BRIDGE to DRC Act of 2023

Bill: 118-hr-4548
Sponsor: full_name: Rep. James, John [R-MI-10]
Introduced: 2023-07-11
Policy area: International Affairs
Subjects: Africa

Asia

China

Conflicts and wars

Congressional oversight

Democratic Republic of the Congo

Diplomacy, foreign officials, Americans abroad

Elections, voting, political campaign regulation

Foreign aid and international relief

Human rights

Labor standards

Mining

U.S. and foreign investments

Youth employment and child labor
Latest action: action_date: 2023-07-14
text: Referred to the Subcommittee on Energy, Climate and Grid Security.

Summaries:

tv_txt: I 118th CONGRESS 1st Session H. R. 4548 IN THE HOUSE OF REPRESENTATIVES July 11, 2023 Mr. James (for himself, Mr. Baird , Mrs. Kim of California , Mr. Mills , and Mr. Kean of New Jersey ) introduced the following bill; which was referred to the Committee on Foreign Affairs , and in addition to the Committees on the Judiciary , Financial Services , and Energy and Commerce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To require a national strategy to secure United States supply chains involving critical minerals sourced from the Democratic Republic of the Congo, and for other purposes.

1. Short title This Act may be cited as the Building Relationships and Increasing Democratic Governance through Engagement to DRC Act of 2023 or the BRIDGE to DRC Act of 2023 . 2. Findings Congress finds the following: (1) The United States recognized the Democratic Republic of the Congo (hereafter referred to as the DRC ) on June 30, 1960. (2) The DRC has long suffered from armed conflicts and threats to its territorial integrity, including by the March 23 Movement (M23), the Allied Defense Forces, and the Forces Démocratiques de Liberation du Rwanda (FDLR). (3) The DRC’s instability is further exacerbated by political instability, endemic corruption, exploitation of its natural resources, armed conflict, gross human rights abuses, and humanitarian crises, which destabilize the region and cause mass human suffering. (4) The DRC is scheduled to conduct presidential, legislative, provincial, and local elections in December 2023. (5) The United Nations Stabilization Mission in the Democratic Republic of the Congo (MONUSCO) has failed to stabilize eastern DRC and failed its mandate to protect civilians. (6) The East African Community’s intervention has failed to stem armed conflicts and stabilize eastern DRC. (7) The DRC has globally significant reserves of rare earth minerals and other critical minerals, including deposits of copper, cobalt, lithium, niobium, germanium, and tantalum. (8) The DRC is the world’s largest producer and exporter of cobalt and the world’s second largest producer of copper. (9) The People’s Republic of China (PRC) has a near monopoly of the DRC’s cobalt mining sector, with 15 of the 19 cobalt-producing mines in the DRC being owned or financed by PRC based firms in 2021, which directly contributes to its near monopoly over global critical mineral supply chains. (10) The PRC refines 80 percent of the world’s cobalt and 60 percent of its lithium. (11) The United States National Highway Traffic Safety Administration projects that the technology costs required for manufacturers to adhere to current industrial targets could increase by $90 billion over the lifetimes of vehicles through 2029, with per-vehicle costs increasing by roughly $1,110 on average per United States consumer for new vehicles. 3. Sense of congress It is the sense of Congress that— (1) the stability of the Democratic Republic of the Congo is a strategic priority for the United States on the African continent, and it is in the economic and national security interest of the United States to support accountable, inclusive, and democratic governance in the Democratic Republic of Congo; (2) it is in the United States interest to support additional efforts to end conflict in eastern DRC, including by seeking to stem the Rwandan Government’s support to the M23, the documented use of child soldiers, and the threat posed to the Congolese people from undisciplined elements of the Armed Forces of the DRC and other non-state armed groups; (3) United States humanitarian assistance remains critical in providing millions of people in the DRC with life-saving aid and alleviating the suffering of people affected by disasters; (4) as the largest financial contributor to the United Nations Stabilization Mission in the Democratic Republic of the Congo, with an estimated $313,000,000 in fiscal year 2023 appropriations allocated for the mission, the United States should use its voice, vote, and influence in the United Nations Security Council to support the United Nations pre-existing plan to draw down the Mission not later than December 2024; (5) the current near monopoly of the PRC over the DRC’s cobalt and critical mineral extraction and near monopsony of the PRC over the DRC’s cobalt and global critical mineral processing and refining deprives the DRC of important revenue and added value, and represents an economic and national security threat for the United States that directly impacts United States energy independence and military preparedness; (6) the United States should ensure development of voluntary standards, support of multi stakeholder alliances and industry coalitions, and pursue actions to end human rights violations, environmental degradation, opaque businesses practices, and widespread forced labor, including child labor, in the DRC’s mining industry, a problem exacerbated by PRC linked companies’ flagrant disregard for human rights; (7) previous United States policies in regard to the DRC’s natural resources and minerals, such as section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 15 U.S.C. 78m note), have punished the DRC and incentivized illicit trade through the DRC’s neighbors; and (8) The sale of the Tenke Fungurume mine in 2016, and the undeveloped Kisanfu concession in 2020, to the PRC State-tied mining company CMOC (previously known as China Molybdenum Company Limited) damaged United States economic and national security interests by contributing to the PRC’s control of global cobalt supply chains. 4. Statement of policy It is the policy of the United States to— (1) support the conduct of free, fair, and on time democratic elections in the DRC by advocating for enhanced civic education, an inclusive and transparent voter registration process that includes voter access in all provinces, including those where a state of siege declaration applies, and enabling all candidates to fairly compete, including through respecting all candidates’ rights to free expression and free assembly; (2) encourage the adoption of measures that ensure the elections in the DRC are free, fair and democratic, including through support for transparent tabulation processes, the publication of both preliminary and final electoral results by the Commission Électorale Nationale Indépendante (CENI) on its website and polling station premises in an appropriate timeframe to allow cross-checking against data gathered by election observers, and broad access for credible election observation by domestic and international actors including, where appropriate, civil society and faith-based entities, such as the Conférence Episcopale Nationale du Congo and the Church of Christ in Congo; (3) contribute to efforts to end the M23 conflict, including by supporting the African Union and East African Community efforts to achieve a lasting ceasefire and restricting all United States security assistance and cooperation to the Government of Rwanda until the Secretary of State certifies to the appropriate committees of Congress that Rwanda has terminated any and all military support for the M23; (4) use existing sanctions authorities authorized by the Global Magnitsky Human Rights Accountability Act ( 22 U.S.C. 10101 et seq. ) against perpetrators of corruption or human rights violations in the DRC; (5) support efforts to accurately oversee, monitor, and prevent labor and human rights abuses in the DRC’s mining industry in order to remove child and slave labor from United States supply chains, including by encouraging the Government of the DRC to support the formalization of artisanal and small scale mining; (6) engage with the Government of the DRC to address factors, including opaque business and taxation practices, and unpredictable administrative requirements, that limit United States investment and constrain the ability of the United States and DRC to strengthen economic cooperation; (7) require institutions including the Department of State, the United States Agency for International Development, the Development Finance Corporation, and the Department of Commerce to identify opportunities to increase the amount of United States investment in the DRC’s critical minerals sector; and (8) recognize that the PRC’s influence over the DRC’s mining sector output and processing is of concern to the economic and national security of the United States. 5. National strategy to ensure a continued role in the drc’s critical mineral sector (a) In general Not later than 120 days after the date of enactment of this Act, the President, in consultation with the Secretary of State, the Secretary of Defense, the Administrator of the United States Agency for International Development, and the heads of other appropriate Federal agencies, shall submit to the appropriate congressional committees a written strategy that— (1) identifies the critical minerals present in the DRC that— (A) are part of the United States Geological Survey list of 50 mineral commodities critical to the United States economy and national security; and (B) are at highest risk of supply chain disruption due to the domestic or global actions, including price-fixing, systemic acquisition and control of global mineral resources and processing, refining, smelting capacity, or undercutting the fair market value of such resources, by any covered entity; and (2) is focused on— (A) securing United States supply chains which involve critical minerals sourced from the DRC; and (B) securing and expanding United States supply chains which involve the critical minerals identified pursuant to paragraph (1)(B). (b) Elements The strategy required by subsection (a) shall also include the following: (1) Analysis of the national security implications and impact on national supply chain sovereignty caused by the 2016 and 2020 sales of Tenke Fungurume mine and the undeveloped Kisanfu concession to China Molybdenum Company Limited. (2) A review of the effectiveness of section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 15 U.S.C. 78m note), including— (A) a list of all mining companies, grouped by nationality, who left eastern DRC following section 1502’s enactment in 2010; (B) analysis showing the market share for the conflict mineral trade in eastern DRC before and after section 1502’s enactment which shall include, where possible, market share analysis for 2005, 2010, 2015 and 2020; (C) analysis of the unemployment factors, including disarmament, demobilization, and reintegration efforts, in eastern DRC following section 1502’s enactment; (D) analysis of security sector reform efforts in eastern DRC since section 1502’s enactment; (E) an assessment of the effectiveness of section 1502 in limiting financial benefits from accruing, either directly or indirectly, to armed groups in the DRC or adjoining countries; and (F) analysis of the level of illicit mining that has occurred in eastern DRC’s conflict mineral trade following section 1502’s enactment, which shall include— (i) statistical analysis showing the degree of illegal smuggling of conflict minerals into adjoining countries; and (ii) an assessment of the level of coordination and cooperation in the illegal smuggling of conflict minerals between adjoining countries and non-state armed actors present in eastern DRC. (3) An analysis of the level of control exerted by the PRC over the DRC’s mining sector, including— (A) the market share of covered entities which shall include analysis of the market share for each of the critical minerals identified pursuant to subsection (a)(1)(B) in both the DRC as a whole and within each province where the critical minerals are located; (B) the financial terms of covered entities investments in primary extraction; and (C) a diagram detailing the location of covered entities operations throughout the supply chain of the critical minerals identified in subsection (a)(1)(B) from extraction to refinement. (4) A list of each covered entity analyzed with respect to the evaluation of risk required by subsection (a)(1)(B). (5) An assessment of the risks facing United States supply chains as a result of the PRC’s position in the DRC’s mining sector. (6) An assessment of human rights and labor conditions at mines in the DRC at which covered entities operate. (7) An assessment of the market share and capacity of trusted partner nations’ mining companies with respect to the DRC’s mining sector. (8) A strategic plan to use bilateral and multilateral diplomatic relations, including through sustained engagement with the governments of United States allies and partners, to express to the Government of the DRC the support of the international community for the formalization of artisanal and small scale mining. (9) An assessment of the factors that allowed the PRC to gain market dominance in parts of the DRC’s mining industry and which factors present the most significant barriers to increased United States investment in the DRC’s mining sector. (10) An assessment of the ability of the DRC’s critical mineral sector to positively contribute to United States efforts to fulfill both industrial production targets and ensure military preparedness, that includes— (A) analysis of the importance of the critical minerals in the DRC, as identified by subsection (a)(1)(B), in reaching current United States industrial production targets; (B) analysis of the DRC’s business climate, specifically the reliability, transparency and consistency of its business practices; (C) evaluation of the impact of the factors identified in sections (b)(3), (b)(5), (b)(7), (b)(9) and (b)(10)(B) of this strategy on the ability of the United States to secure its critical mineral supply chains. (11) An interagency approved plan to increase United States investment in the DRC, including through— (A) increasing technical assistance and capacity building measures and conducting feasibility studies to rebuild infrastructure and reform the DRC’s business climate, including through reforms to the governance of the DRC’s State-owned enterprises (SOEs), in order to support domestic innovation and economic diversification, and increase local sub-contracting and private sector-led growth; (B) ensuring foreign assistance initiatives promote sustainable development in communities affected by mining, protect human rights, and provide professional training for local workers; and (C) assessing staffing levels at the United States Embassy in Kinshasa, and increasing them if necessary, including having at least 1 Foreign Service Officer exclusively dedicated to critical minerals, to reflect the importance of the DRC to United States supply chains and enhance the competitiveness of United States development financing including through the United States International Development Finance Corporation and the Foreign Commercial Service. (c) Form The strategy required under subsection (a) shall be submitted in unclassified form and may include a classified annex. (d) Updates Not later than 3 years after the submission of the initial strategy required by subsection (a), and every 3 years thereafter, the President shall submit to the appropriate congressional committees a report that includes— (1) an update of the strategy submitted pursuant to subsection (a); and (2) an assessment of the effectiveness of such strategy, as of the date of the submission of the update, in securing United States supply chains which rely on critical minerals sourced from the DRC. (e) Definitions (1) Appropriate congressional committees The term appropriate Congressional Committees means— (A) the Committee on Foreign Affairs, the Committee on Appropriations, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives; and (B) the Committee on Foreign Relations, the Committee on Appropriations, and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) Armed group The term armed group means an armed state or non-state actor that is identified as a perpetrator of serious human rights abuses in the Department of State’s annual Country Reports on Human Rights Practices. (3) Conflict mineral The term conflict mineral means columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives, or any other mineral or its derivatives that the Secretary of State determines to be financing conflict in the DRC or an adjoining country. (4) Covered entity The terms covered entity means a foreign entity that— (A) is subject to the jurisdiction or direction of the PRC; (B) is legally registered or internationally headquartered in the PRC; (C) is directly operating on behalf of the PRC; (D) is majority owned by, or directly or indirectly controlled by, the PRC; (E) receives funding, either directly or indirectly, from the Government of the PRC, PRC State policy banks, or any other bank that is financed primarily by the PRC; (F) that is formed from a spin-off, merger or acquisition, or sale of a business unit involving an entity described in any of subparagraphs (A) through (E) or is otherwise a successor to such an entity; or (G) provides financial services for an entity described in any of subparagraphs (A) through (F). (5) Drc The term DRC means the Democratic Republic of the Congo. (6) Prc The term PRC means the People’s Republic of China.