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3. Driving a Revolution in Conflict Free Minerals
2:00 PM | June 6, 2012
Speakers:
Patricia Jurewicz, Director, Responsible Sourcing Network
Dr. Litofe Sloj Silika, CEO/Business Development, Efficient Care, LLC
Carolyn Duran, Materials EHS Manager, Intel
Zoe McMahon, Director, Social & Environmental Sustainability, Hewlett-Packard
Max Karst, President, Pamoja Minerals
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6. Driving a Revolution in Conflict Free Minerals
2:00 PM | June 6, 2012
Patricia Jurewicz
Responsible Sourcing Network
Dr. Litofe Sloj Silika
Efficient Care
7. What Are “Conflict Minerals”?
Conflict Minerals are currently defined to include:
• Columbite-tantalite (Coltan) > Tantalum
– First conflict mineral – spiked by growth in cell phone
industry
– DRC currently provides 8-20% of global production
• Cassiterite > Tin
– DRC is worlds 6th largest producer – 3-4% of global
production
– Primary funding source of rebel groups
• Wolframite > Tungsten
– DRC is worlds 5th largest producer – 2-4% of global
production
• Gold > Gold
– DRC provides 1% of global production, second most
significant funding source of rebel groups.
8. Source:
2009 Mine (Primary) Production
Russia
Tungsten (4.1%)
Gold (7.9%)
Cobalt (10%)
Canada
Tantalum (3%) Europe Uzbekistan
Tantalum (4%) Gold (3.6%)
Tungsten (3.4%)
Gold (4.3%)
Cobalt (8.1%) China
Cuba
Cobalt (5.6%) Tin (37.5%)
US Tantalum (13.5%)
Gold (8.9%) Tungsten (81%)
Ethiopia Gold (12.8%)
Ghana Tantalum (8%) Cobalt (10%)
Gold (3.6%)
Brazil
Nigeria Rwanda
Tantalum (16-23%) Tantalum (9%)
Tantalum (6-8%)
Tin (3.9%)
Dem Rep Congo Indonesia
Peru Tin (3.9%) Mozambique Tin 32.6%
Tantalum* (15-20%) Tantalum (3.4%)
Tin (12.4%) Cobalt (40.3%) Gold (4.3%)
Gold (7.7%) Zambia
Cobalt (4%)
S Africa
Gold (8.9%)
Tin (Bolivia) (5.2%) Australia
Other Asia Tantalum (3.5%)
Tantalum (4-5%) Gold (9.4%)
Cobalt (10%)
Notes
• Items in bold are when country production represents 10% or above
• Country production <3% are not shown on map
• Map reflects mine production (primary production) only; it does not reflect metal reserves or reserve base
• Data sources: US Geological Survey (2009, 2010), ENOUGH (2010), and input from member companies
9. Conflict Minerals and the DRC
Exploitation and trade of conflict Tin
minerals originating in the
Democratic Republic of the
Congo (DRC) is helping to
finance conflict with extreme
levels of violence in the eastern
DRC.
This conflict has claimed more
than 5.6 million lives since it
began in the late 1990s.
Mining activity is crucial to the
DRC economy. Unfortunately,
many mines in the east are
controlled by militant groups
causing serious social and
environmental issues in the
region.
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21. Source:
Electrical
Non-electrical
Overall Usage of the 3 T’s and Gold
Tantalum (Ta)
Tin (Sn)
Tungsten (W)
Gold (Au)
9%
36 30
40
% %
%
60 64 70 91
% % % %
Predominant industry Diversified across Predominant industry
= Electronics industries, hard metals = Jewelry
22. Metals in a Typical Laptop
Metals represent around 36% of total product
weight
23. Provision 1502 on Conflict Minerals
• Public companies traded on the U.S. stock market are required to
report annually to the U.S. Securities and Exchange Commission
(SEC):
– Whether its products were produced with conflict minerals
(3TG) that originated in the DRC or adjoining countries
– If they did come from the region, mine of origin
– If any of their products are not DRC conflict free
• The report must be audited by an independent private auditor and
posted on the company external website
• Proposed rule issued in December 2010
– Public comment throughout 2011
– Was due to be issued mid-April 2011, delayed
– Now expected to be issued by June 2012
27. Supply Chain Due Diligence
Illustrative Supply Chain for Tin
2-4
trading
steps
Upstream due diligence Smelters Downstream due diligence
Solutions for Hope
Chain of Custody
iTSCi In-Region
Sourcing, PPA,
Smelter Program
EICC GeSI
Program
Conflict Free
EICC/GeSI
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29. Driving a Revolution in Conflict Free Minerals
2:00 PM | June 6, 2012
Dr. Litofe Sloj Silika
Efficient Care
30. Framework of the Exploitation of Conflict Minerals in Eastern Congo
Mines in Eastern Congo
Independent Congolese
Pressure Groups (Dodd-Frank, MNCs, Civil Society)
Rebel Groups Negative Mining Business Rebel Groups
from Uganda MNCs from Rwanda
Forces & Art Miners
Support Influence Support
Uganda Smuggled Direct
Smuggled DRC Smuggled Rwanda
Gov t Through From
Through Gov t Through Gov t
Uganda ??? DR Congo Rwanda
Import & Export MNCs
Smelters
Component
Manufacturers
and Assemblers
Toys Auto Electronics Telcom Tools Aerospace
Consumers
31. All supported
by Rwanda
Gov t
General Laurent Nkudabatware General Bosco Ntanganda Colonel Jules Mutebusi
Congolese Warlord Congolese Warlord Congolese Warlord
from/hiding in Rwanda (Tutsi) from/hiding in Rwanda (Tutsi) from/hiding in Rwanda (Tutsi)
All supported
by Uganda
Gov t
Major General James Kazini
Lieutenant General General Salim Saleh
from Uganda Army (dead)
Katunba Wamala from Uganda Army
from Uganda Army
Kony part of
Independent
Negative
Forces
Jean-Pierre Bemba Joseph Kony
Thomas Lubanga
from Congo, controlled by Uganda Gov t Terrorist & War Criminal
from Congo, controlled by Uganda Gov t
(arrested, waiting for trial at ICC) from Uganda (in hiding)
(arrested, convicted by ICC)
32. Driving a Revolution in Conflict Free Minerals
2:00 PM | June 6, 2012
Max Karst
Pamoja Minerals
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38. Resources
• Conflict-Free Smelter Program
– http://www.conflictfreesmelter.org/
• Public-Private Alliance (PPA) for Responsible Mineral Trade
– http://www.resolv.org/site-ppa/
• OECD Due Diligence Guidance
– http://www.oecd.org/document/
36/0,3746,en_2649_34889_44307940_1_1_1_1,00.html
• ICGLR info on Natural Resources
– https://icglr.org/spip.php?article94
• Solutions for Hope Project
– http://solutions-network.org/site-solutionsforhope/