Additionally, the majority of ASM gold miners reportedly  work in the presence of elements of the Congolese army or illegal armed  actors, according to a report and stakeholders. Reported Official Supply Chain for DRC-Sourced ASM Gold Involves Multiple Actors, but Almost All ASM Gold Is Reportedly Smuggled

The official supply chain for ASM gold produced in the DRC involves  multiple actors, including miners, local traders, and exporters, according  to USAID and UNGoE reports we reviewed and stakeholders we  interviewed. Those sources indicated that these key actors are required  to obtain government authorization, such as official mining cards, or  register with the provincial or national government to trade or export ASM  gold in the DRC. However, according to these reports and stakeholders,  almost all DRC-sourced ASM gold is produced and traded unofficially and  smuggled from the country. DRC Government’s, USAID’s, and Other Entities’ Efforts to Encourage Responsible Sourcing of ASM Gold

The DRC government and USAID, as well as several other entities, have  undertaken initiatives to encourage the sourcing of conflict-free ASM gold  from the DRC. However, the limited number of mine sites that have been validated and  thus licensed to operate, as well as the relatively high provincial taxes in  the mining sector in the DRC compared with taxes in neighboring  countries, as reported by USAID and UNGoE, continue to limit incentives  for sourcing conflict-free ASM gold. In  addition, since 2016, USAID has worked with Tetra Tech through the  Capacity Building for Responsible Minerals Trade Program and  Partnership Africa Canada (PAC) through the Just Gold project to scale  up pilot initiatives for the production and sale of ASM gold. Published in September 2016, the study used data  collected in June and July 2016 to estimate that 31.6 percent of women  and 32.9 percent of men reported exposure to some form of sexual and  gender-based violence in their lifetime. UN Reports DRC Government Has Made Some Progress in Addressing Sexual Violence

Since 2013, the DRC government has made some progress in  addressing sexual violence in the eastern DRC, according to a 2017 UN  report. SEC did not provide comments. Appendix I: Objectives, Scope, and Methodology

In this report, we provide information about (1) the supply chain for gold  produced through artisanal and small-scale mining in the Democratic  Republic of the Congo (DRC); (2) efforts by the DRC and the U.S.  government and others that may encourage the sourcing of conflict-free  artisanal and small-scale mined (ASM) gold; and (3) sexual violence in  the eastern DRC and neighboring countries that has been published  since August 2016, when we last reported on this topic. We reviewed U.S. agency documents, such as a 2015 USAID- funded report related to conflict minerals in the DRC, as well as USAID  internal documents that included a program implementation plan and  annual and quarterly internal progress reports on responsible sourcing of  ASM gold in the DRC. We discussed the collection of sexual  violence-related data in the DRC and adjoining countries, including  population-based survey data and case-file data, during interviews with  State and USAID officials and with NGO representatives and researchers  whom we interviewed for our prior review of sexual violence rates in  eastern DRC and adjoining countries. Washington, D.C.: U. S.  Agency for International Development, May 2015. The Landscape of Armed Groups in  the Eastern Congo. United Nations. Letter Dated 22 January 2014 from the Coordinator of the  Group of Experts on the Democratic Republic of the Congo Addressed to  the President of the Security Council. Related GAO Products

SEC Conflict Minerals Rule: 2017 Review of Company Disclosures in  Response to the U.S. Securities and Exchange Commission Rule,  GAO-17-517R.
Why GAO Did This Study

Over the past decade, the United States and the international community have sought to improve security in the DRC, the site of one of the world's worst humanitarian crises. In the eastern DRC, armed groups have committed severe human rights abuses, including sexual violence, and reportedly profit from the exploitation of “conflict minerals,” particularly gold. Congress included a provision in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act that, among other things, required the Securities and Exchange Commission (SEC) to promulgate regulations regarding the use of conflict minerals from the DRC and adjoining countries. The SEC adopted these regulations in 2012. The act also included a provision for GAO to annually assess the SEC regulations' effectiveness in promoting peace and security and report on the rate of sexual violence in the DRC and adjoining countries. In April 2017, GAO reported on companies' disclosures, in response to the SEC regulations, of conflict minerals they used in calendar year 2015 (see GAO-17-517R ).
In this report, GAO provides information about (1) the supply chain for ASM gold in the DRC; (2) efforts to encourage responsible sourcing of ASM gold; and (3) sexual violence in eastern DRC and neighboring countries published since August 2016, when GAO last reported on this topic. GAO reviewed U.S., UN, and nongovernment and international organizations' reports; interviewed U.S., DRC, and United Arab Emirates (UAE) officials and other stakeholders; and conducted fieldwork in Dubai, UAE.
GAO is not making any recommendations.

What GAO Found

The supply chain for artisanal and small-scale mined (ASM) gold—a significant driver of the Democratic Republic of the Congo (DRC) economy—involves multiple actors, according to reports GAO reviewed and stakeholders interviewed (see figure). Officially, these actors are required to obtain DRC government authorization and pay provincial or national taxes to mine, trade, or export ASM gold, according to these sources. However, almost all DRC-sourced ASM gold is produced and traded unofficially and smuggled from the country, according to reports and stakeholders. Further, elements of the Congolese army as well as illegal armed groups, frequently exploit ASM gold, often through illegal taxes on its production and transport, according to reports and stakeholders.
The DRC government, the U.S. Agency for International Development (USAID), and international organizations have undertaken several initiatives to encourage the responsible sourcing of ASM gold—that is, the production and traceability of gold that has not financed conflict or human rights abuses such as sexual violence. For example, since 2015, USAID has worked with the DRC government to implement a traceability scheme for ASM gold and has worked with Tetra Tech and Partnership Africa Canada to scale up pilot initiatives for the production and sale of conflict-free ASM gold. However, the limited number of mines validated as conflict free and the relatively high mining-related official provincial taxes in the DRC, compared with taxes in neighboring countries, provide few incentives for responsible sourcing of ASM gold, according to reports GAO reviewed.
In 2016, a USAID-funded, population-based study of the rate of sexual violence in parts of the eastern DRC estimated that 32 percent of women and 33 percent of men in these areas had been exposed to some form of sexual and gender-based violence in their lifetime. According to the United Nations, the DRC government has taken some steps to address sexual violence in the eastern region.