20110521
Reuters
KINSHASA (Reuters) - Mineral exports from Democratic of Congo's troubled east have tumbled since early April, which the United States introduced traceability rules that require exporters to prove their products are not funding armed groups, a government official said on Friday.

Technology firms that use the minerals, such as Apple Inc and Hewlett-Packard, have adopted the rules.

In North Kivu province, tin ore cassiterite exports plummeted to 21 tonnes in April from 1,148 tonnes in March, according to Paul Mabolia, head of World Bank-backed Promines, a project to reform mining governance.

Coltan exports from the province have halted altogether in April, down from 54 tonnes last month.

"Things are virtually at a standstill," said Mabolia, adding that although various internationally funded projects to improve traceability had been launched, the lack of buyers was hampering efforts to make them properly operational.

Figures from Maniema province showed a small increase but this was due to the time taken to transport the minerals to the border rather than a sign that production there was continuing, according to Mabolia.

Eastern Congo has seen decades of a conflict characterised as a battle over mineral resources.

A U.N. report last year said virtually all mine sites in the east were under the control of either rebels or Congolese armed forces.

Mabolia said the new U.S. regulations, combined with a six- month mining ban imposed by President Joseph Kabila, had helped demilitarise the mines, but that trade had virtually stopped.

He noted that Bisie tin mine, one of the region's largest, which had been controlled by government army elements, was free of soldiers but production had crashed more than 90 percent.

"Traceability requires money, we normally get this through taxes," he said, adding that without buyers many people would be forced to find alternative livelihoods to mining and that incidents of smuggling were already being reported.

Trying to persuade consumers of Congolese minerals to remain engaged in Congo is crucial to the success of the fight against conflict minerals, Mabiola said.

He said talks were underway about traceability projects between the government and Malaysia Smelting Corporation (MSC) -- which buys more than 80 percent of eastern Congo's tin.

MSC announced in March it would stop buying any untraced Congolese minerals from the beginning of April.