RESOLVE

PPA Funding and First Year Anniversary Announcement

Nov 15, 2012

On its first anniversary, the Public-Private Alliance for Responsible Minerals Trade (PPA) is pleased to announce the award of grants to Centre National d’Appui au Développement et à la Participation Populaire (CENADEP – National Center for Support of Development and Community Participation) and Partnership Africa Canada (PAC). With the selection of these projects, the PPA has made a major step toward achieving its objective to support the development of conflict-free mineral supply chains in the Great Lakes Region of Africa.

Robert Hormats, Under Secretary for Economic Growth, Energy, and the Environment, U.S. Department of State, said, “We are pleased at the progress made by the PPA in its first year and take pride in establishing a multi-stakeholder effort focused on the critical need of conflict-free supply chains in eastern Congo and the Great Lakes Region. It is particularly notable to see leading U.S. and international companies contributing their human, financial, and other resources to this important effort and demonstrating that the best response business can make to the concern about conflict minerals is to invest in long-term solutions in the region.”

The PPA-funded projects will bring targeted solutions to mineral supply chain gaps in the Great Lakes Region of Africa. PAC will develop a traceable conflict-free mineral chain for artisanal gold from Orientale province in the Democratic Republic of Congo (DRC) with a PPA grant of 348,796 USD. CENADEP will support civil society capacity to monitor transparency, implementation of an early warning system, and accountability of the mining sector in South Kivu province of the DRC with a PPA grant of 137,010 USD.

Terry Heymann, Director of Responsible Gold, World Gold Council and PPA Governance Committee member, welcomed the grants: “Responsible production and trading of minerals improves livelihoods and the PPA has demonstrated that the public and private sectors can work together to encourage such behavior.” Fellow PPA Governance Committee member Sasha Lezhnev, Senior Policy Analyst, Enough Project added, “Following years of control of the minerals trade by malicious armed groups, it is a critical time to build up a clean minerals trade from eastern Congo. A certified, transparent trade can benefit the Congolese people and plant the seeds of peace for future stability in the region by demonstrating that a life beyond blood minerals and deadly exploitation is possible with better wages, improved working conditions, and revenues that can be used for services to help development.”

This announcement represents the culmination of a competitive selection process that was initiated in the spring of 2012, and the first of what is hoped to be a series of grants. “Tremendous potential exists for the private sector to help solve the problem of conflict minerals,” said USAID Mission Director for the Democratic Republic of the Congo Diana Putman. “These projects and the PPA’s ongoing scrutiny and oversight of the supply chain demonstrate real progress in realizing this potential. Collectively we are demonstrating that conflict-free minerals can be responsibly sourced from central Africa.”

The PPA looks forward to the partnerships with CENADEP and PAC and providing updates on project milestones. “PAC is pleased that the PPA will support the creation of legitimate market opportunities for ICGLR-certified, conflict-free gold produced by artisanal and small-scale miners,” said Joanne Lebert, PAC. “In supporting this initiative, the PPA and its members recognize the importance of demonstrating how to trace artisanal gold in conflict-affected areas of the Great Lakes region, a critical step to addressing conflict financing and regional insecurity.”

Cyprien Birhingingwa Mugabo of CENADEP commented that “The PPA grant will enable us to continue our mission to reinforce integration of civil society actors in the work for conflict free mineral trade in the Great Lakes Region. Together we will have the opportunity to tackle these problems. Aussi, quelque soit la longueur de la nuit, le soleil finit par poindre.”

In addition to funding these in-region projects, the PPA has achieved a number of successes in its first year:

  • Designed PPA governance structures and protocols and selecting a Governance Committee of government, private sector, and NGO representatives;
  • Engaged and established a joint funding pool with 31 PPA Participants, including 22 companies and industry associations, 6 NGOs, and 3 government bodies;
  • Convened multi-stakeholder meeting in Brussels to promote alignment on critical in-region mineral supply chain challenges (and planning a second meeting to continue the dialogue);
  • Developed the PPA website and initial outreach materials to serve as a credible information source on conflict-free minerals issues; and
  • Met with key partners and actors in-region to discuss conflict-free mineral supply chain progress and opportunities.

Additionally, USAID’s $3.5 million in parallel funding is supporting infrastructure and traceability via a grant to the International Organization for Migration, some of which was apportioned as seed money for the PPA’s first year. The parallel funding has resulted in supporting, with other donors, the launch of the first conflict-free mining of tin in South Kivu and the validation of 55 mining sites in North and South Kivu.

The PPA looks forward to building on these successes in its second year. We encourage interested organizations to consider joining the PPA and contributing resources. Contributions will enable the PPA to conduct another round of project support in 2013 to help address key in-region supply chain gaps that persist.

Mike Loch, Director, EHS Strategic Initiatives, Motorola Solutions, reinforced the value of membership, “The PPA is supporting systems that help legitimate sources of minerals enter the supply chains of companies worldwide. It also helps establish a stable economy in the areas around these sources that critically need this support.”

The PPA is a joint effort of the U.S. Department of State, the U.S. Agency for International Development, the International Conference of the Great Lakes Region and its 11 member states, non-governmental organizations, companies and industry associations. The coalition supports conflict-free sourcing, provides credible information resources, and coordinates and engages key actors on conflict-free minerals solutions.

For more information concerning this announcement, please contact Jen Peyser: jpey...@resolv.org. Please visit the PPA website (www.resolv.org/site-ppa) for a full list of quotes and more information.

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