Conflict Free Minerals
Supply Chain Workshop 12
Washington, DC
September 10 and 11, 2013
1
Photo by Jay Celorie
Conflict Free Minerals
Supply Chain Workshop 12
Welcome
Washington, DC
Mike Loch, Motorola Solutions
2
EICC® 81 Members (July 12, 2013)
3
GeSI Members (as of Sep 2013)
Members
Partners
4
CFSI Partners
( As of Sep 8, 2013 )
Partner Industry Associations
Non-Member Partner Companies
+ 4
others
5
CFSI Commitment
• The CFSI is committed to improving conditions in its supply chain
and mining activities that fuel confli...
Upstream
Smelters /
Refiners
Downstream
Conflict Free Smelter
(CFS) Program
Raw Materials
Finished Products
CFSI Supply Ch...
In-Region Schemes
Conflict Free Smelter Program (CFSP)
Company Assurance
Finished
Product
MINE SMELTER/REFINERY OEMS
CFSI ...
Conflict Free Sourcing Initiative
Supply Chain Workshop XII
Conflict Minerals
Overview
Washington DC
September 10, 2013
Overview
• Definitions and Acronyms
• Overview of Conflict Minerals
• U.S. Law – Dodd Frank Act
• What Are Conflict Minera...
Definitions and Acronyms
• ASM – Artisanal and Small-scale Mining
• BGR – German Federal Institute for Geosciences and Nat...
Definitions and Acronyms
• OECD – Organisation for Economic Co-operation and Development
Due Diligence Guidance for Respon...
Focus on Conflict Minerals
and the DRC
• United Nations reports (2001, 2008 and
2009) that minerals trade directly
contrib...
Conflict Minerals Facts
• Tin (Sn) , Tungsten (W), Tantalum (Ta), Gold
(Au) are mined in the Democratic Republic of
the Co...
U.S. Law
• July 2010 - President Obama signs the Dodd-Frank Wall
Street Reform and Consumer Protection Act (“Dodd-
Frank”)...
What are Conflict Minerals?
The Dodd-Frank Act defines 'Conflict minerals' as the following minerals as
well as their deri...
SEC Rule Overview:
Basic Three-Step Process
1. Determine
applicability
2. Conduct
“reasonable
country of origin
inquiry”
3...
Any issuer that files
reports with SEC under
Exchange Act sections
13(a) or 15(d)
•Includes:
•U.S. Companies that issue
st...
Step 2: Reasonable Country
of Origin Inquiry (RCOI)
Designed to evaluate whether
minerals in a company’s
supply chain orig...
Step 3: Due Diligence
Currently, due diligence means
using OECD Due Diligence
Guidance.
1. Establish strong management
sys...
Step 3: Transition Period
“DRC conflict free undeterminable”
• Available for a transitional period
– 2 years for all issue...
In-Region Schemes
Conflict-Free Smelter Program (CFS)
Company Assurance
Finished
Product
MINE SMELTER/REFINERY OEMS
Indust...
In-Region Schemes
• The ICGLR is an 11 member organization consisting of the
Countries of the Great Lakes region of Africa...
Conflict-Free Smelter (CFS)
Program
A voluntary initiative with independent 3rd party audits of smelter and
refiner procur...
Conflict Minerals Reporting
Template
• What is the Conflict Minerals Reporting Template?
– A tool that provides a common m...
Conflict Free Sourcing Initiative (CFSI)
Conflict Free Smelter Program (CFSP)
Jean-Paul Meutcheho
Global Advanced Metals (...
CFSP Overview
• CFSP Background
• CFSP Specifics
• CFSP Auditor Information
• CFSP Audit Costs
• Additional Information
Supply Chain Focal Point – Smelters
and Refiners
Conflict-Free Smelter Program
The Conflict Free Sourcing Initiative (CFSI) has spearheaded the development
of a 3rd party ...
What defines a smelter or refiner?
The CFSP audits smelters and refiners. Therefore, it’s important to identify the correc...
Principles of CFSP Audit
1. Conflict Minerals Policy
The Company will have a documented, effective and communicated policy...
CFSP Audit Focus
32
Company Mass Balance
- Includes all inventory
- Includes all facilities
Ore /
Concentrate
Recycled /
S...
CFSP Audit:
Procurement Documentation
• Level 1: countries with known active ore production which are not identified as
pl...
Documentation Examples
L1 L2 L3 Examples of Acceptable Documentation
X X X Government-issued country of origin certificate...
CFSP Audit
Process Overview
CFSP Auditor Information
• Qualified CFSP auditing firms
– Liz Mueller, Inc.: http://www.lizmuller.com/
– UL-STR: http://w...
CFSP Audit Cost Information
Because smelter benefit from their participation in the CFSP due to the
resultant company mark...
CFSP Online Indicators / Active List
• Active = signed
agreements, audit
progress being made
• Presently no Tungsten
smelt...
CFSI Conflict-Free Sourcing Approach
Finished
Product
MINE SMELTER/REFINERY OEMS
In-Region Schemes
Conflict Free Smelter P...
Conflict Minerals Reporting Template:
Philosophy and Approach
Requests
CompletedTemplates
Company Assurance
The CMRT and forthcoming IPC
standard
-Michael Rohwer, EICC
-Fern Abrams, IPC
CFSI Conflict-Free Sourcing Approach
In-Region Sourcing
Conflict Free Smelter Program
Company Due Diligence
MINE SMELTER /...
Company Assurance
Development, integration, and maintenance of
tools and processes which support a down-
stream company’s ...
The Conflict Minerals Reporting
Template
Conflict Minerals Reporting Template:
Philosophy
Define a common industry approach supporting the
downstream Due Diligence...
Conflict Minerals Reporting Template:
Approach
• Common reporting template
• Free
• Accessible by all
• Provide instructio...
Conflict Minerals Reporting Template
Information Flow
Conflict Minerals Reporting Template
Access
Click here for CFS Program
Supporters
Conflict Minerals Reporting Template & D...
Conflict Minerals Reporting Template
Updates
• Version 2.03
– Resolved Microsoft Excel 2003 incompatibility
– Clarified in...
Conflict Minerals Reporting Template
Current Challenges
• Does not meet needs for all industries
• Read strictly imposes b...
IPC-1755:
A Multi-Industry Effort to
Standardize Conflict Minerals Data
September 10, 2013
Fern Abrams
Director, Governmen...
About IPC - Association Connecting
Electronics Industries
• Founded in 1957 as the
Institute of Printed Circuits
• Strong ...
IPC Today
IPC is an international trade association dedicated to the
furthering the competitive excellence and financial
s...
IPC Standards
• Standards are developed by volunteer
committees
• Committees are made up of subject matter
experts across ...
IPC and Conflict Minerals
• High level of member interest
• Well known for our involvement
– Member advocacy
– Involvement...
Why Data Exchange
Standards?
Why a Data Exchange Standard
• Many different data management solutions
will be used across the supply chain
• These data ...
Conflict Minerals Data Exchange
Standard
• Goal: Development of a broad, multi-industry,
consensus standard for communicat...
Why a Data Exchange Standard
A number of software vendors are developing conflict
minerals tools
AIAG/iPoint Papros/MRPRO
...
Data Exchange Standard vs.
Reporting Form
• IPC-1755 Conflict Minerals Data Exchange Standard:
– Defines what data is to b...
IPC Standards Process
Overview
• Open to all interested parties
• No charge for participation
• Voting on the draft standa...
IPC-1755
• Working draft of the standard developed by
outside consultants
• Based on Dodd-Frank, SEC rules, EICC/GeSI
Repo...
Overview of IPC-1755
• Terms and Definitions
• Questions cover:
– Applicability
– Company policies and conflict minerals p...
Key Provisions of the Standard
• Three declaration classes
– Company Level: Declaration for all the products
manufactured ...
Data Elements: Applicability
Initial set of questions establish applicability of
conflict metals reporting obligations
– I...
Data Elements:
Due Diligence/Company Policies
• Have you received conflict metals data/information for each
metal from all...
• Have you implemented due diligence measures for conflict
free sourcing?
• Do you collect conflict minerals due diligence...
Data Elements:
Smelter Information
• Smelter Name
• Smelter Country
• Smelter Contact Information
• Smelter Identification...
Consensus Balloting
• Proposed Standard for Ballot circulated for sixty
days; closes September 26, 2013
• Only active part...
Approval by Participating
Associations
• Associations will review and ballot the
proposed standard according to their
own ...
Next Steps
• If standard passes this ballot, a final
published standard is expected by the end of
2013
• If the standard i...
Questions?
Fern Abrams
(703) 522-0225
fabrams@ipc.org
Conflict Free Sourcing Initiative
Workshop
74
Conflict Minerals Certification and
Traceability Program Updates:
Implementa...
PRESENTATION DU CERTIFICAT CIRGL/RDC
ET DU PLAN D’OPERATIONNALISATION DE LA
MISE EN OEUVRE DU MECANISME DE
CERTIFICATION C...
Notre intervention se resume en deux parties à
savoir:
I. Présentation du Certificat CIRGL/ RDC;
II. Plan opérationnel de ...
I. Présentation du Certificat CIRGL
Le certificat de la CIRGL/ RDC comprend trois volets :
Le 1er volet à remettre à l’ex...
SPECIMEN DU CERTIFICAT CIRGL RDC
Papier / Paper
Description des quelques éléments de sécurité
• Papier filigrané standard, fibres visibles rouges,
fibre invisible jaunes ...
Description des Mentions permettant d’assurer la
traçabilité du lot, à savoir:
• Au recto :
– Le numéro du certificat ;
– ...
– Le nom du transporteur ;
– La ville et pays de transit ;
– Type d’emballage et le numéro du container ;
– Le minerai, le...
UV active
VERSO DU CERTIFICAT
Tableau de traçabilité
– Le code du site d’exploitation d’origine ;
– Le nom du site ;
– Les coordonnées géographiques ;
–...
Autorité de Certification
Le Ministre ayant les mines dans ses attributions et le
Directeur Général du CEEC constituent l’...
BAT / Press check
© 2013 Oberthur Fiduciaire
Vérification de la
cohérence des couleurs
Inspection des premiers
certificats...
Coordination de la production
La production a été
coordonnée pour
répondre à tous les
besoins du CEEC
Le CEEC est en
posse...
1. Montage du logiciel hybride
1.0. Cette solution, conçue et mise en œuvre par l’équipe du
CEEC, permet d’assurer le suiv...
1.1. Test unitaire et validation du logiciel
 Le test du fonctionnement intégral et de validation a été fait
à la satisfa...
1.3.Déploiement de la solution finale
 le programme d’installation du logiciel a été
finalisée;
 la solution Finale est ...
2. Atelier de Formation
Le CEEC, concepteur de l’application, organise trois ateliers, à la
demande de Son Excellence Mons...
L’Objectif étant de réunir les services intervenants
dans la chaine d’approvisionnement,
commercialisation et d’exportatio...
L’Objectif étant de réunir les services intervenants dans la
chaine d’approvisionnement, commercialisation et
d’exportatio...
DATE DE LA MISE EN CIRCULATION DU CERTIFICAT
CIRGL/ RDC
Lancé le 24 juillet 2013 à Kinshasa, le certificat CIRGL
RDC sera ...
Pour ce faire:
- le CEEC mettra en place son équipe de suivi et devra
centraliser les données statistiques internes afin d...
En résumé, la République Démocratique du Congo soutient que le
mécanisme de certification et de suivi des minerais de la C...
En conséquence, dès la mise en circulation du premier certificat
aucun lot des minerais de 3T et de l’or ne sera exporté s...
MERCI
POUR VOTRE ATTENTION
Status of the implementation of the
Regional Initiative against the Illegal
Exploitation of Natural Resources in
the Great...
Mandate of the ICGLR
• Promote and strengthen in each Member State,
the development of effective mechanisms to
eradicate t...
Role of Conference Secretariat
• Serve as a platform for political and technical
exchange;
• Develop transparency tools fo...
Declaration of Summit of Heads of
State held in Lusaka(2010)
• Recognition problems arising from the illegal
exploitation ...
Implementation of the six tools
1. Certification.
• Certification scheme developed;
• Regional audit committee established...
• Self-financing mechanism for the regional
certification developed;
• AFP: MOU signed with SEAMIC (Dar es
Salaam) for the...
Launching of the ICGLR Certificate in
DRC
•On 24 July 2014, the ICGLR has
launched the Regional certificate in
the DRC;
•R...
Accreditation of Third Party
Auditors
•The ICGLR Audit Committee is
developping an audit template to be
used by Third part...
2. Harmonization of national
legislations
• Comparative analysis of legislations in the 12
States of the GLR done (2010);
...
3.Whistleblowing
• Purpose: capitalization of fresh and direct
information on the phenomenon of illegal
exploitation and f...
• Training and awareness raising have been
conducted in the DRC;
• A response team of the ICGLR is based at its
headquarte...
4.Initiative for the Extractive Industries
Transparency Initiative (EITI)
• This initiative is undergoing reform.
• When t...
5. Formalization of artisanal mining
Meaning:
Strictly speaking, "formalization" refers to
giving access to the artisanal...
• The formalization of artisanal mining is an
idea that is realized in the long term, to the
point that there are many cha...
• In June 2012, the ICGLR facilitated an
exchange visit of artisanal miners from
Burundi in Rwanda, which is an inspiratio...
Documentation
• Flow of valuable minerals recorded and sent
to the ICGLR (regional database)
• Member States shall send th...
Thank you for your attention !!
Update CTC (Certified Trading Chains)
12th CSFI Workshop
Washington, September 10th 2013 | Uwe Naeher, BGR
BGR Support to Mineral Certification in
the GLR
Rwanda
CTC mineral certification
pilot project
2008-2011
DRC Rwanda
Burund...
transparency
labor &
working
conditions
security
community
development environment
origin, volume
fiscal obligations
legal...
Developments 2008-2013
RWA:
1. Phase: CTC Pilot Project in Rwanda (2008-2011)
- Implementation in 5 Mines, 3 certified as ...
Mineral / Metal Supply
Chain Initiatives
CTC
Audits
• bottom-up from mine site;
typical duration = 1 week
• on-the-ground assessment:
site inspections, interviews,...
Key Differences:
• mine site focus, national
standards
• certificate refers to mine
sites
- bottom-up audit
• - 3rd party ...
CTC Pilot Mines
(as of 04.2013)
Lulingu
Luntukulu
Bibatama
Kalimbi
Mayi Baridi
3rd Party Auditor
Mine Owners/
Cooperatives/
FEC
2 observers from
COCERTI (Kinshasa)
1-2 observers
Civil Society BGR
2 SAE...
CTC Audits in DRC
Location Baseline Compliance
Nyabibwe, S-Kivu September 2011 February 2013
Mayi Baridi, Katanga February...
Next Steps CTC:
Location Baseline Compliance
Bibatama MHI, N-Kivu February 2012 Q3 2013
Lulingu, S-Kivu October 2012 Q3 20...
Province Green Yellow Red Total
South Kivu 14 14 5 33
North Kivu 11 0 0 11
Maniema 28 1 0 29
Validation Missions:
Missions...
MONUSCO plus:
Title/Mine Owners
FECCivil Society
BGR SAESSCAMProvincial Mining Division
Validation Missions, DRC
Important...
Next Steps Validation Missions:
 Missions in Maniema & Katanga (North to South w Focus on Major
Producers);
 South Kivu ...
Challenges:
 Dynamic Security Situation;
 Infrastructure and access;
 Legal situation, title issues, formalisation;
 L...
THANK YOU
E-Mail: uwe.naeher@bgr.de
Web: www.bgr.bund.de/mineral-certification
Conflict Free Sourcing Initiative
Workshop
118
Conflict Minerals Certification and
Traceability Program Updates:
Public Pr...
CFSI Workshop
September 10, 2013
Public-Private Alliance for
Responsible Minerals Trade
Eileen Kane, U.S. Department of St...
 A multi-sector and multi-stakeholder initiative to
support supply chain solutions to conflict minerals
challenges in the...
Provides funding and coordination support to
organizations working in the region to
 develop verifiable conflict-free sup...
PPA Participants (August 2013)
NGOs (“Other Orgs”) (14)
 Africa Faith and Justice
Network
 B.E.S.T.
 CENADEP
 DDI
 En...
 December 2010: PPA idea conceived when USG, civil society,
industry met and agreed to create a mechanism for all
stakeho...
 Joint funding pool
($1,177,000 to date)
and 47 members
 Funded 2 on-the ground
projects; soon to fund
others
 Establis...
 Convened 3 sessions with ICGLR,
Member States, in-region
implementers to promote alignment
of chain-of-custody systems (...
 CENADEP (Congolese NGO) will support civil
society capacity to monitor transparency,
implementation of an early warning ...
Partnership Africa Canada
and Diamond
Development Initiative
completed site selection
analysis; collected
information from...
PAC will next work to
support mechanization
and establish a
traceable conflict-free
mineral chain for
artisanal gold from ...
 Additional fundraising for second call for
proposals and projects in the Great Lakes Region
 Support alignment of syste...
PPA Participant Benefits
Local residents meeting Solutions for Hope delegation at the Mai Baridi mine, Jan 2012.
130
 Provides vetted, safe, and efficient funding channel channel to support
development and research projects in the GLR
 S...
1. Complete Expression of
Intent (on PPA website)
and Return to RESOLVE
2. Due Diligence review by
USG
3. Review and sign ...
We are pleased at the progress made by the PPA . . .
It is particularly notable to see leading U.S. and
international comp...
“
Responsible production and trading of
minerals improves livelihoods and the
PPA has demonstrated that the public
and pri...
The PPA grant will enable us to continue our
mission to reinforce integration of civil society
actors in the work for conf...
For more information, please
contact the PPA Facilitator:
Jen Peyser, RESOLVE
jpeyser@resolv.org or ppainfo@resolv.org
Direct Sourcing Pilots and Programs
Solutions for Hope (SfH)
Conflict-Free Tin Initiative (CFTI)
Conflict Free and Sociall...
Solutions for Hope Project
Issue: Due to DF Act millions of
people and their livelihoods have
been threatened by the de fa...
The ‘Comptoir’ Supply Chain Model
NEGOTIANT
NEGOTIANT
COMPTOIR
NEGOTIANT
COMPTOIR
INTTRADERS
SMELTERS
MAUNFACTURES
OEM
Typ...
MMR** AVX/SMELTER AVX
Motorola
SolutionsMINE*
MINING IS CONDUCTED UNDER
CONCESSION FROM MMR.
CUSTOMER HAS A TRANSPARENT
TR...
Solutions for Hope Project
• The pilot project supports and is
supported by several implementing
Initiatives:
– ICGLR Regi...
Solutions for Hope Project
Results and Participants
Participating Companies
• AVX
• Coopérative Des Artisanaux Miniers
du ...
Well received by Media, Governments
and NGOs.
•Coverage includes: Bloomberg, New York
Times, Business Week, GreenBizz, Mis...
Conflict Free Tin Initiative (CFTI)
Enabling responsible sourcing from the DRC
• CFTI is a public-private initiative to so...
Tin Closed Pipe Supply Chain
HRH Jamie de Bourbon Parme,
Dutch Ministry of Foreign Affairs
Conflict-Free Tin Initiative
• The Conflict-Free Tin Initiative introduces a tightly controlled
conflict-free supply chain...
Conflict Free and Socially Sustainable
Lessons Learned
• Long term investment – not ‘aid’, move to semi-industrialization
• Need initial investment to kick-start...
Solutions for Hope Project
Next Steps:
• Continue to solicit participation of other
actors
• Expand the program to include...
Thank you!
Questions?
12th CFSI Workshop, Sept 10, 2013: In-Region Overview
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12th CFSI Workshop, Sept 10, 2013: In-Region Overview

  1. 1. Conflict Free Minerals Supply Chain Workshop 12 Washington, DC September 10 and 11, 2013 1 Photo by Jay Celorie
  2. 2. Conflict Free Minerals Supply Chain Workshop 12 Welcome Washington, DC Mike Loch, Motorola Solutions 2
  3. 3. EICC® 81 Members (July 12, 2013) 3
  4. 4. GeSI Members (as of Sep 2013) Members Partners 4
  5. 5. CFSI Partners ( As of Sep 8, 2013 ) Partner Industry Associations Non-Member Partner Companies + 4 others 5
  6. 6. CFSI Commitment • The CFSI is committed to improving conditions in its supply chain and mining activities that fuel conflict are unacceptable. • In order to enable participating companies to source conflict- free minerals, we are taking action by: – Implementing Conflict-Free Smelter and Due Diligence Programs – Supporting in-region sourcing schemes to enable future legitimate trade from DRC and surrounding countries – Supporting OECD due diligence guidance and pilot – Engaging with stakeholders for collaboration and efficiency 6
  7. 7. Upstream Smelters / Refiners Downstream Conflict Free Smelter (CFS) Program Raw Materials Finished Products CFSI Supply Chain Strategy 7 Why Here? 1) Conversion 2) Small Numbers (<500) RCOI Due Diligence In-Region Sourcing
  8. 8. In-Region Schemes Conflict Free Smelter Program (CFSP) Company Assurance Finished Product MINE SMELTER/REFINERY OEMS CFSI Conflict-Free Sourcing Approach 8
  9. 9. Conflict Free Sourcing Initiative Supply Chain Workshop XII Conflict Minerals Overview Washington DC September 10, 2013
  10. 10. Overview • Definitions and Acronyms • Overview of Conflict Minerals • U.S. Law – Dodd Frank Act • What Are Conflict Minerals • SEC Three Step Process • OECD Due Diligence Requirements • Industry Approach – In-region Activities – Conflict Free Smelter Program – Conflict Minerals Reporting Template
  11. 11. Definitions and Acronyms • ASM – Artisanal and Small-scale Mining • BGR – German Federal Institute for Geosciences and Natural Resources – Certified Trading Chains (CTC) Program • CFS – Conflict-Free Smelter program • FARDC – DRC Army • FDLR, CNDP, M23, Mai-Mai – Illegal Armed groups • GIZ Deutsche Gesellschaft für Technische Zusammenarbeit (German Technical Cooperation) • ICGLR – International Conference on the Great Lakes Region – 11 Member Countries • iTSCi – ITRI Tin Supply Chain Initiative • LBMA – London Bullion Market Association • MONUSCO – United Nations Organization Stabilization Mission in DRC
  12. 12. Definitions and Acronyms • OECD – Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chain Management of Minerals from Conflict-Affected and High-Risk Areas • PAC – Partnership Africa Canada, implementing partner for the development of the ICGLR Regional Certification Mechanism (RCM), and recipient of PPA funding for gold traceability. • Pact – Implementing partner for iTSCi • PPA – Public Private Alliance for Responsible Minerals Trade • PROMINES World Bank Technical Assistance to the DRC, co-funded by DFID • RJC – Responsible Jewelry Council • UN GoE – United Nations Group of Experts • WGC – World Gold Council
  13. 13. Focus on Conflict Minerals and the DRC • United Nations reports (2001, 2008 and 2009) that minerals trade directly contributes to funding the war in the Congo. • “Conflict minerals” issues have become the focus of numerous non- governmental organizations (NGO), as well as the media. • US legislation signed in 2010 requires US companies to disclose sources of tin, tungsten, tantalum and gold; and to conduct due diligence in their supply chain (Dodd-Frank Wall Street Reform and Consumer Protection Act) Mineral wealth funds bloodshed in the Congo
  14. 14. Conflict Minerals Facts • Tin (Sn) , Tungsten (W), Tantalum (Ta), Gold (Au) are mined in the Democratic Republic of the Congo (DRC). • Mining areas in eastern DRC provinces are the site of ongoing conflict. Considered by some the worst since WWII • Revenues from mining activity sustaining the conflict and ongoing human suffering in the region • Not all mines in the DRC are associated with conflict • Nations neighboring the DRC are the transport or smuggling routes • These minerals are not unique to the DRC. The majority of the global supply of these minerals originates outside of the region. The “3T’s plus G”: Tin (Sn) , Tungsten (W) Tantalum (Ta) and Gold (Au)
  15. 15. U.S. Law • July 2010 - President Obama signs the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd- Frank”). Section 1502 requires companies to file disclosures and reports with the U.S. Securities and Exchange Commission (SEC) related to the use of tin, tantalum, tungsten and gold in their products. • The SEC issued the final rule August 2012 implementing the provisions of Section 1502. • The first reporting year began January 1, 2013 and the first report to the SEC is due May 31, 2014.
  16. 16. What are Conflict Minerals? The Dodd-Frank Act defines 'Conflict minerals' as the following minerals as well as their derivatives: 1. Columbite-tantalite (Coltan)  refined into tantalum (Ta) – DRC provides ~17% of global production 2. Cassiterite  refined into tin (Sn) – DRC provides <5% of global production 3. Wolframite  refined into tungsten (W) – DRC provides <2% of global production 4. Gold (Au) – DRC provides <2% of global production Regardless of their origin Regardless of whether connected to armed groups Commonly referred to as: 3T’s plus Gold or 3TG
  17. 17. SEC Rule Overview: Basic Three-Step Process 1. Determine applicability 2. Conduct “reasonable country of origin inquiry” 3. Exercise due diligence and potentially file an audited Conflict Minerals Report
  18. 18. Any issuer that files reports with SEC under Exchange Act sections 13(a) or 15(d) •Includes: •U.S. Companies that issue stock •Foreign private issuers that file Form-20F or 40F •Regardless of size •Excludes: •Foreign private issuers of unsponsored ADRs Conflict minerals are necessary to the functionality or production of a product the issuer manufactures or “contracts to manufacture” Step 1: Applicability AND
  19. 19. Step 2: Reasonable Country of Origin Inquiry (RCOI) Designed to evaluate whether minerals in a company’s supply chain originated from: • Recycled /scrap sources; or • Outside Covered Countries. Determines whether Step 3 due diligence is necessary
  20. 20. Step 3: Due Diligence Currently, due diligence means using OECD Due Diligence Guidance. 1. Establish strong management systems 2. Identify supply risks 3. Implement strategy to address the risks 4. Independent audit of Smelters/Processors 5. Report File Form SD and submit audited Conflict Minerals Report to SEC
  21. 21. Step 3: Transition Period “DRC conflict free undeterminable” • Available for a transitional period – 2 years for all issuers – 4 years for smaller reporting companies • Will allow companies time to better develop and implement RCOI and due diligence procedures • Must still file CMR, but no requirement to audit during transition period • Once transitional period ends, these products will have to be described as “not found to be DRC conflict free”
  22. 22. In-Region Schemes Conflict-Free Smelter Program (CFS) Company Assurance Finished Product MINE SMELTER/REFINERY OEMS Industry Approach to Conflict-Free Sourcing (pinch point)
  23. 23. In-Region Schemes • The ICGLR is an 11 member organization consisting of the Countries of the Great Lakes region of Africa have implemented their Regional Certification Mechanism (RCM) • iTSCi program is the first in-region mineral tracing initiative supporting locations in DRC and Rwanda • The CTC is a program supported by the German government and certifies mines to defined performance standards. • The Public-Private Alliance, sponsored by the U.S. State Department and USAID partnering with industry and civil society, is supporting systems that trace and certified mineral supply chains in the Great Lakes Region • Solutions for Hope program sources conflict-free tantalum from Katanga province of DRC • Partnership for Social and Economic Sustainability program sources conflict-free tantalum from Katanga province of DRC • Conflict Free Tin Initiative program sources conflict-free tin from the South Kivu province of DRC
  24. 24. Conflict-Free Smelter (CFS) Program A voluntary initiative with independent 3rd party audits of smelter and refiner procurement and tolling activities to assess if the smelter or refiner demonstrates that all the minerals they processed originated from conflict-free sources. CFSI (formerly the EICC and GeSI extractives workgroup) worked in collaboration with multiple stakeholders to develop the CFS program. • Why: Provides a credible mechanism that enables and encourages responsible sourcing of tantalum, tin, tungsten and gold • Schedule: Addressing each metal separately, but concurrently • Results: A list of smelters and refiners who are compliant with the CFS assessment protocol will be posted on the CFS website. http://www.conflictfreesmelter.org ** Companies make their own sourcing decisions. **
  25. 25. Conflict Minerals Reporting Template • What is the Conflict Minerals Reporting Template? – A tool that provides a common means to collect due diligence information related to the source of conflict minerals. – Companies may use of the Template as an element of their conflict minerals DD program to assist in verifying responsible sourcing. – Companies will be able to forward a completed Template to all of their customers that request this information.
  26. 26. Conflict Free Sourcing Initiative (CFSI) Conflict Free Smelter Program (CFSP) Jean-Paul Meutcheho Global Advanced Metals (GAM), CFSI Member, CFSP Compliant Smelter 10 September 2013
  27. 27. CFSP Overview • CFSP Background • CFSP Specifics • CFSP Auditor Information • CFSP Audit Costs • Additional Information
  28. 28. Supply Chain Focal Point – Smelters and Refiners
  29. 29. Conflict-Free Smelter Program The Conflict Free Sourcing Initiative (CFSI) has spearheaded the development of a 3rd party audit process to determine if smelters/refiners are capable of sourcing conflict-free minerals. • Why: Provide a mechanism that enables and encourages responsible sourcing of tantalum, tin, gold, tungsten • Schedule: Addressing each metal separately, but concurrently – Tantalum, tin and gold smelter/refiner assessments are underway; tungsten smelter assessments are expected to begin in 2013. • Results: A list of smelters/refiners who are certified as compliant with the CFSP audit protocol, which is posted on the CFSP website. – http://www.conflictfreesmelter.org ** Companies make their own sourcing decisions. **
  30. 30. What defines a smelter or refiner? The CFSP audits smelters and refiners. Therefore, it’s important to identify the correct smelters and refiners within the supply chain and have those companies audited to determine compliance to the CFSP audit protocol. Definition: a company which converts mineral ores, concentrates or recycle/scrap material to a metal containing intermediate, purified metal or metal compound. Metal specific definitions as follows: – Tantalum (Ta) smelter: a company which converts tantalum containing ores, slags, powder or scrap into tantalum containing products or intermediate products. – Tin (Sn) smelter: a company which treats crude tin, containing concentrates and secondary material to produce crude or fully refined tin. – Tungsten (W) smelter: a company which converts tungsten ore, tungsten concentrates, or tungsten bearing recycled/scrap material to tungsten containing intermediates such as Ammonium Para-Tungstate (APT), Ammonium Meta-Tungstate (AMT), Ferrotungsten, and Tungsten oxides. – Gold (Au) refiner: a metallurgical operation that produces fine gold with a concentration of 99.5% or higher from gold and gold-bearing materials with lower concentrations.
  31. 31. Principles of CFSP Audit 1. Conflict Minerals Policy The Company will have a documented, effective and communicated policy for procurement of materials which explicitly avoids utilization of conflict minerals and adherence to regulations for transportation and other requirements including – Public communication of the policy (such as posting to company website) – Policy embedded into standard operating procedures and individuals trained – For those companies sourcing from the DRC or nine surrounding countries, their sourcing policy will have to comply with Annex II of the OECD Due Diligence Guidance 2. Mass Balance – The Company will have a established mechanism for tracing sold goods back to the purchased material source (aka traceability). – Reconciliation of receipts, inventories, and sales volumes to demonstrate receipts are fully accounted for in a mass balance and do not exceed the theoretical sales amount. 3. Procurement and incoming materials documentation All materials (including direct purchases and/or tolling) are appropriately documented to be from non-conflict sources and recycle/scrap material confirmed as such. Audit of prior year(s) procurement activities, not a minerals certification
  32. 32. CFSP Audit Focus 32 Company Mass Balance - Includes all inventory - Includes all facilities Ore / Concentrate Recycled / Scrap Toll Customer Finished Products Toll Supplier Conflict Free Policy Intermediates Unfinished Products Company Program Validation - Conflict Free Policy - Conflict Free Sourcing Systems Sourcing Processes Validation
  33. 33. CFSP Audit: Procurement Documentation • Level 1: countries with known active ore production which are not identified as plausible countries for export out of region, smuggling, or transit of conflict minerals • Level 2: known or plausible countries for export out of region, smuggling, or transit of conflict minerals (currently: Kenya, Mozambique, South Africa) • Level 3: ore sources currently within conflict regions that are potentially supplying ore materials which currently include the Democratic Republic of the Congo and the adjoining countries
  34. 34. Documentation Examples L1 L2 L3 Examples of Acceptable Documentation X X X Government-issued country of origin certificate or copy of mine license/certificate (for domestic mines only) X X X Government issued export certificate or similar document (for imported material) X X X Bills of lading or transportation documentation X X X Sample analysis/results from supplier and/or smelter X X On-site mine visit reports conducted by the smelter or representative X X All documents that validate chain of custody from mine to smelter X X Government issued operating license/certificate for industrial operations or registered cooperatives. X Demonstrated sourcing from an OECD conformant process
  35. 35. CFSP Audit Process Overview
  36. 36. CFSP Auditor Information • Qualified CFSP auditing firms – Liz Mueller, Inc.: http://www.lizmuller.com/ – UL-STR: http://www.strquality.com/en- us/responsible-sourcing/Pages/default.aspx – SGS: www.sgs.com • Background and Details – Follow ISO19011 standards – Conduct audit expectations in accordance to OECD – Global company with regionally based staff – CFSP selects auditors for the smelter primarily based on cost and availability
  37. 37. CFSP Audit Cost Information Because smelter benefit from their participation in the CFSP due to the resultant company marketing information, smelters are currently expected pay the audit costs to participate*. • CFSP costs: – Typical program costs are $5,000-10,000 USD – Cost covers 3rd party auditor and CFSI admin costs – CFSI nor its member companies financially benefit from the CFSP audit payments – Audit costs are directly related to the amount of time the auditor needs to complete the validation – Properly preparing for the audit before the auditors arrive on-site is the best way to minimize audit costs • Audit Frequency: – Annual on-site validation currently required – Annual re-audit is needed to maintain CFSP listing * An audit funding Foundation is attempting to be established
  38. 38. CFSP Online Indicators / Active List • Active = signed agreements, audit progress being made • Presently no Tungsten smelters active http://www.conflictfreesmelter.org/cfshome.htm
  39. 39. CFSI Conflict-Free Sourcing Approach Finished Product MINE SMELTER/REFINERY OEMS In-Region Schemes Conflict Free Smelter Program (CFSP) Company Assurance
  40. 40. Conflict Minerals Reporting Template: Philosophy and Approach Requests CompletedTemplates
  41. 41. Company Assurance The CMRT and forthcoming IPC standard -Michael Rohwer, EICC -Fern Abrams, IPC
  42. 42. CFSI Conflict-Free Sourcing Approach In-Region Sourcing Conflict Free Smelter Program Company Due Diligence MINE SMELTER / REFINERY OEMS
  43. 43. Company Assurance Development, integration, and maintenance of tools and processes which support a down- stream company’s management system and risk assessment activities • Policy language included in the EICC Code of Conduct (http://www.eicc.info/eicc_code.shtml) • Information collection tool on supplier’s due diligence processes and sourcing: Conflict Minerals Reporting Template • Establishing resources and processes to support information collection and analysis Conflict Minerals Reporting Template Select Language Preference Here: 请选择你的语言: 사용할 언어를 선택하시오 : 表示言語をここから選択してください: Sélectionner la langue préférée ici: Selecione Preferência de idioma Aqui: Wählen sie hier die Sprache: Seleccione el lenguaje de preferencia aqui: Selezionarela lingua di preferenza qui: English Revision 2.03a July 25th, 2013 The purposeof this documentis to collect sourcing informationon tin, tantalum, tungstenand gold used in products Link to Terms & Conditions Mandatory fields are noted with an asterisk (*). The information collected in this templateshould beupdated annually. Any changes within theannual cycleshould beprovided toyour customers Company Information Company Name(*): Declaration Scope(*): Description of Scope: Company UniqueIdentifier: Address: Authorized Company RepresentativeName(*): RepresentativeTitle: RepresentativeEmail (*): RepresentativePhone: Date of Completion (*): Answer thefollowing questions 1 - 6 based on thedeclaration scopeindicated above 1) Are any of thefollowing metals necessary to thefunctionalityor productionof your company'sproductsthat it manufactures or contracts to manufacture? (*) Answer Comments Tantalum (*) Tin (*) Gold (*) Tungsten (*) 2) Do thefollowing metals (necessary to thefunctionality or productionof your company's products) originate from the DRC or an adjoining country? (*) Answer Comments Tantalum (*) Tin (*) Gold (*) Tungsten (*) 3) Do thefollowing metals (necessary to thefunctionality or productionof your products) comefrom a recycler or scrap supplier? (*) Answer Comments Tantalum (*) Tin (*) Gold (*) Tungsten (*) 4) Haveyou received completed Conflict Minerals Reporting Templates from all of your suppliers? (*) Answer Comments Tantalum (*) Tin (*) Gold (*) Tungsten (*) 5) For each of thefollowing metals, haveyou identified all of thesmelters your companyand its suppliers useto supply theproductsincluded within thedeclaration scopeindicated above?(*) Answer Comments Tantalum (*) Tin (*) Gold (*) Tungsten (*) 6) Haveall of thesmelters used by your company and itssuppliers been validated as compliant in accordancewith theConflict-Free Smelter (CFS) Program and listed on theCompliant Smelter List for thefollowing metals? (*) Answer Comments Link to "CFS Compliant Smelter List" Tantalum (*) Tin (*) Gold (*) Tungsten (*) Answer theFollowing Questions at a Company Level Question Answer Comments A. Do you havea policy in place that includes DRC conflict-free sourcing? (*) B. Is this policy publicly availableon your website? (*) C. Do you requireyour direct suppliers to beDRC conflict-free? (*) D. Do you requireyour direct suppliers to sourcefrom smelters validated as compliant to a CFS protocol using the CFS Compliant Smelter List? (*) E. Haveyou implemented duediligencemeasures for conflict-free sourcing? (*) F. Do you request your suppliers to fill out this Conflict Minerals Reporting Template? (*) G. Do you request smelter names from your suppliers? (*) H. Do you verify duediligence information received from your suppliers? (*) I. Does your verification process includecorrectiveaction management? (*) J. Are you subject to theSEC Conflict Minerals disclosurerequirement rule? (*) © 2011 Electronic Industry Citizenship Coalition, Incorporated and Global e-Sustainability Initiative. All rights reserved.
  44. 44. The Conflict Minerals Reporting Template
  45. 45. Conflict Minerals Reporting Template: Philosophy Define a common industry approach supporting the downstream Due Diligence requirements of the SEC and to empower companies to make informed choices about conflict minerals in their supply chain • Preserve customer-supplier relationship • Reduce burden on suppliers and customers • Preserve confidentiality, enable sharing
  46. 46. Conflict Minerals Reporting Template: Approach • Common reporting template • Free • Accessible by all • Provide instructions and training • Revision control to preserve the integrity of the template • Change control management
  47. 47. Conflict Minerals Reporting Template Information Flow
  48. 48. Conflict Minerals Reporting Template Access Click here for CFS Program Supporters Conflict Minerals Reporting Template & Dashboard Select Language​▼ http://www.conflictfreesmelter.org/ConflictMineralsReportingTemplateDashboard.htm Click the following links to download the Template, the Orientation presentation (which includes a link to download the Dashboard), and the Process Steps description to use the Dashboard: Conflict Minerals Reporting Template •EICC GeSI Conflict Minerals Reporting Template Version 2.03a - New version! •YouTube instruction video on how to complete the Conflict Minerals Reporting Template
  49. 49. Conflict Minerals Reporting Template Updates • Version 2.03 – Resolved Microsoft Excel 2003 incompatibility – Clarified instructions – Corrected translations – Revised aesthetics – Added, corrected, and revised smelter names
  50. 50. Conflict Minerals Reporting Template Current Challenges • Does not meet needs for all industries • Read strictly imposes burdens on some respondents – Distributors – Product-level reports • Inaccurate smelter name responses
  51. 51. IPC-1755: A Multi-Industry Effort to Standardize Conflict Minerals Data September 10, 2013 Fern Abrams Director, Government Relations and Environmental Policy
  52. 52. About IPC - Association Connecting Electronics Industries • Founded in 1957 as the Institute of Printed Circuits • Strong foundation as a technical organization dedicated to meeting industry needs • Focus on design, PCB manufacturing and electronics assembly • Not-for-Profit driven by industry needs 53
  53. 53. IPC Today IPC is an international trade association dedicated to the furthering the competitive excellence and financial success of its 3,400 member companies that make, use, specify and design printed boards and assemblies, including those in: • Advanced microelectronics • Aerospace and military • Automotive • Computer • Industrial equipment • Medical equipment and devices • Telecommunications industries 54
  54. 54. IPC Standards • Standards are developed by volunteer committees • Committees are made up of subject matter experts across the electronics supply chain • Committees are open to all interested participants, regardless of membership • Over 1,000 standards exist within the IPC library 55
  55. 55. IPC and Conflict Minerals • High level of member interest • Well known for our involvement – Member advocacy – Involvement in OECD Due Diligence pilot implementation project – Developing due diligence guideline – Strong interest in supply chain issues including data exchange 56
  56. 56. Why Data Exchange Standards?
  57. 57. Why a Data Exchange Standard • Many different data management solutions will be used across the supply chain • These data management solutions must work together – need a standard electronic data format • Supports the exchange of conflict minerals information between trading partners (B2B) • Reduces burden on the supply chain 58
  58. 58. Conflict Minerals Data Exchange Standard • Goal: Development of a broad, multi-industry, consensus standard for communications of conflict minerals data • Leveraging our materials data exchange experience • ‘Streamlined’ approach to developing a consensus standard – Build on and integrate existing approaches – Adhere to American National Standards Institute (ANSI) approved procedures 59
  59. 59. Why a Data Exchange Standard A number of software vendors are developing conflict minerals tools AIAG/iPoint Papros/MRPRO BomCheck PTC Dassault Systems Total Parts Plus EICC/GeSI Template Silicone Experts Foresite Listed companies are all participating in IPC-1755 60
  60. 60. Data Exchange Standard vs. Reporting Form • IPC-1755 Conflict Minerals Data Exchange Standard: – Defines what data is to be collected and shared – Defines the language (XML) for sharing data – IPC-1755 is NOT a reporting form • Independent third-party providers develop tools (i.e. forms) compatible with IPC-1755 – Ex. EICC/GeSI Template, iPoint Conflict Minerals Platform – Data can be easily exchanged among all tools that support IPC- 1755 – Some tools provide sophisticated data management – Tools can also interface with internal company systems 61
  61. 61. IPC Standards Process Overview • Open to all interested parties • No charge for participation • Voting on the draft standard by participants • Multi-industry collaboration on IPC-1755 – MOUs with EICC, AIAG, and JEITA – Participating organizations will jointly publish the standard, if approved according to their own processes 62
  62. 62. IPC-1755 • Working draft of the standard developed by outside consultants • Based on Dodd-Frank, SEC rules, EICC/GeSI Reporting Template and draft IPC standard • Circulated Final Draft for Industry Review – January 2013 • Comments resolved during February 2013 meeting • Draft standard revised based on committee decisions 63
  63. 63. Overview of IPC-1755 • Terms and Definitions • Questions cover: – Applicability – Company policies and conflict minerals program/due diligence – Smelter information • XML Data Structure (schema) • Non-normative Appendices – Covered countries – Conflict metals – SEC rule overview – Guidance on data verification 64
  64. 64. Key Provisions of the Standard • Three declaration classes – Company Level: Declaration for all the products manufactured by the company – Product or List of Products Level – User-defined Level: Declaration shall be defined as agreed to by the supplier and requestor (i.e. company division level or category of products) • Customer and supplier to decide on declaration class • Provides flexibility and improve the likelihood of standard adoption 65
  65. 65. Data Elements: Applicability Initial set of questions establish applicability of conflict metals reporting obligations – Is each conflict metal intentionally added to your product? – Is each conflict metal necessary to the production of your company’s products and is contained in the finished product that your company manufactures or contracts to manufacture? – Does each conflict metal originate from the covered countries? – Does 100 percent of each conflict metal (necessary to the functionality or production of your products) come from a recycler or scrap supplier? 66
  66. 66. Data Elements: Due Diligence/Company Policies • Have you received conflict metals data/information for each metal from all relevant suppliers of 3TG? • For each conflict metal, have you identified all of the smelters your company and its suppliers use to supply the products included within the declaration scope indicated above? • Has all smelter information been provided? • Do you have a policy in place that addresses conflict minerals sourcing? Is it publicly available on your website? • Do you require your direct suppliers to be DRC Conflict Free? 67
  67. 67. • Have you implemented due diligence measures for conflict free sourcing? • Do you collect conflict minerals due diligence information from your supplier which is in conformance with IPC 1755 Conflict Minerals Data Exchange standard? • Do you request smelter names from your suppliers? • Do you verify due diligence information received from your suppliers? • Does your verification process include corrective action management? • Are you subject to the SEC Conflict Minerals rule? Data Elements: Due Diligence/Company Policies 68
  68. 68. Data Elements: Smelter Information • Smelter Name • Smelter Country • Smelter Contact Information • Smelter Identification • Source of Smelter Identification Number • Does 100% of the smelter’s feedstock come from recycled or scrap material? • Name of Mines • Location (country) of Mine(s) 69
  69. 69. Consensus Balloting • Proposed Standard for Ballot circulated for sixty days; closes September 26, 2013 • Only active participants may vote • IPC ensures that the consensus balloting group is fair and balanced • Any interested stakeholder is welcome to comment on the proposed standard 70
  70. 70. Approval by Participating Associations • Associations will review and ballot the proposed standard according to their own process • Approval of the standard requires the support of 2/3 of the participating associations – Dissenting associations will have the option of not being listed as a supporter of the standard 71
  71. 71. Next Steps • If standard passes this ballot, a final published standard is expected by the end of 2013 • If the standard is not approved, revision and re-balloting would push publication to 2014 72
  72. 72. Questions? Fern Abrams (703) 522-0225 fabrams@ipc.org
  73. 73. Conflict Free Sourcing Initiative Workshop 74 Conflict Minerals Certification and Traceability Program Updates: Implementation of the Regional Certification Mechanism
  74. 74. PRESENTATION DU CERTIFICAT CIRGL/RDC ET DU PLAN D’OPERATIONNALISATION DE LA MISE EN OEUVRE DU MECANISME DE CERTIFICATION CIRGL REPUBLIQUE DEMOCRATIQUE DU CONGO Présenté par Monsieur Joseph IKOLI YOMBO Y’APEKE, Directeur de Cabinet Adjoint du Ministre des Mines, Chef de la Délégation et assisté par Monsieur Freddy MUAMBA KANYINKU, Directeur des Etudes et Méthodes, CEEC
  75. 75. Notre intervention se resume en deux parties à savoir: I. Présentation du Certificat CIRGL/ RDC; II. Plan opérationnel de la mise en circulation du certificat CIRGL/ RDC
  76. 76. I. Présentation du Certificat CIRGL Le certificat de la CIRGL/ RDC comprend trois volets : Le 1er volet à remettre à l’exportateur ; Le 2ième volet, à coller sur l’enveloppe contenant tous les  documents de traçabilité destinés à l’Autorité d’importation ou Autorité importatrice, indique que ladite enveloppe ne peut être ouverte pour l’inspection que par l’Autorité précitée ; Le 3ième volet réservé à l’Autorité d’importation du pays auquel est destiné le lot concerné. Ce volet accompagne le chargement et doit être retourné au CEEC, organisme chargé de procéder à l’expertise et à l’évaluation des minerais en République Démocratique du Congo.
  77. 77. SPECIMEN DU CERTIFICAT CIRGL RDC Papier / Paper
  78. 78. Description des quelques éléments de sécurité • Papier filigrané standard, fibres visibles rouges, fibre invisible jaunes et bleues, réactifs (Acides, alcalins, solvants, chlore) • Fond anti copie • Fond irisé • Encre Tehermochrome 37°P • Encre Grattable • Hologrammes
  79. 79. Description des Mentions permettant d’assurer la traçabilité du lot, à savoir: • Au recto : – Le numéro du certificat ; – Le numéro du chargement ; – Le lieu d’origine ; – La province d’origine ; – Le nom et adresse de l’exportateur ; – Le numéro de la licence d’exportation ; – Le nom et adresse de l’importateur ; – La date d’expédition ; – La date d’expiration du certificat ;
  80. 80. – Le nom du transporteur ; – La ville et pays de transit ; – Type d’emballage et le numéro du container ; – Le minerai, le symbole chimique, son poids net et sa teneur, les autres métaux contenus ainsi que la valeur du lot ; – Le nom de l’Autorité de certification ou son délégué dûment désigné, sa qualité, sa signature ; – La date d’émission
  81. 81. UV active VERSO DU CERTIFICAT
  82. 82. Tableau de traçabilité – Le code du site d’exploitation d’origine ; – Le nom du site ; – Les coordonnées géographiques ; – La localité ; – Le territoire, district, province, la quantité.
  83. 83. Autorité de Certification Le Ministre ayant les mines dans ses attributions et le Directeur Général du CEEC constituent l’Autorité de Certification de la RDC. En cas d’empêchement ou d’absence, ils sont remplacés par : – Le Vice-ministre ou le Secrétaire Général pour le Ministre ; – Le Directeur Général Adjoint ou Directeur Technique pour le Directeur Général du CEEC – Les personnes habilitées conformément aux textes régissant leur services respectifs pour les délégués.
  84. 84. BAT / Press check © 2013 Oberthur Fiduciaire Vérification de la cohérence des couleurs Inspection des premiers certificats à venir au large de la presse
  85. 85. Coordination de la production La production a été coordonnée pour répondre à tous les besoins du CEEC Le CEEC est en possession d’un stock de 100.000 certificats prêts à être délivrés.
  86. 86. 1. Montage du logiciel hybride 1.0. Cette solution, conçue et mise en œuvre par l’équipe du CEEC, permet d’assurer le suivi des inspections et certifications des sites miniers de la chaine de possession des minerais désignés et la certification des exportations des minerais désignés afin de répondre aux requêtes de la CIRGL II. Plan opérationnel de la mise en circulation du certificat CIRGL/ RDC
  87. 87. 1.1. Test unitaire et validation du logiciel  Le test du fonctionnement intégral et de validation a été fait à la satisfaction des utilisateurs. 1.2. Définition des procédures de centralisation  Les procédures d’envoi des données par les entités et leurs centralisation à la Direction Générale du CEEC avant transfert à la base des données de la CIRGL basée à Burundi sont quasi terminées.  Le CEEC est en train de rédiger le manuel d’utilisateur ainsi que son contenu pédagogique lequel sera prêt avant le 30 septembre 2013.
  88. 88. 1.3.Déploiement de la solution finale  le programme d’installation du logiciel a été finalisée;  la solution Finale est déjà installé dans 10 ordinateur destinés aux différents points de sortie dissimilés à travers la RDC.
  89. 89. 2. Atelier de Formation Le CEEC, concepteur de l’application, organise trois ateliers, à la demande de Son Excellence Monsieur le Ministre des Mines, relatifs à la formation des agents utilisateurs des services intervenants dans la chaine d’approvisionnement à savoir : SAESSCAM, CADASTRE MINIER, ADMINISTRATION DES MINES, ITRI et BGR. Le calendrier se présente comme suit: -Lubumbashi: du 15 au 20 septembre 2013; -Kalemie; du 23 au 28 septembre 2013; - Bukavu: du 05 au 10 octobre 2013
  90. 90. L’Objectif étant de réunir les services intervenants dans la chaine d’approvisionnement, commercialisation et d’exportation en vue d’analyser et de mettre en place une matrice d’informations à interéchanger avec le CEEC .
  91. 91. L’Objectif étant de réunir les services intervenants dans la chaine d’approvisionnement, commercialisation et d’exportation en vue d’analyser et de mettre en place une matrice d’informations à interéchanger avec le CEEC . MODELE DE MATRICE D’INFORMATIONS A INTERGEANGER
  92. 92. DATE DE LA MISE EN CIRCULATION DU CERTIFICAT CIRGL/ RDC Lancé le 24 juillet 2013 à Kinshasa, le certificat CIRGL RDC sera mis en circulation le 30 septembre 2013 à Kalemie, dans le site Mai-baridi dans la Province du Katanga et 15 octobre à Bukavu, pour le compte du site de Nyabibwe dans la province du Sud-Kivu. Les autres sites seront couverts de manière progressive.
  93. 93. Pour ce faire: - le CEEC mettra en place son équipe de suivi et devra centraliser les données statistiques internes afin de répondre à la demande de la base des données CIRGL située à Bujumbura.
  94. 94. En résumé, la République Démocratique du Congo soutient que le mécanisme de certification et de suivi des minerais de la CIRGL ne sera crédible que si tous les Etats membres mettent en place : -Des procédures de systèmes crédibles d’audit des sites miniers destinés à confirmer que ces derniers répondent aux normes et critères du Manuel de certification de la CIRGL ; -Des procédures de publication des données statistiques nationales de production et d’exportation afin d’alimenter la base des données régionales de suivi des minerais; -Des systèmes d’alerte rapide pour lutter contre la fraude transfrontalière ; - Des procédures de transparence et de bonne gouvernance dans la gestion du secteur minier en vue d’éliminer les minerais dits « minerais de conflit » dans la chaine de possession des minerais (Chaine d’exploitation, d’approvisionnement et de commercialisation) des Etats membres.
  95. 95. En conséquence, dès la mise en circulation du premier certificat aucun lot des minerais de 3T et de l’or ne sera exporté s’il n’est pas accompagné du certificat CIRGL/ RDC délivré par les Autorités de certification de la RDC, en l’occurrence le Ministre des Mines et le Directeur Général du CEEEC ou leurs délégués dûment mandatés. La République Démocratique du Congo entend répondre ainsi aux exigences des fonderies appliquant le programme CFS (Conflit Free Smelter) et aux utilisateur finaux des industries électroniques et automobiles- que vous-êtes- en certifiant la provenance de nos minerais selon les standards internationaux et régionaux.
  96. 96. MERCI POUR VOTRE ATTENTION
  97. 97. Status of the implementation of the Regional Initiative against the Illegal Exploitation of Natural Resources in the Great Lakes Region 12th Conflict-Free Sourcing Initiative Workshop Arlington(USA) 10th September 2013 by Silas Sinyigaya Democracy and Good Governance Program Officer ICGLR
  98. 98. Mandate of the ICGLR • Promote and strengthen in each Member State, the development of effective mechanisms to eradicate the illegal exploitation and trade of RN; • Revitalize and strengthen cooperation and transparency between Member States in the fight against the illegal exploitation of natural resources; • Promote harmonization, by Member States, of their national laws and procedures, policies and procedures against illegal exploitation and trade.
  99. 99. Role of Conference Secretariat • Serve as a platform for political and technical exchange; • Develop transparency tools for the mining sector; • Facilitate the adoption of these tools by the Member States; • Support Member States in the implementation of the tools ; • To monitor the implementation of the Initiative and evaluate it;
  100. 100. Declaration of Summit of Heads of State held in Lusaka(2010) • Recognition problems arising from the illegal exploitation of NR; • Reaffirming the responsibility and commitment of States in the region to solve the problems together; • Approval of the six tools developed by the ICGLR and commitment to implement them in their respective States; • Appeal to the International Community to support the Initiative; • Ask the International Community to ensure due diligence (OECD) in mineral supply.
  101. 101. Implementation of the six tools 1. Certification. • Certification scheme developed; • Regional audit committee established; • Audit Committee support service established; • Independent Mineral Chain Auditor being put in place; • Advanced mineral traceability in DRC and Rwanda; • Evaluation of chains of custody underway in Rwanda (towards the regional certificate delivery)
  102. 102. • Self-financing mechanism for the regional certification developed; • AFP: MOU signed with SEAMIC (Dar es Salaam) for the Analytical Fingerprint; • Training Rwandan and Burundian laboratory technicians BGR (Hannover) and training of Congolese technicians being planned; • Equipment for AFP lab already available ; • Recruitment of four employees of the AFP Management Unit.
  103. 103. Launching of the ICGLR Certificate in DRC •On 24 July 2014, the ICGLR has launched the Regional certificate in the DRC; •Rwanda is planning to launch its certificate in the near future; •O ther countries are advancing in the process
  104. 104. Accreditation of Third Party Auditors •The ICGLR Audit Committee is developping an audit template to be used by Third party Auditors; •A meeting where the template will be approved is planned on 14-16 October 2013 in Nairobi; •The accrediation of the Auditors will follow without further delay.
  105. 105. 2. Harmonization of national legislations • Comparative analysis of legislations in the 12 States of the GLR done (2010); • Development of a model law for the domestication of the Protocol on NR and harmonization of the model law with due diligence by the OECD (2011); • Approval of a final version of the Model Law to serve as reference for the domestication of the Protocol by the Member States (2012).
  106. 106. 3.Whistleblowing • Purpose: capitalization of fresh and direct information on the phenomenon of illegal exploitation and frade of NR; • Appropriate research recommended to start the implementation of the tool in a pilot phase focusing on the North and South Kivu. ICGLR also examine the possibility of extending this pilot phase also to Burundi; • Mechanism: submit an anonymous report via SMS or website without the possibility of knowing the identity of the person or the place where it is located.
  107. 107. • Training and awareness raising have been conducted in the DRC; • A response team of the ICGLR is based at its headquarters. It will analyzes the complaint and give a recommendation for appropriate action; • If the team finds the complaint is verified, the response will be sent to the competent authorities of the relevant Member State
  108. 108. 4.Initiative for the Extractive Industries Transparency Initiative (EITI) • This initiative is undergoing reform. • When this reform is complete, the Conference Secretariat will organize a meeting to launch the regional platform. • Five states in the region are parties to the initiative and at least two other countries have expressed interest in joining.
  109. 109. 5. Formalization of artisanal mining Meaning: Strictly speaking, "formalization" refers to giving access to the artisanal miners a mining title. Within the meaning of the ICGLR and its partners, formalization means "working progressively towards a situation where artisanal miners can successfully and responsibly participate in the certification process in a transparent and credible manner.
  110. 110. • The formalization of artisanal mining is an idea that is realized in the long term, to the point that there are many challenges in the world. It is a very complex process in itself. • To our knowledge, the experience of FECOMIRWA(Rwanda) is interesting . It is the largest organization of cooperatives in Rwanda, and has already established structures that allow small-scale miners to be formalized in the sense that their activities are legal and formal.
  111. 111. • In June 2012, the ICGLR facilitated an exchange visit of artisanal miners from Burundi in Rwanda, which is an inspiration to Burundian artisans to formalize their sector in their country. • In Rwanda, there is already a draft version of the new mining law that aims to better formalize the sector.
  112. 112. Documentation • Flow of valuable minerals recorded and sent to the ICGLR (regional database) • Member States shall send the data, and there is a focal point by country; • Looking for means to recruit staff to work on the database at the headquarters of the ICGLR.
  113. 113. Thank you for your attention !!
  114. 114. Update CTC (Certified Trading Chains) 12th CSFI Workshop Washington, September 10th 2013 | Uwe Naeher, BGR
  115. 115. BGR Support to Mineral Certification in the GLR Rwanda CTC mineral certification pilot project 2008-2011 DRC Rwanda Burundi AFP RCM DR Congo BGR module: National certification system for the 3T minerals and gold 2009-2013 (phase 1) ICGLR BGR module: Support to the Regional Certification System 2011-2015
  116. 116. transparency labor & working conditions security community development environment origin, volume fiscal obligations legality traceability salary level child labour workers organization protective & production means health & safety training risk assessment capacity structured dialogue local business integrated support free, prior Informed consent Gender, migration EIA waste disposal provision for rehabilitation 5principles21standards Certified Trading Chain (CTC) Standards Standards harmonized with National Laws, OECD, ISO. Verified by audits Conflict free
  117. 117. Developments 2008-2013 RWA: 1. Phase: CTC Pilot Project in Rwanda (2008-2011) - Implementation in 5 Mines, 3 certified as of 2011; 2. Phase : BGR support for the implementation of the RCM in Rwanda and Burundi, - - introduction( of AFP concept within GLR (2011-2015) DRC 1. Phase CTC DRC (2009-2013): - CTC Manuals produced (3T & Au), included in DRC Legislation; - Implementation in pilot sites (2 certified June 2013, 3 to follow) 2. Phase DRC (2013 - 2016: - Large scale implementation of CTC, support to RCM implementation - Test CTC application in CU, Co and Dia mines ICGLR 2010-2011 Harmonization of CTC Standards with RCM CTC Certification - GLR
  118. 118. Mineral / Metal Supply Chain Initiatives
  119. 119. CTC Audits • bottom-up from mine site; typical duration = 1 week • on-the-ground assessment: site inspections, interviews, documentation • verification & cross referencing of evidence; plausibility checks; AFP
  120. 120. Key Differences: • mine site focus, national standards • certificate refers to mine sites - bottom-up audit • - 3rd party audit • mines: 20 (21) standards • Only pilot mines and significant producers • objective: responsible mining practice – improvement dimension – incl. due diligence elements • integrated scheme, regional standard – incl. mines, CoC, exporters • certificate refers to export containers – top-down audit • mines: 35 standards – CTC as progress criteria • objective: supply chain due diligence – global market access – incl. mining practice monitoring • mine site focus, • No certificate - Not an audit! • 3 criteria • All Mines in E-DRC • objective: - Qualification of MS as - conflict free, - no child labor, - no grave human rights abuses Validation MissionsCTC audits ICGLR RCM
  121. 121. CTC Pilot Mines (as of 04.2013) Lulingu Luntukulu Bibatama Kalimbi Mayi Baridi
  122. 122. 3rd Party Auditor Mine Owners/ Cooperatives/ FEC 2 observers from COCERTI (Kinshasa) 1-2 observers Civil Society BGR 2 SAESSCAM 1 - 2 observers from Provincial Mining Division CTC Audit Teams, DRC Important: Multistakeholder approach, credibility, access to information, plausibility checks of available information (whistle-blowing ICGLR-GIZ)
  123. 123. CTC Audits in DRC Location Baseline Compliance Nyabibwe, S-Kivu September 2011 February 2013 Mayi Baridi, Katanga February 2012 January 2013 Bibatama MHI, N-Kivu February 2012 Planned for November 2012, postponed due to M23 and insecurity in N- Kivu Lulingu, S-Kivu Octobre 2012 ? Luntukulu, S-Kivu Octobre 2012 ?
  124. 124. Next Steps CTC: Location Baseline Compliance Bibatama MHI, N-Kivu February 2012 Q3 2013 Lulingu, S-Kivu October 2012 Q3 2013 Luntukulu, S-Kivu October 2012 Q3 2013  Audits in already selected sites in South and North Kivu, plus sites in Maniema and Katanga;  Audits to be extended to Au producing sites in P.Orientale, Maniema, N.Kivu, S.Kivu & Katanga  Training and accreditation of Auditors, capacity building of COCERTI. ICGLR and CEEC
  125. 125. Province Green Yellow Red Total South Kivu 14 14 5 33 North Kivu 11 0 0 11 Maniema 28 1 0 29 Validation Missions: Missions Conjointes: Joint validation missions with UN, Government, Industry, Civil Soc., Police: Focus on: - Control, illegal taxation by military and armed groups; - Human rights, Situation of women - Child labour Rating: Green (conformity, yellow (deficiencies, 6 months to fix), red (not acceptable) (after OECD DD Guidelines and ICGLR RCM)
  126. 126. MONUSCO plus: Title/Mine Owners FECCivil Society BGR SAESSCAMProvincial Mining Division Validation Missions, DRC Important: Basde on TdR, Multistakeholder approach, credibility, access to information, fast deployment. NOT an Audit ITSCI Mining Police CAMI OIM
  127. 127. Next Steps Validation Missions:  Missions in Maniema & Katanga (North to South w Focus on Major Producers);  South Kivu (Major Producers, Where safe!);  North Kivu (where safety permits!!! OBSTACLES: - Funding - Priority - HR
  128. 128. Challenges:  Dynamic Security Situation;  Infrastructure and access;  Legal situation, title issues, formalisation;  Long Term Securisation of financing of CTC audits and VM, sustainability;  Communication and dissemination;  Harmonisation of main schemes and initiatives (checklist, audits) in the region;
  129. 129. THANK YOU E-Mail: uwe.naeher@bgr.de Web: www.bgr.bund.de/mineral-certification
  130. 130. Conflict Free Sourcing Initiative Workshop 118 Conflict Minerals Certification and Traceability Program Updates: Public Private Alliance for Responsible Minerals Trade Direct Sourcing Pilots and Programs
  131. 131. CFSI Workshop September 10, 2013 Public-Private Alliance for Responsible Minerals Trade Eileen Kane, U.S. Department of State
  132. 132.  A multi-sector and multi-stakeholder initiative to support supply chain solutions to conflict minerals challenges in the Great Lakes Region of Central Africa. What is the PPA? Lake Kivu (photo provided by CFTI) 120
  133. 133. Provides funding and coordination support to organizations working in the region to  develop verifiable conflict-free supply chains;  align chain-of-custody programs and practices;  encourage responsible sourcing from the region;  promote transparency;  bolster capacity of in-region civil society and governmental representatives What is the PPA? 121
  134. 134. PPA Participants (August 2013) NGOs (“Other Orgs”) (14)  Africa Faith and Justice Network  B.E.S.T.  CENADEP  DDI  Enough Project  Global Witness  IOM  IPIS  Jewish World Watch  Pact  Partnership Africa Canada  RESOLVE  Responsible Sourcing Ntwk  World Vision (unofficial) Governments (3)  US Dept. of State  USAID  ICGLR End-users (26)  Acer  Advanced Micro Devices  Apple  AT&T  Blackberry  Boeing  Dell, Inc.  Ford Motor Company  General Electric  Global Advanced Metals  H.C. Starck  HP  Intel  Microsoft  Motorola Solutions  Nokia  NVIDIA  PAMP  Panasonic  Qualcomm  Sony Corporation  Sprint  Telefonica  Toshiba  Toyota  Verizon 122 Industry Associations (4 representing >100 members)  Electronics Industry Citizenship Coalition  Global e-Sustainability Initiative  International Tin Supply Chain Initiative  World Gold Council
  135. 135.  December 2010: PPA idea conceived when USG, civil society, industry met and agreed to create a mechanism for all stakeholders to work together to improve conditions in the GLR  October 2011: Initial announcement by senior USG, DRC, & International Conference of the Great Lakes Region officials  15-16 Nov. 2011: PPA launch event in Washington, DC and first PPA meeting  December 2012: Initiated programming in DRC; Meeting with Under Secretary Hormats  June 2013: Hill briefing and 2nd full PPA meeting; 2nd RfP released  July 2013: 15 new members announced PPA History/Timeline 123
  136. 136.  Joint funding pool ($1,177,000 to date) and 47 members  Funded 2 on-the ground projects; soon to fund others  Established tripartite governance structure  2 Hill briefings and 2 full PPA meetings to promote and plan activities PPA Accomplishments 124 Artisanal gold miners near Mangi (north of Kinsangani). Photo credit: Joanne Lebert.
  137. 137.  Convened 3 sessions with ICGLR, Member States, in-region implementers to promote alignment of chain-of-custody systems (audits, data, mine site inspections)  Developed and launched PPA website  Met key partners and actors in- region  USAID $3.5 million in parallel funding for infrastructure and traceability PPA Accomplishments, cont’d 125 Artisanal miner removing the overburden to reach ore-bearing layers. Photo credit: Joanne Lebert.
  138. 138.  CENADEP (Congolese NGO) will support civil society capacity to monitor transparency, implementation of an early warning system, and accountability of the mining sector in South Kivu province of the DRC  Work commencing autumn 2013 Funded Projects/Status 126 CENADEP CENTRE NATIONAL D’APPUI AU DEVELOPPEMENT ET A LA PARTICIPATION POPULAIRE
  139. 139. Partnership Africa Canada and Diamond Development Initiative completed site selection analysis; collected information from miners to create database to support registration. Funded Projects/Status 127 Photo credit: Joanne Lebert Orientale Provice Exploration Licenses (red) and Mining Licences (turquoise) - (Source: CAMI)
  140. 140. PAC will next work to support mechanization and establish a traceable conflict-free mineral chain for artisanal gold from 1-2 sites in the Orientale province in the DRC. Funded Projects/Status 128 Photo credit: Shawn Blore
  141. 141.  Additional fundraising for second call for proposals and projects in the Great Lakes Region  Support alignment of systems implemented in the GLR  Communications on responsible sourcing and PPA activities/funded projects  Bolster website to be an information resource Year 2 Priorities/Activities 129
  142. 142. PPA Participant Benefits Local residents meeting Solutions for Hope delegation at the Mai Baridi mine, Jan 2012. 130
  143. 143.  Provides vetted, safe, and efficient funding channel channel to support development and research projects in the GLR  Serves as platform to inform, manage, and leverage funding priorities by combining resources  Provides a multi-stakeholder and multi-sector community of peers to share challenges, solutions, and interests  Allows end users to communicate, demonstrate, and reinforce commitment to conflict-free mineral sourcing  Supports in-region systems alignment, especially mine site inspections, audits, and data management  A forum for downstream companies to provide input to others in the supply chain and implementers in the region, and vice versa PPA Participant Benefits 131
  144. 144. 1. Complete Expression of Intent (on PPA website) and Return to RESOLVE 2. Due Diligence review by USG 3. Review and sign MOU 4. Contribute pledged funds, if applicable How to Join 132 Solutions for Hope: Raw material received at MMR depot in Kalemie prior to initial processing, Jan 2012 Website: http://www.resolv.org/site-ppa/ Contact Information: ppainfo@resolv.org
  145. 145. We are pleased at the progress made by the PPA . . . It is particularly notable to see leading U.S. and international companies contributing their human, financial, and other resources and demonstrating that the best response business can make to the concern about conflict minerals is to invest in long- term solutions in the region. Robert Hormats, Under Secretary for Economic Growth, Energy, and the Environment; U.S. Department of State 133
  146. 146. “ Responsible production and trading of minerals improves livelihoods and the PPA has demonstrated that the public and private sectors can work together to encourage such behavior. Terry Heymann, World Gold Council 134
  147. 147. The PPA grant will enable us to continue our mission to reinforce integration of civil society actors in the work for conflict free mineral trade in the Great Lakes Region. Together we will have the opportunity to tackle these problems. Aussi, quelque soit la longueur de la nuit, le soleil finit par poindre. Cyprien Birhingingwa Mugabo of CENADEP
  148. 148. For more information, please contact the PPA Facilitator: Jen Peyser, RESOLVE jpeyser@resolv.org or ppainfo@resolv.org
  149. 149. Direct Sourcing Pilots and Programs Solutions for Hope (SfH) Conflict-Free Tin Initiative (CFTI) Conflict Free and Socially Sustainable September 10, 2013 Bill Millman, AVX Mike Loch, Motorola Solutions Inc. Richard Robinson, USAID
  150. 150. Solutions for Hope Project Issue: Due to DF Act millions of people and their livelihoods have been threatened by the de facto embargo. Action: In July of 2011 the Solutions for Hope Project was launched as a pilot initiative to source conflict-free tantalum from the DRC to be used in AVX, Motorola Solutions products. Solution: We worked with a defined set of suppliers to create a closed-pipe supply line.
  151. 151. The ‘Comptoir’ Supply Chain Model NEGOTIANT NEGOTIANT COMPTOIR NEGOTIANT COMPTOIR INTTRADERS SMELTERS MAUNFACTURES OEM Typical Artisanal Mining Supply Chain Creuseur Creuseur Creuseur Creuseur Creuseur preneurs preneurs preneurs
  152. 152. MMR** AVX/SMELTER AVX Motorola SolutionsMINE* MINING IS CONDUCTED UNDER CONCESSION FROM MMR. CUSTOMER HAS A TRANSPARENT TRACEABLE SUPPLY CHAIN AVX TAKE OWNERSHIP OF MATERIAL DIRECTLY FROM MMR The “Closed Pipe” Solutions For Hope pilot in the DRC provides a Secure Chain of Custody that Meets OECD DD Guidance * The diggers sell through their cooperative CDMC ** Mining Mineral Resources AVX buys the ore at world market prices – • Secure chain of custody, traceability, monitoring, independent audit • More value remaining in region, governmental taxes paid • Reinvestment – safety, mining equipment & technology, facilities • Social benefits program built in by partner contract • Building technical capacity on the ground • Engagement by the end consumers from the start ‘Closed Pipe’ Supply Chain
  153. 153. Solutions for Hope Project • The pilot project supports and is supported by several implementing Initiatives: – ICGLR Regional Certification; – Traceability program by iTSCi; – Certification of mines by BGR • Certified Trading Chain; – Due diligence guidance and implementation by the OECD and the UN Group of Experts; – Conflict-Free Smelter (CFS) program; and – Conflict-Free Reporting Template • Creates an initial flow of tantalum that helps enable miners to work and conflict-free systems to be developed in the DRC. • New business model leveraging vertical integration and community re-investment that creates an initial flow of tantalum that helps enable miners to work and conflict-free systems to be developed in the DRC.
  154. 154. Solutions for Hope Project Results and Participants Participating Companies • AVX • Coopérative Des Artisanaux Miniers du Congo (CDMC) • F&X • Flextronics • Foxconn • Global Advanced Mining (GAM) • HP • Intel • Mining Minerals Resources (MMR) • Motorola Mobility • Motorola Solutions • Nokia • Research In Motion (RIM) • Robert Bosch GmbH Results •Over 165 metric tonnes mined •DRC Green Mine Site- MaiBaridi/Luba •Targeted for first ICGLR Certificate •Pilot demonstrated Credible, Sustainable and Expandable Program
  155. 155. Well received by Media, Governments and NGOs. •Coverage includes: Bloomberg, New York Times, Business Week, GreenBizz, Mission Critical Communications, TMCnet, Asia Metals, Afrique Expansion, Radio France, Bloomberg Business Week, MMTA and the Enough Project, GAO Reports • Tweets include: Senator Durbin, RAISE Hope for Congo • Speech by Ambassador Barrie Walkley, Apr 12 2012 Philadelphia, EICC/GeSI Work Shop •Highlighted by the U.S. Department of Labor’s Bureau of International Labor Affairs (ILAB) as part of their new online tool to help businesses manage issues in their operations and supply chains. Solutions for Hope
  156. 156. Conflict Free Tin Initiative (CFTI) Enabling responsible sourcing from the DRC • CFTI is a public-private initiative to source conflict free tin from South Kivu, eastern Congo • Participants: Dutch Ministry, Industry, NGOs • Goal: initiating a tightly controlled, verifiable conflict free tin supply chain from mine to end-users • Success of this initiative will lead to: – More legitimate mining – Increased employment for artisanal miners – Economic development and stability – Greater security of supply for industry • Timeline: – Oct 2012: first mineral bags left the mine site – Dec 2012: minerals exported to Malaysia Smelting Corporation – Mid 2013: first refined tin sent to solder manufacturers
  157. 157. Tin Closed Pipe Supply Chain HRH Jamie de Bourbon Parme, Dutch Ministry of Foreign Affairs
  158. 158. Conflict-Free Tin Initiative • The Conflict-Free Tin Initiative introduces a tightly controlled conflict-free supply chain outside the control of the armed groups. It offers a first step towards renewed economic activity and hope to the masses of unemployed miners. Currently, the infrastructure is being put in place in the DRC for this pilot to be able to start. • So far Royal Philips Electronics, Tata Steel, Motorola Solutions, Blackberry, HP, Nokia, Alpha, AIM Metals & Alloys, Malaysia Smelting Corporation Berhad (MSC), Traxys and ITRI are committed to participate in the Conflict-Free Tin Initiative. The Initiative welcomes all companies, including mines, smelters, component manufacturers and product manufacturers (end- users) to join, and its success will be largely measured by the industry participation in the closed-pipe supply system.
  159. 159. Conflict Free and Socially Sustainable
  160. 160. Lessons Learned • Long term investment – not ‘aid’, move to semi-industrialization • Need initial investment to kick-start program • Avoid dependency culture from developing, building local capacity • Engagement linked to good practices • Self enforcement at the in-region local and regional levels • Sustainability – long term planning & development, levy structure • Encourage enlightened self interest – not donor cheque to donor cheque • Features of a true sustainable closed pipe – Purchase at world market prices for maximum local re-investment potential – All materials available should be purchased – End customers have a direct engagement – specific participation – High level of transparency – Engagement dependant of good practices, mechanisms institutionalized – It is - Reliable, sustainable, expandable
  161. 161. Solutions for Hope Project Next Steps: • Continue to solicit participation of other actors • Expand the program to include other mines • Expand SfH model to other minerals (gold is next), using Solutions Network platform (www.solutions-network.org). See results from recent gold pilot planning session at RESOLVE.
  162. 162. Thank you! Questions?

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