Brussels, 05/09/2013 (Agence Europe) - European Commissioner for Trade Karel De Gucht will propose legislation by the end of the year on trade in minerals coming from areas of conflict or high risk.
Prominent guest speaker at a conference in Brussels on 3 September on conflict minerals, De Gucht promised a legislative proposal for the end of 2013 aiming to ensure that trade in tantalum, tungsten, tin and gold does not constitute revenue for the armed groups that since the 1990s have been wreaking death in the Great Lakes region in West Africa, or revenue for the FARC guerrillas in Colombia and Venezuela. “Trade in minerals has played an important role in both its intensity and its length”, De Gucht regretted, highlighting its role also in the FARC's financing, as a substitute for cocaine production that has become more restricted.
As well as an overall approach on raw materials crucial for supplying its industry, the EU should have a policy on trade in minerals. The policy should prevent the provision of mining revenues to finance wars and their accompanying violations of human rights, De Gucht stated. “A serious effort to eliminate conflict minerals from the supply chain would (…) keep money out of the hands of rebel groups, meaning they have less capacity to disrupt stability; would ensure that revenues from natural resources instead go to the government, strengthening the rule of law and improving the provision of vital services like health and education; would encourage the economic growth that provides conflict-affected regions with hope for a better future”, De Gucht said.
Similar to the world system for certifying rough diamonds (the Kimberley process), the EU should, in De Gucht's opinion, implement a system which, as part of a wider approach to break the link between conflicts and raw materials, should encourage user companies to tackle the scourge. While taking account of the constraints to which these companies are already subject, both through corporate social responsibility standards and through the demands of American legislation (section 1502 of the Dodd Frank Act), when they are quoted on the US stock exchange, the EU approach should lean on the international initiatives that have been implemented to eliminate the link between mining revenues and conflicts - initiatives such as the OECD Due Diligence Guidance for responsible supply chains, or the good conduct lines for user companies. Furthermore, this system should have a broad geographical scope and a targeted approach, focusing directly on smelters. Lastly, it should avoid a total rupture in demand for minerals coming from conflict regions - a rupture which would harm the countries' development. (EH/transl.fl)