By: Carlos Mondragón Full-time Professor ITAM, School of Business
Despite being unfamiliar to the consumer market, Coltan is a mineral of such strategic importance in the industrial world that companies refer to it as the “indispensable magic dust.” Tantalite* and niobium are extracted from Coltan making it one of the most sought minerals since 1990 due to its unique features: rapid conductivity, resistance to strong electrical charges and high temperatures, capacitance (storing electric charges temporarily and releasing them when needed), and resistance to corrosion. Its main uses are in cellular phones, computers, electronic games, ballistic missiles, the aerospace industry, and intelligent weaponry. It is utilized in microprocessors, batteries, miniature circuitry, and capacitors. Coltan is so important that the Internet could not work without it.
Its price is as high as its demand. It is extracted in a primitive manner from open-pit mines since it is found in the subsoil less than a meter deep. Eighty percent of its world supply is found in the Democratic Republic of Congo, and the rest is found in Australia, Brazil, Thailand and far lesser amounts in Canada, Ethiopia, Malaysia, Nigeria, and Rwanda.
Congo is one of the richest countries in the world in terms of natural resources possessing gold, silver, diamonds, oil, cooper, cobalt, tin, and other minerals in its subsoil. In order to justify the presence of foreign troops, the Congolese government asserts that it is just trying to defend its natural resources with the help of Zimbabwe, Angola, and Namibia. In contrast, the northern and eastern regions are occupied by two large rebel movements and thousands of soldiers from two bordering countries: Rwanda and Uganda.
Wars over natural resources are not unknown in the Congo; in fact, in Africa they usually revolve around the sale of “blood diamonds.” Their earnings are used by the leaders of Angola and Sierra Leone to finance their revolutions using an international mafia trafficking network of arms, drugs, and raw materials. Despite an embargo imposed by the UN in 2000, the sale of blood diamonds continues, and they are unloaded in important stores in Antwerp, Geneva, New York, and Tel Aviv. Discovering their origin is practically impossible.
Great national ecological reserves have been ravaged and invaded for coltan extraction, not only by the Congolese but also by the rebels who overrun the thick forests of the Congolese national parks. One of the major environmental damages to the area is the disappearance of jungle reserves inhabited by gorillas and elephants, which have been endangered species for many years.
Since Coltan extraction poses an international dilemma, major companies in need of this raw material pretend to obtain it from other countries such as Australia and Brazil. However, they actually obtain great amounts of it through agents in the black market in order to meet their needs. The price in which Congolese’ coltan is obtained is lower than the that of other producing countries and due to its great demand it would be practically impossible for Australia, Brazil, Canada, and other countries to satisfy it. Although lacking exact figures, it is estimated that one fifth of Coltan’s global production originates in Congo, but this figure could be considerably higher.
Coltan coming from Congo is often taken as being illegal (stolen) when in fact it is not. Many companies refuse to buy the mineral in Central Africa due to the controversy surrounding its legitimacy, preferring to buy it in Australia or Canada. However, much of the Coltan stolen in Congo is already found in computers, cellular phones, and other electronic devices as we continue to be clueless as to which companies purchased it, let alone its origin.
The U.N. stated in a report at the end of the 1990s that the conflict in Congo revolves around the control, illegal exploitation, looting, and commercialization of its natural resources. Moreover, it is at the heart of the bellicose conflict that results to be so profitable to the large guerrilla cartels. According to the United Nations and other nongovernmental organizations, the illegal coltan mines in Congo are perpetuating the war that involves at least six African nations since 1995. A U.N. panel proposed a temporary embargo of coltan imports and exports to the Congo until the cease of all illegal mining activities, but as of 2011, this embargo has not been enacted.
The numerous reports from different NGOs and even the U.N. accusing Rwanda and Uganda of plundering Congo’s mineral riches has placed some degree of international pressure and led to the creation of black lists of companies operating in the area. Thus, 35 companies, 27 of them Western, were accused of importing coltan and cassiterite, and even the Belgian aviation company, Sabena, was forced to stop its transport of the mineral from Kigali (Rwanda’s capital) to Brussels. Despite these efforts, other alternative routes continue to operate, and a large amount of Congolese coltan is sold as if it were from Brazil or Thailand.
Even Uganda which does not have diamond mines has sold 1,263 million dollars in 2000. It doesn’t have Coltan mines either, yet it exported 70 tons of it in 2005.
The main Coltan mines are found in the Kivu region, east of Congo; this is where thousands of miners work all day to collect the so-called “blue or gray gold”, lacking machinery and basic tools, under subhuman conditions, and receiving a monthly salary of ten dollars. The majority of the miners are children ranging from 10 to 15 years old. They are particularly suitable because of their agility and ease to fit into tight spaces. The children work in a semi-servitude system. The other important group of miners is the Hutu prisoners who opt for a sentence reduction and are paid between 5 to 10 dollars for each kilo of Coltan. For more than a decade, an average of 800 mortal accidents occur daily and, without having exact figures, some estimations indicate that more than 5 million workers have already died.
The Congolese Coalition for Democracy and different guerrilla groups from Rwanda are the controllers and protectors of this region. They have contributed to the growth of an enormous illegal mining industry looting coltan from Congolese terrain. The mineral is trafficked through the black market by a network of dealers and agents to the largest multinational corporations for the manufacture of computers, video games, cellular phones, and medical equipment. Anecdotally, the Japanese company, Sony, had to postpone its launch of Playstation 2 due to insufficient coltan supplies.
Between February 2000 and January 2001, its demand got to a point that the price of a kilo of Tantalite rose from 180 to 950 Euros on the London Stock Exchange. The major manufacturers of mobile phones, Nokia, Ericsson, and Motorola have limited their PR activities regarding this topic stating that they were totally surprised and decided to disenfranchise from the commercialization of Congo’s coltan. These companies claimed that they were not sure whether coltan mining was illegal or not; yet they continue to produce hundreds of millions of cellular phones worldwide.
In May 2001, an Ericsson spokesperson stated that they were investigating the origin of all coltan they purchased and were in the process of discontinuing its use in cellular phones replacing it with ceramic capacitors. As of 2011, it is unknown if Ericsson has actually made such replacement.
It is such a competed mineral that according to the writer, Vazquez Figueroa, “he who possesses Coltan will rule the world.” Its resistance to heat, precise conductivity, and optimal energy storage make this mineral a source of revenue for developed countries and a source of human rights violations for Africa
That is why, although coltan is unknown to most, it can be found everywhere at any time. For example, we are awoken by our cell phone alarm, eat breakfast while watching the news on television, use the car and turn on the GPS or listen to the radio. Almost all electronic devices contain “gray gold.” Wars, environmental damage, child exploitation, and many other human right violations have all occurred because of it.
Since cellular phones have been on the market for many years, there should already be a way to recycle them. Furthermore, an international evaluation system should be established prohibiting the entry of raw materials from shady areas and severely fining those transnational companies that benefit from those crimes against humanity.
Final Observation: 800 miners have died daily in the Congo for more than a decade. Similar to September 11th, the atomic bomb in Hiroshima, and the Holocaust of WWII, the Developed Nations and the international organizations are probably waiting for the conflict in Congo to end in order to “commemorate” it, yet as of 2011, it still wages on. ?
Note:
*Tantalite was discovered in 1802 by the Swedish chemist, Eckberg, and once he realized how difficult it was to analyze this acid resistant metal, he named it after the Greek god, Tantalus, who was sentenced to eternal suffering in the underworld.
Coltan: “The Gray or Blue Gold”
Full-time Professor ITAM, School of Business
Despite being unfamiliar to the consumer market, Coltan is a mineral of such strategic importance in the industrial world that companies refer to it as the “indispensable magic dust.” Tantalite* and niobium are extracted from Coltan making it one of the most sought minerals since 1990 due to its unique features: rapid conductivity, resistance to strong electrical charges and high temperatures, capacitance (storing electric charges temporarily and releasing them when needed), and resistance to corrosion. Its main uses are in cellular phones, computers, electronic games, ballistic missiles, the aerospace industry, and intelligent weaponry. It is utilized in microprocessors, batteries, miniature circuitry, and capacitors. Coltan is so important that the Internet could not work without it.
Its price is as high as its demand. It is extracted in a primitive manner from open-pit mines since it is found in the subsoil less than a meter deep. Eighty percent of its world supply is found in the Democratic Republic of Congo, and the rest is found in Australia, Brazil, Thailand and far lesser amounts in Canada, Ethiopia, Malaysia, Nigeria, and Rwanda.
Congo is one of the richest countries in the world in terms of natural resources possessing gold, silver, diamonds, oil, cooper, cobalt, tin, and other minerals in its subsoil. In order to justify the presence of foreign troops, the Congolese government asserts that it is just trying to defend its natural resources with the help of Zimbabwe, Angola, and Namibia. In contrast, the northern and eastern regions are occupied by two large rebel movements and thousands of soldiers from two bordering countries: Rwanda and Uganda.
Wars over natural resources are not unknown in the Congo; in fact, in Africa they usually revolve around the sale of “blood diamonds.” Their earnings are used by the leaders of Angola and Sierra Leone to finance their revolutions using an international mafia trafficking network of arms, drugs, and raw materials. Despite an embargo imposed by the UN in 2000, the sale of blood diamonds continues, and they are unloaded in important stores in Antwerp, Geneva, New York, and Tel Aviv. Discovering their origin is practically impossible.
Great national ecological reserves have been ravaged and invaded for coltan extraction, not only by the Congolese but also by the rebels who overrun the thick forests of the Congolese national parks. One of the major environmental damages to the area is the disappearance of jungle reserves inhabited by gorillas and elephants, which have been endangered species for many years.
Since Coltan extraction poses an international dilemma, major companies in need of this raw material pretend to obtain it from other countries such as Australia and Brazil. However, they actually obtain great amounts of it through agents in the black market in order to meet their needs. The price in which Congolese’ coltan is obtained is lower than the that of other producing countries and due to its great demand it would be practically impossible for Australia, Brazil, Canada, and other countries to satisfy it. Although lacking exact figures, it is estimated that one fifth of Coltan’s global production originates in Congo, but this figure could be considerably higher.
Coltan coming from Congo is often taken as being illegal (stolen) when in fact it is not. Many companies refuse to buy the mineral in Central Africa due to the controversy surrounding its legitimacy, preferring to buy it in Australia or Canada. However, much of the Coltan stolen in Congo is already found in computers, cellular phones, and other electronic devices as we continue to be clueless as to which companies purchased it, let alone its origin.
The U.N. stated in a report at the end of the 1990s that the conflict in Congo revolves around the control, illegal exploitation, looting, and commercialization of its natural resources. Moreover, it is at the heart of the bellicose conflict that results to be so profitable to the large guerrilla cartels. According to the United Nations and other nongovernmental organizations, the illegal coltan mines in Congo are perpetuating the war that involves at least six African nations since 1995. A U.N. panel proposed a temporary embargo of coltan imports and exports to the Congo until the cease of all illegal mining activities, but as of 2011, this embargo has not been enacted.
The numerous reports from different NGOs and even the U.N. accusing Rwanda and Uganda of plundering Congo’s mineral riches has placed some degree of international pressure and led to the creation of black lists of companies operating in the area. Thus, 35 companies, 27 of them Western, were accused of importing coltan and cassiterite, and even the Belgian aviation company, Sabena, was forced to stop its transport of the mineral from Kigali (Rwanda’s capital) to Brussels. Despite these efforts, other alternative routes continue to operate, and a large amount of Congolese coltan is sold as if it were from Brazil or Thailand.
Even Uganda which does not have diamond mines has sold 1,263 million dollars in 2000. It doesn’t have Coltan mines either, yet it exported 70 tons of it in 2005.
The main Coltan mines are found in the Kivu region, east of Congo; this is where thousands of miners work all day to collect the so-called “blue or gray gold”, lacking machinery and basic tools, under subhuman conditions, and receiving a monthly salary of ten dollars. The majority of the miners are children ranging from 10 to 15 years old. They are particularly suitable because of their agility and ease to fit into tight spaces. The children work in a semi-servitude system. The other important group of miners is the Hutu prisoners who opt for a sentence reduction and are paid between 5 to 10 dollars for each kilo of Coltan. For more than a decade, an average of 800 mortal accidents occur daily and, without having exact figures, some estimations indicate that more than 5 million workers have already died.
The Congolese Coalition for Democracy and different guerrilla groups from Rwanda are the controllers and protectors of this region. They have contributed to the growth of an enormous illegal mining industry looting coltan from Congolese terrain. The mineral is trafficked through the black market by a network of dealers and agents to the largest multinational corporations for the manufacture of computers, video games, cellular phones, and medical equipment. Anecdotally, the Japanese company, Sony, had to postpone its launch of Playstation 2 due to insufficient coltan supplies.
Between February 2000 and January 2001, its demand got to a point that the price of a kilo of Tantalite rose from 180 to 950 Euros on the London Stock Exchange. The major manufacturers of mobile phones, Nokia, Ericsson, and Motorola have limited their PR activities regarding this topic stating that they were totally surprised and decided to disenfranchise from the commercialization of Congo’s coltan. These companies claimed that they were not sure whether coltan mining was illegal or not; yet they continue to produce hundreds of millions of cellular phones worldwide.
In May 2001, an Ericsson spokesperson stated that they were investigating the origin of all coltan they purchased and were in the process of discontinuing its use in cellular phones replacing it with ceramic capacitors. As of 2011, it is unknown if Ericsson has actually made such replacement.
It is such a competed mineral that according to the writer, Vazquez Figueroa, “he who possesses Coltan will rule the world.” Its resistance to heat, precise conductivity, and optimal energy storage make this mineral a source of revenue for developed countries and a source of human rights violations for Africa
That is why, although coltan is unknown to most, it can be found everywhere at any time. For example, we are awoken by our cell phone alarm, eat breakfast while watching the news on television, use the car and turn on the GPS or listen to the radio. Almost all electronic devices contain “gray gold.” Wars, environmental damage, child exploitation, and many other human right violations have all occurred because of it.
Since cellular phones have been on the market for many years, there should already be a way to recycle them. Furthermore, an international evaluation system should be established prohibiting the entry of raw materials from shady areas and severely fining those transnational companies that benefit from those crimes against humanity.
Final Observation: 800 miners have died daily in the Congo for more than a decade. Similar to September 11th, the atomic bomb in Hiroshima, and the Holocaust of WWII, the Developed Nations and the international organizations are probably waiting for the conflict in Congo to end in order to “commemorate” it, yet as of 2011, it still wages on. ?
Note:
*Tantalite was discovered in 1802 by the Swedish chemist, Eckberg, and once he realized how difficult it was to analyze this acid resistant metal, he named it after the Greek god, Tantalus, who was sentenced to eternal suffering in the underworld.
References