[Joint House and Senate Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
FROM COBALT TO CARS:
HOW CHINA EXPLOITS
CHILD AND FORCED LABOR IN DR CONGO
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HEARING
BEFORE THE
CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
NOVEMBER 14, 2023
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Printed for the use of the Congressional-Executive Commission on China
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Available at www.cecc.gov or www.govinfo.gov
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U.S. GOVERNMENT PUBLISHING OFFICE
54-083 PDF WASHINGTON : 2024
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CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
LEGISLATIVE BRANCH COMMISSIONERS
House Senate
CHRIS SMITH, New Jersey, JEFF MERKLEY, Oregon, Co-chair
Chair STEVE DAINES, Montana
JAMES P. McGOVERN, Massachusetts MARCO RUBIO, Florida
BRIAN MAST, Florida TOM COTTON, Arkansas
JENNIFER WEXTON, Virginia ANGUS KING, Maine
MICHELLE STEEL, California TAMMY DUCKWORTH, Illinois
SUSAN WILD, Pennsylvania DAN SULLIVAN, Alaska
ANDREA SALINAS, Oregon
ZACHARY NUNN, Iowa
RYAN ZINKE, Montana
EXECUTIVE BRANCH COMMISSIONERS
DANIEL K. KRITENBRINK, Department of State
MARISA LAGO, Department of Commerce
THEA MEI LEE, Department of Labor
UZRA ZEYA, Department of State
ERIN BARCLAY, Department of State
Piero Tozzi, Staff Director
Matt Squeri, Deputy Staff Director
(ii)
C O N T E N T S
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Statements
Opening Statement of Hon. Chris Smith, a U.S. Representative from
New Jersey; Chair, Congressional-Executive Commission on China. 1
Statement of Hon. Jeff Merkley, a U.S. Senator from Oregon; Co-
chair,
Congressional-Executive Commission on China.................... 3
Statement of Hon. Michelle Steel, a U.S. Representative from
California..................................................... 5
Statement of Hon. Andrea Salinas, a U.S. Representative from
Oregon......................................................... 5
Statement of Hon. Eric Schultz, former U.S. Ambassador to Zambia. 7
Statement of Milos Ivkovic, international arbitrator, and Adjunct
Professor, Washington University School of Law................. 9
Statement of Joseph Mulala Nguramo, Non-Resident Fellow, Atlantic
Council's Freedom and Prosperity Center and Scowcroft Center
for Strategy and Security...................................... 12
Statement of Nicolas Niarchos, freelance journalist whose work on
conflict and minerals in Africa has been published in The New
Yorker......................................................... 15
APPENDIX
Prepared Statements
Schultz, Eric.................................................... 34
Ivkovic, Milos................................................... 35
Nguramo, Joseph Mulala........................................... 40
Niarchos, Nicolas................................................ 44
Smith, Hon. Chris................................................ 46
Merkley, Hon. Jeff............................................... 48
McGovern, Hon. James P........................................... 49
Submissions for the Record
``The Dark Side of Congo's Cobalt Rush'' by Nicolas Niarchos,
from The New Yorker, May 31, 2021.............................. 51
CECC Truth in Testimony Disclosure Form.......................... 76
Witness Biographies.............................................. 77
(iii)
FROM COBALT TO CARS: HOW CHINA EXPLOITS CHILD AND FORCED LABOR.
IN DR CONGO
----------
TUESDAY, NOVEMBER 14, 2023
Congressional-Executive
Commission on China,
Washington, DC.
The hearing was held from 10:01 a.m. to 12:20 p.m., in Room
2360, Rayburn House Office Building, Representative Chris
Smith, Chair, Congressional-Executive Commission on China,
presiding.
Also present: Senator Jeff Merkley, Co-chair, and
Representatives Zinke, Steel, Salinas, and Nunn.
STATEMENT OF HON. CHRIS SMITH, A REPRESENTATIVE FROM NEW
JERSEY; CHAIR, CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
Chair Smith. Good morning. Today's hearing, ``From Cobalt
to Cars: How China Exploits Child and Forced Labor in DR
Congo,'' will come to order.
The Commission knows all too well about the Chinese
government's egregious human rights abuse, blatant disregard
for international law, and its ever-expanding authoritarian
influence beyond its borders. This influence is pervasive, felt
in boardrooms and C-suites, in supply chains, and on assembly
lines, in classrooms and textbooks, in cities in our very own
country, and, indeed, other countries as well. Today's hearing
will highlight China's malign influence in Africa, specifically
in the cobalt mining industry in the Democratic Republic of
Congo. China's repressive long arm is ubiquitous in the DRC.
Located in central Africa, the DRC is massive and blessed with
natural resources, including metals and minerals, and of course
its greatest asset is its people, who are being exploited today
by the Chinese Communist Party.
It is a country that has been brutally pillaged throughout
history, fueled by corrupt men's unquenchable thirst for power,
riches, land, rubber, copper, palm oil, and now cobalt, all at
the expense of innocent women, men, and children. The DRC is
home to more than 70 percent of the world's cobalt, an
essential metal for lithium-ion batteries, powering our
smartphones, computers, and electric vehicles, lest we forget
our own complicity, however unwitting, through our use of
cobalt in our everyday lives.
Siddharth Kara's book, ``Cobalt Red''--and I recommend that
everyone on this Commission and people who are concerned about
these issues read this book--``Cobalt Red: How the Blood of the
Congo Powers Our Lives,'' vividly describes the tragic
realities of this industry that has all too willingly turned a
blind eye to human dignity. There is no such thing as a clean
supply chain of cobalt from Congo. says Kara. Kara writes in
his book, ``Stakeholders have formulated international
coalitions to help ensure that their supply chains are clean.
The two leading coalitions are the Responsible Minerals
Initiative and the Global Battery Alliance, the GBA. The GBA,''
he goes on, ``has developed a Cobalt Action Partnership to
immediately and urgently eliminate child and forced labor from
the cobalt value chain.'' Kara, however, goes on to write, ``in
all of my time in the Congo I never saw or heard of any
activities linked to either of these coalitions.''
To this day, child and forced Congolese laborers toil in
hazardous conditions to extract cobalt from unsafe mines,
including artisanal mines, in the DRC. Hastily dug, artisanal
mines are always subject to collapsing, and many have indeed
collapsed, crushing, amputating limbs, and killing miners,
including children. It is impossible to escape the disastrous
environmental impact of cobalt mining in these communities, as
the very air they breathe and the water they drink are
contaminated by toxic chemicals, dirt, and sediment.
The biggest beneficiaries of this cobalt continue to remain
silent and refuse to face this uncomfortable truth. From dirt
to battery, from cobalt to cars, the entire system is fueled by
violence, cruelty, and corruption. ``Therein lies the greatest
tragedy of the Congo's mining provinces,'' says Kara. ``No one
up the chain considers themselves responsible for the artisanal
miners, even though they all profit from them.'' China has
gained almost full dominance of every single step of the cobalt
supply chain. Money talks and human rights go right out the
window. Corrupt government officials in the DRC sign billion
dollar deals with China and pocket the money for themselves.
Major companies, both Chinese and Western, close their eyes.
Over a year ago, on July 22nd, 2022, I chaired a hearing of
the Tom Lantos Human Rights Commission entitled ``Child Labor
and Human Rights Violations in the Mining Industry of the
Democratic Republic of Congo.'' And thank you, Ambassador
Schultz, because you were one of our very distinguished
witnesses. One of our expert witnesses at that hearing at the
time, Herve Kyungu, testified--and I quote him in part, ``Child
labor is one of the worst forms of abuse. It is forbidden by
both Congolese legislation as well as international rules and
norms.'' ``In the mining industry in my country,'' he went on,
``the Democratic Republic of Congo, children are often exposed
to radioactive minerals, injuries, deadly and painful
diseases.''
``For example,'' he goes on, ``with respect to the
extraction of cobalt in artisanal mines, within the Lualaba
province children are routinely used as part of the workforce.
They are unremunerated and exploited, and the work is often
fatal, as these children are required to crawl into small holes
dug in the earth to recover sacks of ore containing rich grades
of heterogenite, which is almost 60 percent cobalt. These
children are not going to school. Their health is exposed as
they are living in precarious conditions.''
Another witness at our hearing, also from the DRC, Father
Bihuzo, a Jesuit, he's the regional coordinator of the
Ecclesial Network on the Congo Basin Forest and head of the
research department of the Jesuit Center for Study and Social
Action. He pointed out that their ``report noted that artisanal
miners are not provided with any protective equipment. They
work seven days a week and more than 12 hours a day. In
reality, their working hours are not defined and include
weekends and holidays. They are exposed to radiation from the
products they use and to the danger of the explosives they
use.''
The United States has been, at best, asleep at the wheel
or, worse, complicit in enabling for too long, and China has
taken advantage of that. We need to provide alternative
options, options that champion transparency, human rights,
peace, and prosperity for all. This week I will be introducing
legislation to ensure that goods made using or containing
cobalt refined in the PRC do not enter the United States
market, under the presumption that it is extracted or processed
with the use of child and forced labor in the Democratic
Republic of Congo.
Among its provisions, the bill--called the COBALT Supply
Chain Act, will, as did the Uyghur Forced Labor Act, require
that the customs commissioner apply this presumption--it's a
rebuttable one--but that he apply this presumption, unless the
commissioner determines that the importer of record of the
covered goods being imported has (1), demonstrated by clear and
convincing evidence that the covered goods were not made or
manufactured in the PRC using or containing cobalt, or (2), has
demonstrated by clear and convincing evidence that the covered
goods from the PRC contain no trace of cobalt extracted or
processed in the DRC.
The Convention on the Rights of the Child, as many of us
know, recognizes ``the right of the child to be protected from
economic exploitation and from performing any work that is
likely hazardous.'' By ignoring these rights and by treating
people, including children, as expendable, China is committing
gross violations of human rights and is seeking to rewrite the
international order, all while controlling the supply chains of
this critical metal, cobalt.
I'd now like to yield to the Co-chair, our distinguished
member from the Senate--it was great to be over in the Senate
with you today, Senator Merkley.
STATEMENT OF HON. JEFF MERKLEY, A U.S. SENATOR FROM OREGON; CO-
CHAIR, CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
Co-chair Merkley. Thank you, Mr. Chairman. Indeed, I was
confused about the location. I was halfway to the House before
I recognized that you were coming across. So welcome. Thank you
for your passionate concern about this very real problem.
Thank you for convening this hearing. It builds on several
hearings that this Commission has held on the issue of forced
labor and other abuse, including child labor and supply chains
dominated by Chinese companies, and the importance of holding
them accountable when they are complicit in human rights
violations. This Commission regularly spotlights the repression
of the Chinese government, whether within their own borders--
such as Xinjiang or in Hong Kong--or through efforts to reach
across borders to other countries, including right here in the
United States. Today, we'll hear about how these two forms of
repression are entwined in the cobalt supply chain, originating
in the Democratic Republic of Congo.
Cobalt is a critical component in lithium ion batteries,
which are used in everything from our cellphones to our
electric cars, as well as industrial and defense applications.
Almost half the world's known reserves of cobalt, about 3.4
million metric tons, are in southern DRC, and the country
accounts for roughly 70 percent of global production. A
whopping 80 percent of DRC's cobalt output is owned by Chinese
companies. It's refined in China. It's then sold to companies
outside of China--to the United States, Europe, and elsewhere
for use in batteries and other equipment. So-called artisanal
cobalt mines remain largely unregulated, operating alongside
larger industrial operations.
Artisanal miners often include women and children who work
for the equivalent of a dollar or two a day, carrying heavy
loads out of dangerous mines, children as young as 3 learning
to sift through the stones to wash and sort ore. The U.S.
Department of Labor estimates that at least 25,000 children are
working in cobalt mines in the DRC, and they do it, as the
Chairman pointed out, without basic protective equipment,
gloves, and face masks. A study in The Lancet found that women
living in areas close to cobalt mines had, ``metal
concentrations that are among the highest ever reported for
pregnant women,'' with heavy metals linked to stillbirths and
birth defects.
Cobalt mining also causes enormous environmental
degradation from large-scale open pit mines or ordinary people
tearing up the ground looking for cobalt, following the veins
wherever they lead. DRC isn't just a top producer of cobalt.
It's also a top producer of other minerals that are vital
components in batteries and other advanced technologies, like
copper and rare earth metals. Facilitated by widespread
corruption in the DRC's mining sector, Chinese companies and
the Chinese government directly profit from forced and child
labor used to mine these minerals, extending their abusive
practices across the continents. They supply American companies
that produce products that all of us use every day.
American consumers deserve to be protected from becoming
unwitting and unwilling accomplices in this abuse. All of these
issues have enormous implications for our supply chains at
every step, as we seek to accelerate the transition to a clean,
sustainable energy future. American companies and those in
like-minded countries have leverage over these tainted supply
chains, which they can and must exert to improve transparency
and implement responsible sourcing. Both the executive branch
and Congress have important roles to play to reduce and
eliminate labor and other human rights abuse in DRC mining
operations.
Addressing these issues is an opportunity for the United
States to lead the world both in clean, sustainable energy and
in human rights. I look forward to learning from our experts
who are here today. Thank you for joining us and sharing your
knowledge, and thank you, Mr. Chairman.
Chair Smith. Thank you, Senator.
On the line, we're joined by Commissioner Michelle Steel,
and Congresswoman Salinas is also on the line. So, Michelle, I
yield to you for any opening comments you might have.
STATEMENT OF HON. MICHELLE STEEL,
A U.S. REPRESENTATIVE FROM CALIFORNIA
Representative Steel. Thank you, Chairman Smith, for
hosting this important meeting. I want to say thank you to the
witnesses for joining today and for sharing their key insights
on how China exploits child and forced labor in DR Congo. I'm
deeply concerned with child and forced labor tainting the
supply chain of cobalt and other rare earth minerals. I have
raised these concerns at other hearings and believe the United
States must work with trusted allies on this issue. Many have
turned a blind eye to these human and child labor abuses. I
hope we all share the concern that the U.S. and Europe are
reliant on the CCP for critical minerals, as our government
mandates EV cars in the 2030s.
I'm highly concerned that this administration isn't doing
enough to counter CCP influence. There are also possible
environmental concerns that will occur due to increased mining
in the region. The CCP only cares about the bottom line. If
everyone needs to be driving new electric vehicles by 2030, as
demanded by Governor Newsom in California, we need to allow for
safe and clean mining within the United States. We must work
together to end very harmful and severe consequences of
supporting a cobalt supply chain tainted with child labor,
slave labor. Thank you, Mr. Chairman, for this timely hearing.
Chair Smith. Thank you very much, Commissioner Steel.
Congresswoman Salinas.
STATEMENT OF HON. ANDREA SALINAS,
A U.S. REPRESENTATIVE FROM OREGON
Representative Salinas. Thank you so much, Chair Smith and
Senator Merkley, for holding this very important hearing. Thank
you to our esteemed witnesses for taking the time to be with us
here today and sharing your thoughts and potential solutions to
this issue. As we know, the conditions in the cobalt and
lithium mines in the DRC threaten the dignity, rights, and
safety of the workers who labor every day to meet the global
demand for these valuable minerals and threaten to undermine
the innovation and development of U.S. companies and products.
This problem is of particular interest to me, because just
north of my district, Intel employs over 20,000 Oregonians,
several thousand in my district. They use cobalt to create
their microchips and semiconductors. Intel has developed
internal processes to assess and audit their global supply
chain to be a responsible actor in this space, but as we roll
out new programs under the CHIPS and Science Act, the
bipartisan infrastructure bill, and the Inflation Reduction
Act, it is imperative that we ensure that the global supply
chain is not tainted with materials produced with inhumane or
forced labor.
I am really looking forward to hearing more from our
witnesses and my colleagues about how we can continue to
innovate and electrify here, while also maintaining fair and
humane labor practices in the global supply chain. Thank you so
much for holding this hearing today.
Chair Smith. Thank you so very much.
Now let me introduce our very distinguished panel, and we
are grateful to have Ambassador Eric Schultz join us again. He
is a friend who has previously testified before the Lantos
Human Rights Commission, but this is his first time appearing
before the China Commission. Thank you, Ambassador.
Ambassador Schultz is a former senior American diplomat
with decades of experience in the Commonwealth of Independent
States and in southern African countries. He has worked
extensively with Ukraine, Russia, Turkmenistan, Georgia, and
has experience in emerging markets around the world. Ambassador
Schultz served as U.S. Ambassador to Zambia. He was Deputy U.S.
Ambassador to Ukraine, Minister-Counselor for Economic Affairs
at the U.S. Embassy in Moscow, and also a deputy U.S.
ambassador in Zimbabwe. Prior to these assignments, he has
worked in Georgia, Madagascar, and so many other places
throughout the world. Ambassador Schultz graduated from
Macalester College in St. Paul, Minnesota and holds an M.A.
degree in international studies from Denver University. He
speaks English, French, Ukrainian, and Russian. Hopefully
English will be his preferred language today. [Laughter.] I'd
like to thank Ambassador Schultz for his extensive service to
our country and, again, for being here to give us his insights.
Our next witness will be Milos Ivkovic, a law professor at
Washington University in St. Louis, who teaches Introduction to
Human Rights and International Criminal Law. He also served as
an international arbitrator and human rights advocate over the
course of the last decade. He has been raising awareness about
the deteriorating state of democracies worldwide, including the
ongoing illicit weaponization of trade and supply chains to
target and disempower free societies. He is recognized for his
extraordinary efforts and actions to eradicate the worst forms
of child slavery, human rights abuse, torture, and human
trafficking in Africa and throughout the world. Professor
Ivkovic was also involved in the release of journalists
wrongfully imprisoned in Africa and serves on the board of the
Inter-Parliamentary Task Force on Human Trafficking. Professor,
again, we appreciate the work you do on all of these issues. I
work so much on the trafficking issue. I greatly respect your
work on that.
Then we'll be joined by Joseph Mulala Nguramo, a non-
resident fellow at the Atlantic Council, both for the Freedom
and Prosperity Center and the Scowcroft Center for Strategy and
Security. He was born and spent his formative years in the DRC.
He was also the first and thus far the only Congolese graduate
of the United States Military Academy at West Point, where he
majored in defense and strategic studies. He holds a master's
degree in global theory and history from the School of Advanced
International Studies at Johns Hopkins University, where he's
also been co-teaching a course on modern supply chain
diplomacy.
Additionally, Joseph has worked as a research assistant at
the Brookings Institution, where he focuses on education, as
well as the Taubman Center for State and Local Government
within Harvard University's Kennedy School of Government, where
he focused on African public policy. Joseph also worked at the
International Economic Alliance, where he led the student
internship program and organized meetings between governments
and private sector participants to promote trade, economic
growth, and development. Currently at the Atlantic Council, he
focuses on advancing democracy, quality governance and the rule
of law, and the implications of the return of great-power
competition and how it is shaping the new world in the 21st
century. We're grateful to have you here and thank you for
being here.
Finally, we'll hear from Stavros Niarchos, also known as
Nick, who is a journalist based in New York. His work focuses
on minerals, migration, and conflicts. He is a regular
contributor to the New Yorker magazine, which has published his
work on cobalt and the DRC. His work from Ukraine won a 2023
Edward R. Murrow Award from the Radio Television Digital News
Association. In addition to the DRC, Nick has written stories
from Ukraine, Indonesia, Yemen, Burkina Faso, Niger, Morocco,
Western Sahara, Djibouti, Iran, Uzbekistan, Bhutan, and, of
course, Greece. He is currently writing a book for Penguin
Books about the battery metal supply that includes reporting
from the United States, Europe, and Africa. He holds an M.S.
from Columbia School of Journalism and a B.A. from Yale
University.
On a personal note, I'm very grateful to have Nick here
with us today, as he had a precarious time while in the DRC
just last year. Because of his work reporting on alleged ties
between mining groups and separatists in the DRC, he and fellow
journalists were detained by Congolese officials in July of
2022. My staff and I advocated for Nick's release, and we were
greatly relieved to hear that he was released six days later
from his harrowing ordeal. You might want to share a little bit
on that, but above all, what we're here to talk about,
obviously, is cobalt. But I want to thank him for his speaking
truth to power and doing it when there's such a great cost to
him personally.
Ambassador Schultz, the floor is yours.
STATEMENT OF HON. ERIC SCHULTZ,
FORMER U.S. AMBASSADOR TO ZAMBIA
Ambassador Schultz. Mr. Chairman, Mr. Co-Chairman, it's an
honor and a privilege to be here today. As Chairman Smith
mentioned, about a year ago I spoke in front of the Tom Lantos
Human Rights Commission on a very similar topic. My
presentation then characterized our relationships with China
and Russia as adversarial ones, tantamount to conflict.
Moreover, I argued it was a conflict we were losing, and had in
fact been losing for many years. U.S. policy toward Africa
through administrations of both parties has been characterized
too often by neglect, I would argue. We have taken an interest
in Africa episodically, usually prompted by a crisis of some
sort. And that interest often wanes as soon as the crisis
begins to ebb, and it moves on.
The result is that we left Africa for others, especially
China and Russia. They have expanded their economic and
political influence on the continent for decades, I would
argue, at our expense. Moreover, it would have been a struggle
regardless. They had advantages that we lacked. China and
Russia were on the right side of Africa's liberation struggles.
Although that was two generations ago, it still matters to
Africans. It always will matter. It is an obstacle that we need
to overcome. Also, their governments subsidize and support
their commercial ventures in a way that we do not.
And they don't play fair. They abet corruption and they
ignore violations of civil, political, and human rights--as
this hearing today focuses on. As many others have argued, the
world is at an inflection point of sorts right now, riven by
rivalry and by violence. China and Russia pose a systemic
threat. They are allied against us, and they mean to change the
world order that we helped build. Africa is one of the key
battlegrounds in this conflict. To win in Africa, there are
several things that we should and must do.
To start with, we need to acknowledge that it is a
conflict. To win in Africa--sorry. It is no longer acceptable
to say that Chinese investment is simply filling in where the
West was too timid or too biased to venture. The old adage of
one man, one vote, one time also applies to China and Africa,
to its investment. One investment, one country, for all time.
The Chinese mean to freeze us out of African resources as best
they can, and they have spent hundreds of billions of dollars
in this effort. Africa's resources are essential to next-
generation economic growth, especially copper, rare earths, and
cobalt.
The Belt and Road Initiative, at least in Africa, is a
transparent effort to gain the upper hand and assert dominion
in Africa on the part of the Chinese. There are a few African
countries that have not taken money and that are not in China's
debt. Russia's role is smaller, but I would argue no less
malign. Whether or not Wagner still exists is beside the point.
Russian mercenaries and Russian arms merchants are ubiquitous
in Africa. Nor should it be acceptable to be on our opponents'
payrolls. Neither China nor Russia has real private companies.
Working for a Chinese or a Russian company means working for
their governments.
We are not immune in the U.S. from what they call the
Schroederization of Europe's elite. Many American businessmen,
consultants, retired government officials, and the like, have
taken Chinese and Russian money and have aided their efforts.
We also need to change the way our government and businesses
work together abroad, especially in Africa. We are a private
sector economy and are stronger for it, but in many places in
Africa, the investment risk is high enough that government
support needs to be overt to convince American companies to
invest. The argument that we can't pick winners among American
companies should no longer be an excuse for inaction.
Supporting American companies should be one of the, if not
the principal, tasks of American foreign policy. The
Development Finance Corporation is a good start to making that
support more tangible, but it needs to be more active, to have
fewer constraints on what it can support, and, above all, it
needs to have more money. Its job should be to expand the reach
and influence of the American government by expanding the reach
and influence of American commerce. It should not make the
perfect the enemy of the good.
The U.S. Government itself should be cautious about
imposing its views on Africans. Supporting democracy and human
rights has to be the center of U.S. foreign policy, but not at
the expense of friendships, because friendship is the key to
winning in Africa and, for that matter, everywhere else. Less
finger-wagging, more listening. More recognition of the way the
world is and less dreaming about the way we want it to be. The
U.S. is and always has been a better friend and a better ally
than our rivals. At the end of the day, that is how we win.
When an Indian company, for instance, has its mine expropriated
in Africa, our response should not be to ignore the situation
or to blame the victim. It should be to help the company of a
friendly country.
When African countries find themselves in trouble, deep in
debt, often as not the result of the corruption of previous
regimes, we need to be more active in helping. Chinese debt is
still rising in Africa, even if investment itself is tailing
off. The problem now and for decades to come is the vast sums
owed and the interest rates that cause those sums to compound
and continue rising, with no real prospect that the debts can
ever be repaid. And China doesn't forgive. The IMF is a useful
institution, but using it to help countries meet their debt
payments to Africa seems counterproductive. Wouldn't it be
better to help African countries organize to negotiate as a
group to press China for better terms, including especially the
forgiveness of some loans, at least of those that can
demonstrably be shown to be odious and the consequence of
corruption?
The Global South, including especially Africa, is rising in
importance, its clout growing in a polarized world. A New York
Times headline the other day said it all: by 2050, one in four
people will be African. And their economies are also among the
fastest growing. Africa's friendship matters. PEPFAR was a
great initiative 20 years ago. It saved millions of African
lives. However, Africans tend to take it for granted now and
are more interested--or more impressed--by China's
infrastructure projects, however poorly built and misconceived.
We can do better. We should do better.
My favorite proverb--Chinese ironically but taught to me by
Africans, says that the best time to plant a tree was 20 years
ago. The second-best time is today. So today is a good time to
start fighting for Africa. Thank you.
Chair Smith. Thank you very much, Mr. Ambassador.
I would now like to recognize Mr. Ivkovic.
STATEMENT OF MILOS IVKOVIC, INTERNATIONAL ARBITRA
-TOR AND ADJUNCT PROFESSOR, WASHINGTON UNIVERSITY SCHOOL OF LAW
Mr. Ivkovic. Thank you, Chairman. Congressman Smith,
Senator Merkley, honorable members of the Commission, thank you
for the invitation to appear before you today. The story of
cobalt is an unfortunate example of de facto informed silence
and continued inaction in response to the worst devastation of
basic human rights of the most vulnerable. It has been 14 years
since the Department of Labor added cobalt mine in the DRC to
its list of commodities produced by child or forced labor.
Since then, it is estimated that anywhere between 35,000 and
40,000 children, some as young as 6 to 9, have been
continuously involved in adverse mining operations in the DRC.
In addition to life threatening hazardous conditions, children
are subjected to inhumane working hours of up to 24 hours each
day, exposure to potentially toxic materials, physical abuse,
and sexual exploitation.
And yet, instead of receiving protection over the years,
the DRC national army itself was recently declared, and I
quote, ``complicit in the worst forms of child labor.'' At the
same time, forced mining expanded to include other minerals in
DR Congo. Transparency International's Corruption Perception
Index of 2022 ranked the DRC among the 15 most corrupt nations
worldwide, with significant reports connecting corruption to
the country's mining sector. Unfortunately, these truly
horrific practices are unlikely to change until and unless
incentives and impunity for wrongdoing are removed. Recognizing
that the assumption of a simple solution does not do justice to
the actual complexity of the matter, the remainder of my
testimony will seek to address the various underlying causes of
the crisis at hand, coupled with the powers available to the
United States to counteract, in line with its current policies.
The upstream segment of the cobalt supply chain generally
includes mining, mineral trading, and subsequent processing in
smelters and refineries. There are two distinct sets of
considerations which can be observed ``on the ground'' in the
DRC. On the one hand, absolute poverty affects 16 million
Congolese who will have to live on less than $2.15 a day. In
addition, 33 million Congolese have limited to no access to
drinking water, and 43 percent of children up to the age of 5
across the country suffer from malnutrition. Free education
remains largely unavailable. It is rather impossible to speak
of free will in such a state of effective survival.
Hence, the families become a target for exploitation, or
worse. Children who end up working in cobalt mines are paid as
little as one to two dollars a day. They may additionally be
subjected to extortion by local law enforcement and security
guards. To put it in simple terms, the only source of income
for these people is participation in the cycle of abuse. The
other side of the same coin, of the same upstream coin, is the
demand. Over 70 percent of the world supply of cobalt comes
from the DRC. Between 20 and 30 percent of those quantities may
be traced back to the mines powered by child labor.
Traders purchase cobalt and then sell it on to processing
plants--meaning that it is often inevitable that illegally
obtained cobalt will be mixed into the mass of exported
minerals. In 2020, Chinese companies imported nearly 90 percent
of their cobalt needs from the DRC. It is publicly known that
at least 8 out of 14 of the largest cobalt mines in the DRC are
controlled by Chinese companies, but the actual number is
likely to be much higher. In addition, mainland China accounts
for 80 percent of the world's cobalt refining capacity.
The downstream segment of the cobalt supply chain generally
includes manufacturing activities--the activities that we face
in the United States--such as components, lithium ion batteries
coming into EV vehicles. In 2020 alone, 41 percent of all
batteries globally were imported from China. U.S. battery
imports were even more significant, reaching 47 percent in the
same year. I would like to underline this. These figures
suggest an absolute monopoly on what has become one of the most
critical supply chains, and may help explain why years of
reporting on the link between the worst forms of child labor
and the cobalt supply chain have regularly fallen on deaf ears.
Since 2020, I have to say, manufacturing activity has been
aggressively attracted to the United States. This is, indeed, a
big step in the right direction. However, despite its obvious
potential, it does not address the rest of the upstream issues,
which necessarily remain tied to the DRC and abusive practices
in its mining sector. From the corporate perspective, there
have been public signals of willingness to act and remedy the
situation. However, these promises of change may have fallen
desperately short of expectations. In 2017, Amnesty
International concluded that the majority of downstream
companies had taken minimal to no action to improve their due
diligence on the issue of child labor.
Just two years later, a report cited by OECD found, and I
quote, ``low levels of due diligence disclosure with none of 42
companies examined having described the steps taken to manage
risk or summarize the risk mitigation strategies related to
child labor.'' The German government reaffirmed in 2022 that up
to 30 percent of cobalt in the DRC will continue to come from
mines powered by child labor, while in the same year, the
Department of Labor announced minimal progress in efforts to
eliminate the worst forms of child labor in DRC.
So what can be done? On one hand, corporate pressure is
theoretically possible, and it requires a high degree of market
dominance or importance, which can be then translated into
pressure on upstream actors to aggressively address child labor
in the cobalt supply chain. Nonetheless, the argument that, to
date, Western companies themselves have the power or incentive
to force Chinese-backed counterparts to comply with
international standards is absurd. As noted above, Chinese
companies control almost all the mines and refineries needed to
produce batteries.
In addition, China is expected to remain the world's
largest EV market in the short term, with a market share of up
to 45 percent. Finally, current projections suggest that the
Chinese EV manufacturers will gain over 20 percent of global
market share by 2030. Another commercial reality is that the
current supply chain is simply affordable, and readjustment
could well lead to higher costs and negatively affect the
prices of final products. Therefore, in the absence of any
underlying positive incentives, such as non-market
interventions and direct governmental support, Western
companies may have little motive to enter additional segments
such as re
fining or mining themselves.
Secondly, notwithstanding positive actions, so long as
crimes go unpunished and actors responsible for the worst forms
of child labor enjoy effective immunity, it is difficult to
expect rapid and meaningful change. Hence, a careful
consideration of tangible consequences has to take place. The
first one has been mentioned by the Chairman, and this is,
potentially, a temporary suspension of international trade or
import of cobalt-related products into the United States. The
positive effects of such an act are that the U.S., by virtue of
its market position, can exert far more dominant pressure than
commercial actors themselves independently, and thus influence
the triggering of remedial market practices.
It should be noted, however, that an absolute ban on
imports may have negative short-term effects on the U.S.
market, an issue that can be resolved, as drafted in the
Countering China's Exploitation of Strategic Metals and
Minerals and Child and Forced Labor in the DRC Act, through
licensing and due diligence requirements. The second, in
observing the sheer scale of uninterrupted violations of
fundamental human rights for more than a decade and the
potentially lethal nature of the worst forms of child labor in
the DRC, are the sanctions on states, companies, and
individuals involved in these practices.
The third one is criminal investigations. Let it be clear
that not only I but many of my colleagues believe that child
labor in hazardous conditions constitutes a violation of
peremptory norms of international law and has to be criminally
prosecuted. Secondly, inhumane acts intentionally causing great
suffering or serious injury to the body or to mental health, if
widespread or systematic and directed against a civilian
population, are crimes against humanity. So we arguably have a
legal obligation to act.
Finally, the local Congolese population should be given
alternatives to forced mining. Let there be no doubt, artisanal
mining cannot be made safer or more humane. As somebody who has
personally seen the suffering, as a father whose young children
born in the DRC could have ended up in the same cycle of abuse,
and as a true believer in the rule of law, I ask you to
consider a series of actions that can put an end to the worst
forms of child labor in the DRC. I also take a moment to note
that the U.S. Congress and the U.S. administration are truly
the last human hope for all of these millions of people.
Thank you very much for your attention.
Chair Smith. Mr. Ivkovic, thank you so much for that
testimony and those recommendations.
I'd now like to recognize Joseph Nguramo.
STATEMENT OF JOSEPH MULALA NGURAMO, NON-RESIDENT FELLOW,
ATLANTIC COUNCIL'S FREEDOM AND PROSPERITY CENTER AND SCOWCROFT
CENTER FOR STRATEGY AND
SECURITY
Mr. Nguramo. Thank you, Chairman Smith, and the whole
Commission. I am truly honored and humbled to be given this
opportunity to share with you my understanding of the urgent
issue affecting my home country, the DRC. As a member of the
African diaspora and working with the Atlantic Council on the
future of U.S. and China-Africa relations in this new era of
global-power competition, I follow this issue closely.
The working conditions of women and children in the
Congolese mines constitute a humanitarian tragedy. They are
dehumanizing, degrading, and they represent more than debt
slavery and even worse. African children are exploited like
slaves to serve a global market for new and cleaner energy.
Children under 10 years old are forced to carry bags of sand
weighing up to 60 kilograms. These bags are then shipped to
China for refining to extract cobalt and copper, critical
minerals that enable the global energy transition from fossil
fuel to clean energy. Over 40,000 children are reported to work
in these mines, mostly without pay. Typically, less than $10 a
day. By the way, Mr. Ivkovic mentioned this in his speech. They
pick up rocks with bare hands and without shoes. They have no
adequate protective gear. They are exposed to contamination.
And they have no medical insurance.
They work in tunnels, which often collapse, and then die
under the rubble. Stories of people beaten up in these mines
because they were claiming their rights are not acceptable.
Besides the unacceptable humanitarian cost, there is as well
environmental degradation affecting the health of the
population leaving these facilities. Credible scientific
reports have shown that the exposure to toxic chemicals and
waste dumped by mining operations leads to cancer, lung
disease, and DNA modification, according to Amnesty
International. Most of the cobalt mines in the DRC are owned by
Chinese companies. For example, 15 out of 19 companies
operating in Katanga are Chinese. The DRC supplies about 70
percent of cobalt to the global markets, and 30 percent of that
cobalt originates from what is called artisanal sector mining,
small-scale mining that relies not on industrial tools but on
manual labor, and is characterized by a lack of transparency/
accountability and rampant corruption.
The inhumane mining of cobalt is facilitated by the
poverty, corruption, lack of quality governance, and the rule
of law in the DRC. Sadly, China and the private sector
artisanal mining companies have taken advantage of the
vulnerability of the Congolese population and found willing
collaborators among the ranks of U.S. Government officials. The
U.S. Government has been mostly complicit with mining
exploitation, and its promises to revise in 2008 Chinese mining
contract have barely brought concrete results.
So what can be done? We should work on reducing Chinese
dominance in the DRC mining sector, while mitigating the global
reliance on the Belt and Road Initiative by applying the
strategy of de-risking and diversification of our supply chain.
Particularly, we must address the issue of child labor and
corruption, as proposed by Congressman Smith, to ban certain
goods made with child labor or forced labor in the Democratic
Republic of Congo from entering the United States, Mexico, and
the Canada markets.
To that end, I propose the following: advancing an
aggressive implementation and expansion of the African Growth
and Opportunity Act, AGOA, U.S. Development Finance Corporation
and the Prosper Africa programs; reinforcing and improving
public-private partnerships with governments across the board
working with big tech companies and even development and
financial institutions with direct impact and influence in the
market, using their leverage, incentives, and tools to ensure a
clean supply chain, not tainted with child labor, corruption,
and abuse.
We should pressure China through our strategic engagement
to practice due diligence in dealing with the DRC government
and private-sector companies to prevent human exploitation.
After all, China has a vested interest in being seen as a
responsible producer of goods, especially once awareness of the
human cost of Congolese mining is widely known. Enforcing the
DRC laws: The DRC government must ensure that existing laws are
fully enforced. The DRC government officials implicated in
collusion with businesses that engage in inhumane practices
must be prosecuted and held accountable. There should be
sanctions: U.S. and private sector engagement in the DRC must
be conditional upon the upholding of humanitarian guidelines
set forth by international and companies' laws.
We should encourage and assist the DRC to establish itself
as a key player in the global green energy revolution.
Countries like South Korea, Finland, and Latvia have proven to
be models for electronic and cyber innovation. Given its
abundant resource, cheap labor, access to trade routes, and
location at the center of Africa, the DRC could become the
leader responsible for cobalt production and a hub for
electronic manufacturing. As such, the DRC will provide the
Western market with an alternative to China. Here, by the way,
I would like to mention, as well, the African Continental Free
Trade Agreement, which I think will offer an opportunity for
future American companies.
We should support and protect independence and credible
reports, research, and the whistleblowers. We should keep
working and supporting an independent civil society movement
that can report about the issues with credibility. We should
promote democracy and the rule of law with special focus on the
upcoming DRC elections. The elections are an opportunity to
ensure the legitimacy of national institutions, without which
instability, poor governance, and lawlessness persist. A strong
dynamic of a thriving democracy in the DRC constitutes a U.S.
national security interest. As a matter of fact, the BRIDGE to
DRC Act, introduced by Congressman John James, must be ratified
and become U.S. official policy and strategy with the DRC and
the region. And here I'd like as well to recognize the letter
that Senator Coons and Chairman McCaul wrote, I think about two
days ago, three days ago, about the upcoming DRC elections.
And lastly, investing in education. As Nelson Mandela once
remarked, ``Education is the most powerful tool to change the
world.'' Children must have access to quality education and not
be caught between the global race for industrialization and
great-power competition. Thank you for having me, gentlemen.
I'm looking forward to your questions.
Chair Smith. Thank you so very much. The Commission will
have to take a very brief break, recess. There's a vote on the
floor. I have one minute to get to the House, so I'm going to
run. There's one right after it, but I'll be back in about 15
minutes or so. I apologize but I do have to go, and I'll be
right back, hopefully with some other members.
[Recess.]
Chair Smith. The committee will resume its sitting. I
apologize for that delay. We did have two votes. Commissioner
Ryan Zinke is here, former Secretary of the Interior and now a
Member of Congress. Thank you, Ryan, for joining us and for
your leadership on this Commission. I'd now like to go to Nick
Niarchos for his testimony.
STATEMENT OF NICOLAS NIARCHOS,
FREELANCE JOURNALIST
Mr. Niarchos. Chairman Smith, Chairman Merkley, and all
other members of the Commission, thank you for inviting me to
speak. I'm here to testify about the environmental impact of
copper-cobalt mining in the southern DRC. I'm happy to talk
about other things in questions, but I was asked to talk about
the environmental impact. I visited the DRC six times between
2019 and 2022, reporting for The New Yorker, The Nation, and
Antelope magazines, and for an upcoming book. On each of these
trips, I have seen the intense environmental degradation and
deleterious effects of the practice on the health of the local
population. Copper and cobalt are two key materials for the
creation of lithium-ion batteries, electric devices, and
especially for the electrification of transport, which is an
important factor in the reduction of fossil fuel emissions and
the slowing of climate change.
The question we must ask ourselves is whether the harm done
by the extraction of these metals, and indeed the fossil fuels
expended in their mining, transport, processing, and so on,
does not outweigh the benefit. Is the juice worth the squeeze?
Too often have natural environments been destroyed in the name
of progress and too often have the lives of people far from the
cities in which the minerals are consumed, been destroyed. The
local population does not benefit, and they are left with
little more than holes in the ground. There is even a term for
these places. They are known as sacrifice zones.
In reporting for the Nation and for the New Yorker, I have
seen how landscapes in Congo, Indonesia, and the Western Sahara
have been destroyed, the water polluted, and the air filled
with dust and carbon as mining companies rush to extract
minerals like copper, cobalt, lithium, and phosphates.
Oftentimes human rights abuses go hand-in-glove with these
environmental catastrophes. In Congo, the miombo forests of the
southern savanna have been cut back, and the land looks as if
it has been bombed. I have also seen that there are ways to
mine responsibly, ways in which mining can be done in what is
known as a closed loop. Sadly, these examples are exceptions to
the rule.
An environmental catastrophe is underway in the southern
DRC. The rush to produce devices, batteries, and electric
products more cheaply has created a demand for the metals that
has led to more and more unscrupulous behavior. Chinese firms
and traders are at the forefront of these practices. There is a
saying in Congo: If they don't give their workers shoes in
their own country, why would they give us shoes here?
In Congo, there are two types of mine, although there are
many gradations between these two. There are industrial mines.
They use modern and mechanized methods, and they are
responsible for the majority of the cobalt that comes out of
the DRC. The industrial mines I've been allowed to visit,
including the giant Kamoto Copper Company mine near Kolwezi--
that's owned by Glencore--have emphasized their environmental
mitigation efforts. However, I was not permitted to visit the
giant Tenke-Fungurume Mine, or TFM, located between the towns
of Likasi and Kolwezi and operated by the giant Chinese firm
CMOC or China Moly.
Other journalists have also been subjected to harassment
while visiting the Tenke-Fungurume site. I visited an adjacent
site where small-scale miners show me polluted rivers in which
women washed clothes and minerals. A 2021 report by the NGO
Save the Children showed white residue flowing out from the TFM
site. This morning, I spoke to my friend Hugh Kinsella
Cunningham, who's a photojournalist. He's out in DRC at the
moment, and he contributed to that report. He told me that in
the village of Mulundu he saw white residue blanching the
fields and that residents there complained that their crops
were dying and that they had to wash in polluted water.
The second type of mine in Congo is the artisanal mine.
Artisanal miners are people who mine for themselves or small
cooperatives. Before sale at these depots, but in some cases
after, the ore is crudely processed by washing it in local
water supplies. Studies show that fish and rivers in the mining
provinces have been contaminated with heavy metals and uranium.
At the village of Samukinda I saw how cobalt washing, as well
as effluent from a factory processing copper and cobalt, had
destroyed fields. The chief of the village, Rikomeno Samukinda,
explained that they can no longer grow food there and that more
and more of the villagers had to take risky mining jobs in
order to provide for their families.
In southern Congo, women wash raw mining material, which is
often full of toxic materials and in some cases is mildly
radioactive. If a pregnant woman works with such heavy metals
as cobalt, it can increase her chances of having a stillbirth
or a child with birth defects. We've heard from Senator Merkley
about the 2020 study in The Lancet showing that women in
southern Congo had metal concentrations that are among the
highest ever reported for pregnant women. They also find a
strong link between fathers who worked in mining and fetal
abnormalities in their children.
What's more, children as young as 3 mine and handle the
toxic ore. They are sometimes drugged and deprived of food.
These factors all contribute to developmental disorders and
reduce life expectancy in the mining regions of the DRC. In
March 2022, I spent a day with Dr. Billy Mukong, a local
physician in the mining town of Kolwezi. As Dr. Mukong did his
rounds, he introduced me to women whose children were born with
defects. Some had swollen heads. Some were developmentally
disabled. The defects, he said, were thanks to exposure to dust
that is blown off the back of trucks carrying raw and processed
ore around Kolwezi.
The depots where the ore is collected are often run by
foreign traders. Many are Chinese. In fact, most are Chinese.
There are also some Lebanese and Indian nationals who have
settled in the region. Some of the depots are owned by or
supply larger depots owned by international mining companies.
The most prominent of these is Congo Dongfang Mining. CDM is a
subsidiary of Huayou, a Chinese-based company that has supplied
cobalt to firms like Apple and Samsung. CDM has said that they
have made efforts to clean up their supply chain and ensure
that children, for example, are not mining cobalt, but last
year, I traveled from an illegal mine site outside the town of
Fungurume with a local dealer in copper and cobalt ore who
pointed out where he sold his product--completely unregulated
product. The site was owned by CDM, who could not possibly have
controlled how the ore was mined or who mined it. When cobalt
is collected, it is processed into hydroxide. This is often
done inside the DRC, but sometimes the unprocessed product is
shipped out on a flatbed truck. At the Kasumbalesa border post,
trucks idle for days until they are allowed out of the country.
People in the towns complain of severe asthma.
At processing facilities in China and in Korea, this
material can be mixed with industrial product.
More needs to be done to trace the supply chain and ensure
the rights of the people at the very bottom of it.
The bottom of the supply chain is rife with human rights
abuses, as we have heard. Such abuses also happened to
journalists and investigators. As has been noted in my own
work, I was disappeared and detained for six days by the
Democratic Republic of the Congo's government as I tried to
shed light on some of the abuses I document above. I'd like to
take this opportunity to thank the members of this Commission
and others in the U.S. Government who helped secure my release.
I want to note that some Congolese journalists are not so
lucky. The journalist Stanis Bujakera Tshiamala languishes in
jail for a report that he reportedly did not even write, and
more must be done to promote transparency and thorough
reporting on the supply chain, which firms and governments
would rather keep secret.
I'd like to close quickly with a thought or two about
solutions. Banning Congolese cobalt--it's a good idea on the
face of it but it needs to be coupled with action to create
jobs in the province. Without provision of an alternative form
of employment, it could harm the poorest people in that nation.
In the DRC, we've seen how bans of tantalum and tin ore have
contributed to criminality instead of curbing it. So new
solutions must be envisaged. They have also empowered
unscrupulous traders who deal in falsified tags. Let's try and
not make the same mistake again.
Let me be clear that the consuming countries need to
provide real solutions to address the lack of work in places
like the DRC, to provide alternatives to artisanal mining or at
least to make it safer and cleaner. Countries like the U.S.
need to insist on environmental protection and on recycling to
recover critical metals. We also need to ensure that democracy
and the rule of law are upheld. As Congo moves towards its
elections this December, I believe the United States should
insist on a free and fair voting process as the bedrock of any
state of law. This will be key in regulating this industry and
making sure that value can be shared with some of the poorest
people in the world. Thank you for your time today, and forgive
me for going over.
Chair Smith. Mr. Niarchos, thank you for your testimony,
and we're glad you're safe. Thank you for doing a strong appeal
for those journalists who do remain in prison, especially the
Congolese. Thank you.
Commissioner Zinke.
Representative Zinke. Thank you. As a former Secretary, and
looking at lithium, cobalt, and the series of critical minerals
that the DRC--and, by the way, I've been to DRC. It's
struggling--that would be a kind way to say it. But there were
some efforts, I understand, by Ford Motor Company and IBM on
using blockchain on cobalt, particularly to try to look at
where it's coming from. Are you aware of any of those efforts
as far as blockchain being used, technology, to make sure that
the cobalt and critical minerals, that there's a supply chain,
and we can follow it through from beginning to end?
Mr. Niarchos. The question is to me?
Representative Zinke. Yes, sir.
Mr. Niarchos. Yes, I'm--well, thank you very much for the
question. Yes, I'm aware of many of these efforts. There are
several different programs to do so.
Representative Zinke. I'll open it up to the panel. Is
anyone else aware of those efforts?
Mr. Ivkovic. Yes, sir. Though I would like to note that
trying to trace back the payments is not the only way to go
about it. We have a serious problem that the entire refining is
in China and that most of the mines are controlled by China, so
the unreported cobalt that ends up in China being refined,
being shipped into the United States, is the actual problem. It
is not how to administratively address the issue of payments
themselves. In my view, to say that this cobalt coming from 6-,
7-, 8-, 9-year- old kids is not landing in the United States is
an absurd argument. It's certainly not a serious one, because
mathematically it cannot be backed.
Representative Zinke. What do you think the percentage is?
Mr. Ivkovic. We don't need to think. We can see the
reports. More than 80 percent of world refineries are in China.
Representative Zinke. In particular on child labor being
used on cobalt, the percentage--what do you guess it to be?
Mr. Ivkovic. The reports today say that somewhere around
40,000 kids, age 6 and above, work in these illegal sites, and
the proceeds of their work land in the supply chain. This is a
matter of public record and the Department of Labor confirmed
it.
Representative Zinke. How does that translate, if you
would, your guess on the amount of cobalt? What percentage is
from child labor?
Mr. Ivkovic. The German government in 2022 said that from
artisanal mines, which include mines where people--or kids--
work, at least 30 percent of the cobalt coming from the DRC is
coming from these sites. It's a huge amount. This is a 2022
report to the German government.
Representative Zinke. I appreciate that. Mr. Chairman, I
yield back. Thank you.
Chair Smith. Commissioner Nunn.
Representative Nunn. Well, first off, Mr. Chairman, I
appreciate you bringing together this august panel. To the
panel yourselves, thank you for taking the time to share with
us. I think this is something that has sprung up on the front
pages of the New York Times, the Washington Post, and the Wall
Street Journal. Really doing a deep dive to see the impact of
this on our communities is chilling.
I want to talk specifically about the Communist Party's
extensive use of forced child labor in the world's cobalt
industry. In the pursuit of innovation and the creation of
cutting-edge technologies that we use here every day in the
United States, we have inadvertently become consumers that bear
the product of heavy exploitation, much of it coming from
children around the world. One such example is the extraction
of cobalt, a vital component in the batteries that power
everything from our devices here to so many of the cars that we
see on the road today here in the United States.
Tragically, this extraction of cobalt is often tainted by
the stain of child labor. The numbers are simply staggering.
Eighty percent of the world's cobalt output is owned by Chinese
companies. China imports 63 percent of the world's cobalt. As
we just heard, more than 30 percent of the cobalt being
extracted is coming from artisanal mines that would exploit
child labor. Nearly 25,000 children are used to mine this rare
earth metal. Now, as a dad of six who just was fortunate to get
to adopt two young girls this year, I cannot imagine the
cruelties and the hardships that these children are being
exposed to daily in the mines where they are forced to extract
this.
I'm appalled, as this Commission has long been, at the use
by the CCP of child labor in these horrific mining situations.
The truth of the matter is that during Xi Jinping's
authoritarian expansion, he has used his notorious Belt and
Road Initiative, and the Chinese Communist Party has swept up
millions of unwilling individuals to fuel their economic
regime, something that both Republicans and Democrats have
called out as being completely untenable. And yet here he is in
the United States attempting to expand influence on our energy
production in America.
Today we examine specific instances where the Chinese
Communist Party has used forced child labor to supply the
world's electronics with cobalt. Getting into it, Ambassador,
you have been on the front line. Mr. Schultz, you have seen the
wolf warriors that come from Beijing and their attempt to
pressure other countries around the world--following their
economic advantage. So I'd like to talk a little bit about,
first, just the scene setter on how the Belt and Road
Initiative has contributed to the cobalt disaster that the rest
of the world is now facing today.
Ambassador Schultz. Thank you for the question. My
expertise probably isn't as good as Milos's and some of the
other witnesses in terms of the nitty gritty, the details of
the cobalt industry, but I can talk a little bit about what I
saw in Africa when I served there and how China works there. In
fact, we were just discussing it at the break that, you know,
China provides money to Africa, at least in theory. The whole
Belt and Road Initiative is--you know, I think I misspoke
earlier when I said that they've devoted millions of dollars to
preventing or trying to exclude the United States from African
markets. It's, of course, billions, and probably tens of
billions, if not hundreds of billions.
So the way it works--actually, in simple terms is, the
Chinese come to an African country, and they say: We think you
need a road from point A to point B. We're willing to finance
it. We'll give you a project loan to build that road. In return
for that money, you have to agree to sole source--it has to be
a Chinese company. It has to be Chinese labor. It has to be
Chinese materials, Chinese equipment, etc., etc. So in fact,
there's no follow-on effect in the local economy because no
local people are working on the projects. It's only Chinese
labor that's brought into the country, and often as not is
demobilized in place, so you end up with a Chinese minority in
an African country where it never existed before.
Representative Nunn. Ambassador, you would say then that
all roads and the Belt and Road Initiative really are leading
to Beijing? I mean, at the end of the day--
Ambassador Schultz. Yes, that's a very nice way of putting
it. I would say that, yes.
Representative Nunn. I would concur with you on this. Look,
at this point, China is by all means economically exploiting
other countries.
Ambassador Schultz. Well, I think it's fair to say that
it's a debt trap, you know? And what the sweetener is, of
course, is that they're offering the government in power money
under the table. So in Zambia, when I was ambassador there, it
was pretty clear that the previous government, you know, that
there were officials in it that were getting a piece of the
pie. They were being paid to accept these projects that the
country really didn't need.
I mean, in fact, we were just talking about this a moment
ago--Zambia has two brand new airports, or virtually brand new.
Both of them were built for close to a billion dollars, the two
of them together. There are no airplanes because--I mean, one
of them is in the northern part of the country, Ndola. No one
flies there really, to speak of, so you've got this huge
Chinese-built airport that's empty. Even the airport in Lusaka
is not heavily used. On top of which, the other problem with
Chinese projects is that they're not necessarily well built, so
they tend to deteriorate fairly rapidly.
In Zambia, the Chinese roads are painted. They're painted
with black paint, and so the first time you hit a heavy
rainfall, they start to wash out. You know, meanwhile, of
course, you've got billions and billions and billions of
dollars of debt that's been put on the country's credit card
that has to be paid back.
Representative Nunn. Right. I think that's really what
we're looking at. You use the term debt trap. I think you're
absolutely right. It's economic hostage-taking that they've
indebted these countries to, and then bridled them with a
modern-day colonialism to exploit some of their most precious
commodities, in this case their children. They're also using
that exploitation to go after rare earth minerals in the form
of cobalt.
I want to speak here to Professor Ivkovic. Milos, you
talked about a recent report that shows violence in Congo has
displaced approximately 7 million people. What does that mean
for those left behind today and the type of forced labor
they're required to do, in the machinations of Chinese cobalt
exploitation?
Mr. Ivkovic. That means that they don't have any
alternative but to work as slaves.
Representative Nunn. So now we have both economic hostage
taking and human exploitation happening right on the same hand.
Will the factions in charge of these mines refill employees
with other parts of the world? Are they going to continue to
dig into an exploited underclass, largely children, in your
opinion?
Mr. Ivkovic. Absolutely. Not only children, but all the
underprivileged. As I mentioned in my testimony, almost 60
million Congolese live on under $2.15 a day. They're forced to
work as slaves. We describe this as effective slavery under
international law.
Representative Nunn. China's even gone beyond this
indentured servitude or slave labor, as you highlight, locally.
But they're starting to bring in others from, you know,
exploited masses around the world--Uyghurs from China,
dissidents from North Korea, people that they find untenable
they send to work, basically to death, in these cobalt mines in
the heart of Africa. Is that correct?
Mr. Ivkovic. That is exactly correct. And our problem is
not enforcing U.S. laws, which are already on the record. It is
not as if we need new bills to remedy the situation. This grave
circumstance is already covered by Federal legislation. It is
just that we do not have enforcement that would stop the supply
chain. So long as there is demand, there will be slavery.
Representative Nunn. I'd like to turn next to you, Joseph.
One of the things you highlighted here with the Atlantic
Council is how conflicts around the world could increase
China's superiority over the West, including the United States,
with owning the vast majority of cobalt and how dependent the
rest of the world has become on it. Could you talk a little bit
on where China really has a chokehold on this rare earth
mineral that the rest of the world could not make up if there
were to be sanctions or if there were, God forbid, a conflict
directly with mainland China and the United States?
Mr. Nguramo. Yes, sir, absolutely. Well, I've been thinking
about this situation, particularly child labor and--let's say
the whole equation of how the global economy has been working
over the past 30 years, and how we basically got ourselves into
this situation that we are heavily dependent on China,
particularly in terms of products such as semiconductors which
derive from DRC cobalt and lithium and copper, sadly, with
child labor and human right exploitation.
First, we have to be, I think, frank, in terms of looking
at the problems, how we got here, and have the courage and the
leadership as well to try to address the problems. Of course,
it's a very complex equation, so we cannot solve it in, let's
say, one day or maybe 5 or 10 years, but I'm very encouraged as
well to see all this engagement here. I've read some, I think,
great documents that the U.S. Government is putting forward in
terms of addressing these issues--such as the U.S. National
Security Strategy, and the bill that the congressman is putting
in as well.
I think this kind of initiative, this approach, will help
us to maybe step by step, you know, create a new strategy so
that the United States is not dependent on China, especially if
there is a conflict. Because, quite frankly, right now we are
very vulnerable. Let's just put it very straightforward: If
there is a conflict with China, China can just cut off the
supply of semiconductors and our defense is exposed. You know,
so the last thing we want to do is get in that position. So
that's a problem.
I'll just say as well that just engaging these countries,
like the DRC, is very difficult, for different reasons--the
lack of rule of law, quality governance, you know. But here's
the thing--and again, I'd really like to mention this
actually--I am really, really supportive of the bill that
Congressman John James put forth. For these reasons. I read it
and I read the Chair's bill as well. Actually, I feel like
they're kind of complementary because the John James bill
actually says that we should make it a national U.S. priority
to make sure the DRC is stable, the entire region. I think
there's actually a national security interest. It addresses
issues with child labor, but not to the extent of Congressman
Smith's bill.
I like to think that we should somehow maybe combine both--
see what's going in one bill and what's going in the other
bill, and we will have a more coherent comprehensive rule of
law. And hopefully, that will be the basis of a strategy
dealing with not only the DRC, but the entire region.
Hopefully, in the longer term, we'll be able to somehow take a
more, let's say, balanced approach, in case we get into trouble
with China, you know? We see what's happening in Ukraine with
Russia. You know, these countries tend to weaponize these kinds
of tools. We're very vulnerable. Thank you so much.
Representative Nunn. I'd just like to--want to thank the
Chairman, Chairman Smith. You have led a dedicated effort to
hold the Chinese accountable for what they've done internally
to the People's Republic as well as what they've done
externally, and then this tragic case of exploiting children.
You have brought this to the forefront. There are so many, I
think, incredibly timely things that the United States needs to
do on a strategic level to be able to not only counter China,
but really this mass amount of child exploitation that's
happening in the world over a rare earth mineral.
I want to ask the panel very quickly, writ large here,
strategically, what things can we be doing to hold Xi Jinping
accountable on this front, and our allies, and to offer a
better lifeline to those countries in Africa that want to come
into the global economic success story that has been the rest
of the world, without feeling that they have to be economically
held hostage or they are in a death spiral that they cannot get
out of with China's One Belt, One Road Initiative? I'd open it
up to the panel.
Ambassador Schultz. Well, I'll say two things, actually,
that I mentioned in my testimony. The first is I think we
should be providing more money through the Development Finance
Corporation. We should actually be competing with China to
provide project loans to help build needed infrastructure in
Africa but do a better job of it than the Chinese do. Giving
them infrastructure that they actually need and building it
well, and doing it at a cost that they can afford.
The second thing is I think we should be--we should be
pretty proactive, frankly, about helping African countries get
out from under China's debt. You know, in 2011, the HIPC
process basically wiped out the debt of most countries, you
know, in Africa. We were major players in that, along with the
European countries. I think that China basically needs to take
a haircut. They have been, you know, kind of force-feeding
these debts, these loans, into these countries. They now have
tens of billions of dollars that they'll never be able to pay
off. They should be encouraged to basically write those debts
off.
Mr. Ivkovic. In looking at this problem, we have two
perspectives. The first one is U.S. national security, which I
think is in danger. The supply chain shows that the U.S. cannot
object to the practices because it is so heavily dependent. In
order to address national security perspectives, first we need
friends, as the Ambassador said. And for everybody who has ever
been to the DRC, to Zambia, to the countries in the region, if
you go to the villages, these people are U.S. friends. They
adore the United States and they're hopeful that this body and
the U.S. administration will actually protect them. What we
need to do is show our friendship back. Apart from stating,
``We are here for you,'' there is nothing else happening. These
people need roads. They need schools. They need hospitals.
Nothing is happening, so we need to be there also helping them
help themselves.
The second issue is, we need to help our companies operate
in the region of Africa and in the supply chain. Currently,
without governmental support, we will not have U.S. companies
being engaged. There is zero chance. Their incentive is legally
jeopardized because they can face investigation and criminal
prosecution if even their sub-subcontractors did something
wrong in Africa, while we have practices of child abuse which
are not prosecuted at all. So they do not want to go into these
regions. Secondly, it is very affordable to keep the supply
chain active, so we do need a nonmarket intervention
immediately in the supply chain.
Let me be very clear, if we want to build a refinery--we
need a refinery, because all refineries are in China. If we
want them to be built by U.S. companies--and the U.S. companies
can build them because they develop patterns for these
refineries--they need support from the government. They cannot
be led into the belief that they can compete in the market with
Chinese prices, because they cannot. They will have a loss of
two to three years in their investment unless the government
steps in.
Then we need to address these atrocities. There are some
sanctions on the record, but by far not addressing all the
actors involved in these abuses. There is almost no criminal
prosecution on the record, even though we are talking about
crimes against humanity and crimes which are very similar to
slavery under international law. So long as we are silent and
we allow impunity for actions, and we do that because our
national security is jeopardized, there won't be a solution to
this issue.
Representative Nunn. Thank you.
Mr. Nguramo. Congressman, I did not really understand the
last part of the question well, so if you could repeat it,
please, that would be great.
Representative Nunn. Strategic solutions to counter China's
exploitation in Africa.
Mr. Nguramo. Yes, absolutely. So, first of all, Ambassador
Schultz and Ivkovic have already mentioned it. I will just
maybe add a few elements to that. I think we have really solid
strategic documents framing these issues. I'm really encouraged
by the bipartisan approach. If you look, let's say, at the
previous administration, the Trump administration, and this
administration, the Biden administration, they actually keep in
place or have kept going with certain decisions that were taken
before--related to these issues.
Here's the thing. If we don't lead, nobody will ever do it.
We have got to understand that. As was just mentioned here, a
lot of people in the DRC actually, interestingly enough, always
look up to the United States for help and support. They do,
which is interesting in many ways, and I think that's for good
reasons. You know, they think that the U.S. can help, so we
should not let them down. And particularly address this issue
of child labor and human exploitation in these mines.
Now, here's another thing. We have to be realistic. We have
to have this ideal role; eventually we hope democracy will
prevail but at the same time we have to narrow it down in terms
of how we actually operationalize this ideal, make it happen.
That will be short- and long-term goals that we are having
together. And eventually, I'd like to think that the U.S. will
prevail over China.
Concretely, what we can do--for example--we have these DRC
elections coming up this December. Let's make sure those
elections are credible, fair, and transparent, OK? Because the
history of this country has shown that as long as there is this
issue of illegitimacy of elections, we spend a lot of time,
politicians do, trying to find a solution, five years later,
and then we go back to that the next election. Here's the
thing: If we don't do that, for example, China will not come
back and say, hey, we would like to know the truth about the
election that happened. No, but that leadership can only come
from the United States and from, let's say, our allies, like
the European Union, for example.
Why does this matter for us and our interests? I like to
think that a strong democracy in the longer term actually will
be in our national security interest. A strong democracy in the
center of Africa--it's such a big country with enormous
potential, you know, great people, by the way, very dynamic,
very hardworking people--will offer a lot of opportunity, even
for our private companies to go and invest there. So those are
the small things, I think, that will help us eventually prevail
over China in the long term in this battle of global-power
competition.
You know, what I mentioned earlier in terms of some of the
policies in place, such as--I guess I agree with this. You
know, sometimes I hear this word ``decoupling.'' I think it's a
bit, quite frankly, not pragmatic. You know, I mean, we cannot
really completely decouple from China. If you look at the
financial and economic integration, it's almost impossible, but
I think using de-risking and diversification is probably be
doable.
As a matter of fact, I'd like as well to make sure the
electric vehicles project--I think the MOU was signed between
the U.S. and Zambia and the DRC. Those are the kinds of things
we need to be supporting. I think the Lobito Corridor was
agreed upon as well. I think these are the pragmatic projects
that if you actually were serious about getting engaged about
this issue, will actually help us to prevail over China in this
competition.
Representative Nunn. Thank you.
Mr. Niarchos. Well, as a journalist, I guess that it's sort
of beyond my expertise, but I can offer a few observations. You
know, you go down roads between different towns in the DRC and
you see, you know, ChinaAid, you see the Chinese hospital, then
you see maybe Japan, or this was given by the--you see very
little evidence of U.S. aid and U.S. programs in that part of
the world. So I think that that's very important. I also would,
once again, want to say that the protecting of people who are
trying to bring information about these mines and about the
conditions on these mines to the forefront is very important,
because a lot of the time, you know, people will look at a
phone or an electric car and not understand where that came
from.
Representative Nunn. Right. I want to thank the panel. I
want to thank the Chair on this. I think every American should
consider the next time they use their cell phone, or jump into
an electric vehicle, or have power that is provided by cobalt,
they should look at the supply chain that's provided it. They
should recognize immediately there's a national security
interest that's undermining the U.S. ability to influence the
world. They should recognize that they're playing a direct role
in the exploitation of millions within China, and specifically
those in Africa--young children exploited inhumanely, working
in a mine far worse than any shoe factory in China, but are
being worked literally to their death as indentured servants.
America has a leading role to play in this. So does the
West, but so does China. Calling them on these types of issues
ensures not only that Beijing is aware of what's happening, but
that there will be a cost to pay for the exploitation, for the
pillaging of Africa and its children, as well as what we as
Americans have responsibility to do to ensure that this does
not happen going forward. Mr. Chair, this is a bipartisan
issue. I cannot thank you enough for helping lead the charge
and helping to salvage not only America's national security,
our economic interests, our industrial strength, but calling
the bad actors on profiting from the death of others. Thank
you, sir.
Chair Smith. Thank you so very much for your eloquent
statement and for your excellent questions. I have some
questions I'd like to ask, and then we'll conclude. I thank you
for your patience, especially during that interruption during
the voting.
I wonder how many of the car companies--including Tesla,
Ford, GM, and the others--including the United Auto Workers,
who by the way, endorsed me for election. I'm a pro-labor
Republican and believe very strongly in labor. But how many of
them have spoken up about the supply chain--that the product
that they're obviously including in their EVs has been
absolutely tainted by child labor and adult forced labor,
which, as has been said a few times here, is a crime against
humanity? I'm wondering, where are they? I mean, we're going to
ask the UAW to come and testify in a future hearing. We're
going to ask the car makers if they'll come forward. This
Commission has done that with regard to the genocide Olympics,
when we called forth and heard from others, like Coca-Cola. So
I'm wondering, have they said anything? Are they--in your
opinion, have they been in any way intervening on behalf of the
exploited?
Nick.
Mr. Niarchos. I would say that, yes, some car companies
have addressed it. Off the top of my head, BMW has said that
they will only buy cobalt from one mine in Morocco. This has
come out in the German press recently: there were some
criticisms of that mine in Morocco. And I believe Elon Musk was
asked about it and said he was going to put cameras on the
heads of children or--sorry--cameras in the mines, or something
like that, to stop children going down. I'm not sure what other
solutions have been proposed.
Chair Smith. Yes.
Mr. Ivkovic. If I may, I think we need to recognize the
situation. I doubt that there is any Western company that
wishes to have this supply chain, to be very frank. Whether
they use sufficient pressure is questionable. The second
question is whether they have sufficient pressure over the
supply chain which is completely monopolized by China. That
said, it is important that there be a joint effort between car
companies and the U.S. Government to address this issue,
because only that joint strength can bring about a resolution
of the problem.
Chair Smith. Have you witnessed any joint strength coming
from the administration?
Mr. Ivkovic. Well, what I have seen is an aggressive policy
of bringing battery production facilities to the United States,
which is a step in the right direction in my view. I also think
it's a good step to start sanctioning actors that through
corruption are supporting all of these practices, at least
indirectly. Whether there is room for improvement? Absolutely,
yes, because it cannot be that in 2020 the Department of Labor
publishes that the armed forces of the DRC are effectively
complicit in the worst forms of child labor and there be no
reaction.
Chair Smith. Let me ask you, have there been any
prosecutions of the people that are running the mines in the
DRC? We had in our last hearing a witness tell us how some of
the individuals were whipped by Chinese guards, and there was
nothing from his point of view that was done about that. Are
there any prosecutions?
Mr. Ivkovic. If I may just speak to the pattern of how
these ``prosecutions,'' work, because I cannot call them, as
somebody who teaches law, prosecutions. They are announced to
the general public whenever there is international pressure,
such as this hearing or any sort of similar act, mostly coming
from Washington. Then after six months, the government comes to
a resolution, which is in billions and should be paid to
selected accounts or selected governmental entities, mostly by
the Chinese. So it is just a cost of doing business. There is
no serious punishment. There is no actual punishment for the
crimes that you mentioned.
Chair Smith. Do any of those funds find their way to the
exploited person who has been beaten or even killed?
Mr. Ivkovic. To put it politely, I doubt it.
Chair Smith. Anybody else know that?
Mr. Niarchos. There's also probably a sort of extrajudicial
process of deportation for smaller Chinese firms and things
like that, and workers that are kicked out. One has to remember
as well that quite a lot of the Chinese people who come to DRC
are, you know, themselves exploited and themselves kind of
living in situations of quite intense poverty, that I've seen.
Chair Smith. Let me ask you with regard--I met with
Ambassador Lucy Tamlyn, our DR Congo ambassador. A very fine
person. We talked about the MOU, and I also raised this with
John Kerry at a hearing of the Foreign Affairs Committee. The
concern I have with it--I mean, it's very nice sounding. It's
``sense of the Congress'' language, which we do often here, or
``sense of the Senate.'' But it really has no teeth. It's
aspirational. Even my bill that's pending, and the new one that
we're going to do, talks about strategies, which is all great.
I'm the author of the Trafficking Victims Protection Act of
2000. It took me three years to get that piece of legislation
enacted into law. It was bipartisan. It was vigorously opposed
by the Clinton administration. I had the hearings, so I can say
without any fear of contradiction, they thought even a TIP
Report would be counterproductive. Naming names would be
counterproductive. They said it on the record. Above all, they
thought that any kind of sanction would also be fruitless and
counterproductive. Madeleine Albright made it very clear that
she was not for this sanctions regime that was included in the
Trafficking Victims Protection Act of 2000.
We did prevail, and I've done 20-plus hearings in follow-
up. I think it's 35 hearings since. No one doubts the
importance of having at least some sword of Damocles hanging
over an offending nation or entity, that they're going to be
held to account. It's like a criminal sanction for breaking
laws, you know, right here in DC or in my own state of New
Jersey. You've got to have a penalty phase. The MOU, nice, but
I think 10 years from now we'll say it was nice but didn't do
anything. You know, so our bill would provide a rebuttable
presumption. It is serious. It has a long way to go, because
it's going to be difficult to get it passed. This
administration probably will not support it. Maybe a future one
will.
But those kids--I mean, our Labor Department says 25,000,
others have said 35,000 to 40,000 kids--there's all different
estimates, of course, but lots of children are being exploited.
As you had mentioned, Milos, you know, very, very young kids as
well. We need a penalty phase, if not to do anything else but
to get the DR Congolese government to incentivize their own,
create their own capability, their own refining capacity, and
make the money that they're now shipping off to China, and all
of that exploitation. It doesn't happen in a day, but I think
there needs to be a pivot point. And I think a significant
penalty would be one of them.
There are, thankfully, some other mines. I don't know how
profitable they are in terms of producing product. Not money,
but how efficacious they are. It would seem to me that for our
critical military means, for cell phones and other things, you
know, there could be a pivot to doing more of those mines. And
of course, as you said, Milos, bring back that capacity here,
but for the DR Congolese, they should do it there. It should be
all within the parameters of one country, so they reap the real
benefits, and not the Chinese Communist Party. We're seeing it
in other areas where our pharmaceuticals are gravely at risk.
We all know that. Antibiotics are at risk. We've had hearings
on that as well.
In a conflict with the PRC, they'll shut off our medical
supplies in addition to everything else. We're much too
beholden to them, and as we all know, they have five-year
plans, where they want to monopolize. They do predatory pricing
to get there, and they get there. All of a sudden, they own it
all. I think--you know, a lot of people don't like sanctions,
but I was for the apartheid sanctions. I was one of the few
Republicans early on back--I've been here since 1980--who not
only voted but spoke out against apartheid, believing
passionately that, yes, sanctions may hurt some of the
Africans--Black Africans--South Africans. But the appalling
nature of apartheid was such that sanctions are a means to an
end.
So I just raise that, this idea of sanctions. Your thoughts
on that? Our bill of--we did the bipartisan, the four corners
of our Commission backed it the strongest, and it did become
law. There was pushback from the administration at first, but
thankfully Joe Biden did sign it--the legislation with regard
to the Uyghurs, the Uyghur Forced Labor Act. That had a
presumptive rebuttable presumption in it. We've had hearings
since on implementation. It's not being implemented in a great
way, but it is being implemented. It's very hard, but I think
we really need to step up. Your thoughts.
Ambassador Schultz. I guess I will flip it a little bit,
because for me, when I think about sanctions, I tend to see it
in the context of the Russia-Ukraine conflict, and, you know,
sort of the central role that it's playing there. You know, I
think that you're right to raise apartheid as an example as
well. I mean, there aren't very many instances where sanctions
have been successful. Where they have been successful, it's
because the international community is applying the sanctions,
not an individual country. So if we were going to do this in
the context of child labor in Congo over cobalt, we need to
have our friends and allies applying those sanctions as well.
There needs to be widespread pressure brought to bear and I
think that that's why the sanctions have had an effect in the
Russia-Ukraine conflict as well, because they've been
widespread. Because Europe is with us on this, and that makes a
big difference. So that's kind of my----
Chair Smith. I agree with that. When you have global or a
lot of buy-in with the European Union and others, it's great.
I'm the author of the Belarus Democracy Act of 2004, '06, '11,
and then the most recent one. When we did the original Belarus
Democracy Act, there was pushback galore. Nobody would ever
tell Lukashenko what to do. We got it passed. Bush implemented
it very, very aggressively, put 200 names right off the bat,
including Lukashenko's top cronies, on there. They couldn't get
a visa, couldn't do any kind of trade. To our great, great
happiness, all of us, the European Union followed suit and had
pretty much the same list, so we got people out of prison, lots
of them. Of course, Lukashenko is doing horrible misdeeds now
in tandem with Putin--but it worked.
But we led, that's the point I'm getting at. We led. And
this--the idea behind this bill is we want the others to join
us. We hope we're not alone but, frankly, even if we are, it
might save some children, it might get the leadership of the DR
Congo to really accelerate taking ownership of their own--you
know, to do that. So it's all--you know, and you won't have
child labor or this forced labor for the adults. But I take
your point. Thank you.
Ambassador Schultz. Well, and I take yours, too. I think
there's no--there's no substitute for American leadership. I
think that's kind of the message that all four of us have
shared today.
Chair Smith. We also have done it on--as you know too--
Global Magnitsky. Not everybody was on board on that at first,
but it has made a difference.
Mr. Ivkovic. Chairman, if I may, on the issue of sanctions.
I would like just to answer three tough questions, and I think
they're going to your point absolutely.
Firstly, are we obliged to act? We are obliged to act,
because there are crimes against humanity and crimes analogous
to slavery that are taking place now. We are also obliged to
act in order to protect the national security of the United
States and its allies. As a matter of first legal reason,
absolutely, sanctions can be used. They are countermeasures
under international law. They should be used against states,
companies, and individuals for acts that we described today.
The problem with sanctions is their limited legal nature.
Sanctions are temporary, and they cannot be punitive, meaning
that they should just temporarily halt a wrongful doing from
happening, but then we need a solution. That solution is
presently lacking. We need to support U.S. companies to find
another supply chain, an alternative supply chain, and build it
up. We also need to have actual meaningful consequences, such
as criminal investigations, which will go after those who
organized this supply chain and the suffering of tens of
thousands of kids.
Now, the last point that I wanted to raise is, I do agree
that just U.S. action is limited, but it is incredibly
meaningful. And it can start a movement. If we look at Global
Magnitsky, the problem with Global Magnitsky is not U.S. visas,
because these gentlemen either way do not want to come to
Washington, DC. The problem is that every single bank on the
face of this planet will have to know your client rules, and
they will not open bank accounts anymore. The U.S. will have
the power through Federal criminal law to go after anybody who
would allow circumventing the sanctions. This is an immensely
powerful tool that can bring even those committing the hardest
crimes into compliance. And then the EU and the U.K. can
follow. Thank you.
Mr. Nguramo. I'd like just to substantiate the point, as
Milos just mentioned here, and try to use a case of--by the
way, Congressman, thank you so much for your leadership between
2005, '16, '18, to the election in 2018, you know, in trying to
get a bill out. You know, I was following what was going on in
Congress, in the State Department. I'd like to say thanks
largely to the leadership, and as well to Senator McCain--
sadly, he passed away--who was really, really engaged.
Thankfully, we were able to kind of corner Kabila to respect
the constitution of his country and not seek an illegal term.
Coming back to sanctions--this case in Israel, Dan Gertler.
That's a specific example of how U.S. sanctions are very
powerful in bringing these guys to reason. Say, Hey, stop what
you're doing, you know. Even beyond that, I think the way to
phrase this one in the particular theme of sanctions, we can
look at the tactical, operational, strategic level. What does
that mean? At the tactical level, you know, a lot of these DRC
government officials are getting money from Chinese companies
to do these kinds of things. As a matter of fact, I think the
bill you just mentioned already mentioned these kinds of
things.
If we get credible reports that there are certain DRC
government officials who have been benefiting from these kind
of things, we should sanction them. We should sanction them. As
a matter of fact, you know, they like to have the U.S. dollar
in their pockets, in the bank, so it's going to be easy to do.
The other thing I'd like to mention is in terms of strategic
engagement, we have the APEC meeting going on in San Francisco,
I think, yesterday and today.
I think a strategy or policy done with China should be
included in our conversations or our talking points with the
CCP about these issues. You know, let's face it, maybe the DRC
government might have a bit more of a conflict of interest in
these kinds of things. But I'd like to think that the U.S.
President, the Secretary of State, you know, the Secretary of
the Treasury engaging with these kinds of issues, with the
Chinese CCP, I think is going to have some kind of impact.
Of course, along the supply chain, some people are doing
some bad stuff, or they're just part of a corrupt business
model, you know, that is perpetuating human exploitation. If
you have credible information that anyone or any companies
benefit from these kind of things, we should slap sanctions on
them.
Mr. Niarchos. Just two observations. One, sanctions have
been used in the DRC against people in this sector before.
Especially on Dan Gertler, who was involved in many of the
largest copper-cobalt mines. Also, I just want to go back to
something that you said in your question, Chairman Smith--
whether cobalt can be refined in DRC. One of the big questions
there is actually power supply. And to help the DRC refine
their cobalt effectively, perhaps some sort of solution to
DRC's power supply or engagement with that issue is very
important.
Chair Smith. Thank you. On that point, we have passed
legislation--I was a co-sponsor of it--called Power Africa. And
the whole idea is to try to bring the blessings of power, to
schools, hospitals, and homes, to the greatest extent possible.
It's a great point that you bring up. It becomes another
incentive to up the power capacity of the DR Congo.
Just a couple of final questions--the U.N. role. Are they
playing a positive role? Is the U.N. Human Rights Council, for
example, investigating, sending in fact-finding teams of any
kind? Worker recruitment and retention, how coercive is it,
particularly for the children? I mean, when people find out,
yes, there's an opportunity here, and then they realize how
coercive it is, or isn't. If you could speak to that. Can they
leave if they want to? The idea of payoffs to government
officials in the DR Congo, is there any evidence that high-
ranking officials are getting bribes? Who's looking into it? Is
there any kind of investigative team looking into that, other
than journalists who take great risks to raise questions? And
people who are like yourselves, all of you? Who's doing it,
anybody?
Mr. Niarchos. Yes, I can just talk very quickly on how
coercive it is for children. You know, I've interviewed a lot
of children who have been down into the mines. Often the
pressure comes from the family. It's a poverty-related issue.
As Milos said, you know, there's basically no other choice for
these families. You know, if you're a child and you're
basically told to go by your parents, I'd say it's sort of
fully coercive. Is it coercive on the side of the companies
that are buying? No, but basically, there's no other option.
And then, in terms of payoffs, yes, you know, there have
been investigations of these Congolese ministers, and
governors, and things like that. But often those are
politically motivated. I think we saw the long investigation of
former Governor Richard Muyej of Lualaba Province, which
concluded with a whimper rather than a bang, and I think that,
again, it's used as a political tool rather than a real
investigative tool in DRC.
Chair Smith. Yes. Thank you.
Mr. Ivkovic. Chairman, trying to address your questions as
they were asked, the United Nations lost all their credibility
because they did not examine the cases of mass abuse of people,
including rape committed by U.N. forces in DR Congo. The people
themselves do not have any faith in the United Nations in
Congo, though they do recognize they still need peacekeeping
forces. But to rely on the United Nations to examine this case,
investigate this case, is not something--not the card I'd like
to play.
The second one is about whether children are forced into
working. How I like to compare it is with human trafficking
cases. In human trafficking cases, we do not have to have
initial force in order to influence a mind, a young mind, into
compliance. And this is exactly the case of potential human
trafficking. What we are witnessing is an effective state of
survival where families are forced to send their own children
into the mines just to live another day. Knowing that that day
those kids will go or may go through sexual abuse, physical
abuse, hazardous conditions, and maybe even lose their lives.
So to say that we have proof of initial force bringing them
into mines, we do not. But to say that there is no human
trafficking and abuse and slavery-like situation, there is more
than enough, because they are effectively, by circumstances,
forced to be there. And they are abused while being there,
while not being able to freely choose to leave.
Last but not least, about the corruption situation.
Unfortunately, most reports do not come from government
officials or governmental bodies. The most recent one came from
The Sentry. It is titled, ``The Backchannel: State Capture and
Bribery in Congo's Deal of the Century.'' It goes into, in
great depth, corruption in the mining industry and the
connection between political leaders and corruption. And that
is exactly the problem. Again, to my note, there is no criminal
prosecution, there is no actual act against these stakeholders
by means of sanctions or otherwise, and--it cannot be that the
U.S. Government does not have information that The Sentry has.
Chair Smith. Milos, thank you for that answer. You know, on
the United Nations, when I heard that a number of children in
and around Goma were being raped, 12-, 13-year-olds being given
one meal, or a very small amount of money--again, these are 12-
and 13-year-olds, I held four hearings on it, on the U.N.
peacekeepers. I went to Goma. I met with the peacekeepers. I
met with everyone involved. Kofi Annan put out a zero-tolerance
policy. I think it was well meaning, but it wasn't all that
well followed.
And I'll never forget, I had a woman at the United Nations
Jane Holl Lute, who was frustrated. She's an American and she
worked in our military, the Pentagon, for a while, but she was
deployed there--or, seconded there. She did a wonderful job
pointing out that there was zero implementation for the zero-
tolerance policy. Maybe it's gotten better--or not. It's hard
to say, but you're right about the lack of credibility when the
peacekeepers themselves are, you know, there to mitigate harm,
damage, and abuse, and they become part of the abuse: Houston,
we've got a problem. Thank you for bringing that up. I hope
that the U.N., particularly the Human Rights Council, would do
more to address this, because the exploitation, as we've all
seen, is just horrible.
Now, I do have another question--are there mines that
Glencore and some of the others run that are more ethical? They
may have their own specific problems as well, but it seems to
me the demand for cobalt is going to rise exponentially over
the years, as the demand for EVs rises. I mean, these
telephones don't take all that much, but a car does, and it's a
huge amount of cobalt and other minerals. Your thoughts on some
of these other mines as alternatives?
Mr. Niarchos. I mean, yes. I mean, the Glencore mines are
run closer to international standards. You know, I think there
was a report by RAID, which is an NGO, last year that sort of
looked more closely at Glencore's employment practices with
subcontractors. So there are still issues there, but, yes,
there's less of an issue.
There is a big question about what battery technology has
been used in electric vehicles. I will note that already half
of China's EVs are lithium iron phosphate batteries, which
actually have no cobalt. But they have another issue, which is
the phosphate supply chain. So that's an important trend to
watch.
Just going back to--actually, to something that Milos said.
I'd just like to also highlight the important work of Congolese
NGOs, such as AfreWatch, PODEFIP, and the civil society in
Congo in holding people to account and really publishing
reports and doing investigations that are very, very dangerous,
that are more dangerous even than Western journalists coming
into the country.
Mr. Ivkovic. Chairman, coming to Glencore mines, I do not
have any information--any credible information that Glencore
mines have ever been involved in child labor or any similar
practices. What we need, however, to recognize is that we're
talking about up to two mines. This is not a source of cobalt--
we do not have enough cobalt even if the entire production of
Glencore were going into the United States. That is not enough.
Out of the largest 14 mines, at least are Chinese controlled. I
say ``at least'' because this is public information. Most
likely, it is much higher than that. And this is the core of
the issue, because even if Glencore is free of slavery or free
of child labor in the mines, they still need to refine it
somewhere. And that can be mixed with minerals coming from
other facilities, which is a problem.
Mr. Niarchos. Yes, I just want to add that, you know, it
can be mixed in China, so it's not necessarily happening in the
DRC. It can happen overseas.
Chair Smith. Okay. Thank you. Is there anything else you'd
like to add before we conclude the hearing? Thank you for
giving us so much of your time and, above all, your expertise.
Your leadership is extraordinary. Thank you. The hearing is
adjourned.
[Whereupon, at 12:20 p.m., the hearing was concluded.]
[all]
=======================================================================
A P P E N D I X
=======================================================================
Prepared Statements
----------
Statement of Hon. Eric Schultz
A year ago, I was invited to talk to the Tom Lantos Human Rights
Commission on a similar topic. My presentation then characterized our
relationship with China and Russia in Africa as adversarial, tantamount
to war. Moreover, I argued it was a war we were losing, and in fact had
been losing for many years.
U.S. policy toward Africa, through the administrations of both
parties, has been characterized above all by neglect. We have taken
interest in Africa episodically, usually prompted by a crisis of some
sort, and that interest usually wanes quickly and moves on.
The result is that we left Africa for others, especially China and
Russia. They have expanded their economic and political influence on
the continent for decades at our expense. Moreover, it would have been
a struggle regardless. They had advantages that we lacked. China and
Russia were on the right side of Africa's liberation struggles, and
though that was two generations ago, it still matters to Africans. It
will always matter.
Also, their governments subsidize and support their commercial
ventures in a way that we do not. And they don't play fair: they abet
corruption, and they ignore violations of civil and political and human
rights.
As many others have argued, the world is at an inflection point,
riven by rivalry and by violence. China and Russia pose a systemic
threat. They are allied against us and they mean to change the world
order that we helped build. Africa is one of the key battlegrounds in
this conflict.
To win in Africa there are several things that we should and must
do. To start with, we need to acknowledge that it is a conflict. It is
no longer acceptable to say that Chinese investment is simply filling
in where the West was too timid or too biased to venture.
The old adage of ``one man, one vote, one time'' also applies to
China in Africa: one investment, one country, for all time. The Chinese
mean to freeze us out from African resources as best they can and they
have spent hundreds of billions of dollars in this effort. And Africa's
resources, especially copper, rare earths, and cobalt, are essential to
next-generation economic growth.
The Belt and Road Initiative, at least in Africa, is a transparent
effort to gain the upper hand and assert dominion in Africa. There are
few African countries that have not taken money and that are not in
China's orbit.
Russia's role is smaller but no less malign. Whether or not Wagner
still exists is beside the point. Russian mercenaries and Russian arms
merchants are ubiquitous in Africa. Nor should it be acceptable to be
on our opponent's payrolls. Neither China nor Russia has real private
companies. Working for a Chinese or a Russian company means working for
their governments.
We are not immune in the U.S. from the ``Schroederization'' of our
elite. Many American businessmen, consultants, retired government
officials and the like have taken Chinese and Russian money and have
aided their efforts.
We also need to change the way our government and businesses work
together abroad, especially in Africa. We are a private sector economy
and are stronger for it. But in many places in Africa the investment
risk is high enough that government support needs to be overt to
convince American companies to invest. The argument that we can't pick
winners among American companies should no longer be an excuse for
inaction. Supporting American companies should be a task, if not the
principal one, of American foreign policy.
The Development Finance Corporation is a good start to making that
support more tangible, but it needs to be more active, to have fewer
constraints on what it can support, and above all it needs to have more
money. Its job should be to expand the reach and the influence of the
American Government by expanding the reach and influence of American
commerce. It should not make the perfect the enemy of the good.
The U.S. Government itself should be cautious about imposing its
views on Africans. Supporting democracy and human rights has to be at
the center of U.S. foreign policy but not at the expense of
friendships, because friendship is the key to winning in Africa and
everywhere else. Less finger-wagging and more listening. More
recognition of the way the world is and less dreaming of the way we
want it to be.
The U.S. is and always has been a better friend and a better ally
than our rivals. At the end of the day, this is how we win. When an
Indian company, for instance, has its mine expropriated in Africa, our
response should not be to ignore the situation or to blame the victim.
It should be to help the company of a friendly country.
And when African countries find themselves in trouble, deep in
debt, often as not the result of the corruption of previous regimes, we
need to be more active in helping.
Chinese debt is still rising in Africa, even if investment itself
is tailing off. The problem now and for decades to come is the vast
sums owed and the interest rates that cause those sums to compound and
continue rising with no real prospect that the debts can ever be
repaid. And China doesn't forgive.
The IMF is a useful institution but using it to help countries meet
their debt payments to China seems counterproductive. Wouldn't it be
better to help African countries organize to negotiate as a group to
press China for better terms, especially the forgiveness of some loans,
at least those that can demonstrably be shown to be odious and the
consequence of corruption?
The Global South, especially Africa, is rising in importance, its
clout growing in a polarized world. A New York Times headline the other
day said it all--by 2050 one in four people will be Africans. And their
economies are also among the fastest growing. Africa's friendship
matters.
PEPFAR was a great initiative twenty years ago; it saved millions
of African lives. However, Africans tend to take it for granted now and
are more impressed by China's infrastructure projects, however poorly
built and misconceived. We can do better. My favorite proverb, Chinese
ironically but taught to me by Africans, says that the best time to
plant a tree was twenty years ago; the second-best time is today. Today
is a good time to start fighting for Africa.
______
Statement of Milos Ivkovic
Congressman Smith, Senator Merkley, honorable members of the
Commission, thank you for the invitation to appear before you today.
Critical minerals remain at the core of further technological
advancement from vehicles to the defense industry, raising the issue of
control over their extraction and application to the highest levels of
national and corporate interest. Despite this unique value, we are
faced with the paradox of almost no meaningful U.S. or Western
corporate presence in the supply chain. Indeed, while the final
products containing these minerals may be assembled in the markets of
the U.S. or its allies, the critical areas of mineral extraction and
refining remain far out of reach. Absolute power corrupts absolutely,
as the saying goes, giving those who wield it impunity and influence
beyond the scope of mineral production. While U.S. and European
manufacturers may insist on implementing measures to ensure that every
stage of production is free from intolerable human rights abuses, the
reality of the monopolized supply chain, and the power behind it, makes
it very difficult to actually achieve such an objective, at least not
without concrete and aggressive action.
Understanding the Problem
The story of cobalt is an unfortunate example of de facto informed
silence and continued inaction in response to the unfathomable
devastation of the basic human rights of the most vulnerable. It has
been fourteen years since the Department of Labor added cobalt mined in
the DRC to its ``List of Commodities Produced by Child or Forced
Labor.'' \1\ Since then, it is estimated that between 35,000 \2\ and
40,000 \3\ children, some as young as 6 \4\ to 9 \5\ years old, have
been continuously involved in diverse mining operations in the DRC. In
addition to life-threatening hazardous conditions,\6\ children are
subjected to inhumane working hours,\7\ exposure to potentially toxic
materials,\8\ physical abuse, and sexual exploitation.\9\ And yet,
instead of receiving protection over the years, the DRC National Army
itself was recently declared ``complicit in the worst forms of child
labor'' as forced mining expanded to include other minerals such as
gold, tin ore, tantalum ore, and tungsten ore.\10\ Transparency
International's Corruption Perceptions Index 2022 ranked the DRC among
the 15 most corrupt nations worldwide,\11\ with significant reports
connecting corruption to the country's mining sector.\12\
---------------------------------------------------------------------------
\1\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2009); see also U.S. Department of
Labor, ``List of Goods Produced by Child Labor or Forced Labor''
(2022), at p. 50.
\2\ See e.g. U.S. Department of Labor, Bureau of International
Labor Affairs, ``2022 Findings on The Worst Forms of Child Labor,
Congo, Democratic Republic of the'' (2022), at p. 2; See also.
Siddharth Kara, ``Is your phone tainted by the misery of the 35,000
children in Congo's mines?'' (2018) in The Guardian: https://
www.theguardian.com/global-development/2018/oct/12/
phone-misery-children-congo-cobalt-mines-drc.
\3\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 50; see also UNICEF,
``Factsheet: enfants dans les mines'' (2014) cited in Amnesty
International, ``THIS IS WHAT WE DIE FOR: Human Rights Abuses in the
Democratic Republic of the Congo Power the Global Trade in Cobalt''
(2016), at pp. 6, 28.
\4\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 50.
\5\ See e.g. Amnesty International, ``THIS IS WHAT WE DIE FOR:
Human Rights Abuses in the Democratic Republic of the Congo Power the
Global Trade in Cobalt'' (2016), at p. 29.
\6\ See e.g. OECD, ``Interconnected supply chains: a comprehensive
look at due diligence challenges and opportunities sourcing cobalt and
copper from the Democratic Republic of the Congo'' (2019), at p. 36;
Amnesty International, ``THIS IS WHAT WE DIE FOR: Human Rights Abuses
in the Democratic Republic of the Congo Power the Global Trade in
Cobalt'' (2016), at p. 29 et seq.;
U.S. Department of Labor, Bureau of International Labor Affairs, ``2022
Findings on the Worst Forms of Child Labor, Congo, Democratic Republic
of the'' (2022), at p. 2; U.S. Department of Labor, ``List of Goods
Produced by Child Labor or Forced Labor'' (2022), at p. 51.
\7\ See e.g. Amnesty International, ``THIS IS WHAT WE DIE FOR:
Human Rights Abuses in the Democratic Republic of the Congo Power the
Global Trade in Cobalt'' (2016), at p. 29.
\8\ See e.g. Amnesty International, ``THIS IS WHAT WE DIE FOR:
Human Rights Abuses in the Democratic Republic of the Congo Power the
Global Trade in Cobalt'' (2016), at p. 30; see also Federal Ministry of
Economic Cooperation and Development of Germany, ``Child labour in the
extractive sector'' (2022).
\9\ See e.g. U.S. Department of Labor, Bureau of International
Labor Affairs, ``2022 Findings on the Worst Forms of Child Labor,
Congo, Democratic Republic of the'' (2022), at p. 6; OECD,
``Interconnected supply chains: a comprehensive look at due diligence
challenges and opportunities sourcing cobalt and copper from the
Democratic Republic of the Congo'' (2019), at p. 37;
Amnesty International, ``THIS IS WHAT WE DIE FOR: Human Rights Abuses
in the Democratic Republic of the Congo Power the Global Trade in
Cobalt'' (2016), at p. 30 et seq.
\10\ See U.S. Department of Labor, Bureau of International Labor
Affairs, ``2022 Findings on the Worst Forms of Child Labor, Congo,
Democratic Republic of the'' (2022), at p. 1.
\11\ Transparency International, 2022 Corruption Perceptions Index,
Democratic Republic of the Congo: https://www.transparency.org/en/
countries/democratic-republic-of-the-congo.
\12\ See e.g. The Sentry, ``The Backchannel: State Capture and
Bribery in Congo's Deal of the Century'' (2021).
---------------------------------------------------------------------------
Unfortunately, these truly horrific practices are unlikely to
change until and unless the incentives and impunity for wrongdoing are
removed. Recognizing that the assumption of a simple solution does not
do justice to the actual complexity of the matter, the remainder of the
testimony seeks to address the various underlying causes of the crisis
at hand, coupled with the powers available to the U.S. to counteract in
line with its current policies.
The upstream segment of the cobalt supply chain generally includes
mining, mineral trading, and subsequent processing in smelters or
refineries. Two distinct sets of considerations can be observed in
practice in the DRC:
Absolute poverty affects over 60 million Congolese who have to live
on less than US$2.15 a day.\13\ In addition, 33 million Congolese have
limited or no access to drinking water, and 43% of children under the
age of 5 across the country suffer from malnutrition.\14\ Free
education remains largely unavailable.\15\ It is rather impossible to
speak of free will in such a state of effective survival. Hence, the
families become a target for exploitation or worse. Children who end up
working in cobalt mines are paid as little as US$1-2 per day by the
traders.\16\ They may additionally be subjected to extortion by local
law enforcement or security guards.\17\ Danger and objective
exploitation notwithstanding, having no meaningful alternative leaves
less than a choice but to comply at any personal cost. Put differently,
the only source of income is participation in this circle of abuse.
---------------------------------------------------------------------------
\13\ The World Bank in DRC, country overview: https://
www.worldbank.org/en/country/drc/
overview.
\14\ UNICEF, ``Water, sanitation and hygiene: Every child has a
right to water, sanitation and a safe and clean community'': https://
www.unicef.org/drcongo/en/what-we-do/water-sanitation-and-hygiene.
\15\ See e.g. Amnesty International, ``THIS IS WHAT WE DIE FOR:
Human Rights Abuses in the Democratic Republic of the Congo Power the
Global Trade in Cobalt'' (2016), at p. 31.
\16\ See e.g. Amnesty International, ``THIS IS WHAT WE DIE FOR:
Human Rights Abuses in the Democratic Republic of the Congo Power the
Global Trade in Cobalt'' (2016), at p. 31.
\17\ See Bureau of International Labor Affairs, ``2022 Findings on
The Worst Forms of Child Labor, Congo, Democratic Republic of the''
(2022), at p. 6; see also Amnesty International, ``THIS IS WHAT WE DIE
FOR: Human Rights Abuses in the Democratic Republic of the Congo Power
the Global Trade in Cobalt'' (2016), at p. 30.
---------------------------------------------------------------------------
The other side of the same upstream coin is the demand. Over 70% of
the world's supply of cobalt comes from the DRC.\18\ Between 20% \19\
and 30% \20\ of those quantities may be traced back to artisan mines
powered inter alia by child labor. Traders (commonly referred to as
``buying houses'') purchase cobalt from children and then sell it to
processing plants connected to collection ports. At these stages, it is
often inevitable that illegally obtained cobalt will be mixed into the
mass of exported minerals.\21\ In 2020, Chinese companies imported
nearly 90% of their cobalt needs from the DRC.\22\ It is publicly known
that at least eight of the fourteen largest cobalt mines in the DRC are
controlled by Chinese companies, but the actual number is likely to be
much higher. In addition, mainland China accounts for 80% of the
world's cobalt refining capacity.\23\
---------------------------------------------------------------------------
\18\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 51.
\19\ See e.g. Amnesty International, ``THIS IS WHAT WE DIE FOR:
Human Rights Abuses in the Democratic Republic of the Congo Power the
Global Trade in Cobalt'' (2016), at p. 46.
\20\ See e.g. Federal Ministry of Economic Cooperation and
Development of Germany, ``Child labour in the extractive sector''
(2022).
\21\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 51.
\22\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 51.
\23\ OECD, ``Interconnected supply chains: a comprehensive look at
due diligence challenges and opportunities sourcing cobalt and copper
from the Democratic Republic of the Congo'' (2019), at p. 5.
---------------------------------------------------------------------------
The downstream segment of the cobalt supply chain generally
includes manufacturing activities--from components to lithium-ion
batteries. In 2020 alone, 41% of all batteries containing cobalt were
imported from China.\24\ U.S. battery imports were even more
significant, reaching 47% in the same calendar year.\25\ These figures
suggest an absolute monopoly on what has become one of the most
critical supply chains, and may help explain why years of reporting on
the link between the worst forms of child labor and the cobalt supply
chain have regularly fallen on deaf ears.
---------------------------------------------------------------------------
\24\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 51.
\25\ See e.g. U.S. Department of Labor, ``List of Goods Produced by
Child Labor or Forced Labor'' (2022), at p. 51.
---------------------------------------------------------------------------
Path Forward
Despite the challenges, progress has been made to address at least
some of the supply chain issues, reducing the overall state of
potential dependence. Since 2020, battery manufacturing activity has
been aggressively attracted to the U.S. This is indeed a big step in
the right direction. However, despite its obvious potential, it does
not address the rest of the upstream issues, which necessarily remain
tied to the DRC and wrongful practices in its mining sector.
From the corporate perspective, there have been public signals of
willingness to act and remedy the situation for more than five years.
However, the promises of change may have fallen desperately short of
expectations. In 2017, Amnesty International concluded that the
majority of downstream companies had taken minimal action to improve
their due diligence on the issue of child labor involvement in their
supply chains.\26\ Just two years later, a report subsequently cited by
the OECD found ``low levels of due diligence disclosure, with none of
the 42 companies examined having described the steps taken to manage
risks or summarized their risk mitigation strategies related to child
labor.'' \27\ Similarly, the German government reaffirmed in 2022 that
up to 30% of cobalt in the DRC will continue to come from artisanal
sources,\28\ while in the same year the Department of Labor announced
minimal progress in efforts to eliminate the worst forms of child labor
in the DRC's extractive industries.\29\
---------------------------------------------------------------------------
\26\ Amnesty International ``Time to Recharge: Corporate Action and
Inaction to Tackle Abuses in the Cobalt Supply Chain'' (2017), cited in
OECD, ``Interconnected supply chains: a comprehensive look at due
diligence challenges and opportunities sourcing cobalt and copper from
the Democratic Republic of the Congo'' (2019), at p. 40.
\27\ Bayer, C., and Cooper A., ``Worst Forms of Child Labour in the
Democratic Republic of the Congo: Cobalt Refiner Due Diligence
Reporting'' (2019) cited in OECD, ``Interconnected supply chains: a
comprehensive look at due diligence challenges and opportunities
sourcing cobalt and copper from the Democratic Republic of the Congo''
(2019), at p. 40.
\28\ Federal Ministry of Economic Cooperation and Development of
Germany, ``Child labour in the extractive sector'' (2022).
\29\ U.S. Department of Labor, Bureau of International Labor
Affairs, ``2022 Findings on the Worst Forms of Child Labor, Congo,
Democratic Republic of the'' (2022), at p. 1.
---------------------------------------------------------------------------
According to recent estimates, demand for cobalt is expected to
quadruple by 2030 as compared to 2019.\30\ As demand for cobalt
increases so does, unfortunately, the risk of child labor in mining.
Considering this, it may be critical to examine what powers the U.S.
and its companies have under these circumstances to further address
practices that so flagrantly violate fundamental rights and freedoms.
---------------------------------------------------------------------------
\30\ World Economic Forum, ``A Vision for a Sustainable Battery
Value Chain in 2030: Unlocking the Full Potential to Power Sustainable
Development and Climate Change Mitigation'' (2019), at p. 16.
---------------------------------------------------------------------------
While corporate pressure is theoretically possible, it requires a
high degree of market dominance or importance, which can then be
translated into pressure on upstream actors to aggressively address
child labor in the cobalt supply chain. Intel's success in ensuring a
conflict-free supply chain in the microprocessor industry \31\ is an
example of a successful outcome. Nevertheless, the argument that
Western companies themselves currently have the power or incentive to
force Chinese-backed counterparts to comply with international
standards is a difficult one to make.
---------------------------------------------------------------------------
\31\ See e.g. Intel's Efforts to Achieve a ``Conflict Free'' Supply
Chain: https://www.sec.gov/
comments/s7-40-10/s74010-419.pdf.
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As noted above, Chinese companies control almost all the mines and
refineries needed to produce batteries. In addition, China is expected
to remain the world's largest EV market in the short term, with a
market share of up to 45%.\32\ Finally, current projections suggest
that Chinese EV manufacturers will gain over 20% of global market share
by 2030.\33\
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\32\ See e.g. Sheila Chiang, ``Automakers promote advanced tech to
compete in China--the world's top EV market'' (2023), CNBC: https://
www.cnbc.com/2023/08/04/ev-makers-promote-
advanced-tech-to-compete-in-china.html#.
\33\ See e.g. Simon Evans, ``Carmakers to lose 20pc of share to
Chinese electric vehicles'' (2023), The Australian Financial Review:
https://www.afr.com/companies/transport/carmakers-to-lose-20pc-of-
share-to-chinese-electric-vehicles-20230904-p5e1v2.
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Another commercial reality is that the current supply chain is
affordable, and any readjustment could well lead to higher costs and
negatively affect the prices of final products. Therefore, in the
absence of positive incentives such as non-market interventions and
direct governmental support, Western companies may have little motive
to enter additional segments, such as refining or mining, themselves.
An example of a legislative initiative that recognizes some objective
commercial barriers to change may be the ``Cobalt Optimizes Batteries
and Leading Technologies Act of 2022,'' which provides for the
development of cobalt refining capacity in the U.S., with potential
funding from the Defense Production Act. However, further cooperation
with industry leaders from the U.S. and allied countries is likely
required, since without their participation the risk of negative
dependency is unlikely to be resolved.
Notwithstanding potentially supportive U.S. actions, as long as
crimes go unpunished and actors responsible for the worst forms of
child labor enjoy effective impunity, it is difficult to expect rapid
and meaningful change in practices on the ground in the DRC. Careful
consideration of tangible consequences for unlawful actions may
therefore be required. Three types of measures are arguably available
to the U.S. authorities assuming the facts as stated:
A potential action affecting all market participants, without legal
effect on their individual ability to operate generally as commercial
entities and without regard to their actual involvement in any proven
illegal practices, is a temporary suspension of international trade in
or imports of cobalt into the U.S.--to the extent that there is a risk
of importation of cobalt or cobalt-containing products sourced through
child labor. The positive potential effects of such an approach are
that the U.S., by virtue of its market position, can exert far more
dominant pressure than commercial actors acting independently, and thus
influence the triggering of remedial market practices. It should be
noted, however, that an absolute ban on imports may have negative
short-term effects on the U.S. market--an issue that can perhaps be
addressed through licensing and due diligence requirements overseen by
the authorities. In this regard, the draft legislation ``Countering
China's Exploitation of Strategic Minerals and Child Labor in the
Democratic Republic of the Congo Act'' may be of interest for further
discussion. Similarly, it may be possible to consider amending the
conflict minerals list in Section 1502 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act to include cobalt and child labor.
Secondly, the sheer scale of uninterrupted violations of
fundamental human rights for more than a decade, and potentially lethal
nature of the worst forms of child labor in the DRC, continue to
provide sufficient basis under both domestic and international law for
the U.S. and its allies to impose sanctions on states, companies, and
individuals found to be engaged in these activities. The U.S. has
already taken significant steps in this regard. However, it is
important to understand the nature of sanctions in order to appreciate
their limited power: sanctions are neither permanent nor punitive
measures under international law; their sole purpose is to correct and
halt an unlawful act pending a future resolution. Once the wrongful
conduct ceases, the legal basis for sanctions disappears, leaving many
directly responsible free of any responsibility.
Therefore, criminal investigations may be initiated, at least with
respect to the organizers and those directly responsible for promoting
the worst forms of child labor in the extractive industries of the DRC.
In this regard, like many of my colleagues, I believe that child labor
in hazardous conditions constitutes a violation of peremptory norms of
international law prohibiting slavery. Peremptory norms (lat. jus
cogens) are those norms of international law from which no country may
derogate to any degree. In addition, ``inhumane acts [ . . . ]
intentionally causing great suffering, or serious injury to body or to
mental or physical health'' can rise to the level of crimes against
humanity if they are ``widespread'' or ``systematic'', and ``directed
against a civilian population.'' \34\ In the present case, the Bureau
of International Labor Affairs explicitly declared the armed forces of
the DRC to be ``complicit in the worst forms of child labor.'' \35\
Thus, the U.S. and the international community in general would
arguably have a legal obligation to act to protect against acts
analogous to slavery and potential crimes against humanity. In any
event, international law permits the initiation of national
proceedings, especially when there is a nexus between the violations
mentioned and another territory that receives the proceeds of such
violations.
---------------------------------------------------------------------------
\34\ Rome Statute of the International Criminal Court, Article 7.
\35\ See U.S. Department of Labor, Bureau of International Labor
Affairs, ``2022 Findings on the Worst Forms of Child Labor, Congo,
Democratic Republic of the'' (2022), at p. 1.
---------------------------------------------------------------------------
Finally, the local Congolese population should be given
alternatives to forced mining. Let there be no doubt: Artisanal mining
cannot be made safer or more humane. Without tangible investment,
whether through meaningful social initiative projects by companies
present in the country or USAID initiatives, they may be left with a
bitter end without any source of income.
Concluding Remarks
As someone who has personally seen this suffering, as a father
whose young children, if born in the DRC, could have ended up in the
same cycle of abuse, and as a true believer in the rule of law, I ask
you to consider a series of actions that can put an end to the worst
forms of child labor in the DRC's extractive industries. I also take a
moment to note that the U.S. Congress and the U.S. Administration are
truly the last human hope for millions of people in this region.
This testimony is an independent expert opinion provided at the
request of the U.S. Congress and does not necessarily represent the
views or opinions of Washington University School of Law or any other
third party, court, or institution.
Statement of Joseph Mulala Nguramo
Thank you, Chairman Smith and Co-chairman Senator Merkley, and
thank you to all the distinguished members of the Congressional-
Executive Commission on China for what you are doing, and especially
for holding this hearing at a time when a lot is going on around the
world, leaving many people worried about tomorrow and the future. From
the ongoing illegal and unjustified Russian war of aggression against
Ukraine, which has affected the entire world by exporting global
inflation and exacerbating food insecurity throughout Africa, to the
crisis in the Middle East and rising tension in the African Great Lakes
region which has displaced millions of people and left them in grave
and urgent need of humanitarian assistance--I appreciate your
leadership and attention to these issues. Thank you very much.
Before I move to the main points of my remarks, I would like to
quickly mention that almost 8 years ago, I graduated from the United
States Military Academy at West Point. I was in the class of 2014. The
Forever One Team was the motto of my class. Appointment to the Academy
was the greatest honor of my life. I would like to take this
opportunity to express the depths of my profound gratitude to this
great country, to Members of Congress, and to the American people for
having given me such an opportunity. Thank you!
While at the Academy, I had the opportunity to meet and get to know
some of the finest young men and women this country has to offer. Some
of them have become dear friends and like family to me. I do my best to
keep up with them--hearing about their daily lives and the progress
they are making in achieving the American dream--no matter where they
are serving around the world. And I am always inspired by their
selfless service and commitment to Duty, Honor and Country. Like all
men and women in uniform, I am always inspired by their sacrifice to
serve a noble cause greater than themselves--defending our collective
freedom and the preservation of democracy around the world. I have no
doubt that, regardless of current challenges and turbulence, whether at
home or abroad, the future of this great nation will be in good hands.
I am very proud to call them my classmates and dear friends. Thank you.
I am truly honored and humbled to be here and happy to share with
you my modest understanding of the issues we are discussing today; and
hopefully, together we can find sustainable solutions on how to
effectively address these problems and try to leave this world a bit
better place for all. I am optimistic that, working together,
everything is possible and we can do it.
These are just my independent views--observing a situation that is
becoming more and more alarming and concerning. As a member of the
African diaspora and working with the Atlantic Council on the future of
U.S.-China and -Africa relations in this new area of great-power
competition, I follow these issues closely. The situation is close to
my heart--I have reached out and assisted in some special cases, where
we try to find ways to send kids to school so that they don't find
themselves abused and in these inhumane conditions.
I rarely speak in public. However, at some point, the voices and
messages describing horrific human conditions in which kids and women
are working in DRC mining, will not let anyone in good conscience
remain indifferent. As a society and humanity, we have a moral and
ethical obligation to denounce and act. All actors involved who can do
something positive about this, especially public and private
partnerships, should pay attention. History will hold us accountable.
I don't know everything. As a matter of fact, I am still learning
every day and getting educated about these issues. My testimony will
primarily focus on the humanitarian and political problems of the PRC's
mining practices from a Congolese perspective, including corruption and
forced and child labor and how we can address it.
Historical Perspective
Almost 180 years ago, in the mid-19th century, the rubber tire was
invented. Sadly, this apparent progress for humanity and our
civilization came at a heavy cost of human exploitation--because to
support the boom and demand created by the bicycle and automobile
industry at the turn of the 20th century, the world had to increase the
production of rubber that was only coming from the Belgian Congo at the
time. It was called Congo Free State then. Our ancestors in Congo
carried the scars of this burden and the consequences can still be felt
today. However, with public campaigns, especially from independent
journalists/writers, such as Joseph Conrad, missionaries, and others--
writing the true stories of what was happening--eventually this tragedy
ended and led to Congo independence in 1960. I will not have time to
get further into detail, but if interested and you have time, I
recommend the book, ``King Leopold's Ghost'' by Adam Hochschild to
grasp the magnitude of this tragedy.\1\
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\1\ Adam Hochschild King Leopold's Ghost: A Story of Greed, Terror,
and Heroism in Colonial Africa, October 1, 1999.
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The progress of civilization shouldn't come at the expense of human
exploitation. It is possible to ensure our prosperity while
concurrently defending and protecting human dignity and freedom. Today,
with the green power revolution, to meet the demand of battery
production to save the planet from climate change, the similarities are
striking. History should not be repeating itself here. We have
sufficient data, information, and policy tools to change the course of
history by acting and avoiding past mistakes. It will take leadership.
I am optimistic that with these kinds of public hearings, we will raise
global awareness on these issues and put an end to these shameful
practices that don't honor our society. And I believe education is a
key part of the solution. I will talk more about that in my conclusion.
The Problem
What is happening in the DRC, in this 21st century, as relates to
child labor and humanitarian catastrophe, is dehumanizing and
unacceptable. No one's child, mother, brother, sister, or father should
ever work, or be, in such conditions. It offends human dignity, honor,
and conscience.
Reports and images of children under 10 years old carrying 20kg to
60kg bags full of sand--containing cobalt and copper, shipped to China
for refining; and then fed into the critical minerals supply chain to
power the global energy transition from fossil fuel to clean energy,
are unacceptable, morally offensive, and shocking. Despite reforms, a
well-documented Washington Post article provides details of
shortcomings in addressing these issues of child labor and human rights
violations at a severe human cost.\2\
---------------------------------------------------------------------------
\2\ Despite reforms, mining for EV metals in Congo exacts steep
cost on workers. After revelations of child labor and treacherous
conditions in many cobalt mines, automakers and mineral companies said
they would adhere to international safety standards: https://
www.washingtonpost.com/world/interactive/2023/ev-cobalt-mines-congo/.
August 4, 2023.
---------------------------------------------------------------------------
Over 40,000 children are reported to work in these mines, mostly
owned by Chinese companies (15 out of 19 companies operating in
Katanga, for example). Seventy percent of the cobalt supplied to the
world comes from the DRC, 30% of which is from artisanal mining, where
the most egregious human rights violations occur because of a lack of
transparency, accountability, and rampant corruption. Picking up rocks
with bare hands, without shoes, without medical insurance and adequate
protective gear leaves miners exposed to contamination. Tunnels and
mines collapse, often leading to death. And these children are not even
paid. They are basically being exploited and abused. A typical person
working in these mines is barely making $250 a month, despite all the
hard work, according to an authoritative Amnesty International 2016
report.\3\ Various U.S. Government agencies/departments such as the
Departments of State and Labor, and EU and UN reports, have
substantiated these allegations.\4\
---------------------------------------------------------------------------
\3\ Democratic Republic of Congo: `` `This is what we die for':
Human rights abuses in the Democratic Republic of the Congo power the
global trade in cobalt,'' https://www.amnesty.org/en/
documents/afr62/3183/2016/en/, January 2016.
\4\ Minimal Advancement--Efforts Made but Regression in Practice
that Delayed Advancement, https://www.dol.gov/agencies/ilab/resources/
reports/child-labor/congo-democratic-republic-drc, 2022.
---------------------------------------------------------------------------
Next to the humanitarian cost is the environmental degradation that
is affecting the health of the population living in the vicinity. Cases
of people suffering from cancer, lung disease and DNA modification
because of exposure to toxic chemicals and waste dumped by mining
operations are poignant. Credible scientific reports have shown that
this waste has severe consequences for the local population and the
environment and yet no one is held accountable. A recent book, ``Cobalt
Red: How the Blood of the Congo Powers Our Lives'' by Siddharth Kara,
provides the most coherent and comprehensive understanding and
analysis, both in scale and scope, of this humanitarian tragedy.\5\
---------------------------------------------------------------------------
\5\ Siddharth Kara, Cobalt Red: How the Blood of the Congo Powers
Our Lives, 2023.
---------------------------------------------------------------------------
Why is this problem persisting?
Extreme poverty, rampant corruption, the lack of quality
governance, lack of the rule of law, the lack of access to credible
information and the lack of access to quality education of the local
population are the underlying causes of this humanitarian tragedy.\6\
And China simply took advantage of the situation. The complicity
between DRC government officials and private sector companies is,
unfortunately, fueling and perpetuating this problem. Sadly, the
current DRC regime has miserably failed to address these issues,
especially fighting corruption. Its promises to revise the 2008 Chinese
mining contracts have barely brought concrete results.\7\
---------------------------------------------------------------------------
\6\ Minimal Advancement--Efforts Made but Regression in Practice
that Delayed Advancement, https://www.dol.gov/agencies/ilab/resources/
reports/child-labor/congo-democratic-republic-drc, 2022.
\7\ DRC demands $17bn for infrastructure from China, https://
www.globalconstructionreview.com/drc-demands-17bn-for-infrastructure-
from-china/, February 17, 2023.
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What can be done?
We should work on reducing Chinese dominance in the DRC mining
sector, while mitigating the global reliance on the Belt & Road
Initiative by de-risking and diversifying our supply chain.
Particularly, we must address the issues of child labor and corruption,
as proposed by Congressman Smith in the bill to ban certain goods made
with child labor or forced labor in the Democratic Republic of Congo--
to NOT allow them to enter the United States, Mexico, and Canada
markets.\8\
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\8\ Smith introduces bill to bar all imports that contain cobalt
mined by child exploitation and forced labor trafficking in the
Democratic Republic of Congo, https://chrissmith.house.gov/news/
documentsingle.aspx?DocumentID=411555, June 30, 2023.
---------------------------------------------------------------------------
The primary goal should aim at a nation-building approach by
enabling the DRC to power the global green revolution to fight climate
change. Look for inspiration to South Korea (electronics), Finland
(mobile phones), and Latvia (cyber security).
Secondary goals should aim at:
Establishing the DRC as a global hub for electronics
manufacturing by maximizing the country's abundant natural and human
workforce resources (including low wages), access to global trade
routes, a geographic location at the center of Africa, and so forth.
For example, the U.S.-DRC-Zambia MOU to build the EV battery chain is a
good initiative. The Lobito Corridor project that will connect Zambia,
DRC, and Angola all the way to the Atlantic coast will further
reinforce the policy of de-risking and diversification.
Providing the Western and U.S. markets with an
alternative to China through the advancement and aggressive
implementation and expansion of the African Growth Opportunity Act
(AGOA), U.S. International Development Finance Corporation (USIDFC),
and Prosper Africa programs. Additionally, we should support the
ratification of the African Continental Free Trade Agreement (AfCFTA)
so that the African Continental Free Trade Area is free and independent
from China influence.
Furthering brand awareness of Congo cobalt and the life-
saving impact it can have on local communities when properly managed,
coupled with an aggressive campaign to illustrate the wastefulness of
shipping earth to China for processing and the polluting effects of
said trade on the world environment.
Providing DRC/Artisanal Small-Scale Mining with the tools
(both electronic and physical) to ensure fair and adequate compensation
for their product in line with international market conditions.
Ensuring the continued use of cobalt in electronics
through rapid enforcement of existing laws to discourage further
funding of alternative stabilizing materials for use in battery
manufacturing.
What should Made in Congo stand for?
Leader in conflict-free, certifiably traceable
``ingredients'' on the box.
Highest quality standards ensured--this needs to be
enforced from the start. The popular perception of Made in Congo
products must be reversed.
Products that power the green revolution worldwide.
Secure because traceable--marketing to national grids and
others. MUST cultivate a reputation for not cutting corners or forging
documents/ingredient lists.
Conclusion and Recommendations
Concurrent with the enforcement of due diligence and compliance
with laws and regulations, from the source of extraction of natural
resources, to refineries to ensure a clean supply chain, there are
already plenty of good ideas, as mentioned above, on how we could
address these issues of child labor and corruption. It will just take
the political will and leadership. But here are a few concrete
solutions I would like to share with you:
1. Continue raising awareness. We must stay engaged and keep
shining a spotlight on these issues. We shouldn't shy away from them
because of the complexity of the situation. It is a human tragedy and
as a society we have a moral obligation to intervene and stop this.
Let's not be naive. Talking about this will not solve the problem. But
the fact that the world can talk about this, and the more people are
well informed and become aware of this tragedy--let's be optimistic
that solutions will be found, and these children will go back to
school, where they belong in the first place, and get an education to
have a better future. And hopefully, China will pay appropriate
attention and play a positive role to alter these conditions.
2. Strengthening, reinforcing, and improving the Public-Private
Partnership. Governments across the board, working with Big Tech
companies and even development/financial institutions with direct
impact and influence in the market, should use all the leverage,
incentives, and tools possible to ensure a clean supply chain not
tainted with child labor, corruption, and human rights abuse. For
example, the EU Global Gateway, the Minerals Security Partnership and
the Partnership on Global Infrastructure and Initiative are ways to
start. The more the U.S.A. and allies are less dependent on Chinese
supply chains by applying the policy of de-risking and diversification,
the more likely that global consumers, mainly the U.S. market, will not
import semiconductors, phones, computers, etc., from China. The lack of
access to EU and U.S.A. markets will significantly impact the
profitability of these businesses. The Uyghur Forced Labor Prevention
Act and the DHS/Forced Labor Enforcement Task Force are good examples
of this approach. The U.S.A. and its allies should do the same as
relates to child labor in DRC mining. And apply targeted sanctions
accordingly.
3. Engaging China. In our strategic engagement with China about
global issues of mutual interest--mainly China here, because Chinese
companies are the main buyers of DRC minerals (over 70%) and have the
great majority of refineries in the world (about 60 to 90%) \9\--we
should be talking to Chinese officials and their private sector
companies to, frankly, investigate these issues and do everything they
can to help address them. I would like to think that China will
understand, especially if it wants to be perceived as a responsible
global power. Failure to do that, continuing this exploitation, while
robbing these children of their futures, will tarnish China's
reputation and will not be good in the long term. China should see this
as its own problem and pressure the DRC government and its private
companies to comply with due diligence in making sure that its supply
chain is clean of child labor and human rights abuses.
---------------------------------------------------------------------------
\9\ How to Break China's Hold on Batteries and Critical Minerals:
The Security of Clean Energy Is Easier to Manage than the Security of
Oil, https://foreignpolicy.com/2023/10/04/ev-electric-
china-us-batteries-critical-minerals-energy-oil-renewable/
#::text=Today%20%20China%20
performs%20around%2060%20percent%20to%2090%20percent%20of%20the%20thepro
cessing %20of%20most%20minerals. October 4, 2023.
4. Emphasizing the responsibility of the DRCG itself. This is not
often invoked; however, the DRC government must take responsibility by
making sure laws are fully enforced and that those trespassing those
laws are punished and sanctioned. The DRCG should carry out the heavy
lifting by taking ownership and leadership to fix this problem. The
U.S.A. and private sector companies' involvement can act in a
supportive capacity to help the DRCG in this endeavor; however, this
issue is fundamentally the responsibility of the DRCG. The DRCG must
make sure that the rule of law and quality governance are enforced and
prevail, without which it will be difficult for external actors to try
to assist. DRCG officials implicated in collusion with these practices
---------------------------------------------------------------------------
of corruption must be prosecuted and held accountable.
5. Supporting and protecting independent and credible reports,
research, and
whistleblowers. We should keep working and supporting independent and
credible civil society movements that can report on these issues with
credibility. In this era of disinformation and fake news, we need
access to factual, credible, and reliable data, information, and
intelligence to make the right decisions while at the same time
providing the necessary resources to appropriate organizations doing
this kind of work.
6. Defending, reinforcing, and promoting democracy, the rule of law
and quality governance. Upcoming DRC elections are an opportunity to
ensure the legitimacy of institutions without which instability, poor
governance, and lack of rule of law persist and perpetuate these
problems. Let's make sure that upcoming Congo elections are credible
and transparent. May the best of all win the election and let's let the
will of the people prevail (Vox Populi, Vox Dei). A strong, dynamic,
resilient, and thriving democracy in the DRC is in our national
security interests. It will be a boost for the entire region for
decades to come and have ripple effects across Africa. In that regard,
I sincerely hope that the BRIDGE to DRC Act bill will become law and
become official U.S. policy and strategy toward the DRC and the
region.\10\
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\10\ Representative John James (MI-10) introduced the Building
Relationships and Increasing Democratic Governance through Engagement
(BRIDGE) to DRC Act in the U.S. House of Representatives. The bill aims
to create a U.S. National Strategy to secure United States supply
chains involving critical minerals sourced from the Democratic Republic
of Congo (DRC): https://james.house.gov/media/press-releases/rep-james-
introduces-bridge-drc-act. July 2023.
7. Lastly, investing heavily in education. As Nelson Mandela once
remarked, ``Education is the most powerful tool to change the world.''
At the end of the day, education, education, and education is key, if
we are to help these children escape these conditions (against their
will) and escape poverty, the main cause of why they are there. We
should make sure that they have access to quality education and not be
caught between the global race to energy transition and global power
competition. No parent wants to see their kids in these conditions.
Every parent's hope is that their children have access to a good
education and have a better future. When looking in the eyes of these
children--and by the way, seeing myself not far or different from them,
I feel they deserve better, and we should help them. We should build
more schools and libraries for these children so they can grow up and
be well-informed and educated citizens that the world can count on and
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rely on to solve its 21st century challenges.
Thank you for having me and I'm looking forward to your questions.
______
Statement of Nicolas Niarchos
Chairman Smith, Chairman Merkley, and all other members of the
Commission, thank you for inviting me to speak. I am here to testify
about the environmental impact of copper-cobalt mining in the southern
Democratic Republic of Congo. I visited the DRC six times between 2019
and 2022 reporting for the New Yorker, the Nation and Interlope
magazines. On each of these trips, and on trips I have made for an
upcoming book, I have seen the intense environmental degradation and
deleterious effects of the practice on the health of the local
population.
Copper and cobalt are two key materials for the creation of
lithium-ion batteries, electric devices and especially for the
electrification of transport, which is an important factor in the
reduction of fossil fuel emissions and the slowing of climate change.
It is also an important economic factor--strategic firms like Tesla use
lithium-ion batteries in their products. Around 70% of the global
cobalt supply comes from the DRC. A 2021 report by the World Bank
estimated that we will need three billion tons or more of metals to
achieve a ``below 2 degrees future.''
But the question we must ask ourselves is whether the harm done by
the extraction of these metals--and indeed the fossil fuels expended in
their mining, transport, processing and so on--does not outweigh the
benefit. Is the juice worth the squeeze?
Too often have natural environments been destroyed in the name of
progress, and too often have the lives of people far from the cities in
which minerals are consumed been destroyed. The local population does
not benefit and are left with little more than holes in the ground.
There is even a term for these places, often unspoiled habitats that
are carved up when a mineral is found under their soil. They are known
as ``sacrifice zones.''
In reporting for the New Yorker and the Nation, I have seen how
landscapes have been destroyed, water polluted, and air filled with
dust and carbon as mining companies rush to extract minerals like
copper, cobalt, lithium, and phosphates. Oftentimes, human rights
abuses go hand-in-glove with these environmental catastrophes. In
Congo, the miombo forests of the southern savanna have been cut back
and the land looks as if it has been bombed; in Indonesia, the lust for
battery nickel is responsible for seas pumped with chemicals and air
clogged with coal; in the Western Sahara, where Morocco extracts
phosphate, activists are regularly attacked by the security services--
there, the Korean company LG and the Chinese company Huayou have formed
a joint venture to produce lithium iron phosphate batteries. I could go
on and on.
But I have also seen that there are ways to mine responsibly, ways
in which mining can be done in what is known as a ``closed loop.'' I
have seen how this is possible in the U.S., in Idaho. Even in Congo,
some of the mines, and especially the giant Kamoto Copper Company mine
near the town of Kolwezi, which I toured last year, have implemented
environmental protocols aimed at ameliorating and moderating the
environmental impact of mining.
Sadly, these examples are exceptions to the rule, and an
environmental catastrophe is underway in southern DRC. The rush to
produce devices, batteries, and electric products more cheaply has
created a demand for metals that has led to more and more unscrupulous
behavior. Chinese firms and traders are at the forefront of these
practices. There is a saying in Congo: ``If they don't give their
workers shoes in their own country, why would they give us shoes
here?''
In Congo, there are two types of mine, although there are
gradations between these two. There are industrial mines, which use
modern and mechanized methods. They are responsible for the majority of
the cobalt that comes out of Congo. The industrial mines I have been
allowed to visit have emphasized their environmental mitigation
efforts.
However, I was not permitted to visit the giant Tenke-Fungurume
mine, located between the towns of Likasi and Kolwezi and operated by
the giant Chinese firm CMOC. Other journalists have been subject to
harassment visiting the Tenke-Fungurume site. I visited an adjacent
site where small-scale miners showed me polluted rivers in which women
washed clothes and minerals.
The second type of mine in Congo is the artisanal mine. The world
is home to some 45 million ``artisanal miners''--people who mine for
themselves or small cooperatives. Congo's copper-and-cobalt belt is
home to some 200,000 of these miners who sell the ore they collect to
``depots,'' or ``maisons'' as they are known.
Before sale at these depots but in some cases after, the ore is
crudely processed by washing it in local water supplies. Studies show
that fish in rivers in the mining provinces have been contaminated with
heavy metals and uranium. At the village of Samukinda, I saw how cobalt
washing, as well as effluent from a factory processing cobalt and
copper, had destroyed fields. The chief of the village, Rikomeno
Samukinda, explained that they could no longer grow food there and more
and more of the villagers had to take risky mining jobs in order to
provide for their families. His associates showed me water coming from
a pipe from the facility that had a mild greenish color, and also said
they had seen the dumping of residue from pressure acid leaching of
cobalt, a process to convert heterogenite ore to cobalt hydroxide that
uses chemicals like sulfuric acid.
In southern Congo, women wash raw mining material, which is often
full of toxic metals and, in some cases, mildly radioactive. Stories
abound of artisanal miners in the town of Likasi dying from radiation
poisoning. Congo's government has sealed off the Tshinkolobwe mine,
where the uranium for the Hiroshima bomb came from, but miners are
working nearby in barely protected conditions. If a pregnant woman
works with such heavy metals as cobalt, it can increase her chances of
having a stillbirth or a child with birth defects.
According to a recent study in The Lancet, women in southern Congo
``had metal concentrations that are among the highest ever reported for
pregnant women.'' The study also found a strong link between fathers
who worked with mining chemicals and fetal abnormalities in their
children, noting that ``paternal occupational mining exposure was the
factor most strongly associated with birth defects.''
Furthermore, children as young as 3 mine and handle the toxic ore.
They are sometimes drugged and deprived of food. These factors all
contribute to developmental disorders and reduce life expectancy in the
mining regions of Congo.
In March 2022, I spent a day with Dr. Billy Mukong, a local
physician in the mining town of Kolwezi. As Dr. Mukong did his rounds,
he introduced me to women whose children were born with defects. Some
had swollen heads. Some were developmentally disabled. The defects, he
said, were thanks to exposure to dust that is blown off the back of
trucks carrying raw and processed ore around Kolwezi. (It is worth
noting here that some of the women we met said they ate soil during
pregnancy as a part of a traditional remedy, which Mukong said would
also increase their likelihood of exposure to heavy metals poisoning.)
Over and again, I saw women and men with blistered arms from exposure
to toxic chemicals.
The depots where the ore is collected are often run by foreign
traders. Many are Chinese, Lebanese, and Indian nationals who have
settled in the region. Some of the depots are owned by or supply larger
depots owned by international companies. The most prominent of these is
Congo Dongfang Mining, or CDM.
CDM is a subsidiary of Huayou, a China-based company that has
supplied cobalt to firms like Apple and Samsung. CDM has said they have
made efforts to clean up their supply chain and to ensure that
children, for example, are not mining cobalt. But last year I travelled
from an illegal artisanal site outside the town of Fungurume with a
local dealer in copper and cobalt ore who pointed out to me where he
sold his product. The site was owned by CDM, who could not possibly
have controlled how the ore was mined or who mined it.
When cobalt is collected, it is processed into hydroxide. This is
often done inside the DRC, but sometimes the unprocessed product is
shipped out on flatbed trucks. At the Kasumbalesa border post, trucks
idle for days until they are allowed out of the country. People in the
towns around complain of asthma caused by the fumes.
At processing facilities in China and Korea, this material can be
mixed with industrial product before it becomes the battery cathodes
that we use in electric vehicles and also in everyday appliances like
laptops and cellphones. More needs to be done to trace this supply
chain and ensure the rights of the people at the very bottom of it.
We must also not forget the very real human rights abuses that
attend the extraction of battery metals in the DRC. Children are
brutalized, women are violated, and men are subjected to wage slavery.
Abuses of human rights happen at the bottom of the supply chain, but
also to people who are trying to clarify what is happening in the
supply chain.
In my own work, I was disappeared and detained for six days by the
Democratic Republic of Congo's government as I tried to shed light on
some of the abuses I document above, as well as clarify the links
between armed groups and the mines. I would like to take this
opportunity to thank the members of this commission and others in the
U.S. Government who helped secure my release. Some Congolese
journalists are not so lucky: the journalist Stanis Bujakera Tshiamala
languishes in jail for a report that he reportedly did not even write.
More must be done to promote transparency and thorough reporting on the
supply chain, which firms and governments would rather keep secret. (I
have been detained twice reporting on issues around these minerals, and
I was not issued a visa to report on a lithium-ion battery conference
in China this summer.)
I would like to close with a thought or two about solutions. The
simple inter-
diction of Congolese cobalt is not enough. Such a ban would have a very
damaging effect on the poorest people in that nation. It also wouldn't
stop artisanal mining: copper is prevalent in most of the ore in Congo,
and miners will sell the ore for copper just as soon as they would for
cobalt. In the east of the DRC, we have seen how bans on tantalum and
tin ore have contributed to criminality instead of curbing it, so new
solutions must be envisaged there. They have also empowered
unscrupulous traders who deal in falsified tags. Let's not make the
same mistake again.
The consuming countries need to provide real solutions to address
the lack of work in places like the DRC, to provide alternatives to
artisanal mining, or at least to make it safer and cleaner. Countries
like the U.S. need to insist on environmental protection, and on
recycling to recover critical metals from used devices.
We also need to ensure that democracy and the rule of law are
upheld. As Congo moves toward its elections this December, I believe
the United States should insist on a free and a fair voting process as
the bedrock of any state of law. This will be key in regulating this
industry and making sure that value can be shared with some of the
poorest people in the world.
______
Statement of Hon. Chris Smith
This Commission knows all too well about the Chinese government's
egregious human rights abuses, blatant disregard for international law,
and its ever-expanding authoritarian influence beyond its own borders.
This influence is pervasive--felt in board rooms and C-suites, in
supply chains and on assembly lines, in classrooms and textbooks, in
cities in our own country, and in other countries as well.
Today's hearing will highlight China's malign influence in Africa,
specifically in the cobalt mining industry of the Democratic Republic
of Congo (DRC).
China's repressive long arm is ubiquitous in the DRC. Located in
central Africa, the DRC is massive and blessed with natural resources,
including metals and minerals. It is a country that has been brutally
pillaged throughout history--fueled by corrupt men's unquenchable
thirst for power, riches, land, rubber, copper, palm oil, and now,
cobalt--all at the expense of innocent men, women, and children.
The DRC is home to more than 70% of the world's cobalt, an
essential metal for lithium-ion batteries, powering our smartphones,
laptops, computers, and electric vehicles \1\--lest we forget our
complicity through the use of cobalt in our everyday lives.
---------------------------------------------------------------------------
\1\ John Campbell, ``Why Cobalt Mining in the DRC Needs Urgent
Attention,'' Council on Foreign Relations, Oct. 29, 2020.
---------------------------------------------------------------------------
Siddharth Kara's book, ``Cobalt Red: How the Blood of the Congo
Powers Our Lives,'' vividly describes the tragic realities of this
industry that has all too willingly turned a blind eye to human
dignity. ``There is no such thing as a clean supply chain of cobalt
from the Congo,'' \2\ says Kara.
---------------------------------------------------------------------------
\2\ Siddharth Kara, Cobalt Red: How the Blood of the Congo Powers
Our Lives, (New York, NY; St. Martin's Publishing Group, 2023), 17.
---------------------------------------------------------------------------
Kara writes in the book: ``. . . stakeholders have formulated
international coalitions to help ensure that their supply chains are
clean. The two leading coalitions are the Responsible Minerals
Initiative (RMI) and the Global Battery Alliance (GBA). . . . The GBA
has developed a Cobalt Action Partnership to `immediately and urgently
eliminate child and forced labor from the cobalt value chain.' '' \3\
Kara, however, goes on to write: ``In all my time in the Congo, I never
saw or heard of any activities linked to either of these coalitions.''
\4\
---------------------------------------------------------------------------
\3\ Siddharth Kara, Cobalt Red: How the Blood of the Congo Powers
Our Lives, (New York, NY; St. Martin's Publishing Group, 2023), 4-5.
\4\ Siddharth Kara, Cobalt Red: How the Blood of the Congo Powers
Our Lives, (New York, NY; St. Martin's Publishing Group, 2023), 5.
---------------------------------------------------------------------------
To this day, child and forced Congolese laborers toil in hazardous
conditions to extract cobalt from unsafe mines, including artisanal
mines in the DRC. Hastily dug artisanal mines are always subject to
collapsing--and many have indeed collapsed, crushing, amputating limbs,
and killing miners, including children.
It's impossible to escape the disastrous environmental impact of
cobalt mining in these communities--as the very air they breathe and
the water they drink are contaminated by toxic chemicals, dirt, and
sediment. The biggest beneficiaries of this cobalt continue to remain
silent and refuse to face this uncomfortable truth: From dirt to
battery, from cobalt to cars, the entire system is fueled by violence,
cruelty, and corruption.
``Therein lies the great tragedy of the Congo's mining provinces;''
says Kara, ``no one up the chain considers themselves responsible for
the artisanal miners, even though they all profit from them.'' \5\
---------------------------------------------------------------------------
\5\ Siddharth Kara, Cobalt Red: How the Blood of the Congo Powers
Our Lives, (New York, NY; St. Martin's Publishing Group, 2023), 65.
---------------------------------------------------------------------------
China has gained almost full dominance of every single step of the
cobalt supply chain. Money talks and human rights go right out the
window. Corrupt government officials in the DRC sign billion-dollar
deals with China and pocket the money for themselves. Major companies--
both Chinese and Western--close their eyes.
Over a year ago--on July 14, 2022--I chaired a hearing of the Tom
Lantos Human Rights Commission entitled ``Child Labor and Human Rights
Violations in the Mining Industry of the Democratic Republic of
Congo.'' One of our expert witnesses, attorney Herve Diakiese Kyungu,
testified:
``Child labour is one of the worst forms of abuse. It is
forbidden by both Congolese legislation as well as
international rules and norms.
``In the mining industry in my country, the Democratic Republic
of Congo, children are often exposed to radioactive minerals,
injuries, deadly and painful diseases.
``For example, with respect to the extraction of cobalt in
artisanal mines within Lualaba province, children are routinely
used as part of the workforce. They are unremunerated and
exploited and the work is often fatal as these children are
required to crawl into small holes dug in the earth to recover
sacks of ore containing rich grades of heterogenite which is
almost 60% cobalt.
``These children are not going to school; their health is
exposed as they are living in precarious conditions.''
Another witness at that hearing--also from the DRC, was Father
Rigobert Minani Bihuzo, a Congolese Jesuit priest and head of the
Research, Peace, Human Rights, Democracy and Good Governance Department
at the Research Center for Social Action for the DRC.
He pointed out that their report noted that ``artisanal miners are
not provided with any protective equipment. They work 7 days a week and
more than 12 hours a day. In reality, their working hours are not
defined. It includes weekends and holidays. They are exposed to
radiation from the products they use and to the danger of the
explosives they use.''
The United States has been asleep at the wheel for far too long and
China has taken advantage of that. We need to provide alternative
options--options that champion transparency, human rights, peace, and
prosperity for all.
This week I will be introducing legislation to ensure that goods
containing, or made using, cobalt refined in the People's Republic of
China do not enter the United States market, under the presumption that
the cobalt is extracted or processed with the use of child and forced
labor in the Democratic Republic of Congo.
Among its provisions, the bill, called the ``China's Odious and
Brutally Atrocious Labor Trafficking Supply Chain Act'' or ``COBALT
Supply Chain Act,'' will--as does the Uyghur Forced Labor Act--require
the Customs Commissioner to apply that presumption unless the
Commissioner determines that the importer of record of the covered
goods being imported has ``demonstrated by clear and convincing
evidence that the covered goods were not made or manufactured in the
PRC using or containing cobalt.''
The Convention on the Rights of the Child recognizes ``the right of
the child to be protected from economic exploitation and from
performing any work that is likely hazardous.''
By ignoring these rights and by treating people, including
children, as expendable, China is committing a gross violation of human
rights and is seeking to rewrite the international order--all while
controlling the supply chains of this critical metal, cobalt.
______
Statement of Hon. Jeff Merkley
Thank you very much, Chairman Smith, for convening this hearing,
which builds on several hearings that this Commission has held on the
issue of forced labor and other abuses, including child labor, in
supply chains dominated by Chinese companies, and the importance of
holding them accountable when they are complicit in human rights
violations.
This Commission regularly spotlights repression by the Chinese
government, whether within their own borders, such as in Xinjiang or
Hong Kong, or through efforts to reach across borders into other
countries, including right here in the United States.
Today we will hear about how those two forms of repression are
entwined in the cobalt supply chain originating in the Democratic
Republic of Congo.
Cobalt is a critical component in lithium-ion batteries, which are
used in everything from cell phones to electric cars, as well as other
industrial and defense applications. Almost half of the world's known
reserves of cobalt--3.4 metric tons--is in southern DRC, and the
country accounts for roughly 70 percent of global production.
A whopping 80 percent of the DRC's cobalt output is owned by
Chinese companies, refined in China, and sold to companies in the
United States, Europe, and elsewhere for use in batteries and other
equipment. So-called artisanal cobalt mines, which remain largely
unregulated despite some efforts by the DRC government to formalize the
sector, operate alongside larger industrial operations.
Artisanal miners are often women and children, who work for the
equivalent of a dollar or two a day, carrying heavy loads out of
dangerous mines, while children as young as 3 learn to sift through the
stones to wash and sort ore.
The U.S. Department of Labor estimates that at least 25,000
children are working in cobalt mines in the DRC, and they do it without
basic protective equipment, like gloves or face masks.
A study in The Lancet found that women living in areas where cobalt
mines are concentrated ``had metal concentrations that are among the
highest ever reported for pregnant women,'' with heavy metals linked to
stillbirths and birth defects.
Cobalt mining also causes enormous environmental degradation from
large-scale open-pit mines as ordinary people tear up the ground
looking for cobalt, then follow the veins wherever they lead, including
under homes and churches.
It isn't just cobalt--the DRC is also a top producer of other
minerals, like copper and ``rare earth'' metals, that are vital
components in batteries and other advanced technologies.
Facilitated by widespread corruption in the DRC's mining sector,
Chinese companies and the Chinese government directly profit from
forced and child labor used to mine these minerals, extending their
abusive practices across continents. And they supply American companies
that produce products we use every day. American consumers deserve to
be protected from becoming unwitting and unwilling accomplices in these
abuses.
All of these issues have enormous implications for our supply
chains, at every step, as we seek to accelerate the transition to a
clean, sustainable energy future.
American companies, and those in likeminded countries, have
leverage over these tainted supply chains, which they can and must
exert to improve transparency and implement responsible sourcing. And
both the executive branch and Congress have important roles to play to
reduce and ultimately eliminate labor and other human rights abuses in
DRC mining operations.
Addressing these issues is an opportunity for the United States to
lead the world in both clean, sustainable energy and in human rights. I
look forward to learning more about this set of problems and what we
can do to address them from our witnesses.
______
Statement of Hon. James P. McGovern
Good morning. I join my colleagues in welcoming those present to
today's hearing on the use of child and forced labor by Chinese firms
that mine and refine cobalt in the Democratic Republic of Congo, the
DRC. I regret that I am not able to attend in person.
The existence of exploitative labor relations in the DRC's mining
sector is a long- standing, well-known problem that has previously been
addressed by Congress, including in a Tom Lantos Human Rights
Commission hearing I co-chaired in July 2022.
To summarize the situation, the DRC is rich in cobalt, copper, and
other minerals that have both military and industrial applications;
industrial mining of cobalt and copper is the mainstay of the formal
economy; and labor conditions in both industrial and artisanal mines
are dire. Thousands of children reportedly work in the mines; some
workers are subjected to debt-based coercion which amounts to forced
labor; and working conditions are hazardous.
Today's hearing is concerned specifically with China's role in the
DRC's mining sector. Firms based in the People's Republic of China have
a dominant position in the DRC's cobalt sector. This creates a supply
chain problem for the U.S. as we transition from fossil fuels to green
energy, as the Biden Administration has recognized.
Any successful strategy to address the problem requires the active
involvement of the government of the DRC, which has ratified several
relevant international treaties,\1\ and must include support for
families, children, and their local communities so that there are
alternatives that replace the income generated from a child's labor.
U.S. foreign assistance to the DRC supports programs that address
working conditions in the mining sector, and the Department of Labor's
Bureau of International Labor Affairs, ILAB, is implementing projects
such as Combating Child Labor in the Democratic Republic of Congo's
Cobalt Industry (COTECCO). I support continuing and scaling up this
work.
---------------------------------------------------------------------------
\1\ The International Covenant on Economic, Social and Cultural
Rights (1976); the Minimum Age Convention (2001); and the Worst Forms
of Child Labour Convention (2001).
---------------------------------------------------------------------------
To address the PRC's role in the problem, responsible sourcing
requirements must play a major role. As we have seen in the effort to
end the use of Uyghur forced labor, moral appeals to the private sector
are not sufficient; the incentives businesses face must change.
Importers have a responsibility to demonstrate that the products they
bring in comply with U.S. child and forced labor laws. Enforcing U.S.
law will cause producers to change their practices or to diversify or
relocate their supply chains. The emerging green economy must not be
built on the backs of exploited workers.
?
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Witness Biographies
Eric Schultz, former U.S. Ambassador to Zambia
Ambassador Schultz is a former senior American diplomat with
decades of experience in the CIS and southern Africa. He has worked
extensively with Ukraine, Russia, Turkmenistan, and Georgia, and has
experience in emerging markets around the world. Mr. Schultz served as
U.S. Ambassador to Zambia (2014-2017); the Deputy U.S. Ambassador to
Ukraine (2010-2013); the Minister-Counselor for Economic Affairs at the
U.S. Embassy in Moscow (2007-2009); Deputy U.S. Ambassador to Zimbabwe
(2004-2007). Prior to these leadership assignments he also worked in
Georgia, Martinique, France, and Madagascar as well as serving in a
number of assignments in Washington, including Deputy Director of the
NATO desk and Deputy Director of the Ukraine desk. Eric Schultz
graduated from Macalester College (St. Paul, Minnesota) and holds an
M.A. degree in International Studies from Denver University. Eric
Schultz speaks English, French, Ukrainian, and Russian.
Milos Ivkovic, international arbitrator; Adjunct Professor,
Washington University School of Law; human rights advocate
Milos Ivkovic is a law professor at Washington University, teaching
Introduction to Human Rights and International Criminal Law. He is an
international arbitrator and human rights advocate. Over the course of
the last decade, Prof. Ivkovic has been raising awareness of the
deteriorating state of democracies worldwide, including the ongoing
illicit weaponization of trade and supply chains to target and
disempower free societies. He is recognized for his extraordinary
efforts and actions to eradicate the worst forms of child slavery,
human rights abuses, torture, and human trafficking in Africa and
throughout the world. Prof. Ivkovic was also involved in achieving the
release of journalists wrongfully imprisoned in Africa and serves on
the board of the Interparliamentary Taskforce on Human Trafficking.
Joseph Mulala Nguramo, Non-Resident Fellow, Atlantic Council's
Freedom and Prosperity Center and Scowcroft Center for Strategy and
Security
Joseph Mulala Nguramo is a nonresident fellow in the Freedom and
Prosperity Center and the Scowcroft Center for Strategy and Security at
the Atlantic Council. He was born and spent his formative years in the
Democratic Republic of Congo. He was the first, and thus far only,
Congolese to graduate from the United States Military Academy at West
Point, where he majored in Defense and Strategic Studies. He holds a
master's degree in Global Theory and History from the School of
Advanced International Studies at Johns Hopkins University, where he
has been co-teaching a class on Modern Supply Chain Diplomacy.
Additionally, Joseph has worked as a research assistant at the
Brookings Institution, where he focused on education; at the Taubman
Center for State and Local Government within Harvard University's
Kennedy School of Government, where he focused on African public
policy; and at the International Economic Alliance, where he led the
student internship program and organized meetings between governments
and private sector participants to promote trade, economic growth, and
development. At the Atlantic Council, he is working with the Freedom
and Prosperity Center which focuses on advancing democracy, quality
governance and the rule of law; and the implications of the return of
great power competition and how it will shape the new world order in
the 21st century.
Nicolas Niarchos, freelance journalist
Nicolas Niarchos is a journalist based in New York. His work
focuses on minerals, migration, and conflicts. He is a regular
contributor to the New Yorker and the Nation. His work from Ukraine won
a 2023 Edward R. Murrow award from the Radio Television Digital News
Association. He has written stories from Congo, Ukraine, Indonesia,
Yemen, Burkina Faso, Niger, Morocco, Western Sahara, Djibouti, Iran,
Uzbekistan, Bhutan, the United Kingdom and Greece. He is writing a book
for Penguin Books about the battery metal supply chain that includes
reporting from the United States, Europe, Asia and Africa. Between
January 2014 and December 2018, he worked as a fact checker and deputy
head of fact checking at the New Yorker magazine. Prior to the New
Yorker, he worked as a blog editor at the Independent in London. He
holds an M.S. from Columbia University's School of Journalism and a
B.A. from Yale University.
[all]