Umicore and its African heritage and activities

Umicore’s history stretches back more than 200 years and the company in its present form is the result of the coming together of many different entities. One of these entities, Union Minière du Haut Katanga (UMHK), was involved in the mining and processing of metallic ores (including uranium) in what is now the Democratic Republic of Congo.

It is a well documented fact that part of the uranium used in the Allied Manhattan Project came from UMHK’s operations in what was then the Belgian Congo. The Belgian Congo was a Belgian colony and as such was aligned with the Allies against the Axis powers.

Although UMHK represents one strand in the history of Umicore, the activities of Umicore today have no connection with the operations of UMHK.

As with many companies that have links with a colonial past, Umicore’s history contains controversial episodes. Umicore in June 2006 published a frank and full account of its history (Brion, René; Moreau, Jean-Louis, De La Mine à Mars, Lannoo, Tielt, 2006 – Brion René,  Moreau-Jean-Louis, Van Mijnbouw tot Mars, Lannoo, Tielt 2006)

The company has demonstrated a willingness to deal with problems that were created by predecessor companies where these problems can be realistically tackled. One such example is the company’s decision to deal with the issue of historic pollution in and around its Flemish sites. However, the context of issues such as the involvement of a predecessor company in a wartime programme more than sixty years ago means that intervention by Umicore today would be misplaced and without much meaning.

Since the nationalization of its assets in the DRC in 1968, Umicore no longer has an industrial presence in the province of Katanga in the south east of Congo. Umicore completely severed its last remaining Congolese mining links in 2006 when it sold its stakes both in cobalt and diamond producer Adastra and diamond producer Société Minière de Bakwanga (MIBA).

Umicore does, however, on a regular basis purchase cobalt-bearing raw materials from Katanga. The materials are then exported either to Olen (Belgium) or to China (where Umicore has cobalt processing and transforming facilities).

Umicore’s presence in Katanga, although small, is operated in a correct and responsible manner. The company is mindful of the severe problems surrounding the issue of uncontrolled mining in this region. Umicore is regularly scrutinizing its operational procedures and supply chain and looking into ways in which the company might be able to help implement measures which will lead to an improvement in working conditions in the artisanal mining sector.

The collection/mining of cobalt-bearing ores in Katanga is carried out in working conditions that are not easy to verify. One of Umicore’s actions has been to limit its purchasing of cobalt-bearing raw materials to a small number of suppliers, which have direct contracts with Gecamines or have their own mining assets.

Umicore also ensures that radioactivity tests are carried out on all lots of cobalt-bearing raw materials that it purchases. If any lot is found to have a specific level of radioactivity that might indicate provenance from the closed Shinkolobwe mine, the lot is systematically refused.

The Congolese government has adopted a new Mining Code, which aims to improve the investment climate, develop the mining sector in the country and tackle the problems of illicit mining and export of raw materials. In this context Umicore has introduced a specific code of conduct – based in part on the input of a number of NGOs and other external parties -- for the supply of its raw materials in the DRC. In this code of conduct, Umicore’s suppliers commit themselves to comply with all applicable laws and regulations and in particular to ensure possession of all required permits and authorizations and compliance with all tax and export laws and regulations (further details can be found on page 57 of the 2005 Annual Report).

Umicore only deals with operators who agree to these terms. Umicore’s internal audit team has conducted regular supplier audits: one company was removed from the supplier list in 2005.

Umicore for decades was also active in the purchase of coltan and cassiterite in the DRC via its former marketing arm Sogem.

Coltan (Colombo Tantalite) is a metallic ore found mainly in Australia, parts of Africa and, to a lesser extent, in Canada and Brazil. When refined, coltan is transformed into metallic tantalum which is used mainly in electronic applications - primarily capacitors found in mobile phones and laptop computers  Cassiterite is the principal ore of tin and is mined in many countries; the most important sources are Malaysia, Thailand, China, Indonesia, Bolivia Russia and parts of Africa. Nearly all of this production is from alluvial deposits.

The purchasing was carried out through a network of local, small-scale mining operations, involving long-term partners.

Several years ago some international institutions and civil society groups highlighted the illegal exploitation of Congo's natural resources, including coltan and cassiterite, by neighbouring countries and rebel organizations.

Sogem and its partners in the region always refused to buy materials coming from dubious origin or to trade with military or political parties/companies involved in the conflict.

Umicore co-operated fully with a United Nations panel established to investigate the exploitation of Congo's mineral resources. In November 2003 the United Nations Panel of Experts assigned to investigate the issue of natural resources being used to fund the war in Congo declared that it was satisfied with Umicore/Sogem's position.

In 2005 Umicore sold the majority of its stake in Sogem (renamed into Traxys) to a consortium led by Sogem’s management. In early 2007 Umicore sold the remainder of its shareholding.

Other Umicore Links

Umicore is a materials technology group.

Umicore focuses on application areas where it knows its expertise in materials science, chemistry and metallurgy can make a difference folder.

News

Umicore - © 2008 - Legal notice