Brussels, 05/03/2014 (Agence Europe) - The draft Community framework for reducing imports of minerals from conflict zones will be based on a voluntary certification system.
On 5 March, the European Commission unveiled a strategy prepared by the services of High Representative of the EU for Foreign Affairs and Security Policy Catherine Ashton and European Commissioner for Trade Karel De Gucht, in an attempt to put a stop to profits made from mining to fund armed conflicts. The strategy aims to stem the flow of imports into the EU of minerals known as conflict minerals - the lucrative trafficking of which has been used to fund local conflicts in sub-Saharan Africa for the past 20 years or so, particularly in the Democratic Republic of Congo and the Great Lakes region in central Africa.
The European Commission describes this strategy as “integrated” because it combines draft legislation (a draft regulation) and a raft of supporting incentive measures based on two principles: one that facilitates the task undertaken by companies, particularly in the electronics sector, which seeks to procure minerals responsibly, which are essential for the manufacture of products such as televisions, computers and telephones; and the other that seeks to ensure the legal trade in these minerals.
In a press release, Ashton and De Gucht explained stated: “We are committed to preventing international trade in minerals from intensifying or perpetuating conflict. Today's initiative on conflict minerals will help trade to work for peace, for communities and for prosperity in areas around the globe affected by armed conflict.”
The draft regulation sets up an EU system of self-certification for importers of tin, tantalum, tungsten and gold, which will allow comapnies to demonstrate that these minerals have not been sold to the benefit of armed groups or militias to finance their activities. Self-certification requires EU importers of these metals and their ores to exercise due diligence by monitoring and administering their purchases and sales in line with the five steps of the Organisation for Economic Cooperation and Development (OECD) Due Diligence Guidance. The aim is to act at the most effective level of the EU supply chain for these minerals and to facilitate the flow of due diligence information down to end users. The regulation gives EU importers an opportunity to deepen ongoing efforts to ensure clean supply chains when trading legitimately with operators in conflict-affected countries.
To increase public accountability of smelters and refiners, enhance supply chain transparency and facilitate responsible mineral sourcing, the EU aims to publish an annual list of EU and global responsible smelters and refiners. With more than 400 importers of such ores and metals, the EU is among the largest markets for tin, tantalum, tungsten and gold.
The regulation proposed is accompanied by a range of incentives to encourage European companies to show due diligence with regard to their supply chain. This includes incentives linked to the public procurement markets for companies selling electronic products containing the minerals concerned and financial support for SMEs, to encourage them to display due diligence. The OECD is also being urged to carry out activities to enhance capacity and awareness in this area. The Commission is also proposing to promote a strong and coherent EU raw materials diplomacy and dialogue with countries exploiting these minerals or processing or consuming them, in an effort to encourage further due diligence.
NGOs have, overall, considered this European initiative as insufficient, with regard to the US Dodd-Frank law of July 2010, in which section 1502 requires companies quoted on the US stock exchange to inspect the origin of minerals coming out of Central Africa. Last week, the European Parliament, which together with the Council, will decide on this legislative project, called for a binding legal framework with sanctions, in an effort to stem the trade in conflict minerals (see EUROPE 11028). (EH)