Certified Trading Chains in Mineral Production: A Way to Improve Responsibility in Mining

Abstract

Mining in Central Africa has been associated with violent conflict, mistreatment of artisanal miners, illegal trading and the diversion of state funds. In 2002, the UN Group of Experts on the Democratic Republic of the Congo stated that the plunder of natural resources and other forms of wealth of the Democratic Republic of Congo was fuelling conflict in the region. Especially the sector of artisanal and small-scale mining, which provides livelihood for millions of people in Central Africa, is part of the informal and illegal trading chain of minerals. In November 2006, the eleven member states of the International Conference on the Great Lakes Region (ICGLR) signed the Protocol against the Illegal Exploitation of Natural Resources, which includes the aim of implementing a mechanism for the certification of natural resources in its Article 11. The Federal Institute for Geosciences and Natural Resources (BGR) developed two initiatives aiming at transparency and responsibility in the trading chains of metal ores linked to financing conflicts: first the development of a geochemical fingerprint for coltan ores and second a concept for a chain of custody assurance system (Certified Trading Chains – CTC), based on the establishment of transparent, traceable and ethical trading chains. Since the year 2000, on the one hand Central African coltan (tantalum ore concentrate) has developed into a significant supplier for the world market, on the other hand profit from ore production and trade has been financing military groups. The fingerprinting method aims at identifying the origin of a concentrate by comparing its mineralogical and chemical characteristics with samples of known provenance that are stored in the BGR coltan database. Adaption of the method to tin and tungsten ores, and application either as a forensic instrument, or in conjunction with certified trading chains, would allow for the control of a significant portion of mineral exports from Central Africa’s conflict region. The geochemical fingerprint is imbedded in CTC as an additional checking instrument for traceability (beyond the documentary system). The concept of Certified Trading Chains found entry to the protocol of the G8 summit in Heiligendamm/Germany in 2007 as part of efforts in the mining sector to assure greater responsibility for reducing poverty and preventing conflicts. As a result, a CTC pilot project in Rwanda commissioned by the German Government was initiated concerning the feasibility of a certification system for selected raw materials (tin, tantalum and tungsten). Consultations with stakeholders from Rwanda paved the way for national implementation currently underway, however integrated in the regional policy of the International Conference of the Great Lakes Region. Major features of CTC are a set of five principles with 20 standards based on OECD guidelines to be applicable in the artisanal and small-scale mining sector and which were adapted to local conditions by a national consultation process in Rwanda. Key elements are the voluntary participation of the companies, the lead by national governmental institutions as well as an independent audit of an internationally accredited auditor. The proper implementation of certification will foster good governance, where mineral resources are produced and traded legally and transparently and in ways, which protect workers, communities, and the environment. Certification will also progressively transform and formalize informal mining. Formalization is a precondition for achieving transparent recording of production and trade, to improve governance and reduce conflicts associated with the mining sector.