impact, sustainability & scalability draft 2
TRANSCRIPT
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Chambers Federation DRC (Congo) Cooperative Mining Project
"Those who have a capacity to make a positive impact on the world have a responsibility to do so."
Chambers Federation
WEBSITE: www.chambersfederation.com
EMAIL: [email protected] [email protected]
TELEPHONE: +254 725 039 690/+254 737 022 222
SKYPE: Matthew David Chambers
The Chambers Federation is seeking development and investment partners to join with the Federation in its impact
investments into the eastern Congo community. Contact us today to discuss our potential.
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KEY IMPACT NUMBERS ………
66,000 - Approximate number of miners and their families directly impacted by the next phase of the project.
43,000 – Approximate number of miners and their family directly impacted by our 3T Conflict-Free Mineral Sales Platform
2 million – Approximate number of miners and their families working under the cooperative system which will eventually receive direct and/or indirect impact from the continued expansion of this project
$711,916.44 - Corporate social responsibility (CSR)’ s first year company revenue allocation
$1,823,546.74 - Cooperatives estimated revenue for first year
$949,221.84 - Amount reinvested through expansion and new businesses within the first 12 months
30 - 40% - Efficiency of existing ore processing methods used by local miners
90% - Efficiency of company’s equipment which will immediately provide a minimum two-fold increase
in the miners income
30-35% - Approximate membership of cooperatives and cooperative management which consists of
women
60% - Approximate percentage of women in the treatment of ores
30% - Approximate percentage of women in the extraction of ores
75% - Approximate membership of cooperatives which consists of youth (18-35 years of age)
0 – Amount of mercury, cyanide, or nitric acid used by cooperatives within 12 months of program
implementation improving the health and safety of the cooperative members
0 – Number of individuals below the age of 18 working as laborers within the mining cooperatives
0 – Amount of forest clear-cut for ore processing, permanently damaged by hazardous chemicals
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1. Impact
a. Key Issues & Impact
i. Long Term History of Conflict & Smuggling in the Mining Business
ii. Undeveloped Local Economy
iii. Marginalization & Exploitation of Women
iv. Youth Employment & Safety
v. Child Labor
vi. Health & Safety Risks of Mining
vii. Environmental/Ecosystem Damage
viii. Reduction of Agriculture & Livestock Industries
2. Sustainability
a. Sustainable Expansion
3. Scalability
4. Indirect Development
a. Industry Legal Requirement
b. Meeting Market Demand
5. Impact Spreadsheet
6. Referenced Sources
The Chambers Federation is seeking development and investment partners to join with the Federation in its impact
investments into the eastern Congo community. Contact us today to discuss our potential.
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1. Impact
a. Key Issues & Impact
i. Long Term History of Conflict & Smuggling in the Mining Business
For more than a century, the Democratic Republic of the Congo has been plagued by
regional conflict and a deadly scramble for its vast natural resources. Profit from the
mineral trade is one of the main motives for armed groups on all sides of the conflict
in eastern Congo - the deadliest since World War II. Armed groups earn hundreds of
millions of dollars per year by trading four main minerals: the ores that produce tin,
tantalum, tungsten, and gold. An estimated $400 million worth of gold was smuggled into
the neighboring countries of Rwanda and Uganda in 2013 alone. Furthermore the UN
group of experts on the DRC estimated last year that 98 percent of the gold produced in
total in the conflict areas of the DRC was smuggled out of the country which in turn fuel
conflict and deprive the population of significant revenues and benefits and undermine
the stability of their country. Initial military restructuring within Congo’s army has removed
armed actors from many mines, and military operations undertaken by the Congolese
army and the United Nations Force Intervention Brigade have significantly reduced the
threats of powerful armed groups such as the M23 and the Allied Democratic Forces.
Neutralizing these groups, two of the biggest contributors to Congo’s deadly conflict in
recent years, is helping improve the situation in the areas where they operated with
impunity. While conflict in south Kivu had ended a decade ago, the effects remain and
little to no development efforts have been made to empower and rebuild the local
communities.
1. Project Impact
Conflict-free sales & export platform: Working with the local mining cooperatives
and several local licensed export partners, the Company brokers the minerals
produced by the cooperatives to end users and refineries that are willing to pay a
fair trade value. All minerals previously noted as conflict minerals (tin, tantalum,
tungsten, and gold) are included in this platform with the additions of copper and
industrial diamonds. The company implements ITRI/ITSCI’s innovative system, in
which minerals are tracked from mine to export, thus verifying the source of the
minerals and contributing to conflict-free mineral area.
Economic Development: Since the majority of income for this region is derived from
mining activities, the impact of increased production capacity, processing efficiency
and proper auditing and documentation of exported minerals will have the greatest
effect on the creation of a stabile community which in turn makes it less likely for
conflict to rise again. If more minerals are brought into the formal, conflict-free
economy, armed actors will have fewer mines from which to profit.
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Fair Trade Value: The Company provides or brokers a fair trade value for each of
the minerals extracted by the mining cooperatives and completes the sale within
the Congo so that all taxes are paid locally. The primary objective of this initiative
is to ensure that small scale artisanal miners receive a fair level of reimbursement
for their minerals. This further eliminates the benefit for smuggling minerals into
the surrounding region to save on taxes since the transaction, and therefore tax
payments, are being completed “in country”.
ii. Underdeveloped Local Economy
The economy of the Democratic Republic of the Congo - a nation endowed with vast
natural resource wealth - is slowly recovering after decades of decline. Systemic
corruption since independence in 1960, combined with country-wide instability and
conflict that began in the mid-90s has dramatically reduced national output and
government revenue and increased external debt. With the installation of a transitional
government in 2003 after peace accords,
economic conditions slowly began to
improve as the transitional government
reopened relations with international
financial institutions and international
donors, and President KABILA began
implementing reforms. Progress has been
slow to reach the interior of the country
although clear changes are evident in
Kinshasa and Lubumbashi. An uncertain
legal framework, corruption, and a lack of
transparency in government policy are long-term problems for the mining sector and for
the economy as a whole. Much economic activity still occurs in the informal sector and is
not reflected in GDP data. Renewed activity in the mining sector, the source of most
export income, has boosted Kinshasa's fiscal position and GDP growth in recent years.
However, much of this development has failed to be reinvested into the interior of the
country, in particular the Kivu region.
Artisanal gold mining produces between US$1-2 billion per year and undeniably
represents the biggest single source of income for eastern DRC and the best hope for
economic growth and development. At present, this sector provides a vital livelihood to
many millions of people dispersed throughout the country, and collectively constitutes
over 80% of the entire mining sectors production. But gold miners do not receive full
benefit from their mineral extraction and from notable improvements in the broader
economic and security context, which include the establishment of peace in most gold-
mining areas; record-breaking gold prices on world markets; and the restructuring of
government agencies, partly supported by the international community, to increase
supervision and enforcement of laws in all mining areas.
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1. Project Impact
Increased Production & Efficiency: The Chambers Federation mining project in DRC
includes the importation of high capacity, efficient, yet low cost equipment for the
extraction of ore. This production equipment has roughly 2 to 3 times the production
capacity compared to existing equipment used. In ore processing, the current
methods used by small artisanal miners result in a 30 to 40% recovery of gold, losing
60 to 70% of the potential gold ore. Merely upgrading the ore processing to gravity
separation increases that recovery rate to 90% (www.met-solvelabs.com). This will
more than double the production capacity of the local mining cooperative as well as
double the ore recovery during the processing stages, therefore, providing a direct
potential four-fold increase in income for the cooperative members. With the
equipment listed in the third phase, an estimated $1,823,546.74 will be added to the
first cooperatives revenue for the first year alone impacting the entire cooperatives
membership, just over 10,000 miners. This revenue is expected to grow exponentially
as additional equipment is implemented and additional cooperatives are included
into the program. Potentially, all 22 mining cooperatives, totaling over 215,000
miners could receive direct project benefits as phase 4 is continuously implemented.
Additionally, all gold produced by the company’s equipment is sold directly to the
international market, providing a fair market value for the cooperative’s production.
Increased Local Tax Revenue: Approximately half of the taxes paid will be to the local
government, increasing their capacity for local development.
Compounding Economic Stimulus from Increased Local Earnings: The increased
revenue received by the local mining cooperatives will add millions of dollars to the
local economy each year. This will provide a compounding benefit to supportive
industries as well as too the entire local community.
iii. Marginalization & Exploitation of Women
Approximately 30 to 35% of the membership
consists of women with an estimated 20-25%
being part of the cooperative management.
While women are often excluded from more
formalized large scale mining employment,
many work extensively along with children and
other family members in artisanal and small-
scale mining in communities where it takes
place. But small artisanal mining can be a
demanding, dangerous, and often only
marginally profitable sector for women, and job opportunities in small artisanal mining,
even more than larger scale mining, can increase women’s burden of working both outside
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and inside the home. Small-scale miners are typically paid based on delivery of product, so
women may work all day, but earn little cash income, and still be responsible for additional
work and responsibilities at home. Also, on a majority of mining sites, women are not
allowed to dig ores and can only involve in transport and processing of ores, although
digging offer higher remuneration range. Working in communities where there are often
few, if any other cash generating alternatives, women may work extreme hours, including
at night, and even while heavily pregnant, but with no benefits or security. Furthermore,
even in artisanal mines, women may have little control over resources. Evidence indicates
that women often work longer hours than men, but on average earn four times less than
male counterparts, a discrepancy which forces many women to look for additional work,
increasing their time poverty and even resulting
in women taking equally if not more dangerous
work like prostitution. Small-scale mining tends
to be much more unsafe compared to larger
mines: small-scale and artisanal miners use less
protective gear, and mining is less regulated, has
poorer infrastructure, and is often more
dangerous. In small-scale mining, women,
approximately 60%, often conduct the
processing activities, sometimes in the home, exposing themselves and their families to
harmful chemicals such as mercury used to extract gold from ore, with minimal ventilation
and protection. Women of childbearing age and children are frequently more susceptible
than men to health risks from some of these agents – for instance, women of childbearing
age are more susceptible to methylmercury poisoning, which can easily be transmitted to
fetuses in utero, and can cause serious developmental problems for babies, infants and
children.
1. Project Impact
Healthy Ore Processing: The Chambers Federation aims to eliminate these health
risks by implementing the use of gravity separators which do not use mercury or
any other hazardous chemicals. Ensuring that women working conditions meet
basic health and safety standards will help mitigate negative impacts and
potentially increase women’s productivity in mining. As approximately 60% of ore
processing is currently completed by women, this is where the greatest health
impact can be made.
Women in Management: Due to the agreements in place between the Company
and the cooperatives, women will receive greater representation as minimum
positions in the cooperative management and board structures are required to go
towards women, providing equal representation. This “affirmative action” measure
is used across the board with all Company interests.
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Diversified, Non-Mining, Women Focused Business Reinvestment: As the Company
reinvests its profits it will also prioritize diversified business opportunities to
women further empowering their economic status within the communities.
Women who wished to move out of the mining industry and find alternative
livelihood, would have the opportunity to find a more permanent and safe work in
other small scale industries create by the company.
Women in Mining Support Services: As mining incomes increase the supportive
industries located at the mines such as sale of foods and drinks, clothing etc. will
realize an immediate positive financial impact.
Training: Specific training and management will be installed to ensure the equality
and safety of women in the mining industry. Further training and support will be
provided to women so that they can organize themselves into associations, mutual
savings groups or cooperatives, and support them in local development, leadership
and revenue generation initiatives designed to overcome their isolation and give
them the collective strength that will allow them to improve their living conditions
and the lives of their families.
iv. Youth Employment & Safety
Approximately 75% of the current cooperative membership consists of youth between the
ages of 18 and 35 years. Youth consist of the majority of the workforce at most small-scale
and artisanal mines due to limited employment options in most rural mining areas.
Typically untrained, these youth often makeup the majority of the extraction teams used
to bring the ore to ground level. Most often, shafts are dug into the ground with little to
no structural supports to prevent cave-ins. Each year thousands of artisanal miners are
killed from improper site planning and safety precautions.
1. Project Impact
Safety Gear and Training: The Chambers Federation will not only supply additional
safety equipment, it will also provide training to the youth members and
management to supervise extraction methods.
New Employment Opportunities: As the Company reinvests into non-mining
businesses, youth will have additional employment opportunities. Since much of this
focus will be towards food production, this will have a compounding effect for
addressing both youth employment as well as food security issues.
v. Child Labor
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In DRC, the prevalence of child labor is very high in the artisanal and small-scale mines.
Although there is a lack of official data on the number of all child miners in the country,
local and international organizations working in the field of child protection estimate that
children represent up to 40% of laborers in artisanal mines. However, mining work is
prohibited by the Congolese Labor Code for children under 18. Despite the legal
prohibition, there are few initiatives to prevent children from working in the mines, and
there are almost no prosecutions against those who employ children or buy minerals
derived from child labor. This may be explained by the fact that the roots causes of child
mining labor in DRC are mainly linked to poverty and a lack of free schools which together
forces children to drop-out of school and begin working. The working conditions in the
artisanal mines are dangerous and unhealthy for children, exposing them to the risk of fatal
accidents and injuries. Children use their bare hands and feet to dig,
sift, wash and lift heavy loads of minerals. These tasks expose them to
high probabilities of being injured or killed. Due to their size, children
may be put to work in small spaces and following narrow mineral
veins. They are often required to carry out repetitive tasks such as rock
crushing or panning. In some contexts, such as around gold mines,
they may be exposed to high levels of toxins, such as mercury, used to
mix with water and ore for amalgamation of gold. Children may be
required to carry heavy weights of ore, waste, or water. The physical
stress they face and the bodily damage they sustain is potentially greater for them than
the adults. The children’s earnings range from $0.75 to $3 a day, which they use to buy
food, clothes and shoes, or towards school fees. They see it as an opportunity to earn
income, but the work conditions in the artisanal mines are entirely unsuitable for the under
aged.
Children working in mines are also often exposed to physical and sexual violence. They are
sometimes used by adults for the sale of drugs or alcohol, forced into prostitution, or
subjected to other forms of sexual exploitation. Many children are left with physical,
mental and emotional scars that prevent them from functioning normally as adults. Many
of them are deprived of a better future, because they could not go to school.
1. Project impact:
Educational Structures for Children: Education is a crucial component of any effective effort
to eliminate child labor. The Chambers Federation does not allow child labor in mining and
will invest a portion of its profits into building schools and other education facilities.
Children attending school do not have to enter the mines to be cared for by parents or
other family members. This can alleviate barriers to children’s education and encourage
parents to remove them from work force. This provides a longer term benefit to the
economy and the children’s family as their increased level of education will have a direct
correlation on their capacity to contribute to their community.
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Law & Contract Enforcement: The Company has a strict policy, written into the contracts
with the cooperatives, of no children under the age of 18 allowed as labor of any sense.
Any cooperative breaking this law will be subject to suspension and termination of all
Company projects.
Economic Family Empowerment: Mining cooperative members, likely parents with 3 to 4
children at home, will receive a potential fourfold increase in income. This will reduce the
financial pressure to remove their children from school and bring them to work at the
mines. In the longer term, the Company will document family structures at the mines and
provide educational truancy officers to ensure school attendance. ?
vi. Health & Safety Risks of Mining
Current artisanal mining activities generally includes the usage of hazardous chemicals
ranging from Mercury (Hg) to Nitric acid (HNO3).
Mercury is used to amalgamate with gold during the panning process, is generally handled
by bare hand and eventually burned off in a fire to isolate the gold. Mercury can be
absorbed through the skin and mucous membranes and mercury vapors can be inhaled
during the heating process. Mercury can cause both chronic and acute poisoning and is
known to have significant health effects. Women of childbearing age
and children are frequently more susceptible than men to health risks
from some of these agents – for instance, women of childbearing age
are more susceptible to methylmercury poisoning, which can easily be
transmitted to fetuses in utero, and can cause serious developmental
problems for babies, infants and children.
Nitric acid is a corrosive acid and a powerful oxidizing agent. It is used
as a rudimentary purifier of gold dust and flakes as Nitric acid does not
react with gold but does react with most other elements and
compounds. Gold dust and flakes are mixed with nitric acid then, as with mercury, it is
burned off in an uncontrolled environment. The major hazard posed by it is chemical burns
as it carries out acid hydrolysis with proteins (amide) and fats (ester) which consequently
decomposes living tissue (e.g. skin and flesh).
Small-scale mining tends to be much more unsafe compared to larger mines: small-scale
and artisanal miners use less protective gear, and mining is less regulated, has poorer
infrastructure, and is often more dangerous.
1. Project Impact
Healthy Processing: The Chambers Federation removes the need for the use of
these chemicals as the ore processing is handled by the company with modern
equipment which does not utilize any harsh chemicals. This greatly extends the life
and productivity of the artisanal ore processors, 60% of which are women, as well
as preventing the contamination of the general community’s water supply and
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preventing development problems for babies, infants and children due to
methylmercury poisoning.
Safety Training & Management: The Company’s management, along with trained
cooperative management will supervise ore extraction ensuring the property
training of the cooperative members and the proper implementation of safe mining
techniques.
vii. Environmental/Ecosystem Damage
DRC is home to the second largest world
rainforest, 54% of Africa's fresh waters,
180 million hectares of arable lands that,
if exploited, can feed 2 billion individual
or half of the world's population, and
more than USD 20 trillion in minerals,
including strategic minerals. DRC's
mineral potential encompasses USA and
European GDP combined.
Mining can be an intensive process and has affected some wilderness areas, including
national parks and wildlife reserves such as Kahuzi-Biega and the Okapi Wildlife Reserve,
both of which are world heritage sites.
Mining in these areas is typically artisanal that takes place in river beds and can,
cumulatively, be very environmentally damaging. Artisanal mining degrades riparian zones,
creating erosion and heavy silting of the water. The tailings are often dumped into the
rivers and could be contaminated with mercury and cyanide degrading the health of the
river systems putting the wildlife and people at risk. Gold production is known to account
for 11% of the human-generated atmospheric mercury emissions. Nitric acid is often
burned off during the final gold ore processing stages which contributes to effects of acid
rain. Nitric acid and mercury, however, are not always burned off and are often thrown
into waste pits to mix with other chemicals and eventually enter in the general water
supply and surrounding ecosystem. The deforestation and generally the environmental
degradation have indeed important implications for the economies concerned, particularly
on agriculture, which is often the main economic activity. Pollution becomes an additional
cause of poverty.
1. Project Impact
Environmentally Safe Ore Processing: The Chambers Federation does not use any
harsh chemicals during the ore extraction, ore processing or purifying processes
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and removes these processing steps from the local artisanal miners. This also
reduces the amount of deforestation for the setup of processing zones.
Proliferation and Promotion of Renewable Power: While the production equipment
is dependent on fossil fuels at this time, the company makes every effort to
implement solar power in both its offices as well as in the ore processing stages. A
portion of the company’s reinvestment will also be into the distribution of solar
powered products and other non-fossil fuel burning technologies. This will have a
twofold benefit to the community both economically as well as environmentally.
The company’s existing offices and infrastructure will greatly improve the efficiency
and reach of these environmentally friendly products.
Training & Management Implementation for the Protection of the Local Ecosystem:
The Company has already engaged organizations such as Resolve and Conservation
Earth to assist with creation of training programs and management guidelines for
the mitigation of environmental damage, the preservation of local wildlife and mine
reclamation protocols.
viii. Reduction of Agriculture & Livestock Industries
Although Congo has the largest fresh water supply (Congo
River) and a nutrient rich soil, the farming and livestock
industries have not kept up with market demand. As mineral
prices have increased within the last ten years, many famers
have given up their trade for the more lucrative mining
industry. Gold, for example, more than tripled in value and is
one of the easier heavy metals to extract with little to no
formal training. Gold makes up the majority of small artisanal
mining interest and is therefore the main focus of the
Company’s impact investment into the south Kivu region. As
local farmers abandoned their trade, conflict arose over
mining revenues, and those left farming unable to meet market demand came instability
in food supplies. Congo, with imported commodity trading exceeding $8.9 billion in 2013,
has been forced to import much of its food and foodstuffs are the largest import by volume
and value.
1. Project Impact
While the economic draw to the mining sector cannot be easily abated, the
promotion of farming and increase of yield production can make a significant
impact on local food security. The Chambers Federation is already working with
KickStart International, a member of the Clinton Global Initiative, in both DRC and
Kenya. KickStart launched its irrigation products for the first time in DRC this last
March. The Company is also in discussions with several other non-profits and social
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enterprises, such as Jibu and Kigali Farms, regarding their expansion into the DRC
community. It is also the Company’s goal to work jointly with Michigan State
University, the Company president’s alma mater, with the commercial expansion
of Company agriculture projects in the Kivu region.
2. Sustainability
An estimated $711,916.44 has been allocated from the company’s first year’s revenue for CSR related
programs. A concentration will be made to medical, education and other social needs. The company
infrastructure, including its 5 strategically located offices already in place, allow a more efficient
distribution of CSR activities.
The DRC ranks second to last on the Human Development
Index (186 out of 187 countries), and its per capita
income, which stood at US$220 in 2012, is among the
lowest in the world. An estimated 300 local residents
including the dredge operating teams from the
cooperatives, security, transporters and office personnel
are expected to receive an immediate and direct impact
from the equipment implemented in the third phase of
this project alone. Additionally, the total membership of
the first cooperative, just over 10,000 miners, will receive
a significant financial boost from the income generated by
the initial cooperative dredging teams. This does not include any of the secondary benefits such as the
impact to the servicing industries that go to support the cooperatives. It also does not include the
economic impact of the ore processing and reprocessing sub-project which will have a greater than two-
fold income increase for the mines that are brought into this program. The first mine located near our
Kaziba office is expected to directly impact approximately 2,500 miners while other mines typically employ
approximately 2,000 to 3,000 miners, depending on the size and location of the mine.
a. Sustainable Expansion
An estimated $949,221.84, allocated from the company’s first year’s revenue, will be reinvested
back into additional equipment and back into other businesses in the surrounding area. This will
provide the company with a stronger local foundation and provide much needed goods and
services to the local communities, further improving and empowering the mining cooperatives’
members and their families. This will also strengthen the company’s local “good will” reception
and facilitate further expansion into the surrounding regions.
Although the main focus of the company will be towards mining related activities, the businesses
that will receive the reinvested income will be outside of the mining industry. This includes
agriculture, lumber, livestock and other industries which require significant investment of
expertise and capital to fully rejuvenate. Many of these industries have similar cooperative
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structures which can be used as a basis for these expansions, transplanting the company’s
cooperative expertise to new use.
Agriculture: Coffee production is one sector which does not have a strong cooperative system like
mining yet much of this areas GDP, prior to mining, was derived
from coffee production. In the late eighties the DRC was exporting
80,000 metric tons of coffee a year. In 2013 this had fallen to less
than 10,000 metric tons. Since the 1980s global coffee
consumption has increased by an average of 1.2% annually
(International Coffee Foundation). If coffee exports from the DRC
had kept up with the increase in global demand the DRC would now
be exporting over 106,000 metric tons a year – 10 times what is
currently exported. Currently much of the material produced in the
Kivu region including gold, lumber and coffee are smuggled across
the border to Rwanda, Burundi or Uganda. An estimated 20 deaths per week occur as farmers
attempt to cross Lake Kivu to reach Rwanda to sell their coffee beans known as “black gold”.
Around one third of Uganda’s exports of green coffee are estimated to come from the eastern
provinces of the DRC (OECD Observer). These illegal buyers are able to pay 10-15% more than
their Congolese counterparts because of lower export tax rates and lower processing costs. Over
250,000 people in eastern DRC are already employed in the coffee sector. Simple changes to the
way coffee is grown could increase their income by 80-100%.
Other food crops and even livestock industries can also receive a significant impact by
transplanting the company’s cooperative expertise to these sectors. Due to its rich, fertile soil,
agriculture is a primary rural economic activity. However, DRC has a food production deficit
estimated at 30-40 percent according to the WFP. Seventy percent of the population lives below
the poverty line and lacks access to adequate food. DRC has languished at the bottom of two major
indices of well-being. It ranks last on both the 2012 UNDP Human Development Index and the
International Food Policy Research Institute Global Hunger Index. It is also last but one on the Fund
for Peace Failed States Index (177 out of 178 countries). The national average level of Global Acute
Malnutrition (GAM) rate is 11 percent, defined as ‘serious' by WHO.
Lumber: Lumber cooperatives have already
reached out to the company to assist with
their market exposure and sustainable
logging practices. Much of this lumber
production is currently done without any
regard to replanting or impact on the local
ecosystem. While the markets for this
lumber already exist in East Africa and other
international markets, there is no organized
export structure in place. Almost all of the
lumber produced is purchased by foreign
“middle men” which buy the lumber far below market value and then resell in local markets such
as Kenya. Strengthening the local lumber cooperatives by creating a platform for consolidation
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and export can help provide the local economy with a greater revenue and value for its exported
produce.
As the company reinvests its revenue into this region it will target many of these industries to
create platforms for the fair trade of these products and begin to eliminate the illegal smuggling
into the neighboring countries. A minimal investment into basic trading platforms can provide local
producers an opportunity to receive a fair value for their product and the DRC government with
lost tax revenue. Further investment into the production of agricultural products can help increase
the quantity and quality exponentially both providing a stronger local supply of food as well as
potentially creating an export market in the longer term.
3. Scalability
After the Implementation of phase 3, the cash flow generated will more than suffice for the continuous
importation and expansion of both production and processing capacities. The mining workforce
throughout DRC is estimated to be up to one fifth of the country or 12.5 million people. Additionally,
Congo is estimated to have $24 trillion (equivalent to the combined Gross Domestic Product of Europe
and the United States) worth of untapped deposits of raw mineral ores, including the world’s largest
reserves of cobalt and significant quantities of the world’s diamonds, gold and copper. Clearly, the
abundance of both mineral and labor resources will not be a mitigating factor for this projects scalability.
The main factors, noted through sections i. through viii., which will slow the rapid expansion of this project
are also the main recipients of the benefits of this project.
4. Indirect Development
a. Industry Legal Requirements
Section 1502 of the Frank Dodd Act is a 2010 amendment to the US Exchange Act. It requires
companies to which it applies to determine whether any of the four minerals (tin, tungsten,
tantalum or gold) used in their products are financing or benefiting illegal armed groups in the
DRC or an adjoining country. Companies that are listed with the Securities and Exchange
Commission (SEC) and use tin, tungsten, tantalum or gold in the products they manufacture or
contract to manufacture are directly affected and must make specific public disclosures on their
due diligence.
Companies whose product is ultimately sold to the US market are likely to be indirectly affected
by the legislation, whether or not they sell directly to a US‐listed company.
i. Conflict-free Sales Platform: The Chambers Federation has established a conflict-free sales
platform to assist with the legal export and sale of the three T minerals and gold. While the
company is currently working its own licensing for the trade of these conflict minerals, it is
working with local export partners whom already possess the required export licensing and
documentation. Negotiations for the trade of tantalum and gold have already been
completed with refineries in UAE, USA and China. All exports are subject to export taxes
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and all manufacturing minerals will be exported through ITRI/ITSCI protocol. This platform
provides manufactures with the ability to source conflict-free minerals with full supply-
chain documentation, adhere to the new law and promote fair trade.
b. Meeting Market Demand
Tin, tantalum, tungsten and gold are used in electronic products from cell phones to computers
to video game systems, some of which now form an integral part of the way many people function
on a daily basis. These products cannot be made without the three T’s and gold. While the
legislation amended in 2010 to the US Exchange Act was intended to help facilitate a reduction in
violence and exploitation in the Congo, it has in fact, by many measures, done more damage to
the area than good. Since many of the minerals extracted in eastern Congo are not currently
certifiable as conflict-free, often due to unrelated, non-conflict related issues, this has caused a
reduction in the local value for many of these minerals. Many “predatory” refineries and traders
have seized on the opportunity of lower values continuing the exploitation of the small-scale
miner. The demand for these products is likely to increase in the near future, therefore, the
documented supply chain of these minerals and current legislation must be balanced to mitigate
any continued exploitation. This scenario, created by the intention to eliminate conflict, makes the
implementation of the Chambers Federation DRC (Congo) Cooperative Mining Project that much
more imperative.
5. Impact Spreadsheet
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Note: This scalability/replication is self-sustaining, not requiring any additional financing beyond phase 3.
Impact Breakdown - Scalable
People Units Total
Dredging Project (Production) - Phase 3 Only # of Dredges
24 Divers 4 96
6 Security 4 24
2 Team managers 4 8
8 Ore transporters 4 32
6 Engine/dredge operators 4 24
6 Sluice operators 4 24
Total People Directly Employed by Dredging Project 208
Ore Processing and Tailing Reprocessing - Phase 3 Only # of Mines
12000Miners (Luwindjia mine only)(approximate number of miners working at primary
mine and surrounding mines)(local cooperative membership)1 12,000
Total People Directly Impacted by Ore and Tailing Processing 12,000
Laboratory (Assaying and Smelting) - Phase 3 Only
1 TBD 1 1
Total People Directly Impacted by Laboratory 1
Office/Management/Field Staff/Security
22 Bukavu 1 22
14 Shabunda 1 14
9 Kaziba 1 9
7 Misi-Fizi 1 7
7 Mwenbe 1 7
Total People Employed in Offices/As Management, Field Staff or Security 59
Sub-total 12,268
215,000 Total End Impact of Production, Processing and Laboratory Projects 100% 215,000
5.4 Average household size
Conflict-Free Mineral Sales Platform % of Coop Supply
16(16)# of cooperatives mining 3T minerals in the south Kivu region supplying to
Company, (10,000) average membership per cooperative 10,000 10% 16,000
16 Total End Impact of 3T Conflict-Free Mineral Sales Platform 10,000 100% 160,000
Total Immediate Impact of 3T Conflict-Free Mineral Sales Platform 86,400
Total Direct Impact w/out Mineral Sales Platform - Phase 3 Only 66,247
Total Immediate Impact of all Company Projects 152,647
Total End Impact (Potential) of all Company Projects 2,025,000
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6. Referenced Sources
a. Hope International
b. World Bank
c. Raise Hope for Congo, an Enough campaign
d. International Coffee Foundation
e. Met-Solve Labs
f. KPMG
g. US State Department
h. CIA World Factbook
The Chambers Federation is seeking development and investment partners to join with the Federation in its impact
investments into the eastern Congo community. Contact us today to discuss our potential.
"Those who have a capacity to make a positive impact on the world have a responsibility to do so."
Chambers Federation
EMAIL: [email protected] [email protected]
TELEPHONE: +254 725 039 690/+254 737 022 222
SKYPE: Matthew David Chambers CONTACT US TODAY
BOULEVARD DU 30 JUIN , NUMBER 49, RÉSIDENCE HUMOBILIA, GOME, KINSHASA, RDC - 25 AV KALEHE, COMMUNE D’IBANDA, VILLE DE BUKAVU SUD-KIVU, RDC - 37626-00100 NAIROBI, KENYA