Friday, May 18, 2012

More Confirmation

Here is further confirmation that Dodd-Frank is having unintended consequences, from a reporter who actually traveled to Nyabibwe, one of the mining towns in South Kivu:

In the United States, a new law - section 1502 of the Dodd-Frank legislation - demands that any company that might be using conflict minerals register with the Securities and Exchange Commission.
In Europe, meanwhile, the 34-nation Organisation for Economic Co-operation and Development has been meeting to tighten guidelines on dealing with conflict minerals.
The Nyabibwe mine and its community have become a test case - and it is hurting.
Known locally as the Obama law, the Dodd-Frank legislation has prompted big American and European buyers of tin to pull out rather than register and be tainted by the stigma of conflict minerals.
"The price has gone down, and I haven't been paid," says Nambibwe tin trader Kubisibwa Shihi.
"We are having a price imposed on us that has nothing to do with the world price."
The company that owes Mr Shishi money is run by Cirimwami Benjamen, in the regional capital Bukavu.
It is only about 50 miles away, but the roads here are appalling so it is a four-hour drive.
In Mr Benjamen's run-down yard stand lines of blue drums filled with tin, waiting to be sold.
"The Americans just stopped buying," says Mr Benjamen.
"We have debts and we owe money. Now we've found a Chinese company that might buy our stock."

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