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Epilogue : Where Does All
the Coltan Go?
Coltan is being dealt fast and furious in Kigali. The Swiss embassy is
rumored to be buying.
Susan Page said the American embassy
had nothing to do with it except to make sure the
American dealers' papers were in
order. The biggest one, she told me, was Cabot High-
Performance Materials, headquartered
in Boyertown, PA. Her ears pricked up when I told her
that I had heard that Madame Gulamare,
a Pakistani woman who owns the Supermatch cigarette
factory in Bukavu, was buying 5
tons a day. Every two days she sends 15 drums by truck
to Dar es Salaam. But Page was not
forthcoming about the coltan trade and the American
involvement in it. Nor was her colleague,
the economic officer, who told me that coltan is a very
sensitive issue and that if I wanted
to talk to her, the UN would have to make a formal request to
the State Department.
My source on Mme. Gulamare was my driver, Alfred Rwigamba. His roomate
was a Kenyan
whom Alfred met a yearo ago at the
Hotel Mille Collines in Kigale with a woman from Arkansas
who was letting it be known that
she wanted to buy a million dollars' worth of coltan and had a
$50,000 machine for assaying the
ore. The woman rented Alfred's car for a year and ended up
skipping town without paying him
or the Kenyan, but not before she sold her machine to Mme.
Gulamare. "She seemed so trustworthy,"
Alfred told me.
Jean Karimbizi, partner in a company that buys coltan, told me : "Some
comes from
Rwanda, some from Congo. We don't
ask questions. Most of the Congolese coltan comes from
Punia, Shabunda, Masisi, and Walikale.
A little from from the island of Idgwi. In Rwanda the
main mines are in Taba, Rutobwe,
and Kayenzi. People bring to the coltan to us in Kigali and
we
buy it in Bukavu and Goma. The best
quality, 40% pure, 35%-plus, comes from the region
controlled by the Ugandans. We don't
get to see it. It comes Mangirajipe (which is where ?) and
Bafwasende and all the way to Kisangani
and it goes to Kampala. We get between 15 and 30%
pure. We have an xray spectrometer
which we back up with chemical analysis so there are no
unpleasant surprises. The going
price in Kigali is $10-12 a kilo for 15%, $22 k for 30%, 27% for.
40%. We move between 2.5 and
5 tons a month. Mme. Gulamare couldn't be buying 5 tons a
day. That would means she
had practically cornered the world market. The entire production
from Congo is maybe 60 tons a month.
The RPA officers are not doing 100 tons a month. They
are collection of free wheeling
and dealing officers. They use the profits to finance not the war
but posh cars and mansions in Kigali
and property outside, in South Africa and Uganda. . We sell
$30-70,000 a month of the mineral,
depending on the quality and have a profit margin of 8-15%.
Sometimes we take a loss. We sell
to partners in South Africa. The European dealers want to pay
with letters of credit, which
doesn't work well in Rwanda because you have to get money out of
the bank and so many documents are
required by the time you see your money it takes a month
and you haven't covered your fixed
expenses. . Belgians, Germans, Russians, Americans, and
Chinese agents are all here buying.
I just heard there are some interested parties in Hong Kong.
All these are middlemen. Much of
the stuff that goes to Germany and China is only refined there
and ends up in the U.S.. The U.S.
is the main consumer of coltan in the world, and Cabot is the
main company in the U.S.. It's a
very strategic mineral. It goes into
capacitors for cellphones
and alloys for aircraft, satellites, missiles, medical instruments,
prosthetics, hip joints, etc.,
the metal being very stable and inert. The companies here that deal
directly with Cabot and don't go
through a middleman reap the highest profit. The U.S. has
strategic reserves that it sometimes
dumps on the market and the price goes through the floor.
Last year the U.S. agency for strategic
reserves sold 80,000 lb of pure coltan and the price was
down for 6 months. A month ago it
started buying again. We don't discriminate who we buy
from. We had a private contract
with the military but after two or three sales they found a better
payer, then they set up a bidding
system. They got smart and started to go through higher-up
middlemen. These are just officer
pooling, they have nothing to do with the Rwandese
government. [It seemed Karimbizi,
whom I was put on to by Mazimhaka, doth protest too much].
But it's ironical that the U.S.,
which is supporting these parks, are also the ones who are
destroying them."
Back in the USA I called Paul Rutter, who does a lot of the buying
for Cabot High
Performance Materials, which
is a small subsidiary of Cabot Corporation in Boston. It was
founded by brahman scion Geoffrey
Cabot, who had oil wells in Western Pennsylvania. An
ancient Cabot is still on the board.
Rutter explained that "coltan is a combination of columbite and
tantalite. Columbite is same as
niobium. Almost anywhere you find tantalum oxide you find at
least some niobium. The coltan
from Bukavu is 30% tantalite, 30% niobium, and the rest is
impurities like iron, titanium,
and silicon. It sells in Kigali for $25 a kilo. It is often associated
in
that part of the world with caciterite,
from which it can be separated. Niobium is useful for high-
temperature alloys. 50% of the worldwide
use for high purity tantalum powder is for capacitors
for cellphones, computer control
systems in cars, etc.
"We are not the biggest buyer in Kigali. We buy some from traders there
but our major
source is European traders who sell
to anybody who comes up with the price they are asking.
They get it from Kigali, Bukavu,
or Goma and have their samples weighed and assayed by a third
party. If it is going to be separated
that is usually already done in Africa. There are small
processing plants in Congo and Rwanda,
but most of the coltan goes not significantly processed
to Europe. The price in Rotterdam
or Antwerp for 30% pure varies from $80 to $90 a kilo. We
get most of our coltan from there,
only a small percent directly in Kigali. Most of our stuff
actually comes from Australia, where
we have long- term contacts with big miners. Nobody
knows what % of the coltan in Europe
is from Congo. There are no clearly defined channels. The
material could be double and triple
counted as it changes hands. We process the coltan ourselves
into high purity tantalum powder
and niobium for a variety of products, the largest of which is
the capacitor. How much of our coltan
is from Congo ? I'd guess 10%. Any figure for the entire
production from Congo would have
to have a huge error bar, but I wouldn't faint if I had to
throw a dart at $25
million a year. We buy it unprocessed. Cabot is known as a refiner.
A kilo
of high purity tantalum powder is
worth several hundred dollars. There are three manufacturers of
tantalite powders for the world
solid-state electronics industry : us, the Germany company H.C.
Stark, and the Red Chinese company
Ningxia. How much we produce is proprietary, but I would
guess Cabot is a $100 million
dollar business.
"Automobile control systems ignitions, air bags are big business.
A small portion is for
ballistic applications. I don't
know if we are involved. I just buy the raw material. We also
process the niobium- into what,
to be perfectly honest, I don't know. Niobium 1% zirconium
alloy and niobium titanium is used
in superconductors and medical instruments. A kilo of high
purity niobium power is worth less
than tantalite powder.
"In
Kigali a number of dealers are running around and selling to big buyers
and number of
small ones. It is very competitve
in Kigali because the demand is very high at moment. We
process it as fast as we can get
it. We buy from a local who has his own mining operation in
Rwanda. I didn't say we don't get
any from Congo. A lot of the material in Kigali is from Goma
and Bukavu. I don't know how much
goes to Kampala. I think there is the potential for some
serious business in Congo. So far
it is just artesanal mines scratching the surface. Of the $25
million or so coming out of Congo
we do a very small amount. People there demand cash and we
can't evaluate the ore. Portable
x-ray analysis can lead you down the primrose path. Most of it is
going directly or indirectly
to Stark and Ningxia."
Jim Giershek
told me that he the high-purity tantalum powder that Cabot makes "to capacitor
manufacturers all over the world.
Virtually every electronic device you can think of from
cellphones to digital cameras has
a capacitor. Cellphones are a big driver of the market right now.
We produce about half a million
pounds, $100 million worth, of the powder a year. 95% goes to
the capacitor industry. 50% of the
coltan industry worldwide goes for tantilite wire, rods, sheets,
foil, and alloys. Less than 2% of
our powder is used for ballistic applications, mainly for the actual
warhead part of shoulder-fired anti-tank
weapons. The metal has exceptional penetrance."
People contacted :
Nairobi : the Honorable John Carson,
American Ambassador to Kenya
Eugene Rutagarama, Program Officer,
IGCP
Annette Lanjouw, Director, IGCP
Mbayma's co conservateur Mafuko,
Congolese coordinator, Kes's counterpart.
Kigali :
Patrick Mazimhaka, Councilor
to the President on the Great Lakes
Charles Murigande, Councilor
to the President
T‚ogŠne Rudasingwa, Directeur du
Cabinet (President's chief of staff
Liz Williamson, Karisoke Director,
the Dian Fossey Gorilla Fund
Ian Muranura, Director, Project
Conservation de la Forest de Nyungwe
Vince Smith, Programme Manager,
the Dian Fossey Gorilla Fund Europe
Jean Bizimana, Chef de Service Parcs
Nationaux et Tourisme, ORTPN
the Honorable George M. Staples,
American Ambassador to Rwanda
Susan Page, US political officer
who monitors eastern DRC
Goma :
Honorable Dr. Vizima Karaha, Chief
of Territorial Security and Intelligence for RCD-Goma
Anicet Mburanumwe Chiri, Coordonateur
ICCN/RCD
Stanislas Bakinahe, Directeur Provincial
Nord Kivu, ICCN
Yowa Winder, OCHA
Kate Farnsworth, US Aid Disaster
Relief
Wathuaut Wabubundja Miy, Alexandre,
conservateur en chef station Rwindi.
Maitre Joseph Mudumbi Mulunda, RCD
Chef de Departent de l'Interieur
Rumangabo :
Laurent Muhindo, conservateur principal,
Parc Nacional des Virunga
Beni :
Benoit Kambale Kisuki Mathe, Commisaire
Adjoint des Infrastructures, RCD-ML
Epulu :
Karl Ruf, Field Director for GIC
at RFO
Robert Mwinyihali, Administrator
Research and Training Center (CEFRECOF), WCS
Jean-Joseph Mapilanga
Mayimingi, Kenge
Terese and John Hart (in states
before and after trip).
Bunia :
Professor Ernest Wamba dia Wamba,
President RCD-Kisangani
Ernest Uringi-pa-Dolo, Governor
of Ituri Province
Thomas K. Luhaka, Vice-Commisar
of Defense, RCD-Kisangani
Faustin Lola Lapi, commisaire
d'agriculture, development rural, peches, et forets.
President de la societe civile de
l"ituri, Bha-Avira Mbiya Michel-Casimir.
Alex Bonte, FAO
Garamba:
Dr. A.K. Kes Hillman Smith, Monitoring
and Research Coordinator
Fraser Smith, Field Director of
IRF for Garamba
Sangbalenze Ungua Moke, Commisaire
de zone be Dungu
Jules Abiadra, Administrator of
Territory of Faradje
Hassan, SPLA political counselor
Mbayma Atalia, chef conservateur
Claude last name tk UNHCR
Bukavu :
Carlos Schuler, Administrative and
Financial Officer, GTZ
Christine Schuler, chef de bureau,
GTZ.
Guy Debonnet, Chef de Mission, GTZ
(by telephone from Montreal to Butare)
Mushenzi Lusenge, Directeur Provincial
Sud-Kivu, ICCN
Norbert Basengezi Katintima, Governor
of South Kivu Province
Commandant Kasereka, Military Commandant
of Bukavu Region
Kasereka the conservateur principal
the Mwami of Idgwi, Ntambuka.
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