very, very important165minerals, which has been a significant driver of conflict.166Areas of gold mining also fuels conflict in Ethiopia and Sudan.167Armed groups have profited from the extraction and smuggling in168these resources, financing their operations and perpetuating169cycles of violence.170    The United Nations has reported that mineral smuggling171finances warfare with various military forces and commanders172exploiting illegal mining for personal gain.173    In the DRC, it is also estimated that more than 70 percent174of the world's cobalt, some say as much as 75 percent--an175essential need for lithium ion batteries, for smart phones,176computers, and electric vehicles is extracted there with bare177hands, as thousands, and some estimates put it as high as17835,000 children by one of our witnesses today, Mr. Lezhnev.179    Thank you for your very heavily footnoted testimony.180    If that were not horrible enough, the 2024 Trafficking in181Persons Report also stated that ``observers noted that children182in many areas are vulnerable to sexual violence, including sex183trafficking, in part due to traditional religious beliefs that184harming children could protect against death or ensure185successful mining. Again, an absurdity, but that is what has186been said.187    China's near monopoly over the output and processing of188Africa's minerals and resources ensures that these abuses189continue unchecked.190    The expansion of illicit mining in Ethiopia has exacerbated191existing conflicts as well. Regional states and non-state-owned192actors vie for control over mining concessions, using the193revenues to bolster their influence and, in some cases, the194Chinese State authority. This competition has intensified local195disputes and undermined efforts toward national cohesion.196    The civilian gold mining operations have been linked to197funding armed conflicts. The control over lucrative mining198areas often leads to violent confrontation between various199factions, further destabilizing the region and ending peace200efforts.201    Illegal mining has led to environmental degradation and202social unrest. The involvement of foreign entities, including203Chinese nationals, in these operations have strained local204communities and shored up the tensions between the populous and205the authorities.206    In response to these challenges I have reintroduced the207Cobalt Supply Chain Act. This legislation aims to ensure that208goods made using or containing cobalt refined in the People's209Republic of China do not enter the U.S. market, addressing210concerns that such cobalt is extracted and processed with the211use of child and forced labor in the DRC.212    Then it comes back in our defense and commercial supply213chains, which is a national security issue. And the reliance of214China for these critical minerals is a clear vulnerability to215the United States and to the western world.216    As co-chair of the congressional Executive Committee on217China, I held a hearing in November 2023 that highlighted the218problem of China's Communist Party dominance in the DRC's219cobalt supply chain and how China profits from these unethical,220profits from these unethical mining practices.221    I also chaired a hearing in July 2022 of the Tom Lantos222Human Rights Commission on child labor and human rights223violations in the mining industry of the DRC. One of our expert224witnesses then said that child labor is one of the worst forms225of child abuse, and that is absolutely true. It is forbidden by226both Congolese legislation, as well as international rules and227laws. And, yet, it continues.228    The various beneficiaries of this system, China's state-229owned mining companies, remain silent, refusing to confront an230undeniable reality from dirt to battery, from cobalt to cars,231the entire supply chain is built on violence, exploitation, and232corruption. This much change. And the time for change is now.233    President Trump's executive order for ``immediate measures234to increase American mineral production'' is a crucial step235toward strengthening our domestic supply chains. This action236will create American jobs, drive economic growth, and reduce237our reliance on foreign adversaries.238    The United States must break its dependence on minerals239that finance the Chinese Communist Party, often extracted240through forced child labor, and stop indirectly supporting the241CCP's efforts to fuel instability and regional conflict in242Africa.243    At the same as the CCP tightens its grip on global mineral244markets, the U.S. must take decisive action. In line with this245strategy, the U.S. Department of State has expressed openness246to forming direct critical mineral partnerships with the DRC,247an opportunity to strengthen collaboration and secure resources248essential for our technological advancement and national249security.250    Today we have a very distinguished panel of experts that251will help us know and give us guidance as a Congress, as a252committee, as to where we go next.253    Before going to them it is my delight and my honor to yield254to Ms. Jacobs, our ranking member of this subcommittee.255256        OPENING STATEMENT OF RANKING MEMBER SARA JACOBS257258    Ms. Jacobs. Well, thank you, Chairman Smith. Thank you to259all of our witnesses for testifying today on the drivers of260conflict and exploitation in Africa's mining sector.261    As we all know here, there is a long history of262exploitation in the mining sector on the African continent that263has resulted in environmental degradation, labor exploitation,264corruption, and other human rights abuse, and has rarely led to265actual prosperity for local communities.266    There are many drivers of exploitation in the sector;267whether that be poor governance that allows corruption to268fester, weak traditional institutions that foster a culture of269impunity, lack of economic opportunity for marginalized270communities, and so on.271    These conditions create an environment that is ripe for272exploitation by domestic and foreign companies alike. They can273act with impunity to cut costs by not adhering to274environmental, social, and governance status, to the local275corruption eating into their profits. That means poverty wages.276That means unsafe and deadly working conditions. That means277contaminated water in local communities. Ultimately, it means278putting short-term gains ahead of the long-term development,279stability, and success of the African continent.280    There is no question that Chinese-owned and operated281companies are dominating and engaging in exploitative practices282in the mining sector in certain African countries. Many of283these companies, frankly, don't care about the corruption, and284are not as concerned by the blow to their reputation.285    For example, just this month the Kafue River in Zambia was286declared dead after a Chinese-owned copper mine contaminated287the river. In response, the Zambian Government fined this288company a measly $10,000.289    This impunity exists all over the continent.290    We are also seeing other foreign companies operate in the291sector and be accused of corruption and human rights abuses.292    For example, Glencore, a Swiss company, pled guilty in the293United States to bribing officials in Nigeria, Cameroon, Ivory294Coast, Equatorial Guinea, and the DRC, and ultimately agreed to295pay the DRC $180 million in a settlement deal.296    Last year the Biden administration sanctioned a UAE-based297gold company for purchasing gold from the Rapid Support Forces298in Sudan, ultimately fueling the war and the RSF genocide.299    Famously, Israeli businessman Dan Gertler was exposed and300subsequently sanctioned for hundreds of millions of dollars301worth of opaque and corrupt mining and oil deals in the DRC.302    We will continue to see these practices until we address303what is actually fueling exploitation in the first place.304Meanwhile, the United States has long attempted to increase305U.S. investment in Africa's mining sector as a means to secure306our supply chain and compete with China. But these investments307won't come to fruition, and won't be advantageous or strategic308in the long term if they do not meet high environmental,309social, and governance standards, to ensure our investments are310bringing benefits rather than more exploitation.311    To do this, the U.S. Government and U.S. companies need to312consult with local communities on new investments to obtain313their consent and assess the impacts the project is having314local populations. If we don't do this, U.S. companies will be315on the wrong end of protests and public scrutiny experienced by316Chinese-owned and operated companies.317    That is why I was so disappointed that the Trump318administration recently moved to pause the enforcement of the319Foreign Corrupt Practices Act, which is a law that prohibits320the bribery of foreign officials to obtain a business321advantage, and requires transparency for companies.322    This is the exact kind of law we need to make sure our323investments are good. So, I urge the Trump administration to324reinState the enforcement of this law immediately.325    I also continue to be alarmed by the devastating impact of326President Trump's foreign aid freeze, including on U.S. efforts327to address exploitation in the mining sector. The Trump328administration has terminated programs that were improving329accountability in DRC's mining sector, working to prevent330mining-related violence through dialog, and enhancing331transparency and addressing corruption in the extractive332sector.333    If we are serious about addressing exploitation in the334mining sector, and bringing mutual benefits to both Africans335and Americans, then we need to bring all of our tools to the336table.337    I look forward to hearing more from our panelists about338what is driving exploitation and how we should address it.339    Thank you. I yield back.340    Mr. Smith. Thank you, Sara.341    I would like to, before recognizing our distinguished342panel, recognize a former Member of Congress, and a very343distinguished one at that, who has been very active on all of344these issues, Mark Walker.345    Thank you, Mark, for being here and for bringing three346Congolese Americans with you who are extremely interested,347Adrian Boronse, Alain Buka, and Wilson Tatay. Thank you, Mark,348again for meetings we have had recently as well as in the past349on all of these relevant issues. You are tremendous, thank you.350    I would like to now introduce our distinguished panel,351beginning first with Mr. Sasha Lezhnev, who is a senior policy352advisor at The Sentry, an investigating and policy organization353that seeks to disrupt predatory networks that benefit from354conflict, oppression, and kleptocracy in Africa and beyond.355    Sasha has spent the past 25 years working on human rights,356conflict, corruption, and U.S. policy in Africa. He has worked357with the Enough Project. We were just reminiscing about some of358the past fights about Darfur and other issues when he has been359here before as a very prized witness.360    I thank him. Also he has worked with the U.S. Institute of361Peace.362    We will then hear from Thierry Dongala. Welcome back.363Thierry used to sit here as a member of this subcommittee staff364and did a tremendous job at that. He is the founder of365Accountable Africa, which conducts supply chain investigations366for gold and precious minerals traders, and provides due367diligence reporting for investors in Africa.368    Previously he worked, as I said, on this committee as a369very distinguished member of the staff. We do prize his370insights.371    In meetings prior to this he had a lot of good information372for the committee about this, which helped us frame this, this373hearing.374    I want to thank you for that.375    We will then hear from Mr. Joseph Mulala Nguramo.376    Mr. Nguramo. Yes, sir.377    Mr. Smith. Thank you.378    He is a nonresident fellow with the Freedom and Prosperity379Center and in the GeoStrategy Initiative in the Atlantic380Council's Scowcroft Center for Strategy and Security.381    He was born and spent his formative years in the Democratic382Republic of the Congo. He was the first, and thus far, I383believe, Congolese graduate from the United States Military384Academy--what a great accomplishment that is--at West Point,385where he majored in defense and strategic studies.386    Then we will be hearing from Mr. Obert Bore, who is a387Zimbabwean lawyer coming in from Zimbabwe--and I thank you for388being online here--in legal research. He works on international389trade and China's investments in Africa, natural resource390governance, and climate governance issues.391    Previously, Obert coordinated the alignment of Zimbabwean392laws with the 2013 Constitution, and served as a research clerk393for the Chief Justice of Namibia, and where he provided394research support to judges in drafting of court judgments.395    Thank you.396    I will now yield to Sasha for such time as he needs.397398                   STATEMENT OF SASHA LEZHNEV399400    Mr. Lezhnev. Thank you so much, Chairman Smith, Ranking401Member Jacobs, and distinguished member of this subcommittee.402You are real champions for human rights, and I greatly403appreciate that.404    I personally witnessed the horrors of child soldiers and405child miners as young as 8 years old in mines in the Democratic406Republic of Congo, as well as warlords, and Chinese, and other407companies profiting from this exploitation, all in the name of408getting us cheaper smart phones and cars.409    This has got to stop.410    Africa holds 40 percent of the world's critical minerals.411China made a strategic decision a decade ago to procure them,412spending well over $10 billion acquiring mines. But the413investments have come with corruption and human rights abuses.414    Nowhere have these problems been more acute than the415Democratic Republic of Congo, the world's largest producer of416cobalt and tantalum, and the second largest producer of copper.417Corruption is on the increase since the China-DRC megadeal418worth $6.2 billion in 2008.419    The DRC's corruption rating is lower today under President420Tshisekedi than under his predecessor Joseph Kabila. My421organization, The Sentry, investigated these deals and found422$238 million and then $55 million that went missing. The major423Chinese and other mining contracts remain opaque today.424    Unfortunately, corruption has not been limited to the425Chinese. International tycoon Dan Gertler was sanctioned in the426first Trump administration after his corrupt mining and oil427deals led the DRV to lose $1.3 billion.428    Human rights is also worsening, with increasing oppression429and thousands of child miners working at mines to send cobalt430mainly to Chinese crude refiners. The president's security431forces illegally control mines, and thousands of people have432been forcibly evicted to make way for Chinese mines in433particular.434    Another mineral, gold, which you highlighted, has also been435at the heart of this escalating conflict in Eastern Congo,436which has displaced 6.5 million people. It is the world's third437largest displacement crisis.438    Gold is a cheap source of revenue for armed groups. Backed439by Rwanda, M23 has taken over gold mines. Rwanda's new refinery440was sanctioned by the European Union last week after exporting441$800 million worth of gold, and illegally profiting from442conflict gold. This gold is then smuggled to the UAE, China,443and other countries.444    China has been active in the conflict gold trade, from a445$38 million operation where a Chinese company paid armed groups446for access to 400 illegal mining operations in South Kiva, that447have allegedly smuggled up to eight tons of gold annually448following bribes.449    China is purchasing record amounts of gold today,450potentially to establish a new BRICS currency that would chip451away at the U.S. dollar.452    This is not a hopeless situation. Leverage exists in these453supply chains, and the U.S. Government, electronics companies,454and banks in particular, can make an impact in three areas.455    The biggest obstacle to eliminating mining abuses is the456system of kleptocracy in the DRC. This state--the system of457State capture allows ruling elites and their commercial458partners to personally profit while leaving the population to459suffer from poor security, education, and health care. They use460violence to maintain power and repress dissent.461    This system will continue unless there are consequences for462that corruption. Addressing this would also level the playing463field for U.S. companies.464    The Treasury Department under Secretary Bessent should465robustly investigate and sanction the networks that facilitate466grand corruption, from refineries in Uganda, Rwanda, and the467UAE where they trade in conflict gold, Chinese middlemen, and468senior DRC officials who facilitate bribes and aid illegal469armed groups like the FDLR.470    There must also be judicial accountability for abuses. The471Administration and Congress should support the establishment of472a DRC transitional justice mechanism, as advocated by Nobel473Peace Laureate, Nobel Peace Prize Laureate Dr. Denis Mukwege.474    Second, U.S. Government has a key role to play in combating475the conflict gold trade in particular. Secretary of State Marco476Rubio should lead a public-private initiative to combat illicit477gold, partnering with the London Bullion Market Association and478bullion banks. The initiative should both increase gold trade479data transparency to ensure that sanctioned bodies aren't480behind the curve of criminal actors, and empower independent481monitoring teams to inspect and certify gold smuggling ops,482such as cash-for-gold markets.483    Secretary Rubio and Secretary Bessent should also establish484an illicit gold task force to robustly investigate and sanction485trafficking networks. As part of it, Treasury's Financial486Crimes Enforcement Network, or FinCEN, could issue alerts and487keep banks updated.488    Third, China still needs U.S. markets. So, Tesla, Apple and489others have important leverage over Chinese suppliers. Sunlight490is the best disinfectant to clean up corruption, especially491through mining contract transparency.492    High tech and auto companies should use their buying power493to require Chinese and all suppliers to publish the ownership494structures of mining companies' contracts and service495providers; hire the Congolese workforce directly, not through496subs; and source only from crude refiners of cobalt and cooper497that have passed the electronics industry audits by a498responsible minerals initiative.499    Relatedly, the State Department and companies should500strongly urge the DRC mining industry to create more artisanal501mining zones to give miners a legal space to operate and reduce502abuses.503    Finally, it is important that the Administration should504nominate an Assistant Secretary of State for African Affairs505with urgency, to coordinate responses to the DRC and all of506these crises.507    In sum, the U.S. Government, in coordination with the508electronic companies and banks, can combat the abuses and509corruption by China and others in the mining sector and reduce510risks for U.S. businesses. I sincerely hope that progress is511made so Congolese and other mining communities in Africa no512longer experience the horrors that I have personally witnessed.513    Thank you very much.514    [The prepared statement of Mr. Lezhnev follows:]515516    Mr. Smith. Thank you very much. Thierry?517518                  STATEMENT OF THIERRY DONGALA519520    Mr. Dongala. Chairman Smith, Ranking Member Jacobs, and521distinguished members of the committee, thank you for the522invitation to testify on metals, mining, minerals, and how the523CCP fuels conflict and exploitation in Africa. Your leadership524and interest in this topic is timely and warranted, as the525majority of the conflict zones in Africa are around mineral526deposits.527    So, as a due diligence firm that has conducted supply chain528investigations in various countries, ranging from Tanzania to529Sudan, Ethiopia, DRC, Ghana, Cote d'Ivoire, and so forth,530accountable Africa has been on the front lines of steering531investors and traders away from the pitfalls of illicit mining532practices and networks which are ever growing.533    Within saying any names, I just want to thank those534responsible investors and traders that we have worked with over535the past 5 years who have shown the courage to do business536responsibly. All too often our due diligence reports have given537them the tough counsel of having to turn down lucrative African538mineral deals for the sake of maintaining their clean539conscience and protecting their reputation, which for them may540cost.541    We are sure it wasn't easy to explain to their542shareholders, you know, that they had to forgo these steep543discounts and wildcat profits. But I just want to, I just want544to let them know that they maintained not only a clean545reputation and conscience, but they respected the dignity of546the African communities in which they operate.547    I would like to start this testimony, also, with a personal548story.549    When I got married in the Congo, Pastor Dede held our550wedding bands and he kind of weighed them and was, like, this551is real gold I think. After he said, you know, this is real552gold, he held the wedding bands up and kind of had a prayer, a553sanctification prayer, saying, you know, whatever the trail of,554the trail of supply for this gold, these gold rings, may it be555sanctified to start, you know, a heavenly union.556    This kind of surprised me because, you know, I am in the557business of conducting supply chain investigations, and here I558am in a church and the pastor is bringing it up. It kind of559brought to mind how familiar, all too familiar the Congolese560are with the trail of sin and suffering that can follow behind561these minerals: gold, cobalt.562    This is we are talking about an issue that is not far from563the common, from the common man on the streets, whether it is564in the Congo, or in our iPhones here in, in Washington.565    The part that matters the most, I would say, is what is566clean gold? We have so many standards floating out there that567it gives wiggle room for people to, for people to abuse the568systems of certifications. I mean, this is at the source of569what a lot of the conflict and a lot of the exploitation comes570from, because a lot of them are wiggling out of accountability571because they are getting certified. Some people are considering572it clean, and others aren't.573    So, going on to that point of a moral standard needing to574be established in the industry, today we can witness that there575are too many unaccountable and foreign entities that get to576determine what makes minerals clean in Africa.577    My colleague Sasha mentioned LBMA, which is one of the good578bodies trying to do a lot of proactive work. But at some point579these bodies need to come together. UAE has their standard,580LBMA has their standard.581    So, stemming from--stemming the corruption and the conflict582fomented by the bad actors that take advantage of this wiggle583room will require us standardizing that definition of what is584clean.585    I wanted to--don't want to be too verbose, but I kind of586want to share another anecdote.587    You know, today some western, you know, audit firm can588certify something clean and, and, you know, they have never589been on the ground. Or if they go on the ground, it is a show590of, you know, 2 or 3 hours and they, they go, take the goods591and go.592    But I want to say how local fishers in the Congo can have a593different perspective than these audit firms. A local fisher594can look by looking at the--I'm sorry--oh, yes, a local school,595can then start by the local school. A local school can look by596the, local school principal can look by the attendance of the597schools.598    A lot of times when you introduce cash into the gold mines599you start to see attendance levels, especially the primary600schools, dip. The principal could probably tell you if the gold601mine is clean or not, because a lot of his students are going602to the gold mine because there is cash.603    The local fishers also can tell you just by the, just by604the, you know, impact of the fish that they are catching, the605environmental impact.606    This sort of moral standard needs to take into account607local, I would say local mechanisms for judging the cleanliness608of the minerals.609    When governments or communities get serious about enforcing610a standard of cleanliness for mining activity, bad actors can't611operate, as Sasha mentioned. You turn on the light, light is612the biggest disinfectant.613    I like to say when you turn on the lights the roaches614scatter. You know?615    This, you know, this African moral sovereignty that, that616we need to include into accountability standards requires, you617know, the retreat of foreign--not necessarily the foreign or618foreign authorities, but at the same time we need African moral619leadership to rise to the occasion.620    We have seen it with the case of ITSCI where they tried to621establish a standard of, of certification. This was based in622Kigali. But based on the testimony of the witness, this was a623compromised certification process. You know, the Global Witness624issued a report in 2022 that the ITSCI was effectively a625laundromat, how a due diligence scheme appears to launder626conflict minerals.627    So, this is an example where we have these various628authority structures claiming something is clean, and then it629gives wiggle room. Next thing you know they are fueling,630funding conflict.631    I want to recommend two more things apart from632standardization of the moral, of what is clean gold.633    I want to recommend competition. This is something that634doesn't cost the U.S. Government anything.635    Right now there is we are at a stage of all, all pretty636much sanction is our main tool, which is it is effective on the637ground. But I believe that we can do not necessarily all638carrot--all stick and no carrot. I think we could add a carrot639to that stick.640    Under existing authorities, OFAC has authority to license641activities. So, if we could encourage traders to, to apply for642licenses, this would effectively give, bring competition to the643space. Because right now in countries like DRC, Sudan, and all644the others that have network sanctions in place, what happens645is as soon as the sanction system is in place investors and646bankers want to usually finance the mining activities run away,647because they don't have time to decipher between the good and648the bad actors.649    What happens is even the good actors, the ones that are650willing to be accountable, they will run away. Not necessarily651run away, they will run to the only competition that is still652there. That is usually the Chinese and other bad actors.653    If we could establish kind of a licensing channel, which654the authorities exist, where traders can actively, proactively655submit their trading data to OFAC to maintain their licenses,656not only will OFAC be able to stay ahead of the curve of657illicit gold trends, because they will be gathering data, but,658also, we would be rewarding those who are doing good in the659space where there is gold, cobalt, and others.660    In the absence of competition, we have given the market661over to bad actors, including the Chinese.662    The last recommendation, I think it is quite just a663development recommendation. It is supporting industrial energy664projects, like the Grand Inga Dam in the DRC.665    How does that matter?666    Well, doing this will make the economics of exporting667processed minerals to China comparatively costly. Right now the668race for strategic minerals is not for the deposits but for the669refining capacity. China controls over 85 percent of the670world's refining capacity for rare earths. It is because energy671is cheap is China.672    Prioritizing the DRC's launch of the Grand Inga Dam project673will undercut China's export-led growth model that dumps674products and labor in Africa, while also interrupting China's675mineral extraction barter system that circumvents the U.S.676dollar in Africa.677    You know, this, this is really key because if energy is678cheap in DRC and the minerals can be processed in DRC and679transformed, there is no need to send it to China.680    Last, I want to end on a warm note.681    I just came back from Sudan where I conducted another682supply chain investigation. It was during the month of Ramadan.683The mining community I visited in the north didn't have much,684you know, external wealth, but you couldn't guess it from the685amount of food and charity they shared at the breaking of their686fast with me. Though everyone was living through a civil war,687because Sudan, right, a civil war, they all joined in their688hard knock pursuit of gold at the mining site, these689communities maintained the utmost hospitality.690    It reminded me that the mining activity doesn't happen in a691void, but within a social fabric that must be respected. By692visitors, investors, governments alike, this social fabric can693be respected. But we notice that this is a challenge of the694African model in Africa: they don't respect the social fabric695in mining communities, which we can.696    Thank you.697    [The prepared statement of Mr. Dongala follows:]698699    Mr. Smith. Thank you.700    I now recognize Mr. Nguramo.701702               STATEMENT OF JOSEPH MULALA NGURAMO703704    Mr. Nguramo. Thank you, sir. Thank you.705    Thank you, Chairman Smith, Ranking Member Jacobs, and other706members of the House Foreign Affairs Subcommittee on Africa for707the invitation to testify on metals, minerals, and mining, and708how the CCP fuels conflict and exploitation in Africa.709    My name is Joseph Mulala Nguramo. I am a Congolese710national, and I grew up in the war-torn region of Kivu in711Eastern Congo, particularly Goma. I was honored to graduate712from the United States Military Academy at West Point in 2014.713I am currently a nonresident fellow with the Freedom and714Prosperity and Scowcroft Centers in the Atlantic Council.715    I am grateful to the U.S. and the American people for the716great opportunity to dedicate my professional career to the717building of U.S.-African relations, as well as promoting718democracy, freedom, and good governance. I am humbled and719honored to be invited here to share my thoughts on these720issues.721    My testimony will look at the impact of China's mining in722the DRC and the implications to U.S. national security in the723region.724    The DRC's wealth in natural resources is estimated at $24725trillion, representing 70 percent of global cobalt, and proven726reserves of gold, coltan, lithium, copper, and diamonds.727    As long as the Chinese Community Party controls the mining728sector of the DRC, the entire region remains economically729fragile and threatened by civil unrest. The CCP has been730playing a predatory game globally, fueling conflicts and731corruption, encouraging bad governance, emboldening the rise of732autocratic regimes, autocratic and tyrannical regimes, leading733to a significant regression of democracy around the world, as734the Atlantic Council Freedom and Prosperity reports have735demonstrated.736    Currently, the volume of trade between Africa and China is737estimated at $280.1 billion, and is rising steadily by 1.5738percent annually as of last year. Yet, almost all investments739are in the mining and infrastructure sectors, without long-term740benefits to the countries' GDP and the populations.741    Indeed, the CCP routinely operates in shadow of governments742that lack transparency, and care little for human rights and743democracy. I wish to argue that political, political and social744stability in the DRC is essential to U.S. national security.745    In the DRC ongoing civil unrest and unmitigated human746rights crisis, humanitarian crisis, are largely due to China's747ruthless and irresponsible grip on the country's natural748resources. Controlling almost 90 percent of the Congo's mining749sector, the CCP has failed to use its economic and financial750power to defend and promote the rule of law, freedom, and751quality of governance, but has, instead, mastered strategies to752take advantage of a country in chaos.753    China has significant economic interests in the DRC, and to754just, to just name an additional example, in Sudan, and, yet,755the countries are at the precipice of collapsing, becoming756failed states, no different than the current situation going on757right now in Haiti. While the U.S. Government has come to758characterize the ongoing massacre in Sudan as a genocide, I759will focus more on the DRC, because the nature and the760character of the ongoing conflict between Rwanda and the DRC761are of a magnitude to destabilize the entire region and762significantly impact U.S. national security.763    The DRC's minerals have become essential in a world764transitioning to clean energy, and are a key component in765microchips and semiconductors which we use in our critical766infrastructure and advanced weapon systems technology,767including missile defense, fighter jets, satellites,768communication equipment, and the related research and769development.770    Unfortunately, the current DRC Government lacks the771competence and leadership to ensure a safe and a consistent772supply of these products. It has, instead, allowed China to773control its mining sector. Given this situation, the U.S. and774its allies' national security will be experiencing growing775dependence on the CCP's global supply chain. This process will776be precipitated as the DRC and Rwanda are on the brink of a777war, and the stability of the entire region is threatened. The778latest developments in Sudan and the African Great Lakes Region779are cause for alarm.780    The CCP mercantilist model is aimed at securing monopolies781over critical natural resources and to create illegitimate and782unstable political systems in places like the DRC and Sudan,783planting the seeds of civil unrest, violence, and wars. Despite784the dominance in the DRC mining sector, the CCP has failed to785advocate for implementing good governance, defending human786rights, fighting corruption, and protecting fair and good787elections, to ensure sustainable stability and prosperity.788    For example, China demonstrated no interest at all in the789transparency and legitimacy of the DRC's Presidential elections790in the past elections. Not surprisingly, China has remained791silent about the DRC Government's widely understood abuse of792power.793    A similar trend of violence and humanitarian catastrophe794can be observed in Sudan. Despite investing billions of dollars795in oil, China has stood by as Sudan has become a failed State.796China even opposed United Nations Security Council resolutions797to hold the Sudanese Government and the rebels accountable for798the genocide, all in the interest of its own gain. In exchange,799the Sudanese Government backed China's stance on issues like800the Hong Kong National Security Laws and the Xinjiang conflict.801    According to Transparency International's 2024 Report,802Corruption Perceptions Index, about 90 percent of African803countries scored below 50, indicating high levels of corruption804and mediocre governance. Just the Sub-Saharan African alone805scored an average of 33 percent out of 100, making it the806lowest scoring region globally.807    The U.S. Government reports on global business Climate,808religious freedom, human trafficking and rights, support and809document these allegations. China remains indifferent. As long810as China remains indifferent, as long as China empowers811undemocratic regimes for its own gain, the future of democracy812remains fragile.813    Through its Belt and Road Imitative, the CCP controls about81440 percent of global energy reserves. It does so by815disregarding human costs and the nature--the nature of816governments it works with. Just in the DRC alone, China has817come to control almost 90 percent of the producing sector, led818by the Chinese companies such as China Molybdenum, Huayou819Cobalt, and NORINCO.820    The CCP defense contractor NORINCO, as it turns out, also821acquired stakes in the DRC, has been looking to acquire stakes822in the DRC defense and security sector, and has been supplying823weapons and military drones to various participants in the824ongoing DRC conflict.825    China, by failing to control the distribution of military826weapons, continues to fuel the conflict.827    Alternatively stated, combined with its veto power at the828U.N. Security Council, China has failed to use its economic and829financial power in Africa to defend and promote the rule of830law, freedom, and quality of governance, and to help prevent831conflicts. Ultimately, political and social chaos in Africa832benefits China's economic interests by keeping Western833investments and collaboration at bay.834    To conclude, the Chinese model is based on exploiting835Africa's natural resources to the detriment of U.S. national836security interests. Concurrently, it props up corrupt political837systems held in place by predatory and kleptocratic elites who838enrich themselves at the expense of their own citizens. These839systems perpetuate poverty and lead to regional conflicts and840wars, as can be witnessed in Sudan and the DRC.841    The U.S. national security approach countering China in842Africa should be by a bipartisan concern, transcending843Administrations and short, and short-term thinking. The U.S.844needs a comprehensive and a coherent long-term grand strategy,845not just focused on Europe, Asia, and Latin America.846    Africa is the future of the world because of its growing847and dynamic young population and abundant natural resources. I848hope that the U.S. Government and its allies will do their849utmost to avert a regional war in the DRC and bring stability850to the region. There have been years of passivity and inaction851regarding Africa, and the U.S. has been too slow to recognize852how its own national security interests are tied to peace and853stability and economic development of the African continent,854especially Central Africa.855    It is crucial that the U.S. counter China's grip on natural856resources within the region in the interest of its own national857security, democracy, and human rights in Africa. The United858States should take its responsibilities, as the moral global859leader of the international rules-based international world860order. If the U.S. fail to lead, who else will?861    Certainly in the absence of U.S. global leadership and862engagement, the vacuum will be filled by autocratic,863repressive, tyrannical, and authoritarian regimes, as we are864seeing in Venezuela, North Korea, Russia, Sudan, and the DRC,865unfortunately backed and aligned with the CCP.866    I appreciate your attention to these issues and I am867looking forward to your questions.868    Thank you.869    [The prepared statement of Mr. Nguramo follows:]870871    Mr. Smith. Thank you so very much for your testimony and872your insights.873    I would like to now recognize, from Zimbabwe, Mr. Bore.874875                    STATEMENT OF OBERT BORE876877    Mr. Bore. Chairman Smith, can you tell me if you can hear878me?879    Ms. Jacobs. We can hear you. Thank you.880    Mr. Bore. Thank you.881    Chairman Smith, Ranking Member Sara Jacobs, and882distinguished committee members, I appreciate this opportunity883to testify before this committee on metals, minerals, and884mining, and how the CCP fuels conflict and exploitation in885Africa.886    I am indeed honored to appear before you today.887    I serve as a Program Lead on Responsible Business and888Investments of the Zimbabwe Environmental Law Association, a889public interest law organization with over 20 years of using890the law to promote equitable----891    Beg your pardon?892    Ms. Jacobs. You can keep going.893    Mr. Smith. Please continue.894    Mr. Bore. Thank you.895    As I was saying--there is a buzz, I think.896    Mr. Smith. Not on our end, but on yours?897    Oh, good.898    Mr. Bore. I serve as the Responsible Investments and899Business Program Lead for an organization called Zimbabwe900Environmental Law Association, which is essentially a public901interest law organization with over 20 years of experience902using the law to promote equitable, just, and sustainable903natural resource management, economic benefits, and protection904of the rights of marginalized communities in Zimbabwe and the905Southern Africa region.906    Before I share my insights and perspective on what drives907conflict and exploitation in the mining sector of Africa, allow908me to provide some context and why Africa is a key player in909the global mineral supply chains.910    I think I don't have to tell you that I am alluding to the911fact that Africa is endowed with abundant mineral resources.912The continent actually is home to an estimate of 30 percent of913the world's mineral reserves, with 8 percent of natural gas, 12914percent of the world's oil reserves, and 50 percent of the915world's gold, as well as 90 percent of the global chrome. With916these abundance of metals and minerals, the sector is actually917the backbone of several African economies, and continues to918generate significant foreign currency and revenue, as well as919creating opportunities for employment.920    Forty-two out of 54 African countries are classified as921resource dependent. This isn't normal. This tells us that the922entire African continent depends on these minerals for revenue923generation.924    According to the African Union's Africa Mining Vision,925recognizes the potential of mining in driving broad-based926economic development on the continent.927    In terms of critical minerals required to transition to928renewable energy and meet the planet's goals, Africa also929occupies a strategic position. The continent holds about 70930percent of the world's cobalt, 60 percent of the world's931manganese, 25 percent of the world's bauxite, and nearly 15932percent of the world's copper, among many other critical933minerals.934    Zimbabwe, where I am from, where I was born, has the935largest lithium reserve in Africa and sixth in the world, as936well as the second largest chrome deposits in the world. Thus,937without a doubt, mining continues and should drive economic938development of the continent.939    However, while mining presents great economic opportunities940for development, it has not been, you know, easy for the941continent to harness and maximize benefits from these metal942resources. The sector has been blocked by governance challenges943due to structural problems, there has been years of corruption944that has remained a significant barrier to responsible945investments in sustainable mining.946    Several companies, both Chinese and non-Chinese, have been947implicated in corrupt practices to secure mining concessions.948You all know of the cases of Glencore where they accepted to949pay fines as a result of using bribes to, you know, secure950mining and oil contracts in multiple African countries.951    We also have companies like Bollore, a French company, that952was fined 12 million for corrupt charges in Togo.953    Similarly, Chinese entities like China Nonferrous Metal954Mining Corporation, as well as China National Oil Corporation,955have been implicated in corruption in both Zambia and DRC, and956even in Nigeria. While these are just examples of large957corporations implicated, they are not the only bad guys. They958are simply the ones which were caught on the wrong side.959    For years, places like Kivu in the Congo have been960afflicted by conflicts intricately linked to its vast mineral961resources. Various actors, including multinational962corporations, have also been implicated in activities that963exacerbate these conflicts. Some of the major tech companies964from the U.S., Apple, have also faced some scrutiny over the965potential use of conflict minerals, such as tin, tantalum,966tungsten, and cobalt from DRC.967    Linked to these governance challenges fueling tensions and968conflict among communities and mining corporations, African969countries have outdated mining laws which create loopholes that970foreign entities can exploit. For instance, Zimbabwe uses a9711961 piece of legislation that was created at a time when the972country was under colonial rule. As an organization, as a973mining and metal organization, we have been advocating for974reform of the Mines and Minerals Act to include provisions for975higher standards for transparency in how mining rights are976awarded.977    So, essentially, many African countries, you know, they978have weak regulatory frameworks that do not reflect the979changing global contexts that require higher standards of980environmental, social, and governance requirements.981    A case is point is where a Chinese company by the name982Nikita Minerals, which operates the largest lithium project in983the world, and the largest project in the world and the largest984in Zimbabwe, polluted a major community dam and was merely985fined 5,000 U.S. dollars, a figure that neither reflects the986environmental harm nor impact on the community itself.987    There was a similar case in Zambia, which I am glad Member988Sara Jacobs mentioned earlier, in Zambia where the company was989simply fined 10,000 for environmental pollution, despite the990enormous environmental public damage that resulted from that991pollution.992    So, beyond regulatory gaps and weak institutions,993challenges in the sector are coupled with high levels of994unemployment on the continent, which creates opportunities for995predatory employment practices where companies tend to employ a996vulnerable labor force which is often exploited easily, as they997are desperate for jobs. In the DRC, Zimbabwe, Zambia, and many998other countries, both Chinese and Western companies have been999accused of underpaying workers and failing to provide adequate1000safety equipment, providing a workplace, you know, safe1001equipment.1002    We know of several workers whose employment contracts have1003been terminated for seeking to enforce their constitutionally1004guaranteed labor rights.1005    Another important factor aiding the exploitation of1006Africa's minerals is the continent's desperation for investment1007to finance development. This has resulted in several resource-1008backed loan agreements being signed, where African governments1009have been exchanging mining rights or mineral resources for1010infrastructure development.1011    In theory, if the borrowing process is carried out1012transparently and effectively, and if the loan has favorable1013terms, and the infrastructure projects are well selected and1014executed, the transaction would be expected to generate1015positive returns for the borrowing countries. However, this is1016not the case.1017    As of 2018, more than 11 African countries had signed1018resource-backed deals with Chinese financial institutions whose1019terms are often opaque and result in unsustainable debt levels1020and exploitation of natural resources. A case in point is1021Angola's deal with Export-Import Bank of China which raised1022serious concerns about transaction ability.1023    For China, it is evident that it is strategically using its1024financial muscle through resource-backed loans to exploit1025natural resource and court African governments into sweet deals1026which are difficult to turn down, as they are difficult to turn1027down, as most African governments require funding development.1028In some instances, the opaqueness of these deals have resulted1029in some governments actually questioning efforts due to, you1030know, those contracts.1031    As the scramble for critical minerals intensifies and draws1032our attentions, it is evident that the resource-rich countries1033are more prone to conflict and social instability that are1034linked to their mineral resources. One of our recent studies in1035Zimbabwe, Mozambique, and DRC has revealed several instances of1036forced displacement linked to extraction of critical minerals1037resulting in social unrest and violation of human rights.1038    For instance, in Zimbabwe Chinese lithium mining projects1039in areas such as Buhera, Kamativi, Nikita, and Gwanda, have1040contributed to social tension due to local real intangible1041community benefits, as well as unfair labor practices.1042    As if that is not enough, these mines increased competition1043over water between communities and companies, given that the1044purpose of processing high worth lithium is water intensive.1045    I might mention, worked lithium foundries in Zimbabwe is1046concentrated, is concentrated in water-strained regions, which1047makes it very, very difficult for companies to extract the1048water, but also increases competition with communities to use1049water that they need for everyday life.1050    A study by the Business and Human Rights Resource Centre on1051the impact of China's global investments in--investments on1052human rights, between 2013 and 2020, shows that Africa has the1053second highest number of human rights abuses that are recorded1054against Chinese companies. In the fact of these violations,1055communities impacted struggle to access remedies and seek1056redress because of captured judiciaries.1057    Furthermore, several Chinese mining projects are linked to1058cases of forced displacement. For instance, a BYD-sponsored1059project by Shenzhen Chengxin Lithium Project in the eastern1060part of Zimbabwe has been hailed as a good example for1061responsible mining project, yet, several communities from this1062area were not adequately compensated and there was1063displacement. In places like Cabo Delgado in Mozambique, there1064have been serious tensions as a result of projects like Total1065Energies who have been exploiting.1066    So, evidently, it is not only the Chinese who are1067contributing to fueling conflict and exploitation of Africa's1068mineral resources, there are several other companies that are1069not Chinese that are also, you know, complicit.1070    In coming to my conclusion I also make four recommendations1071on what the U.S. Government can do.1072    One of the key things we think is important is to review1073the engagement strategy with Africa that is going to secure1074critical minerals to ensure prosperity.1075    African governments are now inviting exports for1076unprocessed minerals in line with the recently launched Africa1077Agreement on Strategy, which was just launched in Ethiopia and1078Addis Ababa last week. The idea was to compel initiation and1079validation of projects on the continent. This provides an1080opportunity for the U.S. to strategically provide the requisite1081schemes and knowledge by setting up refining plants in1082partnership with African actors.1083    Second, while the U.S. Government is currently engaging1084with the DRC for a deal for critical mineral security it should1085expand its engagement codes of, you know, dealing with Angola,1086DRC, and Zambia, of course and other, including other cases.1087    But one of the key things we know is that need for1088technical assistance around responsible mining, traceability,1089and responsible standards. Zimbabwe, as many African countries,1090are looking for potential partners to break the cycle of1091Chinese dominance. It is important for me to highlight that due1092to sanctions for countries like Zimbabwe, they felt abandoned,1093and China took advantage.1094    In some context it was of the desperation to look for the1095lowest suitor available, China became one of the investors that1096was there for the country to, you know, allow mining deals.1097    So, I think we need to ensure that the U.S. Government1098rethinks its sanction regime in countries like Zimbabwe because1099when sanctions were imposed by the U.S. Government, it created1100a void in companies that are disinvested, created an1101opportunity for a Chinese company. So, I call upon the U.S.1102Government to also look at its sanction regime on Zimbabwe.1103    Third, I think my colleagues before me have already talked1104about providing alternative markets, and diversifying the1105investment portfolio for the continent.1106    But my last recommendation is supporting democratic or1107democratic governance actors, particularly NGO's that are1108working to improve the regulatory frameworks and enforcement1109capacity around State institutions. Because the role of civil1110society in exposing corruption, human rights abuses, cannot be1111understated. It is crucial for the U.S. Government to rethink1112again foreign funding toward institutions, and for U.S.1113companies just three key recommendations.1114    U.S. companies that are contemplating investing in Africa,1115they should set higher standards for environmental, labor, and1116governance. This is crucial for them to manage reputational1117risks and also avoid clashes with the local populations. It is1118vital for us to ensure that we have something to compare with.1119    Currently in countries like Zimbabwe, for instance, there1120is nothing to compare with. So if we say Chinese are bad, but1121there is not a lot of western investment that can be compared1122with for say the best practice or the benchmark, U.S. companies1123should also ensure that with their investing in Africa,1124communities are benefiting from these natural resources by1125putting in place community benefit sharing mechanisms on1126corporate social responsibility. This has been done somewhere,1127and it has worked.1128    Last, I think I want to emphasize due diligence as a key1129recommendation, that there is proper due diligence when1130communities where the minerals are being extracted are actually1131consulted in the process of order. I think the colleagues1132before me have mentioned how some of the actors are not1133inclusive, you claim that a company is undertaking due1134diligence setting up in Europe or the U.S., communities where1135the mineral is coming from have actually not been consulted.1136    In conclusion, the U.S. has an opportunity to initiate and1137enter into critical minerals deals in a transparent manner,1138with higher ESG standards, and provide alternatives to counter1139Chinese dominance. With better options and alternatives,1140African governments may begin to see how certain deals,1141resource deals with Chinese are predatory and not beneficial1142for Africans. This can also serve as an example of how1143responsible investments can be done.1144    Thank you.1145    [The prepared statement of Mr. Bore follows:]11461147    Mr. Smith. Thank you so very much for your testimony.1148    I have a million questions, but I will save two because we1149do have such a great turnout for this hearing, underscoring the1150importance so that members on both sides of the aisle1151contribute to it. So, I will come back and ask other questions1152in the second round and anything else we would like to do then1153as well.1154    In 2008 I traveled to Goma when very credible reports1155surfaced that U.N. Peacekeepers were raping young children as1156young as 12 and 13, bribing them, and for a meal were1157exploiting them sexually. I went over there.1158    I chaired four congressional hearings on the issue. Kofi1159Annan issued his zero tolerance policy, which sounded good. Jay1160Harold Loop from the U.N. came and testified. Very well-meaning1161and he was very sincere. But it didn't vary at the lack of1162enforcement of the zero tolerance policy. I held an additional1163hearing about zero compliance with the zero tolerance policy.1164    Because, again, words are great. Policies are great. But if1165they are not enforced, they are close to being meaningless, if1166not worse, because they give a false sense of hope.1167    This year's Trafficking Victims Protection Act, the report,1168the TIP Report for 2024 in the Congo points out, and I quote,1169that in 2020 ``the DRC's Minister of Human Rights issued a1170decree increasing oversight of mining communities, including a1171zero tolerance policy for forced child labor in the mining1172sector.(1173    However, the Government did not report certifying any mines1174or identifying any potential victims during the reporting1175period. Very disturbing. Again, well-meaning, but what happened1176with regards to implementation?1177    If our witnesses could speak to that because, you know,1178these artisanal mines are catastrophic for children, obviously1179the other mines, when you have forced labor. One of our1180previous hearings on this very issue pointed out that the1181children are not getting--they shouldn't be there in the first1182place, it is child labor, it is a violation of human rights,1183their rights, but they also don't have the right kind of1184protection.1185    They are breathing in dust as they are in the case of1186cobalt mining. They get very sick. Some die, but many get very,1187very sick. The long-term consequences are absolutely1188deleterious to their lives.1189    So, if you could speak to that.1190    Parenthetically, along the same lines, you know, the GAO,1191General Accountability Office or Government Accountability1192Office, issues a report on section 15.02 of the Dodd Frank Act.1193It pointed out that in 2023, 62 percent of the companies did1194perform due diligence to determine responsible sourcing of1195conflict minerals, and they were unable to determine the1196mineral source.1197    So, again, things were blocked. Well-meaning but it1198doesn't.1199    Finally, I will just point out, you know, I have been very,1200very concerned. Because I chaired 106 congressional hearings on1201human rights in China. I did chair the China Commission. I am1202shocked at how they exploit their own labor, how they, you1203know, whether it be in Xinjiang or anywhere else. You know, the1204use of forced labor is prevalent throughout all of China.1205    That same mind set and that same sense of exploitation was1206carried right into Africa as they procure things like cobalt1207and, again, child and adult forced labor.1208    What is it all about when it comes to cobalt? You know,1209China's share of the global electric vehicles in this past1210year, or 2024, skyrocketed to 76 percent. A fourth of all the1211EVs in Europe are coming from China. So, this is all about1212making more money on the backs of children, African children,1213and on the backs of their parents.1214    So, if you could speak to those issues, you know, including1215this lack of real due diligence, lack of enforcement of a zero1216tolerance policy that sounded great when it was issued.1217    Mr. Nguramo. Thank you so much, Chairman Smith. I think you1218just characterize it correctly. We need to be--I think we need1219to be very demanding it terms of accountability, zero tolerance1220policy.1221    From my modest experience living in the U.S., I know we1222mean well. We try to help. We try to help. But we really have1223to be very direct, particularly in places like the DRC, because1224in this country, they are actually the officials who are1225supposed to enforce the laws and the policy in their countries.1226    So if they can do that, we can do that. So I'd like to say1227that, yes, we have put a lot of pressure on the officials in1228these countries to make sure they're actually enforcing their1229own policy and their laws and punish actually people who are1230doing bad stuff. Thanks.1231    Mr. Dongala. I just wanted to encourage--I thank you for1232the TVPs question because I'm going to share industry kind of1233trick that I've been using that has helped us. So we've been1234monitoring, like I said, the school attendance levels. That1235data is very valuable because we know that if we start to see1236the school attendance levels to drop, we need to start looking1237for where these kids are going.1238    So I think the future TVPs report should find a way to1239include these data points of attendance levels in mining areas,1240something worth monitoring, because from an industry practice1241of due diligence, I use it to say, Okay, look, we need to start1242looking at this. Then from a due diligence side, the big issue1243is that due diligence is seen as a western demand. There's no1244local buy-in, in due diligence.1245    But if we can translate this due diligence demand locally,1246like the example I use of Pastor Dede, you know, about the--1247that notion exists locally. But if you can get buy-in from,1248like I say, whether it's the local school principal, the local1249fisher's union, the mothers of the children, they do have buy-1250in on the environment. So that being said, I think if we get1251more of the local mining communities involved in due diligence1252processes and even getting their signatures on the1253certification, it will render more effect. Even enforcement1254because then the community will be, like, you don't have our1255certification. Why are you here? So yes.1256    Mr. Lezhnev. I would just add that it's the systematic1257kleptocracy that is the heart of exactly what you're talking1258about, Chairman Smith. I met a mining inspector in the DRC who1259told me, frankly, I live on the back of the local population.1260I'm incentivized to get money from them and then pass the money1261up the chain. Otherwise, they'll replace me here.1262    To change that system, you need transparency,1263accountability, and incentives for a clean trade. I think the1264legislation that you highlighted needs to be kept because it's1265a baseline. Without that, you have the free for all that we had1266before when you visited in 2008.1267    A whole group of Congolese Civil Society Organizations,1268over 100 of them wrote during the first Trump administration1269saying, if you repeal this Conflict Minerals Act that they1270would be reactivated, the terrorist networks and the armed1271groups, which would be very bad. But it needs to be1272supplemented by other measures to incentivize responsible1273investment like Thierry mentioned which is very important.1274There is such a thing as a Burma responsible investment1275reporting requirements.1276    We can follow on that. We can have awards for responsible1277investment from the State Department and others. Then we need a1278better system to trace these minerals that is much more1279accountable and transparent.1280    Thierry highlighted this ITSCI system that has failed and1281the responsible minerals initiative suspended them. Unless1282there are seriously reformed to replace, that really needs to1283be much more transparent on the ground. We need a better system1284for gold which we talked about, only those kind of things, plus1285incentivizing legal artisanal mining.1286    Then if it's legal and following the law, our children will1287not be there, at least of a certain age. So I think those kind1288of things can help. Thanks.1289    Mr. Smith. Mr. Bore.1290    Mr. Bore. Thank you so much the question. I think for me1291there's a cocktail of tools that can be utilized to address the1292problem. My colleagues told me--they mentioned importance of1293due diligence. When you look at due diligence in most cases, I1294think 2 month ago, I visited a lithium project. It's a project1295owned by a Chinese company by the name Sichuan Zhiyuan.1296    Basically this company, they have a joint venture with the1297Zimbabwean government. They're mining lithium. You get into1298their community and they ask them, have they ever been1299consulted about this project that has been exploited by this1300company.1301    Most of them, they have never been consulted. But there is1302an environmental impact assessment report that was approved by1303EMMA which is the regulator. You start asking so how you do1304have legislation that requires environmental management agency1305to sort of approve only if there's consultation that are1306inclusive and communities have not been consulted.1307    So you see that institutions, they might not actually be1308implementing the law that exist. You have institutions that are1309not necessarily doing their duty and the law exists. Then you1310send a--you're asking these guys. So where are you sending your1311lithium to? Who are you buying?1312    They start telling you, we are selling to companies like1313BMW to LG, to Tesla. Some of them were even saying Tesla was in1314Zimbabwe doing due diligence. I live there. The company I go1315to, the community, if you ever heard of the company by the name1316of Tesla here.1317    So one of the key things that I need to insist, when tech1318companies are doing due diligence, they shouldn't just rely on1319the data that they get from the mining companies themselves.1320They have to go to the traditional leaders in the area. The1321local leaders will give them more information about how their1322community members are being impacted by the project. I'll end1323it there. Thank you.1324    Mr. Smith. Thank you. Ms. Jacobs.1325    Ms. Jacobs. Thank you. As we've discussed already, there is1326a long history of exploitation in the mining sector on the1327African continent. Exploitation has emanated from not just1328Chinese companies but from other foreign companies too.1329    So if we're serious about preventing and addressing1330exploitation in this sector, we need to address the core1331drivers rather than just focus on one specific actor. So Mr.1332Bore, I was hoping you could explain why exploitation and1333corruption is so rampant in the mining industry. Why are so1334many companies able to take advantage and often get away with1335corruption, exploitation, and diversion of minerals?1336    Mr. Bore. Thank you so much for that question. For me, I1337think exploitation and corruption in the mining sector is a1338systematic issue that is driven by a combination of factors,1339both governance challenges, lack of regulatory enforcement,1340power imbalances between the states, the west government and1341also the multinational companies. In most instances,1342multinational companies are able to negotiate bills because of1343the power imbalances.1344    In many African countries, mining operations are taking1345place in a politically unstable and economically very fragile1346environment where institutions are very weak and oversight1347mechanisms are sometimes compromised. So there are a number of1348factors and why companies are exploiting. I mentioned earlier1349on during my address the issue of resource backed loans.1350    I think it's one of the key things that we have noticed was1351almost all the loan agreements that are extended to African1352governments by Chinese financial institutions, they are not1353known in the public. No one can scrutinize them and minerals1354are collateralized for future mineral production. But no one1355really knows.1356    Even the estimate of the value of the minerals that are1357being collateralized for purpose of infrastructure development.1358So that's one of the key factors. I think if African countries1359could have access to credit and not use resource backed loans1360as a strategy to get access to finance and development, we1361could, I think, break the cycle. The other thing is regulatory1362capture. I think this point has been overemphasized. Thank you.1363    Ms. Jacobs. Thank you. Mr. Lezhnev, anything to add?1364    Mr. Lezhnev. Thanks for the great question. I would say two1365reasons: lack of transparency and lack of real accountability.1366You highlighted the excellent case that the U.S. Government1367sanctioned UAE-based gold refiner for sourcing from the Rapid1368Support Forces in Sudan.1369    That's just the tip of the iceberg. That was one company.1370There's a whole supply chain there of RSF companies and UAE-1371based companies that are trading tens of tons of gold per year1372and fueling that conflict.1373    We need to go much more--much deeper and much more robustly1374into those networks to hold them accountable. I think No. 2 is1375there needs to be transparency to level the playing field for1376all companies. So the extractive industry's transparency1377initiative is a great example of that.1378    Chinese, Russian, whatever company is extracting minerals1379in that company has to play by those rules. Now there needs to1380be better enforcement of the EITI standards. So for example,1381they now require contract transparency. Only 26 percent of the1382countries implementing this contract transparency are actually1383fully disclosing all the contracts. DRC is a great example of1384that.1385    There needs to be more followup on that transparency. But1386once you level the playing field, then you can really start to1387eliminate some of that exploitation. So I think we highlighted1388some of the ways.1389    On that transparency front, the gold trade data right now1390is 2 years old if you're trying to get access to this. The1391sanctions bodies are just playing catch up with people with1392these smugglers, very few of whom have been sanctioned. We need1393a much better system.1394    The industry is developing this thing called a gold bar1395integrity initiative which the U.S. Government needs to work1396together on them. We should not be behind this curve. We should1397be working with industry to help lead these initiatives.1398    Ms. Jacobs. Thank you. Since you brought up the role of the1399UAE gold trade in Sudan, I just want to highlight that in 2022,1400over 30 billion dollars in gold was smuggled from the African1401continent to the UAE. This illicit trade has fueled conflicts1402in the DRC, South Sudan, and Sudan where UAE-based companies1403have purchased gold from the RSF as we mentioned who is1404committing genocide.1405    You talked a little bit about how the U.S. can take more1406actions against UAE-based companies. Could you elaborate on how1407the U.S. should hold these companies accountable? Beyond in1408Sudan where it's become very clear the role that the UAE is1409playing, what other concerns are associated with Emirati mining1410companies involvement in the mining sector?1411    Mr. Lezhnev. Sure, yes. Great question, and thank you for1412highlighting that and for your leadership on this issue. We1413really need a better system to independently monitor global1414gold trading centers. The UAE, Hong Kong, Switzerland, Brazil,1415there are certain choke points where illegal gold, whether it's1416from Venezuela, Sudan with genocide happening, Congo, et1417cetera, are going, right?1418    The Kimberley process for conflict diamonds actually1419provides a useful window into how to do this. So they have1420independent monitoring teams that can go and inspect and1421certify these global gold trading centers, especially these1422cash for gold markets. If you're trying to buy--if you're1423trying to sell gold in the UAE or some of these other places,1424including Hong Kong, you can just get cash for a slight1425discount and nobody is really following up.1426    I think it was would be a great opportunity for Secretary1427of State Marco Rubio to help lead this with industry who1428actually put pressure on the UAE and other gold trading centers1429in 2020. Then basically those centers did almost nothing. Now1430that pressure has been backed off.1431    I think it's imperative on industry to hold these global1432gold trading centers' feet to the fire and also for banks to1433conduct enhanced due diligence. They have a key role to play.1434These centers need finance and banking systems. Banks can play1435a key role in that.1436    Ms. Jacobs. Thank you. I yield back.1437    Mr. Smith. Thank you. Dr. Jackson.1438    Mr. Jackson of Texas. Thank you, Mr. Chairman. On Sunday, I1439just returned from a visit to the DRC. I went to the DRC,1440Rwanda, the Republic of the Congo, Burundi, and Uganda.1441    I met with the President in the DRC, the President in the1442Republic of Congo, the President in Burundi, and the President1443of Rwanda. I left encouraged in some ways and discouraged in1444other ways as you can imagine. I feel like that there is1445unbelievable potential in the area for peace and security and1446for the killing and the bloodshed to stop.1447    The resources there are just through the roof and tens of1448trillions of dollars in resources. DRC could be one of the1449wealthiest countries on the entire planet. But I do believe1450that certain things have to happen, and I don't know exactly1451what the answer is to get there.1452    I think that for this to exist, the eastern DRC has to be1453an area where everyone has a vested interest in the safety and1454security and the ability for foreign companies to come in and1455invest in the area. When I say everybody, I mean the DRC, I1456mean Burundi, I mean Uganda and Rwanda, everybody that's there.1457We all know right now that the eastern DRC is a completely1458ungoverned area.1459    It's like the wild, wild east, right? I truly believe that1460there is no ability for the government in Kinshasa to actually1461control that area right now. They do not have the resources or1462the ability to really, like, impact what's happening there.1463    They are actually becoming in my mind just another entity1464there that is trying to take advantage of the resources there1465and get what they can. Everyone is doing it. We know this,1466right? We know that Uganda is bringing minerals in from there.1467Rwanda is doing it. Burundi is doing it. Everyone is doing it.1468There's really nothing there to stop them.1469    I think that the Congolese government has to do a couple of1470things. One, they have to address the domestic issue, right?1471There are a large number of people in the Congo that are not1472Congolese citizens. They are not treated as Congolese citizens,1473including most of the members of M23, so on and so forth.1474    Now M23 is a rebel group, and we know that there's an1475influence there and there's a component of the Rwandan Defense1476Forces, the Rwandan military. But honestly, M23, with or1477without Rwanda right now, is pretty much uncontested in the1478area. They're just doing anything they want right now, and the1479Congolese military is not even fighting back right now.1480    As a matter of fact, they're just running away ahead of the1481M23. Or in some cases, they're laying down their weapons and1482they're joining M23, right? So I think that the Congolese1483government is in a bad position here.1484    But I do believe it's been a longstanding issue. It's my1485understanding that there are certain people in the eastern DRC1486that are unrecognized as Congolese citizens. That may be in1487part because this used to be Rwanda before the lines were1488redrawn many years ago, and that used to be part of Rwanda.1489    But I would submit to you that there's a large part of1490Uganda that also used to be Rwanda as well. After it's been1491redrawn, now it's Uganda. Those people were immediately1492assimilated and treated as Ugandan citizens.1493    But that has not happened in the DRC. I think that's part1494of the problem. I think that this domestic issue has to be1495addressed, that everyone in the region, everyone in the country1496has to be treated as a Congolese citizen with all the rights1497and privileges of such.1498    I think that this is a difficult thing to do. But I think1499at some point, the armed resistance of M23 are not going to1500just put down their weapons and walk away. I think that they1501are an armed resistance.1502    There has to be an effort somehow to incorporate them into1503the Congolese military and make them feel like Congolese1504citizens that are protecting their country, not that's going on1505right now. I think that's one of the problems. I think the1506other problem is that they have the domestic problem and they1507have international problem obviously, which mainly focuses1508right now around the relationship with Rwanda.1509    I think that there has to be an ability for Rwanda and the1510President. I talked to Kagame. I talked to Tshisekedi. I talked1511to both of them, and I think that one of the biggest problems1512right now is personally they can't get along.1513    I think that at some point people have to put their1514personal differences aside. This has to be a region that's1515beneficial for everybody, that everybody sees profit and1516everybody has a reason for that to be an area of stability,1517right? I think that--I don't know the answer to this for sure.1518    But the neighboring countries have to benefit from the1519minerals that are in the eastern DRC as well, whether that's1520they have some refining capability and the minerals are mined1521there and refined elsewhere. Or there's a refining capability1522in the DRC, refining capability in Rwanda. Everybody has an1523ability to make some money from what's going on there.1524    Then I think everyone will have an interest in making sure1525that this is a safe and secure area. They're going to need1526foreign investment to come in. They're going to need other1527countries' businesses to want to come and operate there.1528    Right now, that can't happen because there's not the1529required level of safety and security. There's not the lack of1530corruption. There's going to be a certain level of corruption1531everywhere you go.1532    But when I was there, I was shocked at the level of1533corruption there. I talked to a Swiss company this morning, and1534they told me that their company was worth something like 181535billion dollars. They got a tax bill last year for their1536company for 18 billion dollars which is ridiculous, right?1537    They protested it and they got it reduced to a billion1538dollars which is still hundreds of times more than the profits1539that they make in a year. So they're being taxed at an1540unreasonable rate. Bribes obviously are a big deal.1541    The Chinese can afford to pay the bribes or they're willing1542to pay the bribes. We as the United States are not. Many1543countries are not willing to do that, so they end up being able1544to compete without competition.1545    There's a biased justice system as well. You can never be1546assured that if you go there and you get into some kind of1547legal disagreement that it's going to be a fair judgment and1548it's even going to rule in your favor if you're in the right.1549There's manipulated exchange rates.1550    There's unreasonable fines. There's evidence everywhere1551that members of the government and their family are getting1552filthy rich from what's going on there while the population1553there is starving and living in a horrible environment. I think1554that we have to come up with a way to fix this.1555    I think that until that happens, a lot of this other stuff1556is not going to matter. I don't know the answer to this. But I1557would like to get your opinion, each of you. Do you think that1558in the current situation that we're in that--and obviously,1559there's other issues too, I just want to mention too just for1560the record.1561    But there are some--it's not all financial. Now I think a1562large part of it's being driven by the financial benefit from1563the minerals there. But I do think that there are other issues1564at hand too.1565    I do think that Rwanda has a legitimate concern regarding1566FDLR and the terrorist threat on their border as well. They1567have a tourism industry that they have to protect. It's up in1568the northwestern part of their country that's right on the1569border with population centers there.1570    If mortars and rockets start landing there, there's no more1571tourism there. I saw maps and you know this because you're from1572there, from the area, you've been there, some of you. The city1573of Goma, it's on the border and it's one continuous city that1574goes into DRC and there's no differentiation.1575    So there has to be some level of security in that regard as1576well. So we need to figure out how we get these governments1577together and we come up with a reasonable way that everyone can1578profit financially from partnerships there so that they all1579want to see a level of safety and security there and that1580everyone feels secure because everyone is fighting some type of1581rebel group as well, whether it's ADF and the Islamic group1582that Uganda is engaged with or whether it's FDLR fighting to1583overcome--M23 fighting to overcome FDLR, so on and so forth.1584    But my question is, do you guys--and one at a time I'd like1585for you to answer me. Do you think that the current existing1586government in the DRC has the ability to do what I'm1587describing? Mr. Nguramo, do you want to start?1588    Mr. Nguramo. Thank you, sir.1589    Mr. Jackson of Texas. If not, what do you think the answer1590is----1591    Mr. Nguramo. Sure.1592    Mr. Jackson of Texas.--in brief terms?1593    Mr. Nguramo. First of all, thank you so much for you1594attention to this ongoing crisis in the Congo, in the region. I1595appreciate very much bringing the attention to this conflict.1596But this crisis been going on for decades right now.1597    I feel very fortunate to be here in the United States. But1598all this time, I think about my fellow citizens, in particular1599in Goma. When I look at this problem, I think finding a1600solution is possible.1601    Let me use a story. When I was at West Point 10 years ago,1602I was actually with Rwandans cadets and hope they listen to me.1603We went along very well, very, very well. Actually, we're1604actually good friends. So in other words, peace is possible in1605that region.1606    I just hope that the leaders, particularly DRC, they1607understand that it's possible. I really agree what you just1608raised. Yes, sir. There's a lot problems on the DRC side,1609especially rampant corruption and bad governance.1610    But at the same time, the DRC side as well has to1611understand the problems of the Rwandan concerns which is true,1612absolutely true. If you look at the U.N. reports that have been1613coming out the past 4 years, with absolute evidences, there1614were collaboration between the senior FARDC officers with FDLR.1615I'm not making this up. It's in the U.N. report.1616    Why did the USA government and especially the DRCG tolerate1617that? Now you see the consequences. On the other hand, for1618example, the resources along those lines, I think there's a lot1619of existing mechanisms, economic/political. We just need to1620enforce them so that they can bring regional stability.1621    For example, which I think is quite frankly one of the best1622things ever. If the regional country actually focus on it,1623these agreements. Keep in mind these agreements came right off1624the M23 again.1625    Simply the regional country and particularly the DRC1626government had to focus on implementing those policy1627recommendations that were in that agreement, including firing1628the corruptions, implementing good governance, and the security1629sector reform. But what we have seen over the past, let's say163010 years, I think is this year, this agreement was signed.1631Really, we saw little progress.1632    Now people can argue, the President Tshisekedi has arrived.1633He has not much time. But come on. Seventy years I think are1634enough to show what to do or the limits of what they (Felix1635Regime) can do.1636    But I'd like to think that--in particular to come back to1637your question. I like to be optimistic. But I'm not seeing any1638positive sign from the DRCG/Kinshasa particularly to try to1639address some of the root causes of how this conflict has come1640so bad to the point of bringing the region again back to the1641mess we saw back in 1990's.1642    Particularly because--and again, I point out the U.N.1643reports which are very, very--actually, I always like it when1644all side contests the report. It means it's credible. It's1645correct because it's not point to one side, yes.1646    For example, when the Goma collapsed, if anybody was1647reading quite carefully and objectively what's happening behind1648the scene, it was predictable. It was really predictable. For1649many reason, I know there was no military strategy. It was1650looting strategy in place.1651    It was just some kind of maybe a looting system from the1652DRC elites in Kinshasa. So tried to do what is correct. But1653anyways, sir, I'm optimistic. I'm very optimistic. I hope that1654President Kagame, Tshisekedi all the efforts.1655    I saw their meeting in Doha, I think. I hope it goes1656somewhere to find solutions. But most importantly, I'd like to1657really emphasize on Washington, sir. Washington, most of these1658guys are looking at the Washington leadership.1659    They're looking at particular Trump administration, what1660they're going to do. We have the G20 summit coming up in1661November. I really hope the Trump administration would be1662engaged.1663    I think it did not look good for all the leaders in the1664world to be in Johannesburg or Cape Town with the mess just in1665the backyard. So we still have some time, I think, to do what1666we can and somehow bring to a successful conclusion, along1667those lines. Thank you.1668    Mr. Jackson of Texas. Thank you.1669    Mr. Dongala. Thank you, Doctor, for your engagement on this1670issue. I see you've really been boots on the ground there. I1671have conducted due diligence in DRC for about 4 years. Up until1672now, I still have not been able to approve some of the traders1673and investors that wanted to go there.1674    They're mad at me. But I'm doing my job. I think that goes1675to answer your first question about the ability. Christ said1676you judge a tree by its fruits. The past 7 years, the fruits1677have not been tasteful.1678    So what I would say is the--as far as the answer to that1679ability, I think the President himself, President Tshisekedi,1680is juggling with that question. I think he's come to terms that1681he hasn't had the ability. He's talked about a government1682reshuffling.1683    If there's a government reshuffling, that shows a drastic1684change in difference. Perhaps that would embolden my answer to1685say, yes, give him a chance, another chance to show their1686ability. Then apart from that, I would say where the U.S. can1687play a role in helping with the ability, one thing the U.S.1688really does well is business and even business between states.1689    The U.S. could help broker this business deal between all1690the parties. Me being in the industry space, I'm seeing this1691trend that I'm briefing Treasury on it every once in a while.1692Central banks are getting involved in the--and all over Africa,1693you're starting to see central bank gold purchasing programs1694happening.1695    So now in Tanzania, their central bank is purchasing gold.1696Ghana, their central bank is purchasing gold. It's very1697interesting because central banks have sovereign immunity.1698    So in a way, we can't sanction a central bank. So you have1699to be very careful with these programs, that they're not1700masking bad behavior. But if they get involved in the market,1701it has a huge consolidating impact.1702    So if the DRC central bank became a gold purchaser, a local1703gold purchaser, and the other--they have central--the CEEC.1704It's a community of central African states which includes1705Rwanda, Burundi, DRC, and Congo-Brazzaville and Central African1706Republic. So they already have a framework to collaborate1707economically.1708    So the U.S. could be helpful in getting those interests1709aligned. It could have an impact on the ground. I just want to1710make one important point. There's a huge difference between the1711government that you deal with and the people on the ground.1712    The people are--I mean, in Congo, there's so many tribes.1713We're used to intermarriage. Even my wife, she's from another1714tribe. I come from the Congo tribe. She's from--and so it's--1715the people, what you're seeing happening among the corrupt1716elite sometimes is not a reflection of the people. So I think1717pieces----1718    Mr. Jackson of Texas. I think that's part of the problem.1719    Mr. Dongala. Exactly.1720    Mr. Jackson of Texas. People see this too.1721    Mr. Lezhnev. First of all, thank you so much for traveling1722to the region, Dr. Jackson. I viewed your trip from afar and1723really salute you for heading out there during this very1724challenging time. I liked your phrase that the wild, wild east.1725I think we need to use that more.1726    First of all, I would say to your question the--any1727solution needs to start with the fact that the DRC is the DRC.1728There's talk of annexing parts of it and so forth. The DRC is a1729sovereign country and needs to remain as such.1730    Having said that, I think there absolutely is the1731possibility of a symbiotic relationship between the DRC,1732Rwanda, Uganda, Burundi, and other countries. We've outlined1733that in several papers that we wrote during the last M231734crisis. I think that started to be followed for some time.1735    Then people were tempted by illicit exploitation and1736smuggling and criminal activity on all sides really. You1737highlighted that the DRC military units have aided and abetted1738a terrorist group, the FDLR, and that continues. So any1739relationship that can be symbiotic has to be based on1740transparency and accountability.1741    Those who have been aiding and abetting the M23, those who1742have been aiding and abetting the FDLR, they need to be held1743accountable. Looking to the United States, are they going to do1744that or not. The European Union has actually taken some1745advanced action compared to what we have done.1746    But the Trump administration did sanction some Rwandan1747officials and M23 which was very good. It was a useful start.1748There needs to be a much better system for tracing and auditing1749the gold and the other critical minerals that are in the east1750so that it's much more transparent so that there can be1751processing facilities on the Congolese side and processing1752facilities on the Rwandan side.1753    Everyone is very clear in a multi-stakeholder framework1754where they're real. As Thierry said, you can't just trust1755people to say, oh, yes, sure, it's conflict free. Well, guess1756what. It's not.1757    So we need to have real monitoring teams out there. The1758ICGLR I think is a good mechanism to try to do that. But we1759need more support to that system such that it can be actually1760workable.1761    I think that the last point I would say is that we need1762more democratic governance in the DRC. It's not really1763democratic at the moment. That really needs to be reformed and1764amended and shifted. Thank you.1765    Mr. Bore. Thank you so much, Dr. Jackson, for the question.1766I'm probably not the most qualified to speak about this1767conflict in DRC. I think my colleagues who been in the area I1768think have a better place to.1769    But speaking from my understanding of some of the drivers1770of the conflict, I think there are two processes that have1771happened at the regional level. One, the process that--the1772Luanda process led by the Rwanda President who tried to bring1773the two, DRC and Rwanda to the table as well as the Nairobi1774process. I think these two processes in a way should have at1775least de-escalated the conflict.1776    Unfortunately, I think the government in Kinshasa is not1777buying into the negotiation and demands. Probably I think1778Angola is trying to bring them to the table. One of the1779conditions now is the M23 is saying we also want to be on the1780negotiating table.1781    So governments can negotiate. But the leaders of the group1782also want to be part of that negotiation which I think is quite1783important. Of course, you cannot support these groups to be1784part of formal processes.1785    But we ought to accept that the situation is reached1786another level that it calls for these measures that are not1787usually what one would want. So the DRC government should1788accept that. At least we need to have leaders of these groups1789to also come and understand really their interests are.1790    Then the other thing is around strengthening the1791institutions, State institutions really. I think U.S. is a vast1792country. It's quite big. Arguments that we have also heard that1793it's quite difficult to manage such a big country with enormous1794resources and so many people with interest.1795    But I mean, the U.S. also I think can play a role through1796this continual, or security partnership deal and come up with1797some sort of like preconditions since DRC is already seeking to1798partner with the U.S. That can also be one of the preconditions1799to stabilize the region. Thank you.1800    Mr. Jackson of Texas. Thank you. I'll just close by saying1801I think there's incredible opportunity here. I think that the1802new administration, President Trump's administration, sees1803the--they want the bloodshed and the violence in eastern DRC to1804stop.1805    But they also see the U.S. national security interest in1806the area. That's DRC in particular but all of the continent of1807Africa. I think that if we can't get this fixed, if we can't1808develop this safety and security and the stability in the area,1809the people that win every time are the corrupt governments that1810are making money from it and the Chinese who thrive in this1811type of environment and on occasion the Russians. Thank you.1812    Mr. Smith. Thank you very much. Mr. Olszewski.1813    Mr. Olszewski. Thank you very much, Chairman Smith, Ranking1814Member Jacobs, and to all of our witnesses. I want to just say1815clearly we have an abundance of resources here but also no1816shortage of concerns. So worthy of our time and attention. So I1817thank you again for calling us together.1818    I also just want to reinforce the point that Ranking Member1819Jacobs made earlier about if we're serious about exploitation,1820just making sure that we're taking the holistic view of things1821here. Certainly concerned about the impact of what the CCP is1822doing. But also thinking about those issues of transparency,1823economic opportunity that so many of you raise today.1824    I want to just thank you for that. It's probably no1825surprise to members of this subcommittee that I'm especially1826appalled and interested in the stories of children who are1827victims of the sector that is fueled by violence, corruption,1828and cruelty. We know that there are as many as 40,000 child1829laborers in the cobalt mines now.1830    Just this year between January and February, more than 4001831children in the eastern DRC were recruited by armed actors with1832some as young as 14--being as young as 14 years old. We know1833that these children earn as little as two dollars a day and1834face deadly landslides, hazardous conditions, and diseases but1835continue to abandon school and work due to poverty and hunger.1836We know that, Mr. Dongala, I appreciated you mentioning the1837ways in which gold mining investments often reduce and less1838students in school.1839    I appreciate also your comments about monitoring attendance1840levels in mining areas as we address these concerns. It's a1841real concern. The human capital index for the DRC is at 0.37.1842    That means that a Congolese child born today will achieve1843only about 37 percent of their full potential compared to what1844would be if they had that full qualify education, health care.1845It's one of the lowest scores in the world. A staggering 971846percent of 10 year olds in the DRC cannot read and understand a1847simple text.1848    In this committee and elsewhere, I will just continue to1849bang the drum about the importance of education among those1850other supports. Certainly, any successful strategy to address1851China's exploitation and support for Africa's use of its1852critical mineral sector must include the supports for families,1853children, and local communities. I will note in 2019, there1854were a number of large companies that do benefit from this1855cobalt mining such as BMW and Samsung and that launched the1856cobalt for development program with the stated goal of1857supporting safer and more ethical practices. These initiatives1858included better access for education for Congolese children1859which can help provide opportunity and reduce the prevalence of1860child labor in mines.1861    I guess my question then maybe for Mr. Dongala and Mr. Bore1862just in the interest of time, can you talk a little bit more1863about what initiatives have been most effective in supporting1864educational outcomes and providing those alternative options1865for income for child miners across Africa? Then if you could1866answer the question, especially in the context of without the1867presence of USAID and the ways in which those programs have1868been just gutted in recent months so that we can scale the1869programs that can work to counter CCP dominance in the region1870and ensuring those critical extractions, support local1871communities rather than exploiting them.1872    Mr. Dongala. Thank you, Congressman. It's very refreshing1873to see someone so engaged on--it's a business question, but1874it's also community question. And so from the private sector1875side, some of the initiatives that we've done, usually there1876has to be a--when a mining company or a processing plant is1877established either in Zambia, DRC, Ghana, I think Kotavar, they1878all have the same framework where the village leader, there1879needs to be an agreement with the village.1880    This agreement has most of the families that are impacted1881by the education, their children not going to school are going1882to be signatories to this agreement. The village that signs off1883on this community agreement for mining should have provisions1884on education and say, hey, are your children still attending1885school? How many children do you have?1886    Lean on that community agreement that the mining company1887has and all the big companies have them, from Barrick down to1888the smallest. Even the tiniest one they have, they have to get1889some sort of community agreement where they're mining. It's1890just that community agreement is just some random document that1891everyone kind of makes up, and it doesn't have real teeth.1892    But if you start to require that agreement monitors1893education, hey, are your children--we as a community signed off1894that we're committing our children to staying in school in the1895midst of these mining operations. Something that at least gets1896their attention on the issue. And then from there, I think1897initiative can build on. That's what we've been doing, and I1898hope others can do more.1899    Mr. Bore. So for me, better access for education is one of1900the most effective ways to reduce child labor by exploitation1901in the mining sector and particularly in the DRC where we have1902this staggering statistics of children as young as 10 and 141903not being able to read and write. And child labor I think in1904the mining sector is often driven by poverty and lack of1905economic opportunities and even social protection systems. When1906families cannot afford school fees, automatically, children are1907forced to contribute to the household income by working in1908those dangerous mining conditions.1909    What I think in terms of what those mechanisms in terms of1910providing access to education could do, you talked about the1911cohort for development which is quite a noble initiative that1912is focused on improving access to education and supporting1913safer mining practices, particularly for artisanal cobalt1914communities. But beyond I think the other initiative that we1915have seen in DRC, I think in 2019, the government also1916introduced nationwide free education policy. While this is1917quite an interesting program and increased school enrollment1918and challenges around overcrowding classrooms and teacher1919shortages, I think more needs to be done.1920    You may also be aware of the World Bank education program1921which has supported several education opportunities in DRC,1922including funding for school construction, teacher training,1923and curriculum development. But of course, these are not the1924only ones. UNICEF and even the international labor1925organizations have come up with some important mechanisms to1926support children to access education in the DRC.1927    But one last one I think the U.S. could also contribute is1928around conditional cash transfer programs that provide major1929incentives to families who are keeping their children in1930school. And this has been really successful in countries like1931Ghana where this has actually been implemented. And I think1932it's something that can also be borrowed for the DRC context.1933Thank you.1934    Mr. Olszewski. Thank you, all. Thank you, Mr. Chairman.1935    Mr. Smith. Thank you. Ms. Radewagen.1936    Mrs. Radewagen.1937    [Speaking foreign language.] Thank you, Mr. Chairman. I1938want to thank you all for being here today as we examine the1939impact of how China's involvement in mining in Africa is, and1940being from the Pacific Islands, I care deeply about what's1941going on.1942    So I'd appreciate the perspective of each of you. What way1943can we make existing legislation or regulations like the Frank-1944Dodd Section 1502 account for community buy-in to the1945certification process or encourage Africa moral sovereignty1946over the certification? Mr. Lezhnev.1947    Mr. Lezhnev. Sure. Thank you so much for the question, a1948very good one. When this legislation was originally drafted and1949I happened to be around at that time as well. There were1950provisions that were added on to it that were part of it that1951were there to support certification and support for artisanal1952mining communities in the DRC and in the region.1953    Then when that piece of legislation--and I think in the1954House, it was called the Conflict Minerals Trade Act. In the1955Senate, it had another name. When it got folded into the wider1956Wall Street Reform bill, some of those sections got stripped1957out and there was money attached to those.1958    It's--I think it would be very helpful if Congress could1959allocate some support to the artisanal mining communities and1960for certification because as we've seen, as the other witnesses1961highlighted, the governments of the region are very corrupt.1962And they have corrupted some of these systems. And we need some1963better international independent monitoring and some support1964for alternative livelihoods, both to eliminate child labor as1965well as get some of these armed groups to make sure there's1966real inspections of these mines happening.1967    It's all there on paper. But is it going to be actually1968implemented? I sat on the governance board of an organization1969that's a U.S. Government private initiative called the Public-1970Private Alliance for Responsible Minerals Trade which is a1971great organization that has supported efforts like that on the1972ground.1973    But it's really been a drop in the bucket. So I would call1974on Congress to support those kind of initiatives more robustly1975so that we can really begin to eliminate the smuggling and the1976illicit actors that have stepped into some of those voids.1977Thank you.1978    Mrs. Radewagen. Mr. Dongala.1979    Mr. Dongala. Thank you, Congresswoman. I would say on the1980certification, African moral sovereignty, my colleague, Obert,1981mentioned something about including village chiefs. The role of1982the village chief in the Congo and many of the countries is1983kind of a ceremonial role that in DRC law it is recognized.1984    There's a whole traditional court system that's recognized.1985Getting simply them to sign off on the community agreement is1986already required according to law. But certification, if they1987can be involved in certifying because now they're putting their1988moral obligation, their moral authority on the line.1989    Usually in these communities, their moral authority is1990really all that they have. They kind of--sometimes they trade1991in that which is very bad. But it's starting to have them sign1992off that this is not hurting your community is a step of1993accountability that can be taken.1994    Mrs. Radewagen. Mr. Nguramo.1995    Mr. Nguramo. Thank you, ma'am. And thank you so much for1996your interest in this question. Let me just put things in1997perspective a little bit.1998    When Dodd-Frank Act came out, I was still pretty much in1999high school in Goma just to see how this has been going on and2000maybe a lot of progress on it. But here's the thing. I think my2001colleague have already a lot about this and particularly Sasha2002and Dongala who have been working on this for a long, long2003time.2004    But I'll just insist on making sure that we actually2005enforce our policy and the laws. I think it's really, really2006come back to that. If people don't see consequences of bad act2007or bad behavior, they can really change.2008    So which come back to transparency, accountability. I like2009us as well to I think to relate to what the Congressman just2010mentioned, education. Most of these kids working in these2011mines, I think there was just a good opportunity. They want to2012go to a library. They want to go to school, know how to read2013and write, and be able to access to information to make2014critical judgment of their own future.2015    So we have to--that's really good, Congressman. We have to2016make a particular--we have to emphasize on educational2017communities. We have to build the grassroots providing first2018come with stability of these areas of these communities,2019providing them the necessary needs like education, all those2020kind of things, basic infrastructure so that they can have a2021better future.2022    Mrs. Radewagen. Mr. Bore.2023    Mr. Bore. Thank you, Congressman--Congresswomen, for this2024question. So for me, I think my colleagues have already2025mentioned some of the responses. But one of the critical2026things, I think, would important around supporting African2027government in creating legal pathways for artisanal small2028scales to operate under license and even access to financial2029services.2030    Currently, a lot of African countries criminalizes2031artisanal small-scale mining. And we know a lot of the problems2032emanate from the fact that in unregulated sector it's easy for2033it to be influenced. So I think if the artisanal small-scale2034mining sector is operationalized--formalized rather and also2035supported in terms of access to finance for them to actually do2036the engines or certification process which is quite expensive2037for small-scale miners, I think that will I think also address2038some of the challenges around transparency and accountability.2039    I think we want to ensure that companies are able to2040publicly or compelled to publicly disclose their due diligence2041practices and processes. But even the names of their suppliers2042to create more pressure on accountability. And last, while the2043Dodd Act I think quite a very important piece of legislation, I2044think the focus obviously has been on the 3TGs.2045    It could also be expanded to other lithium so that we are2046able to catch them all. So the limitation on the minerals, the20473TGs, needs to be expanded the scope of the Dodd Act. I think2048that would also assist particularly looking at emerging mineral2049quality chains like lithium, for instance. Thank you.2050    Mrs. Radewagen. Thank you, Mr. Chairman. I yield back the2051balance of my time.2052    Mr. Smith. Thank you very much. Mr. Baird.2053    Mr. Baird. Thank you, Mr. Chairman, and thank all of you2054witnesses for being here. We really appreciate you sharing your2055perspective about what's going on in Africa. But Mr. Nguramo,2056did I pronounce that correctly?2057    Mr. Nguramo. Yes, sir.2058    Mr. Baird. I want to congratulate you for graduating from2059the U.S. Military Academy at West Point.2060    Mr. Nguramo. Thank you.2061    Mr. Baird. But then I want to get into--in your testimony,2062you mentioned that the trade between Africa and China is2063estimated at about 282 billion or so. And it's growing at about2064one and a half percent annually. And yet almost all the2065investment in the mining and infrastructure sectors--this is2066according to your testimony--without long-term benefits to the2067countries and the gross domestic products, the GDPs of the2068populations there.2069    So indeed China routinely operates in the shadows of the2070governments that lack transparency. They care very little about2071accountability, transparency, human rights and democracy. So I2072picked up that you wished to comment about the fact that2073political and social stability and prosperity in the DRC is2074essential to our national security.2075    So in that vein, my background, I'm interested in2076agriculture. I'm taking a long time but I'm finally getting2077down to my question. Okay. I'm interested.2078    Mr. Nguramo. Take your time, sir.2079    Mr. Baird. But increasingly, we've received reports that2080the local populations are very angry with the Chinese companies2081because of the environmental disasters that are directly linked2082to their negligent business practices. So do you believe that2083African governments are increasingly dissatisfied with Chinese2084companies operating in their countries? And have the2085environmental disasters caused by Chinese companies affected2086the agricultural sector across the continent?2087    Mr. Nguramo. Can you repeat the question, sir?2088    Mr. Baird. I want to know if the Chinese practices and the2089destruction they've done to environmental issues in their2090country, has that been a factor across the whole continent?2091    Mr. Nguramo. Let me just mention the thing about the DRC2092because I've been tracking that closely, my home country.2093Definitely the CCP practices in mining sector has been2094destructive to local populations. There are some credible2095report by, for example, the Amnesty International which has2096shown that the lack of respective environments, the lack of2097providing, let's say, adequate protective equipments to2098particularly young children who work in these mines have come2099to create some significant health problems to the children,2100including destruction of the environment.2101    Drugs is translating into social conflict. As we can see,2102for example, in Ituri I think is one of the case, I think,2103study we can look at. Now how that, I think, will translate to2104maybe some kind of dissatisfaction of the population across the2105country, across the continent, I think it remain to be seen.2106But we can that there's some trends. I think part of the reason2107why we are seeing all this conflict going around, particularly2108DRC and the Sudan.2109    Mr. Baird. Yes.2110    Mr. Dongala. May I add, Congressman?2111    Mr. Baird. Yes.2112    Mr. Dongala. On the agricultural connection to--we were2113doing some investigations in Ghana. And there's a whole new2114term they call galamsey which is this wildcat kind of mining of2115gold. And they pollute waterways all over the area.2116    The thing is that a lot of the conflicts in Africa is2117between the cattle herders and the farm landowners. For the2118longest time, the farm landowners have been complaining about2119the cattle herders who come on their land and it causes tribal2120conflict. But now they're complaining about the illegal miners,2121and this is in China.2122    So it's actually becoming a farming issue as far as the2123pollution. A second point on that is that there's--it's not a2124one-off issue. But we've seen it probably three or four2125different countries.2126    Chinese firms are going into conservation areas which2127they're supposed to be protected. But it gives them also the2128anonymity. Because no one is there, they can do it kind of2129without anyone looking.2130    These conservation areas which are, like, usually you're2131allowed to farm around conservation areas. So a lot of2132farmers--and these are small holder farmers. They have a couple2133of acres. They use it for subsistence farming, feeding their2134families. They are the first ones to witness and also to feel2135the impact of illegal mining sponsored by the Chinese. So I2136just want to put that on the record too.2137    Mr. Baird. I really appreciate that comment because when2138you think about agriculture and Africa has a lot of fertile2139land that could be used for agriculture production. But when2140you contaminate that soil, you're going to contaminate the2141food. And so excellent point. Any of the other two have any2142comments in that regard?2143    Mr. Lezhnev. That's a great question, Congressman. The2144prices of some of these minerals are skyrocketing. We all know2145gold hit 3,000 dollars an ounce for the first time a couple2146days ago. And what does that do on the ground in countries like2147this?2148    It was a flurry of activity. When there's no rule of law,2149it's the wild, wild east as Mr. Jackson said. So I think the2150key is really the governance and the rule of law and reducing2151this corruption and kleptocracy.2152    I've been to many mining communities in Congo where the2153alternative livelihood is farming. But nobody wants to do it2154because everyone can make a quick buck. There's so many2155exploitative actors from armed groups to corrupt officials who2156are just going after these mines.2157    So you need a much better framework. As Mr. Bore said, I2158fully support the formalization of the artisanal mining sector.2159Give them property rights. Give them legal areas to work.2160    Then the same thing for the farms. Make sure that is2161formalized and if there's not bribes being paid everywhere. And2162back earlier to Mrs. Radewagen's question, we need some support2163for those alternative livelihoods, and that's really in the2164farming communities. So if we can help reduce the corruption2165and support the formalization, then I think that can go a long2166way to establishing better governance in this sector.2167    Mr. Baird. Mr. Bore, you have any comments?2168    Mr. Bore. Yes, Congressman. Yes, thank you so much for the2169question. I think Chinese mining operations on the continent2170have had a significant negative impact on agriculture,2171particularly through displacement, environmental degradation,2172water pollution, soil contamination.2173    I think there's ample evidence of communities that have2174been relocated that rely on subsistence farming. But also even2175some of them that have been relocated large scale farming, I'll2176give you an example of a project that is owned by Cobalt,2177Zhejiang Cobalt in Goromonzi, the eastern part of the capital2178city of Zimbabwe where big commercial farmers were relocated2179just to pave way for lithium mining.2180    Of course, the communities also are complaining around the2181conflict on water resources for mining because of the intensive2182amount of water required to process lithium and also for2183farming. So already, I think, we are seeing the connection and2184the linkages between how mining by these Chinese companies2185through illegal practices or irresponsible practice are fueling2186even food insecurity. I can also give you another example of a2187BYD supported project where I think about 30 community2188households were relocated from their village and they were2189moved to a very urban area.2190    They were given just around 400--I think 450 square meters2191of land. And these communities used to live on agriculture. So2192I think there's broad evidence to show that agriculture is2193being impacted.2194    Also, I mean, there are cases also from Sierra Leone where2195mining by Shandong has also affected agricultural production.2196So food security, you talk of subsistence living, even2197livestock. There's an organization, Zella.2198    I think my colleague also mentioned about moving into2199protected areas where Chinese companies are also now starting2200to explore mining particularly in national parks. You might2201have read in the news where we filed an application essentially2202an interdict before the court in Harare to challenge the2203minister of mines who had granted a special grant. A special2204grant is essentially a special mining list which allowed this2205Chinese company to mine in Huang which is the biggest national2206park in the country.2207    So we are seeing that companies are also starting to move2208away from where naturally people live to go into protected2209areas where there's less population. But of course, it's also2210impacting tourism which also brings another dimension in how2211mining in these areas is affecting conservation efforts. Thank2212you.2213    Mr. Baird. Thank you, all of you. I yield back, Mr.2214Chairman.2215    Mr. Smith. You have one quick question, because I have a2216series of questions.2217    Ms. Jacobs. No, go ahead.2218    Mr. Smith. Oh, Okay. Thank you. Let me ask a few questions.2219I'll put them all out and then whichever ones you would like to2220answer, please do. Building on Mr. Baird's comment about the2221local populations anger based on environmental degradation, how2222do you rate the environmental record of PRC mining companies in2223Africa compared to that of U.S. and Western companies?2224    Have African governments sought to hold Chinese companies2225responsible financially or criminally for environmental damage2226that their business practices have created? We know for a fact2227that in China itself, not only do they not follow ILO standards2228on labor rights, they have egregious problems in China itself2229with environmental degradation. Why wouldn't they just export2230that to their operations in another continent which is, of2231course, Africa?2232    Then what evidence, if there is any, do you see linking PRC2233mining activities to the funding armed groups or militias in2234specific African conflict areas? Thierry, if you could speak to2235basically what you've seen, the Chinese dollar system that2236circumvents the U.S. dollar system in Africa. Can you expound2237upon that?2238    Also, in Ghana, Tanzania, Uganda, Ethiopia, Sudan, and2239Zimbabwe, central banks have launched their own gold purchasing2240programs which can often mask illicit behavior because they2241benefit from sovereign immunity. What measures should2242regulators and sanction enforcers take to ensure that our2243sanctions and other sanctions by the EU remain effective? Let2244me also ask, if I could, what are the major goals and changes2245under the recently negotiated DRC, PRC cycle mines2246infrastructure for mining rights agreement?2247    What has the DRC government done with the reported 72248billion dollars it received from this agreement? To what extent2249have corruption and diversion of resources characterizes the2250deal as it was signed? Where would you place the2251responsibility?2252    Let me also thank you again, Sasha, for the recommendation2253for the illicit gold task force. I'm wondering if you're2254getting any traction. We'll raise it obviously with Secretary2255of Treasury as well as State. I think it's an excellent idea.2256You might want to speak a little further on that.2257    Then finally, I've introduced legislation, H.R. 2310, the2258Cobalt Supply Chain Act. I just reintroduced it. And at its2259core, it is Section 4, a rebuttable presumption that covered2260goods and goods that are made wholly or in part with forced2261labor or child labor cannot come here.2262    Although if the company can prove it, that it's free of2263that taint in their supply chain, then it would be allowed to2264come in. I patterned that after legislation I worked on along2265with other Members of Congress. There were four of us who did2266it on the Uyghur Forced Labor Act.2267    The better rebuttable presumption is, I think, a novel way2268of saying, Okay, you can export your goods. But they better be2269free of child labor and they better be free of forced labor of2270adults. There's also an enforcement strategy, Section 5, and2271then also a Section 6 that says clearly that no Federal2272procurement of vehicles--federal vehicles cannot be made from2273child labor or forced labor of adults coming out of Xinjiang2274especially because we know that's where the cobalt is being2275processed.2276    So your thoughts on that legislation because I think2277platitudes are great. Again, I mentioned before about the zero2278tolerance initiative done by the human rights folks in DR2279Congo. We welcome it. But if you don't get enforcement and I've2280done oversight hearings on the Uyghur Forced Labor Act.2281    While it's not perfect because we had a de minimis2282provision in there, anything that's 800 dollars or less is not2283subject to an inspection. And it has been exploited with2284impunity. And we're looking to rectify that.2285    So we're learning from our mistakes with that legislation.2286But hopefully, this will be a clarion call that we really don't2287want these kids being exploited anymore. When you look at how2288sick they get, many of them die.2289    Then the fact that so much of this as you all have2290testified fuels M23 and so many other groups that are killing,2291maiming, and raping in Africa. We need zero tolerance that has2292an enforcement capability. So if you want to speak to any of2293those issues that I've raised, I'd deeply appreciate it.2294    Mr. Lezhnev. I'll start with the one that was directed to2295me, and then we can sort of maybe divide them up. Regarding the2296gold task force, there's illicit gold coming out of the DRC,2297out of Venezuela, out of Central Africa Republic, out of Sudan.2298And like I said earlier, China is buying it up hand over fist2299and potentially going to establish a new currency which2300threatens our own.2301    So we need to take bolder action to address this. And the2302U.S. Government I think is well primed to be in a good position2303on that. I think a couple things that would be important for2304this task force.2305    First of all, it's set up an interagency coordination body2306such that we can coordinate with industry, especially through2307FINCEN, to talk to banks more, to have a banking roundtable, et2308cetera, and then investigate and sanction the whole network. We2309did a whole 6-month study on sanctions. And they're most2310effective when they really go after the networks.2311    It's not just a one-off initiative. You start out with the2312smuggler himself. But he runs a series of shell companies, then2313there's a refiner, then there are officials that work with2314them. Once you go after that and involve multilateral2315sanctions, European Union, even the U.N. if possible, that can2316have a very important impact.2317    Then the private sector needs to play an important role in2318coordinating here. So banks need to enhance their due diligence2319on monitoring of gold suppliers. And the industry also should2320coordinate this new gold bar integrity initiative with2321government so that there can be some cross sharing of2322information.2323    I really think that having a central task force in the U.S.2324Government, they can address these various aspects. It could be2325very important. Over to you guys for those.2326    Mr. Dongala. Thank you, Mr. Chairman. I will go ahead and2327answer the Chinese barter system. What's interesting, so there2328were a lot deals that we saw. Like, you can see with the Kabila2329bill for infrastructure for minerals where they got copper and2330they were supposed to do minerals.2331    When the government audited by--when the government of2332Tshisekedi came into office and they audited that deal, it was2333a barter deal. Okay. We'll build your infrastructure. You give2334us the copper.2335    But there were no enforcements, no accountability measures.2336What happens is they can mine unaccountably. The government of2337DRC can do whatever with the infrastructure funds that we're2338supposed put at disposal and work.2339    So this barter system happens through either state-to-State2340deals. Banks, local banks that are being established in the2341region are facilitating a lot of non-dollar transactions which2342evades the U.S. dollar system and sanctions. Then since we're2343on the topic of sanctions, how can we ensure that sanctions2344remain effective?2345    I think it goes along with this--with Sasha's2346recommendation of illicit gold task force. I would add the OFAC2347licenses which is an already existing process. What that would2348do is it would gather data that can be actionable, live data.2349    Because what's happening is to apply for a license for2350OFAC, they would have to share, regularly share data of their2351gold trading activity. And this data will inform the OFAC--the2352illicit gold trade task force of trends. Right now, the2353enforcement of sanctions are flying blind really.2354    They're trying to keep up with what everyone is doing, who2355the trader is doing, what's the new refinery, what's the new2356name and all that. But I think that'll be helpful with making2357sure that sanctions remain effective. And then on H.R. 2310, I2358mean, I think this is a breath of fresh air.2359    What I will do for my side, from the industry side, I'll2360encourage--I think we need to educate industry participants to2361know that it's not, like, a new regulation, something that2362they're not already doing. But what it is, is getting more2363details. I would actually recommend for Section 6 if we can2364include weapons, procurement weapons.2365    Now you might have--that might be a whole lot of--a whole2366other storm. But if you want to make it effective because the2367reason why cobalt and lithium and all that is available is not2368only just commercial technology but also weapons technology. So2369if you could include in Section 6 of H.R. 2310 weapons, I think2370that will be a headliner also.2371    Mr. Nguramo. Thank you, Chairman Smith. I would agree with2372the panel of Sasha and Thierry. I'll just maybe add, I think2373one thing in terms of, like, ranking, I like to think that2374Western companies are way better in many ways because, of2375course, it's not perfect.2376    But at least we have--we tend to care about issues like2377human rights, dignity, foreign corruption. It's not always2378easy, but at least we try. I'd like to think that western2379companies see some kind of collaboration from these African2380countries, particularly the Congo, so they can meet at least2381somewhere to have some kind of compromise along those lines.2382    I won't name any companies. But I work maybe two, three2383companies. They run into some serious problem in the DRC. But2384because maybe the moral standard was a bit high. Anyway,2385commenting on the CCP, how it's fueling conflicts, groups, I2386refer to the recent U.N. reports.2387    Not actually the recent one, but most of them over the past23883 years, I think, if you go to the appendix and really2389overwhelming evidences. I mention this company, Norinco which2390has been supplying weapons basically to all the sites. Here's2391the thing.2392    I like to think that the CCP will at least try to put some2393kind of guardrails. Make a name to say, hey, where these2394weapons are going and it may be a thing. And especially because2395in a situation where the militia is getting out of the DRC with2396serious concern of leaving a security vacuum behind.2397    We know the FARDC's not yet there to assume this kind of2398responsibility. Second, the U.N. I think I remember well. I2399think 267 resolutions, remove the armed shipment embargo to the2400DRC. So all these can create a high risk of proliferation of2401weapons in the area. So China, I like to think, should really2402care about these issues and really try to make sure there's2403some trustability to make sure that there's no increased2404conflict and violence.2405    Thierry already mentioned that. I think it was a great2406initiative. But the implementation was just a disaster. Over2407the past maybe 15 years, I think, it's been in the area along2408those lines.2409    It's very hard to see how those kind of agreement benefit2410the average person. The poverty has increased. Unemployment2411remain high. And so as well Felix Tshisekedi came in, tried to2412do some manual revision.2413    But we heard some payment were made, I think credit report,2414the recent by the IGF, the Inspector General Finance. But where2415the money went? It's hard really to trace it.2416    I'd like to think that it's probably one of the reasons why2417we see this dissatisfaction or disconnection between the Felix2418government and its populations. The people are hearing all2419these revenues, but they're hardly seeing them in their daily2420lives. And I fully support the global supply chain act, sir.2421    I would just insist on enforcing these laws. I know it's2422tough, hard. But I think that's the heavy work we have to do.2423We have to deploy all the necessary resources possible, learn2424from past mistakes.2425    You just mentioned we have to learn from what did not go2426well. Operate those kind of policy and what are the2427shortcomings, how we can do better next time moving forward.2428Thank you.2429    Mr. Bore. Thank you so much. So I'll address the question2430on central banks and responsible gold standards. So I think2431broadly across the African continent, central banks are2432implementing a variety of measures to promote responsible gold2433processing and kept illegal mining activities.2434    I could site examples of Ethiopia, the national bank of2435Ethiopia and even Zimbabwe where the fidelity code printers and2436even in Tanzania have all been coming up with incentives for2437ensuring that actors that are in the ASM that is small-scale2438mining become more responsible. Safety and health has been one2439of the key concerns, then also illicit trade. However, I think2440what hampers the these efforts by central banks to promote more2441responsible gold processing is the policy of what they call no2442questions asked policy.2443    I think countries like Zimbabwe have been implementing this2444no questions asked policy. Essentially because government has2445been trying to mobilize more resources, they just say bring2446your gold and we'll give you your money. We don't ask questions2447in terms of how as that gold mined using what kind of2448infrastructure or any child labor or any other related forced2449labor alone.2450    So I think that is a policy that has also contributed to2451some of the problems we have in the gold processing. And also2452more promoting these responsible gold processing initiatives.2453When coming to your question around, I think, the Gold Supply2454Chain Act, Cobalt Supply Chain Act, I think it's quite an2455important piece of legislation that I think if implemented2456could actually address some of the problems we are talking2457about.2458    However, I think while it's important that this presumption2459of cobalt that has been processed in PRC. What we find in PRC2460is associated with forced labor. The cobalt supply chain is2461very intricate.2462    If the act can also maybe consider what are the potential2463for other actors that are not, say, PRC, that might actually be2464refining cobalt and sending out to the U.S. market. I think2465restrictions and even the enforcer of this law need to also be2466thinking creatively and innovatively because it's not all the2467cobalt that is being refined in PRC even though, of course, the2468focus has been China.2469    Then I think the other thing is around national security2470strategy because China dominates cobalt extraction and2471processing. It's important for ensuring that there's more2472coordinated approach at the U.S.-Africa level. African2473government, as I mentioned earlier on are looking for2474investments that are going to be value adding products on the2475continent.2476    That is a big opportunity that U.S. can also actually top2477into and set up those refining and processing facilities on the2478continent. It creates jobs. It also creates the investments2479more secure and even government buy-in. So I think we need to2480think strategically and ensure that whatever we are proposing2481is going to allow lasting solutions and benefits for Africa and2482the U.S. Thank you.2483    Mr. Smith. Thank you very much. Ms. Kamlager-Dove.2484    Ms. Kamlager-Dove. Thank you. I want to thank the chair and2485the ranking member for allowing me to participate. I am no2486longer on this committee, and I miss it. I want to thank the2487witnesses for being there today.2488    I also want to just thank the committee for making an2489accommodation for us to have a witness virtually because not2490all committees do that. I appreciate the chair for holding this2491hearing to address to address human rights abuses in the DRC's2492mining sector perpetuated by Chinese companies but also by2493broader issues of corruption, impunity, and lack of economic2494opportunity that U.S. assistants should address. I was grateful2495to hear some of the earlier discussions about financing.2496    But the other reality is that right now Africa does not2497have a partner in the White House just by the very nature of2498dismantling our global foreign aid architecture and pulling2499back on key areas of engagement, something that China and2500Russia are applauding. There has been a zero Africa policy2501coming from this administration a belittling and a2502marginalizing of the continent not just with its challenges but2503also with its opportunities. The global relationship that the2504continent has not just with us but with our allies and also2505with our adversaries.2506    We talk a lot about exploitation. But there would be far2507more exploitation happening without any aid because rapings and2508killings and exploitation happens when there is no food, when2509there is no medicine, when there is no hope. That is just real,2510regardless of what continent you are on.2511    The death eaters at the State Department and USAID has2512disrupted life saving aid to the world's worst humanitarian2513crisis in Sudan and the Congo by whipping up PEPFAR, by2514exacerbating famine, and attacking the international2515institutions that support stability in the region. By doing all2516of these things, we have also yielded to China and Russia in2517this space.2518    The chair is absolutely correct. Platitudes are great, but2519engagement is more meaningful. And you cannot have engagement2520when you are not present. You cannot have engagement when you2521are not offering support and assistance.2522    And if you are going to be silent in that space, then that2523also means you are going to be unbothered by human rights2524abuses, by conflict, by malign foreign influences that are2525spreading across Africa. And we can dangle as many mineral2526deals in front of folks as we want. But if you don't think that2527Africa is worthy, if you pay limited, if any, attention to the2528continent, if you siphon away and stop resources going toward2529the continent, you are aiding and abetting what China is doing.2530    Mr. Nguramo, and I hope I said it correctly. Apologies. Oh,2531great. You said CCP should or could put up guardrails. But2532who's going to make them? Who is going to make them?2533    If we don't even care enough about Africa to stay involved,2534then why would any--what would be our benefit to making them? I2535mean, so it's just like we have to take the rose-colored2536glasses off and live in the real world. And here are my2537questions.2538    Mr. Lezhnev, in order to address exploitation in Africa's2539mining sector and pave the way for U.S. investment, what levels2540of sustained engagement in foreign assistance would be required2541from the United States? And is our posture on the continent2542currently conducive to promoting that?2543    Mr. Lezhnev. Great comment, and thank you for the good2544question. I think that as the administration considers where to2545refocus some of the aid that has been suspended, I would2546highlight a couple of areas. No. 1 is we really need to2547legalize the artisanal miners to help them legalize.2548    These people are mining day-to-day, right? But they need a2549legal framework to operate. We have the same thing here in2550United States in California, the rush of 1849. And the reason2551that we didn't have conflict minerals in California is because2552we had rule of law.2553    So people had property rights and legally enforceable2554contracts, et cetera. These are the things that are needed in2555the DRC and elsewhere on the continent. And there are things2556that we can do to support that, support the DRC mining ministry2557and help hold those accountable who are completely breaking it.2558    No. 2 is much better support to certification process,2559right? There is--Mr. Smith, you mentioned the central banks2560buying. Well, the DRC set up a gold buying program in the last2561couple of years that originally had UAE investment and the2562Emiratis pulled out because U.N. experts found that there were2563lots conflict minerals in this gold buying program.2564    It wasn't a central bank, but it was a similar set up. And2565so for high risk, there's central bank buying and there's2566central bank buying. So for high risk areas like the DRC really2567needs to have proper certification on the ground. The2568governments of the region have agreed on a certification2569process.2570    I was actually involved in Bujumbura when they wrote this2571thing. And me and some other NGO's advised on it. It's very2572good on paper. It has all these checks and balances, et cetera.2573    But it's not being implemented well. And so that's where2574the Public-Private Alliance on Responsible Minerals Trade,2575there needs to be more support to that. And those are the kinds2576of things that can counter illicit activity by China and2577others.2578    Ms. Kamlager-Dove. So then what about--and my last2579question, Mr. Chair. What about also brokering a sustainable2580cease-fire to the destabilizing fighting led by the Rwandan-2581backed M23? Can you speak about that?2582    I think that we have been missing in action leading Qatar2583to convene peace talks between Congo and Rwanda. So does that2584play a role? I think stabilization in the region is incredibly2585important. Are you maybe aware of a U.S. role in trying to2586preserve the fragile cease-fire I guess that was reached last2587week, maybe on Signal? Did you get anything on Signal?2588    Mr. Lezhnev. I think that the cease-fire was a nice piece2589of paper that was quickly followed by a Rwanda military advance2590to Kisangani or toward Kisangani. And the reality is unless2591Rwanda and the DRC actors who are aiding and abetting other2592armed groups like the FDLR, unless they're held accountable,2593then these pieces of paper will be completely meaningless. I2594think that the initial step of sanctioning a senior Rwandan2595government minister and some M23 officials and companies was2596helpful.2597    The European Union followed by much stronger sanctions.2598These one-off initiatives are good. But they're not going to2599mean anything unless there's actually a sustained program to2600pay attention to that. And then once there's a level of2601seriousness to it, I mean, as somebody highlighted earlier, the2602DRC army is running away at present, then you can see some2603progress.2604    Ten years ago there was progress. And the blueprint is2605there in front of us. There was an M23 conflict, and Rwanda2606withdrew once there were serious consequences. And in2607particular, World Bank money was pulled out and that had a2608major impact because that's direct budget support.2609    Mr. Smith. Thank you. Mr. Jackson.2610    Mr. Jackson of Illinois. Thank you, Chairman Smith. Thank2611you for your interest, your dedication, and your sincerity in2612trying to find reconciliation and peace and prosperity to this2613region. To my esteemed colleague, Congresswomen Kamlager-Dove,2614thank you for your insight.2615    The Trump administration has embarked on a campaign against2616USAID over the last 2 months, shuttering thousands of U.S.-2617funded assistance programs across the globe. At least one of2618those programs aimed at improving accountability in the DRC's2619mining sector. The project and partnership with Enterprise,2620EGC, and Responsible Mineral Initiatives, RMI, aim to ensure2621that the production and export of cobalt and other strategic2622minerals in the DRC met standards of social and environmental2623responsibility and traceability and to address some of the2624complex governance issues that contribute to the perception of2625DRC as a high risk investment destination.2626    This program has since been terminated. I'd like to first2627start off with Sasha if you don't mind. And I thank each of2628your time and talent that have come before us today. Can you2629please explain how the extraction of critical minerals in the2630DRC fuels conflict?2631    Mr. Lezhnev. Sure. Thank you for highlighting these2632important issues, Congressman Jackson. Yes, I mean, it's very2633unfortunate that there are critical minerals in eastern Congo.2634Tin, tantalum, and tungsten are the three that unfortunately2635continue to fuel some of the conflict.2636    I will say I've been working on the DRC for about 17 years2637now. And the situation for those particular minerals was much2638worse before. And you had basically a free for all at mines and2639companies had no idea where they got their minerals.2640    Now you have an auditing system, an industry set up thanks2641to Congress to trace and audit these minerals. And almost two-2642thirds of them, 66 percent of the smelters which are the key2643choke points in these supply chains have now actually passed2644these independent audits. The issue is that there's some2645smugglers on the ground who have taken advantage of some of2646those loopholes and this traceability mechanism which we talked2647about earlier, the ITSCI, which is pretty opaque and why the2648electronics industry suspended them have gotten around some of2649those systems.2650    So there needs to be better enforcement of the2651certification mechanism and some of these transparency2652standards so that there can be a much better symbiotic2653relationship between the DRC, Congo--sorry, the DRC, Rwanda,2654Uganda, et cetera, whereby there can be a peaceful trade. And2655there has been a peaceful trade for some time. But2656unfortunately, Rwanda and others have stepped in to take2657advantage of some of that. But I do believe that can be2658restored as long as there's real consequences for the illicit2659actors.2660    Mr. Jackson of Illinois. Thank you. As well, Mr. Thierry,2661as well, do you believe that the gutting of U.S. foreign2662assistance in the DRC creates a void for China to fill as it2663further pursues control of critical minerals?2664    Mr. Dongala. I would say based on my statement, I think the2665void is created, yes, by our absence. We have--the sanction2666system I said is pretty much all stick and no carrot. So I2667recommended that we have a carrot sort of involvement with2668OFAC, the Treasury, OFAC licensing.2669    But then what's happening right now with the assistance2670program, I mean, I would almost defer to Congress because the2671spending authority is yours. Under law, there is a presence.2672But just right now we're going through a situation where the2673U.S. Government is deciding to review all of these spending2674decisions. So I think it's calling for the leadership of this2675committee on these decisions to guide the administration on how2676to make these most effective.2677    So I think the leadership of Chairman Smith and Ranking2678Member Jacobs can be--it's probably warranted the most right2679now to make sure that there's an absence or a void in the midst2680of these decisions.2681    Mr. Jackson of Illinois. Thank you, Mr. Thierry. Again, I2682thank each of you. And I would probably add to that for the2683record. There's been a gutting of this department when the2684employees had been removed. Life will go on.2685    There will be a continuous void. And to rebuild what2686they've taken out in the last 2 months could take us five or 102687years from trying to capture that intellectual talent and2688restaff these agencies. But then again, I'm honored to be here2689with my esteemed chairman, Mr. Smith. And again, thank you each2690for coming.2691    Mr. Smith. Thank you very much, Mr. Jackson. Any of you2692would like to add before we close? Because your testimony has2693been outstanding, incisive, and gives us a blueprint for2694action. Thank you. Mr. Bore? Thank you. Thank you, and the2695hearing is adjourned.2696    [Whereupon, at 12:39 p.m., the subcommittee was adjourned.]26972698                                APPENDIX26992700                              ----------27012702               Material Submitted for the Hearing Record