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Markus Wagner, Geological Survey of Germany (BGR), CTC - Certified Trading Chains in Mineral Production: The general concept (1)
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Markus Wagner, Geological Survey of Germany (BGR), CTC - Certified Trading Chains in Mineral Production: The general concept (1)

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  • I would like to present our approach to the implementation of traceability as well as minimum standards in mineral production. We are focusing on the support of artisanal and small scale mining of metals for industrial use. We do not deal with gold, gemstones or jewellery products which are directly linked to end-consumers It is a B2B approach. At present, our regional focus is the Great Lakes region of Central Africa and the metals we are looking at are Tungsten, Tin and Tantalum.
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    • 1. CTC - Certified Trading Chains in mineral production: the general concept Markus Wagner BGR – Federal Institute for Geosciences and Natural Resources Brasilia, October 7, 2008 8th annual CASM conference - workshop 7
    • 2. the general problem: illegal mining and trade of mineral resources is a source of finance for violent groups and contributes to regional instability 2 of 11
    • 3. matrix for responsible use of mineral resources good governance
      • administration of mining titles
      • record of production and trade
      • adapted legal framework
      • regular inspection on the compliance with standards
      • guarantees on trading volumes
      • documentation of state financial revenues
      • security of tenure for ASM
      • verification of origin
      • organizational structure of the mineral producer
      transparency standards
      • definition of standards
      • third party verification , audit
      certification
      • implementation of standards
      3 of 11
    • 4. CTC dual policy objective:
      • utilize mineral potentials in developing countries for the alleviation of poverty and the strengthening of regional stability
      • create open and fair access to the worldwide potential of strategic raw materials indispensable to the industrial value chain through creation of a level playing field
      mining, Mutala, Mozambique 4 of 11
    • 5. CTC key features
      • directly link business partners
      • introduce minimum standards (e.g. OECD ) on origin and CSR by voluntary certification adapted to the local context
      • certification of specific mine sites
      • implement the CTC concept on a regional / multinational level
      • focus on industrial commodities
      panning, Ile-Ife-Ilesha, Nigeria 5 of 11
    • 6. 6 of 11
      • benefits for producers and artisanal miners
      • security of tenure
      • improved market access
      • fair returns and improved working conditions
      • increased capital for investment available
      benefits of CTC (I)
      • benefits for the government of the producing country
      • regulation of informal mining
      • increased state revenues
      • competitive image of the mineral sector
      • conflict prevention
      assessing, Nemba, Rwanda
    • 7.
      • benefits for mineral consumers
      • access to mineral production without reputational loss
      • enhanced supply security through diversification of sources
      • competitive branding
      benefits of CTC (II) weighing, Kayonza, Rwanda 7 of 11
    • 8. CTC concept reports commissions places request national certification unit assesses reports engages auditor contractual agreement delivers certified product support through fair price and technology transfer producer: cooperative, small scale mine customer: industrial consumer gives feedback revenues dialogue accompanies international partnership government of producer country consults, supports reputational protection expert (development program etc.) government of consumer country 8 of 11
    • 9. CTC drivers for success
      • long-term mutual economic benefit
      • multiphase approach, progressive compliance
      • acceptance through multistakeholder participation
      • credibility through independent auditing
      • support on international level (identify champions!)
      • reality check on the ground within pilot projects
      trucking, Kasumbalesa, DRC 9 of 11
    • 10. 10 of 11 CTC road map security, Rutsiro, Rwanda
      • 10/06 – 05/07: elaboration of concept
      • 06/07: G8 summit Heiligendamm
      • 12/07: Berlin conference on “ transparency in the mineral sector ”
      • 07/08: TOR study “ CTC in mineral production - towards technical assistance ”
      • 10/07: baseline audit “ assessing corporate social responsibility against international standards ”
      • 09/08: scoping study ” CTC & EITI: synergies and scope for collaboration ”
      • 10/08: consultation “ 8th annual CASM conference ”
      • 11/08: consultation “ fatal transactions conference ”
      • 12/08: implementation WS / round table “ pilot project Rwanda ”
      • 03/09: start-up bilateral project “ transparency and control in the mineral sector DRC ”
    • 11. thanks! for more information: Markus Wagner Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) e-mail: [email_address] young miner, Nemba, Rwanda 10 of 10

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