Sec. 5. National strategy to ensure a continued role in the drc’s critical mineral sector
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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— identifies the critical minerals present in the DRC that— are part of the United States Geological Survey list of 50 mineral commodities critical to the United States economy and national security; and 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 is focused on— securing United States supply chains which involve critical minerals sourced from the DRC; and securing and expanding United States supply chains which involve the critical minerals identified pursuant to paragraph (1)(B).
The strategy required by subsection
(a)shall also include the following: 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. 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 list of all mining companies, grouped by nationality, who left eastern DRC following section 1502’s enactment in 2010; 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; analysis of the unemployment factors, including disarmament, demobilization, and reintegration efforts, in eastern DRC following section 1502’s enactment; analysis of security sector reform efforts in eastern DRC since section 1502’s enactment; 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 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— statistical analysis showing the degree of illegal smuggling of conflict minerals into adjoining countries; and 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. An analysis of the level of control exerted by the PRC over the DRC’s mining sector, including— 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; the financial terms of covered entities investments in primary extraction; and 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. A list of each covered entity analyzed with respect to the evaluation of risk required by subsection (a)(1)(B). An assessment of the risks facing United States supply chains as a result of the PRC’s position in the DRC’s mining sector. An assessment of human rights and labor conditions at mines in the DRC at which covered entities operate. An assessment of the market share and capacity of trusted partner nations’ mining companies with respect to the DRC’s mining sector. 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. 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. 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— 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; analysis of the DRC’s business climate, specifically the reliability, transparency and consistency of its business practices; 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. An interagency approved plan to increase United States investment in the DRC, including through— 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; ensuring foreign assistance initiatives promote sustainable development in communities affected by mining, protect human rights, and provide professional training for local workers; and 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. The strategy required under subsection
(a)shall be submitted in unclassified form and may include a classified annex. 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— an update of the strategy submitted pursuant to subsection (a); and 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. The term appropriate Congressional Committees means— 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 the Committee on Foreign Relations, the Committee on Appropriations, and the Committee on Banking, Housing, and Urban Affairs of the Senate. 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. 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. The terms covered entity means a foreign entity that— is subject to the jurisdiction or direction of the PRC; is legally registered or internationally headquartered in the PRC; is directly operating on behalf of the PRC; is majority owned by, or directly or indirectly controlled by, the PRC; 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; 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 provides financial services for an entity described in any of subparagraphs
(A)through (F). The term DRC means the Democratic Republic of the Congo. The term PRC means the People’s Republic of China.
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Sec. 5
National strategy to ensure a continued role in the drc’s critical mineral sector
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