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Towards conflict-free mineral supply chains - A global standard

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Trade and investment in natural mineral resources hold great potential for generating income, growth and prosperity, sustaining livelihoods and fostering local development. However, a large share of these resources is located in conflict-affected and high-risk areas. In these areas, exploitation of natural mineral resources can be a significant part of the economy and may contribute, directly or indirectly, to armed conflict, human rights violations and hinder economic and social development.

The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas clarifies how companies can identify and better manage risks throughout the entire mineral supply chain, from miners, local exporters and mineral processors to the manufacturing and brand-name companies that use these minerals in their products.

Find out more about the OECD Due Diligence Guidance and our multi-stakeholder implementation process http://mneguidelines.oecd.org/mining.htm

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Towards conflict-free mineral supply chains - A global standard

  1. 1. © OECD – 2012 mneguidelines.oecd.org/mining.htm The Guidance aims to help compa- nies respect human rights, observe applicable rules of international hu- manitarian law in situations of armed conflict, avoid contributing to conflict and cultivate transparent mineral supply chains and sustaina- ble corporate engagement in the mineral sector. HELPING COMPANIES SOURCE MINERALS RESPONSIBLY Trade and investment in natural mineral resources hold great potential for generating income, growth and prosperity, sustaining livelihoods and fostering local development. However, a large share of these resources is located in conflict-affected and high-risk areas. In these areas, exploitation of natural mineral resources can be a significant part of the economy and may contribute, directly or indirectly, to armed conflict, human rights violations and hinder economic and social development. Breaking the link between conflict and the mineral trade Companies using minerals sourced in conflict zones are increasingly expected to ensure their supply chains are clean and transparent. Illegally exploited minerals include gold and those commonly found in electronic equipment such as tin- cassiterite (used in laptops), tanta- lum-coltan (mobile phones, fibre optics) and tungsten-wolframite (light bulbs). ► A five-step framework for risk-based due diligence Establish strong company management systems Identify and assess risk in the supply chain Design and implement a strategy to respond to identified risks Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain Report on supply chain due diligence A GLOBAL STANDARD TOWARDS CONFLICT-FREE MINERAL SUPPLY CHAINS The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas clarifies how companies can identify and better manage risks throughout the entire mineral supply chain, from miners, local exporters and mineral proces- sors to the manufacturing and brand-name companies that use these minerals in their products. 1 4 3 2 5
  2. 2. © OECD – 2014 mneguidelines.oecd.org/mining.htm Find out more at: mneguidelines.oecd.org/mining.htm For further information, including how to participate in the OECD-hosted implementation programme, please contact: Mr Tyler Gillard Investment Division tyler.gillard@oecd.org Tel: +33-1 45 24 90 93 Building on other investment policy tools OECD Guidelines for Multinational Enterprises The Guidelines make recommendations to companies in all major areas of business ethics to ensure that they operate in harmony with government policies and host societies. They are the most important comprehensive instrument for corporate responsibility in existence today and one of the very few multilaterally agreed by governments. mneguidelines.oecd.org OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones The Risk Awareness Tool aims to help companies that invest in countries where governments are unwilling or unable to assume their responsibilities. It provides a checklist of practical questions for all major risks and ethical dilemmas that companies may face in areas of weak governance, including obeying the law and observing international instruments, heightened care in managing investments, knowing business partners and clients and dealing with public sector officials, and speaking out about wrongdoing. www.oecd.org/daf/investment/wgz A multi-stakeholder process The Guidance is practically-oriented, emphasising collaborative and constructive approaches to solving complex challenges. A multi-stakeholder process devel- oped the Guidance with in-depth engagement from OECD and African countries, industry and civil society, as well as the UN Group of Experts on the Democratic Republic of the Congo. Since its adoption in November 2010, the Guidance has become the leading international and industry standard for companies to meet the expectations of the in- ternational community and custom- ers vis-à-vis minerals from conflict- affected and high-risk areas. The OECD Council at ministerial level adopted a Recommendation on the Due Diligence Guidance on 25 May 2011. While not legally- binding, this Recommendation reflects the common position and political commitment of 44 adhering countries, including Brazil and Colombia. The UN Security Council Resolution 1952/2010 [S/RES/1952(2010)] sup- ports taking forward the due dili- gence recommendations contained in the final report of the UN Group of Experts on the Democratic Republic of the Congo, which endorses and relies on the OECD Due Diligence Guidance. The Lusaka Declaration signed by 11 Heads of State of the International Conference on the Great Lakes Region (ICGLR) in December 2010 states the processes and standards of the OECD Due Diligence Guidance will be integrated into the six tools of the Regional Initiative against the Illegal Exploitation of Natural Resources. The Guidance has since been incorporated in the ICGLR Regional Certification Mechanism and legal frameworks of the Demo- cratic Republic of the Congo and Rwanda. The U.S. Securities and Exchange Commission’s Final Rule on Section 1502 of the Dodd-Frank Act on Conflict Minerals recognises the OECD Guidance as an international framework available to companies to perform due diligence for responsi- ble mineral sourcing and thereby help them meet their reporting obli- gations under theAct. Guidance on specific minerals Supplements for specific minerals form an integral part of the Guid- ance. The Supplement on Tin, Tan- talum and Tungsten and the Supplement on Gold are both part of a Revised Recommendation on the Due Diligence Guidance (2nd Edi- tion). Implementing the Guidance The OECD is currently hosting the implementation phase of the Guid- ance. This voluntary initiative in- cludes over 500 organisations from donor and implementing govern- ments, the private sector, civil socie- ty, as well as other experts and stakeholders. The OECD Due Dili- gence implementation programme is targeted at both the gold and the 3T supply chains and is intended to facilitate outreach and uptake of the Guidance globally. Key activities include awareness raising and train- ing, the development of easy to use guides and materials, case studies on emerging best practices within the private sector, as well as the dissem- ination of widely supported tools and methodologies for implement- ing the Guidance. In addition, a sub- group of over 70 organisations have created an Artisanal and Small-scale Mining (ASM) Hub to explore how to enable and encourage responsibly mined gold in this non-industrialised sector. The multi-stakeholder OECD-ICGLR- UN Group of Experts hosted Forum facilitates the building of partner- ships across producing, processing and consuming economies and re- port on “mine to market” projects of responsibly-sourced gold out carried out in cooperation with host governments and implementing partners. ■

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