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CONFLICT MINERALS? CONFLICT What Should Be Done About Done Be Should What Breaking the chain that links natural resources to war By adopting In March 2014, the European Commission proposed new the a voluntary GOVERNMENT PROCUREMENT: legislation intended to ensure that European companies approach based AN OPPORTUNITY NOT TO BE MISSED trade minerals from conflict-affected and high-risk areas on self-certification, Under the current proposal, targeted companies, including smelters, will responsibly, especially those affected by endemic armed be invited to join a scheme which will allow them to demonstrate their conflict. the practical due diligence practices. impact on affected Each Member State will designate a competent national authority to communities collect the relevant data, which they will pass on to the European Com- mission, who will publish a list of responsible importers who participate The stated goal of the proposed legislation is to break the links could be next in the scheme. The European Commission will be obliged to approach between conflict, human rights abuses and natural resources to nothing listed importers when seeking bids for government procurement tenders. by preventing the minerals trade from funding conflicts and Whether or not Member States incorporate these conditions into their human rights abuses around the world. national legislation remains to be seen. However, by taking the route of voluntary self-certification and applying it to only 450 importers of raw materials into the European market (with no regard for finished and or part- finished goods), the Directorate- General for Trade in the European Commission has missed an opportunity. It is possible that the new legislation will have little or no impact on the affected local communities, given that, in the absence of mandatory obligations for companies, importers have little interest in taking the initiative to ‘clean up’ their supply chains. Rue Maurice Liétart, 31, Bte 6 • B-1150 Brussels - Belgium Dispose of this pamphlet responsibly Published by Axelle Fischer • Commission Justice et Paix francophone de Belgique, asbl ent and materials, and other industries. other and materials, and ent equipm technological goods, consumer electronic semiconductors, ing, IT services and software, telecommunications, telecommunications, software, and services IT ing, manufactur car equipment, electronic defence, and manufacturing A December 2012 study by Sustainanalytics identifies the 10 following strategic sectors: medical equipment, aircraft aircraft equipment, medical sectors: strategic following 10 the identifies Sustainanalytics by study 2012 December A 3 origin or put in place measures to source responsibly. responsibly. source to measures place in put or origin . Very few take the trouble to ascertain their their ascertain to trouble the take few Very . minerals conflict of importation the to 3 In Europe, a large number of companies operate in strategic sectors particularly exposed exposed particularly sectors strategic in operate companies of number large a Europe, In WHAT DOES DUE DILIGENCE MEAN FOR COMPANIES IN EUROPE? IN COMPANIES FOR MEAN DILIGENCE DUE DOES WHAT What should be done about CONFLICT MINERALS? What should be done to ensure that companies supplying tablets, smartphones, computers and other electronic products on sale in Europe avoid funding conflicts and human rights abuses elsewhere? Breaking the chain that links natural resources to war By adopting In March 2014, the European Commission proposed new the a voluntary GOVERNMENT PROCUREMENT: legislation intended to ensure that European companies approach based AN OPPORTUNITY NOT TO BE MISSED trade minerals from conflict-affected and high-risk areas on self-certification, Under the current proposal, targeted companies, including smelters, will responsibly, especially those affected by endemic armed be invited to join a scheme which will allow them to demonstrate their conflict. the practical due diligence practices. impact on affected Each Member State will designate a competent national authority to communities collect the relevant data, which they will pass on to the European Com- mission, who will publish a list of responsible importers who participate The stated goal of the proposed legislation is to break the links could be next in the scheme. The European Commission will be obliged to approach between conflict, human rights abuses and natural resources to nothing listed importers when seeking bids for government procurement tenders. by preventing the minerals trade from funding conflicts and Whether or not Member States incorporate these conditions into their human rights abuses around the world. national legislation remains to be seen. However, by taking the route of voluntary self-certification and applying it to only 450 importers of raw materials into the European market (with no regard for finished and or part- finished goods), the Directorate- General for Trade in the European Commission has missed an opportunity. It is possible that the new legislation will have little or no impact on the affected local communities, given that, in the absence of mandatory obligations for companies, importers have little interest in taking the initiative to ‘clean up’ their supply chains. Rue Maurice Liétart, 31, Bte 6 • B-1150 Brussels - Belgium Dispose of this pamphlet responsibly Published by Axelle Fischer • Commission Justice et Paix francophone de Belgique, asbl ent and materials, and other industries. other and materials, and ent equipm technological goods, consumer electronic semiconductors, ing, IT services and software, telecommunications, telecommunications, software, and services IT ing, manufactur car equipment, electronic defence, and manufacturing A December 2012 study by Sustainanalytics identifies the 10 following strategic sectors: medical equipment, aircraft aircraft equipment, medical sectors: strategic following 10 the identifies Sustainanalytics by study 2012 December A 3 origin or put in place measures to source responsibly. responsibly. source to measures place in put or origin . Very few take the trouble to ascertain their their ascertain to trouble the take few Very . minerals conflict of importation the to 3 In Europe, a large number of companies operate in strategic sectors particularly exposed exposed particularly sectors strategic in operate companies of number large a Europe, In WHAT DOES DUE DILIGENCE MEAN FOR COMPANIES IN EUROPE? IN COMPANIES FOR MEAN DILIGENCE DUE DOES WHAT What should be done about CONFLICT MINERALS? What should be done to ensure that companies supplying tablets, smartphones, computers and other electronic products on sale in Europe avoid funding conflicts and human rights abuses elsewhere? A global issue BLOOD MINERALS In the eastern part of the Democratic Republic of the Congo, “At least 40% illegal trade in minerals by armed rebels and members of security Hot Spots: forces has contributed to intensifying and prolonging conflict. of the conflicts Natural resource-fuelled conflicts As local armed groups and military officials vie for the profits that have from these precious resources, local communities have suffered broken out massacres, mutilation, rape, slavery and mass displacement. during the AFGHANISTAN : In Colombia, paramilitary groups and FARC guerrillas have Gems, precious stones, turned away from cocaine production and forced entire hostage past 60 chromite, timber, gold and marble fund warlords communities to mine gold, coltan and tungsten. 50% of mines years are IVORY COAST: nationwide are illegal, spread over at least 44% of Colombia’s Diamonds and gold linked to fund former rebel municipalities. factions COLOMBIA: MYANMAR : Other parts of the worlds are equally affected by the harmful natural Gold, tungsten, Gems are CENTRAL AFRICAN effect of the highly profitable trade in natural resources. tantalum and coal controlled by an resources.” REPUBLIC: fund violent armed abusive govern- Diamonds, timber, United Nations groups ment military gold and ivory fund DR CONGO, RWANDA, warring parties Environment BURUNDI : Programme Copper, coltan, diamonds, gold, cobalt, timber, tin, ZIMBABWE : (UNEP) tantalum and tungsten Diamonds fund fund abusive armed groups abusive security and rogue military factions forces The minerals trade in some parts of these countries funds conflict and human rights violations in conflict-affected and high-risk areas. The list is illustrative only and not exhaustive. @ FARC IMAGENES – Flickr @ FARC Taxes levied on coltan Conflict minerals: and cassiterite a supply chain from the opaque to the illegal FDLR by armed groups “Taxes” in minerals Sale of minerals in DR Congo or in kind What do these examples have in common? The same system of illegal mineral exportation: appropriation and taxation by armed groups, illegal passage out of the national territory, then reintegration into official trade routes. This complex, opaque DIGGERS TRADERS supply train allows the illegal trade and transportation of e.g., e.g., Lugulu at Lulinqu resources to remain undetected. Miners, rebel groups, traders, mine aerodrome Minerals are imported, treated and e.g., at Lulinqu aerodrome exporters, smelters, importers, manufacturers and distributors manufactured into are merely the visible parties to a supply chain lacking any components (capacitors, FDLR transparency, especially when its official participants use tax printed circuit boards) havens to inflate their profits and evoke trade secrecy to justify the lack of information. “Taxes” in minerals e.g., Bukavu Via Mombasa or in kind or And, at
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