iTSCi: leading minerals traceability and due diligence in Central Africa

Kay Nimmo, ITRI Representative to iTSCi Governance Committeekay.nimmo@itri.co.uk, http://www.itri.co.uk

Yves Bawa, iTSCi Regional Programme Director, Pact Incybawa@pactworld.org, http://www.pactworld.org

OECD, ParisMay 2014

Introduction – iTSCi

The joint industry programme for 3T minerals from mine to smelter• 12,000,000 kgs of artisanal minerals in the last year, >1,000 identified sites

Developed from 2009 around key international expectations (OECD, UN)• Prior to Dodd-Frank and OECD Guidance and continually improved

Harmonized with and supporting end user smelter audits (CFSP)• Almost all iTSCi minerals go through CFS compliant smelters

Enabling access to international markets for African mineral sector • Four Provinces of the DRC + Rwanda + Burundi

Enabling SEC/other companies to source responsibly in region• Supporting Solutions for Hope, Conflict Free Tin Initiative, ICGLR certificates etc

Going beyond conflict• Capacity building, formalisation, training, child labour, business advice etc

Holding commercially confidential information for the supply chain

tin tantalum tungsten (not gold)

Structure – multi-stakeholder/partnerships

Company membership National and local Government Stakeholder engagement

iTSCi is practical application of OECD Guidance at all levels

OECD as a global industry standard

COMPANY SUMMARY & MEMBERSHIP STATUS: licences, conflict mineral policies, due diligence plans, supplier evaluations etc.

COMPILATION OF COMPANY DOSSIER: evaluation of role in the supply chain and extent of OECD understanding at joining

94 accepted full members plus 84 provisional full members From co-operatives to multinationals 28 countries

All monitored for progress to standards of OECD Free market competition within common system and standards

On the ground implementation

MINE MONITORING: mine location, owners, operators, production, civil society, trade routes, taxes and security

• Date• Time• Mine name• Mine location• Tag number• Miner / cooperative• Weight• Price• Grade• Transport route• Transport method• Security• Staff present

FIELD DATA RECORDS (3): in country data on minerals at the mine, processor and exporter, collated by the Programme

SUPPLY CHAIN DOCUMENTS (2): once exported, shipping and trade documents provided by supplier to smelters

Monitoring & Mitigation

PROJECT COMMITTES: local stakeholders, or project Governance committee, to determine, agree and implement actions

INCIDENT REPORTS: Reports from field staff, or any other source. Record of plan and actions until closed/resolved.

Most incident types are errors in tagging ~75% of incidents are resolved at local level

Independent evaluation & audit

GOVERNANCE FIELD ASSESSMENTS: field visits to evaluate progress and challenges, risks and recommendations

COMPANY AUDITS: site visits to audit for progress on OECD implementation and minerals traceability. Local & international

“verifiable, reliable, up-to-date information on the qualitative circumstances of mineral extraction, trade, handling and export from conflict-affected and high-risk areas”

o Update on security and Annex II issueso Specific focus issues (e.g. tax payments)o Activities of Government and other partnerso Progress and challenges

Evidence based approachISO 19011:2002(E), ISO 17021: 2006(E)Specific checklists106 due diligence vs 41 tagging procedures

“… auditing should be… reasonable and in good faith in relation to company size, location and circumstance”

Moving on from conflict

70,000 miners in 662 active mines across 3 countries; working securely without threat, force, or abuse producing conflict free minerals

International companies can continue to make this possible by sourcing conflict free minerals through iTSCi and CFSI

Apple

Practicalities: roads and infrastructure

Practicalities: limited local resources

Example alerts in supply chain

Local Committees play a key role

Formalisation of mining

Equal gender opportunities

Social programs by members