Carter Center Report Reveals Gaps in DRC Mining Companies’ Social Responsibility Commitments
A recent study by the Carter Center, published in November 2024, titled White Paper on the Specifications of Mining Companies in the DRC, highlights significant shortcomings in mining companies’ efforts to meet their social responsibility commitments, particularly regarding the needs of local communities impacted by mining operations.
The report reveals a concerning compliance rate of just 18%, with only 71 out of 402 specifications intended to address community needs signed between 2018 and 2024. Moreover, the budgets allocated for these signed specifications are deemed insufficient, with the average annual budget representing only 0.2% of the companies’ turnover.
The study further finds that, on average, the financing for a five-year specification is covered by just 1% of a single year’s turnover. This underscores the stark imbalance between the funds pledged and the scale of the community challenges at hand.
Financial Commitments and Transparency Issues
The Carter Center also criticizes the use of a provision in the mining code that requires mining companies to allocate 0.3% of their turnover for sustainable development. According to Fabien Mayani, head of the Human Rights and Just Transition program at the Carter Center, companies often exploit this fund to bypass more direct financial commitments outlined in the specifications.
The low number of signed specifications and the modest budgets allocated to them are attributed to several factors, including a lack of transparency between mining companies and the communities they affect, insufficient sustainable investment practices, and limited political will. The report also calls out both national and provincial governments for their failure to implement effective monitoring and control measures.
Recommendations for Improvement
To address these issues, the Carter Center proposes several key recommendations:
- Set a Minimum Budget Threshold: The Minister of Mines should establish a minimum specification budget requirement of 5% of a company’s turnover or forecast turnover, particularly for companies in the development phase.
- Provincial Budget Allocation: Provincial governors should allocate a specific budget line to support the functioning of the permanent commission for specifications.
- Stronger Legal Protections: Parliament is urged to implement stricter legal protections for the environment, natural resource exploitation, and community land rights, including ensuring that the principles of free, prior, and informed consent are upheld.
The report underscores the need for stronger governance, greater financial commitment from mining companies, and more robust legal frameworks to ensure that the benefits of mining are shared with the communities that bear the social and environmental costs.
