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Global Mica Mining and the Impact on Children’S Rights

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Global Mica Mining and the Impact on Children’S Rights GLOBAL MICA MINING AND THE IMPACT ON CHILDREN’S RIGHTS COLOPHON GLOBAL Authors: The Centre for Research on MICA MINING Irene Schipper and Roberta Cowan (SOMO) Multinational Corporations (SOMO) Co-review committee at Terre des Hommes: AND THE IMPACT Aysel Sabahoglu and Tirza Voss is an independent, not-for-profit Layout: Newton21 research and network organisation ON CHILDREN’S RIGHTS Photography: © Oscar Timmers, February 2016 working on social, ecological and economic issues related to sustainable This report was made on assignment of Terre des Hommes. MARCH 2018 development. Since 1973, the PUBLISHED BY: organisation investigates multinational Stichting Onderzoek Multinationale Ondernemingen (SOMO) Centre for Research on Multinational Corporations corporations and the consequences of their activities for people and Sarphatistraat 30 the environment around the world. 1018 GL Amsterdam The Netherlands Tel: + 31 (20) 6391291 Terre des Hommes Netherlands Fax: + 31 (20) 6391321 prevents child exploitation, removes E-mail: [email protected] Website: www.somo.nl children from exploitative situations and ensures children can develop in COMMISSIONED BY: a safe environment. Terre des Hommes Terre des Hommes Netherlands Zoutmanstraat 42-44 works towards a world where all 2518 GS Den Haag children have a decent life and can The Netherlands grow up to be independent adults. Tel: +31 (70) 310 5000 E-mail: [email protected] A world in which children are no Website: www.tdh.nl longer exploited. Terre des Hommes This document is licensed under the Creative Commons will continue its work until this Attribution-NonCommercial-NoDerivateWorks 4.0 License. is accomplished. CONTENTS Preface 9 5.3.4. Mica as part of semiconductor systems 46 1. Executive summary 13 5.3.5. Mica in lithium-ion batteries 46 2. Introduction 20 5.3.6. Mica in plastics for electronics 46 2.1. Background of the study 20 5.3.7. Overview of mica in electronics components 48 2.2. The research objectives 20 5.4. Where is mica found in electrical applications? 48 2.3. Research methodology 20 5.4.1. Insulation 48 2.3.1. Mapping global production and risks to children 21 5.4.2. Overview of mica in electrical devices 49 2.3.2. Analysing the global mica market 22 6. Mica used by the automotive industry 50 2.3.3. Analysing the demand for mica by different industries 22 6.1. Introduction 50 2.4. Sources of information 22 6.2. Car case example 50 2.5. Disclaimer on data, statistics, estimates and figures 24 6.3. The volume of mica in cars 52 2.6. Review process 24 7. Due diligence by the electronics and automotive industries 53 2.7. Structure of the report 25 7.1. Non-binding regulations 53 3. Basic facts about mica and the global mica market 26 7.1.1. UN Guiding Principles on Business and Human Rights 53 3.1. What is mica? 26 7.1.2. OECD Guidelines for Multinational Enterprises 54 3.2. The global mica market 27 7.1.3. European Union Conflict Minerals Regulation (EU 2017/821) 55 3.2.1. Natural mica 28 7.2. Mica due diligence state of affairs: the front runners 56 3.2.2. Synthetic mica 29 7.3. Challenges experienced by companies in the mica due diligence process 57 3.2.3. Substitutes for mica 31 8. Mica mining risk analysis 59 3.3. Mica by grade 32 8.1. Sheet mica mining 59 3.3.1. Ground mica 33 8.2. Illegal mica mining 60 3.3.2. Sheet mica 33 8.3. Weak governance and conflict 61 3.3.3. Built-up mica 34 9. Global sheet mica deposits 63 3.3.4. Global market value of mica by grade 34 9.1.1. India and Madagascar 64 3.4. Mica mining methods 34 9.1.2. China 66 3.4.1. Mining of sheet mica 35 9.1.3. Brazil 67 3.4.2. Mining of scrap mica 36 10. Risk classification of mica-producing countries 68 4. Mica and the industries that use it 38 10.1. Introduction 68 4.1. End-users in the global mica market 38 10.2. Analysis 70 4.1.1. Electronics industry 40 11. Conclusions and recommendations 75 4.1.2. Paints and coatings industry 40 11.1. Conclusions 75 4.1.3. Cosmetics and personal care industry 41 11.1.1. Conclusions on the global mica market and end-users 75 4.1.4. Construction industry 41 11.1.2. Conclusions on risk indicators 76 4.1.5. Other industries 41 11.1.3. Conclusions on due diligence efforts 77 5. Mica used by the electronics industry 42 11.1.4. Conclusions on the country risk analysis 77 5.1. Introduction 42 11.1.5. General conclusions on mica 78 5.1.1. Information provided by industry sources 42 11.2. Recommendations 78 5.2. The difference between electrical and electronic devices 43 11.2.1. Recommendations for companies 78 5.3. Where is mica found in electronics? 44 11.2.2. Recommendations for governments and the EU 80 5.3.1. Mica on printed circuit boards 44 11.2.3. Recommendations for NGOs 81 5.3.2. Mica capacitors 45 11.2.4. Recommendations for the public 81 5.3.3. Mica in sensors 46 Appendix: Classification codes for mica 82 4 GLOBAL MICA MINING 5 FIGURES AND TABLES ACRONYMS IN THE REPORT List of figures AIAG Automotive Industry Action Group Figure 1 Flowchart of mica production ASM Artisanal and small-scale mining Figure 2 Growth expectations in the two main categories of mica BGS British Geological Survey Figure 3 Indicative market size of mica CAGR Compound Annual Growth Rate Figure 4 Analysis of global mica market value share by form, 2016 and 2024 CAS Code Chemical Abstract Service Code Figure 5 Flowchart of mica production CSR Corporate Social Responsibility Figure 6 Global market value of mica by grade EICC Electronic Industry Citizenship Coalition Figure 7 Global market value of mica by grade in 2016 and 2024 EU European Union Figure 8 Global mica market, value share by end-user, 2015 and 2024 HS Codes Harmonised System Codes Figure 9 Mica market annual growth analysis by end-user ILO International Labour Organisation Figure 10 Major exporting countries of sheet mica by volume in tonnes, 2015-2016 NGO Non-Governmental Organisation Figure 11 India and Madagascar sheet mica exports by volume in tonnes, 2012-2016 OEC Observatory of Economic Complexity Figure 12 Madagascar’s mica exports, 2015-2016 OECD Organisation for Economic Co-operation and Development Figure 13 Brazil’s mica exports, 2015-2016 PCB Printed Circuit Board Figure 14 Mica production, exports and imports in 2015 of 20 countries (in tonnes, ranked on export) RBA Responsible Business Alliance Figure 15 China’s mica imports 2016 RMI Responsible Minerals Initiative Figure 16 China’s mica exports 2016 SER Social Economic Council (the Netherlands) Figure 17 Mica exports from non-western countries in 2015 SOMO Stichting Onderzoek Multinationale Ondernemingen (Centre for Research on Multinational Corporations) List of tables SDGs Sustainable Development Goals Table 1 Applications of mica in electronics UN United Nations Table 2 Applications of mica in electrical devices UNCRC UN Convention on the Rights of the Child Table 3 Exports of sheet mica by India and Madagascar by value and volume, 2012-2016 USGS United States Geological Survey Table 4 Percentage of sheet mica in Madagascar’s total mica exports, 2012-2016 UNGP UN Guiding Principles on Business and Human Rights Table 5 Countries classified by risk and red flags TDH Terre des Hommes TMR Transparency Market Research 6 GLOBAL MICA MINING 7 PREFACE ABOUT TERRE DES HOMMES in global value chains. By promoting children’s rights through advocacy and by raising policy awareness, it Terre des Hommes Netherlands (hereinafter Terre des calls upon authorities and legislators to step up to Hommes) is an international non-governmental comply with their responsibilities. organisation that works to create a world free of child exploitation. Since 1965 it has protected children from exploitation, violence, child labour, trafficking, CHILD LABOUR IN INDIA sexual exploitation, poverty and malnutrition. Terre des Hommes has a long-standing presence in The target groups of Terre des Hommes are children at India. With nearly every fifth child in the world living risk of exploitation and children who are the victims of there, the country is home to the largest number of exploitation. Children at risk are vulnerable children who children on the planet. In total, this means that there are marginalised socially, economically, physically or are about 430 million Indian children, and among culturally and, as such, easily become victims of exploita- these an estimated forty per cent live in difficult tion. Child exploitation involves serious violations of the circumstances. India has a low rate of child immunisa- rights of the child. Terre des Hommes’ definition covers tion coverage, and in remote areas child protection the worst forms of child labour, child trafficking, sexual systems are lacking and children are usually not exploitation, child abuse and violations of the sexual registered at birth. health and reproductive rights of a child. In 2015, alarmed by the prevalence of child labour Terre des Hommes uses evidence-based strategies to specifically in Jharkand and Bihar, Terre des Hommes promote, prevent, protect and prosecute within the commissioned SOMO to conduct research into the context of children’s rights. Guided by the UN Conven- violations of children’s rights in the mica mines in tion on the Rights of the Child (UNCRC), Terre des these provinces. The objective of this first research was Hommes researches, documents, and takes action to threefold: 1) to determine the current magnitude of expose and confront violations of children’s rights.
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