1. OECD Due Diligence Guidance for Responsible Mineral Supply Chains
Louis Maréchal – policy advisor on extractives
Responsible Business Conduct Unit
OECD Investment Division

2. Addressing conflict and serious human rights abuses in mineral supply chains
Exploitation and trade of mineral resources is a source of growth, but can be associated with significant adverse impacts, including
Serious human rights impacts (e.g. child labour, forced labour)
Financing conflict
Money-laundering, terrorist financing & sanctions violations
Bribery
Global issue (Africa, Asia, Latin America, Europe)
Affects all mineral resources (tin, tantalum, tungsten, gold, cobalt, precious stones, coal, oil & gas, etc.)
For mining, affects to different extent ASM and LSM
Since 2011, the OECD has helped lead a global movement to prevent the production and trade of minerals used in everyday products from benefiting armed groups and perpetrators of serious human rights abuses.
This instrument was developed as an element of response to the ongoing crisis raging in Central Africa, where dozens of non-state armed groups, and sometimes elements of the national armed forces, have been perpetrating serious abuses of human rights and causing massive unrest for over 15 years. Connexions between the illegal exploitation of mineral resources in these countries and the survival of these armed groups have been long established, and so international leaders called upon the OECD to develop practical recommendations to allow responsible elements of the private sector ensure they are not supporting the perpetuation of this situation.
The OECD guidance focuses on conflict financing through the mineral trade is a major impediment to peace, development and growth.. (read slide)
The DRC is but one example of a global issue – conflict financing is applicable to many regions in the world experiencing conflict and high-risk issues. And the Due Diligence Guidance is applicable to any minerals beings sourced in any high-risk, conflict affected areas in the world.
Securing the integrity of global supply chains will result in many positives beyond simply cutting the source of funding to armed groups who illegally tax and extort. Ending the link between mineral production and violence will result in transparency in supply chains, higher consumer confidence, which will in turn maximise the value of global mineral value chains.

3. Artisanal and small-scale mining (ASM) in the world
Artisanal and Small-Scale Miners Around the World
ASM is a major source of mineral resources production in the world
20+ million artisanal miners globally
100+ million people depending for their livelihood - 30%+ are women
ASM is largely informal, and is associated with low levels of safety measures, health care or environmental protections
ASM can however be a huge driver of inclusive growth in developing countries
Artisanal and small scale mining proportion of world production of various metals in 2011
Source: Reproduced from CASM website,
Artisanal gold represents over 25% of yearly production – roughly around 700 tonnes in 2014
Source: Polinares, Raw Materials Data

4. OECD Due Diligence Guidance for Responsible Mineral Supply Chains
Objective
To provide clear, practical guidance for companies to ensure responsible operations and sources of supply:
No support to non-state armed groups, No “serious abuses”
Prevent & mitigate support to public security forces, bribery, tax evasion, money-laundering and fraud in supply chains
Strengthen internal controls, due diligence systems, engagement with suppliers (e.g. supplier upgrading)
Method and scope
5-step risk-based due diligence process, applies to all mineral resources & all companies throughout the entire mineral supply chain that potentially contribute to conflict, serious abuses, bribery, tax evasion and money laundering through mining or mineral sourcing practices
Principles
On-going, proactive and reactive due diligence approach
Due diligence is risk-based, i.e. intensity of due diligence proportional to risk
Progressive improvements over time and good faith and reasonable efforts promoting constructive engagement with suppliers
Global scope - intended to enable investment and trade in conflict-affected and high-risk areas, i.e. no blacklists, no embargoes, no protectionism
While collaboration is encouraged, companies retain individual responsibility for due diligence
Background
The Due Diligence Guidance was developed in 2009 through a multi-stakeholder, consultative process in partnership with non-OECD economies, notably Africa’s Great Lakes region. Business has been actively involved, characterizing the practical nature of the Guidance and leading to its strong buy-in by business.
It is, the de-facto international standard on responsible sourcing of minerals from conflict areas and is
Supported by the UN Security Council and the G8
Endorsed by the ICGLR in Lusaka Declaration and integrated into ICGLR Certification Mechanism
Integrated into, referenced and/or relied on by multiple industry programs (e.g. DMCC, EICC-GeSI CFS Programme, iTSCi, LBMA, RJC, World Gold Council)
Referenced by U.S. SEC in final rules for section 1502 (Dodd-Frank)
Legal requirement to operate in the DRC, Rwanda and Burundi
Extensively referenced in the draft EU legislation
So what is the DDG? (read slide)

5. Responsible mineral supply chains
Highlights - last 12 months
Policy & laws
Input to EU institutions on EU regulation for responsible mineral supply chains
Advice to Chinese authorities to support alignment of national standards with OECD Guidance
Reports & Tools
Colombia gold baselines: Overview, Antioquia, Chocó
Alignment assessment pilot tool & methodology
Practical actions to address worst forms of child labour
Frequently Asked Questions on ASM
Outreach events
Latin American Workshop on Responsible Mineral Supply Chains, 1-2 December 2016, Bogotá, Colombia
Workshop on sustainable development of artisanal & small-scale mining in West Africa, March 2017,  Abidjan, Côte d'Ivoire
Cooperation & partnerships
Explored partnerships with World Bank (ASM) and Interpol (Law Enforcement)
Supported launch of Responsible Cobalt Initiative
Initial participation in Kimberley Process Certification Scheme for diamonds

6. Responsible mineral supply chains
2017 & beyond
Countries
Technical support & research for country implementation
Capacity
Assess alignment & boost capacity on due diligence
Impacts
Assess & enhance impact of responsible mineral sourcing efforts
Beyond 3TG
Support implementation of OECD Guidance beyond 3TG
Activities
India (launch)
EU countries (launch)
Monitoring Adherents (launch)
China (cont’d)
Colombia (cont’d)
West Africa (cont’d)
Central Africa (cont’d)
Activities
Alignment assessment reports for CFSI, LBMA, RJC, DMCC & iTSCi
Training programmes in producing countries
Cost/benefit analysis of due diligence
Measuring global use by industry
Activities
Scoping framework & indicators for measuring results
OECD-World Bank platform for artisanal & small-scale mining
Interpol-OECD law enforcement coordination
Activities
Online tool on country and commodity risk (BETA version)
Demand-driven support to programmes & initiatives to implement OECD Guidance

7. Global implementation of OECD Due Diligence Guidance
Implementai

8. For further information on the OECD’s work on Responsible Business Conduct
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
FAQ on sourcing gold from artisanal and small scale miners 
OECD Alignment Assessment of industry initiatives: Tool and methodology
Mineral supply chain and conflict links in Eastern Democratic Republic of Congo
Report on due diligence in Colombia's gold supply chain
OECD Council report on the implementation of the due diligence guidance

9. Thank you
For further information on the OECD’s work on Responsible Business Conduct:
Relevant contact details:
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