CAPE TOWN, February 2025 – An engagement at the current Investing In African Mining Indaba event came to a heartwarming climax when a major mining company committed to enhance its local procurement in DRC in response to insights from a local community organiser.
The incident came at the end of a session titled “Disruption required – time for a new deal for local communities”, which discussed how communities in Africa too often fail to gain the full economic benefits of having mining companies invest in their areas.
Speaking during the panel discussion, activist Emmanual Umpula Nkumba, Executive Director of African Natural Resources Watch, said that the news that a mining company was to begin mining in a community often brought hopes for development and jobs, but the outcomes were often far less than promised, while the negative impacts of mining – poverty, pollution, resettlement and human rights violations only came to light later.
“It’s a grave issue,” noted panel moderator David Sturmes-Verbeek, Co-Founder and Director of Partnerships & Innovation at the Impact Facility. “In many ways, the system has failed.”
In response, Daniella Savic, Head of International ESG Compliance at Eurasian Resources Group – and the only mining-company representative on the panel – described her company’s approach to involving communities in its operations, which employ 69 000 employees in 12 countries.
“We work to ensure that host communities are enabled to have early and continued participation in decisions that affect them,” she said. “We are here to take decisions together. We take a multi-stakeholder approach, working closely with NGOs and ensuring workers have access to collective bargaining.”
Omaojor Ogedoh, Executive Director of the Ziva Communities in Nigeria, described the situation in his home country, where the mining industry is experiencing a recovery driving by artisanal and small-scale mining, after becoming moribund during the oil boom.
“There have been some positive impacts – such as job creation, increased revenue and skills development, but the negative effects have been perhaps more significant, which is worrisome,” he said.
Ogedoh mentioned mass displacements, fatal accidents and the Zamfara lead-poisoning disaster, which led to the deaths of hundreds of people.
“Another major impact is climate change,” he said.
Sturmes-Verbeek noted that the elephant in the room was that governments were the stakeholders who were supposed to be regulating the sector for community benefit.
In response, Nkumba said that the challenge was not just the mining laws but the way they were implemented.
“For me, the problem in DRC is not about the law,” he said. “We have one of the most improved mining laws in Africa. The challenge is state agencies have problems of capacity, and conflicts of interest, and companies sometimes circumvent those laws.”
Savic replied that because ERG operated in 12 jurisdictions, it avoided the complexity of multiple regulatory regimes by choosing to adhere to the highest community and environmental standards at all times.
“We are committed to the Copper Mark assurance framework in Congo, and we understand that ESG compliance is a must, if you want to integrate your mines into global supply chains.”
Nkumba next raised the issue of how effectively mines were able to generate quality job opportunities.
“Yes, mines do create jobs. But what kind of jobs?” he asked. “How much are local people earning? Also, the people who are getting paid well are often not Congolese, and don’t even live in the county.”
Savic noted that her company her company had a strong compliance requirement to give back to communities.
“In 2023, ERG distributed $7.3bn in value, compared to $6.8bn of revenue generated,” she indicated. “And 97% of our workforce are nationals of the country we operate in.”
Sturmes-Verbeek noted that while building local capacity was often on the agenda, there was no clarity on how that should happen, or at what pace.
Nkumba agreed, asking, “In practice, how are we investing to change that situation of not having enough skilled people available? We need to make sure that we have those skills, and invest to meet the shortfall by a certain time.”
At this point, Savic agreed to make a commitment for ERG to enhance its local procurement in DRC.
“I am proud to say that ERG commits to enhancing our local procurement strategy,” she said. “But we will need help from civil society to ensure there is also community ownership.”
The panel discussion ended with the two mining stakeholders shaking hands on the stage in Hall 1, to applause from the delegates attending the session.
- Investing in African Mining Indaba 2025 runs until February 6 at CTICC 1 and 2.
