This presentation provides an overview of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The OECD Due Di‌ligence Guidance provides detailed recommendations to help companies respect ‌human rights and avoid contributing to conflict through their mineral purchasing decisions and practices. This Guidance is for use by any company potentially sourcing minerals or metals from conflict-affected and high-risk areas.‌ Visit https://mneguidelines.oecd.org/mining.htm for more information Visit the website for the Forum on responsible mineral supply chains https://mneguidelines.oecd.org/icglr-oecd-un-forum.htm

1. OECD Due Diligence Guidance for Responsible
Mineral Supply Chains
Responsible Business Conduct Unit
Investment Division, Directorate for Financial and Enterprise Affairs

2. ILO Tripartite Declaration of Principles
Concerning Multinational Enterprises and
Social Policy (2006)
UN Guiding Principles on Business and Human
Rights (2011)
OECD Guidelines for Multinational Enterprises
( (1976, 2011 update)
International instruments for responsible
business conduct
Aligned
around ILO
labor
standards
Aligned on
human rights
due diligence
and supply
chain
OECD Guidelines for MNEs and their implementation are unique:
 Comprehensive due diligence provision (all risk areas, supply chain, etc.)
 NCP mediation mechanism
 Practical, sector-specific guides and programmes on due diligence developed with
stakeholders: extractive, financial, agriculture and textile sectors

3. Addressing conflict and serious human
rights abuses in mineral supply chains
• Exploitation and trade of mineral
resources can be associated with
significant adverse impacts,
including serious human rights
abuses and conflicts
• Global issue (Africa, Asia, Latin
America, Europe)
• Affects all mineral resources
(3T&G, precious stones, coal, etc.)
• Affects to different extent ASM
and LSM

4. Responsible mineral supply chains
Global support for OECD Due Diligence Guidance
Political Industry &
Consumer
Legal &
regulatory
• G8 (2007, 2008, 2009, 2011,
2013)
• UN Security Council
Resolutions on DRC (2009,
2010, 2011, 2012, 2013, 2016)
and Ivory Coast (2013)
• ICGLR Heads of States
Lusaka Decl. (2010)
• OECD Council
Recommendation (2011)
• EU Parliament; CSR strategy
+ Commissioners statement
on raw materials
• China-OECD Programme of
Work
• Consumer campaigns and
civil society (e.g. Amnesty
Int’l, Global Witness, Human
Rights Watch, PAC, Enough
Project)
• Industry: EICC (electronics),
AIAG (automotive), AIA
(aerospace) LBMA, RJC &
WGC (gold & jewellery),
CCCMC (China), and DMCC
(Dubai)
 OECD-benchmarked industry
audits cover ~85-90% of total
refined gold production
 OECD-benchmarked industry
audits cover ~93% Ta, ~75%
Sn, ~60% W production
• Section 1502 of U.S. Dodd-
Frank Act conflict minerals
reporting
• EU regulation on
responsible mineral supply
chains
• Legal requirement in DRC,
Rwanda, Burundi &
Uganda
• Conflict Minerals Bill in
Canada
• Relevant legislation on
forced labour, child labour
(e.g. UK & US)

5. Underlying principles of the Guidance
 On-going, proactive and reactive due diligence approach
 ‘Conflict-affected areas’, ‘high-risk areas’ and other ‘red flags’
trigger heightened due diligence, not disengagement from trade
e.g. upstream on-the-ground assessments, downstream smelter
transparency and audits
 Due diligence is risk-based, i.e. intensity of due diligence
proportional to risk
 Progressive improvements over time and good faith and
reasonable efforts promoting constructive engagement with
suppliers
 Global scope - intended to enable investment and trade in
conflict-affected and high-risk areas, i.e. no blacklists, no
embargoes, no protectionism
 While collaboration is encouraged, companies retain individual
responsibility for due diligence

6. Objectives, scope and key features
Objective
 Developed through a multi-stakeholder process to provide clear, practical guidance
for companies to ensure they do not contribute to conflict or human rights abuses
through their mineral and metal production and procurement practices
Method and scope
 5-step risk-based due diligence process, applies to all companies throughout the
mineral supply chain that produce or potentially use minerals from conflict-affected
or high-risk areas
 Applicable to all minerals, on a global scope
Key features
 One set of expectations : a common framework for due diligence expectations
throughout the entire mineral supply chain from mines until end users
 Risk-based approach:Intensity of due diligence proportional to risk
 Progressive approach: promotion of constructive engagement with suppliers in order
to gradually affect change
 Reasonable and good faith efforts: Not 100 % compliance overnight

7. Structure of the OECD Guidance – 3rd
edition
Supplement on 3Ts
Supplement on
Gold
Appendix on artisanal
and small scale mining
Annex I: Description of 5-step
approach
Annex II: Model supply chain
policy
Annex III: Principles for risk
mitigation
Appendix on upstream
company risk
assessments

8. Annex II Model Supply Chain Policy
The model supply chain policy is a commitment to refrain from actions that
contribute to significant adverse impacts which may be associated with extracting,
trading, handling and exporting minerals from conflict-affected and high-risk
areas, as well as a commitment to address those risks. The following risks are
addressed in Annex II:
 Certain serious abuses of human rights,
• e.g. torture, forced labour, worst forms of child labour, and widespread sexual
violence
 direct or indirect support to non-state armed groups,
 direct or indirect support to public or private security forces who illegally
control mine sites, transport routes, etc.,
 bribery and fraudulent misrepresentation of the origin of minerals,
 money laundering,
 and nonpayment of taxes, fees and royalties due to government.

9. Recommended actions when risks are
identified
Clear, practical guidance for companies to ensure responsible
operations and sources of supply:
 No support to non-state armed groups, No to “serious
human rights abuses” such as forced labour, slavery, the
worst forms of child labour, widespread sexual violence,
crimes against humanity
 Prevent & mitigate support to public security forces,
bribery, tax evasion, money-laundering and fraud in
supply chains
 Strengthen internal controls, due diligence systems,
engagement with suppliers (e.g. supplier upgrading)

10. “Whole of supply chain” due diligence
e.g. simplified metal supply chain
“Downstream” companies:
 Identify “choke points” in supply chain
(e.g. metal smelter or refiners)
 Collect information on their upstream
due diligence (e.g. both through
individual efforts and industry auditing)
 Use collective industry leverage to
encourage improvement of upstream
due diligence
“Upstream” companies:
 Establish traceability or chain of custody to
mine of origin
 For “red flagged” supply chains, undertake on-
the-ground assessments of mines, producers
& traders for conflict, serious abuses, bribery,
tax evasion, fraud, money-laundering
 Collaborative engagement with local gov’t,
CSOs, local business to prevent & mitigate
impacts, monitor

11. 11

12. Significant uptake by all stakeholders
supports global implementation

13. Industry programmes in the mineral
supply chain
Based on the OECD Guidance
Miners (artisanal
and industrial)
Refiners &
Smelters
Bullion Banks &
metal exchanges
Manufacturers
(electronics,
jewellers & others)
3T Programmes Gold Programmes

14. The OECD Responsible Mineral Supply
Chain Implementation Programme
 Over 500 organisations involved
– Governments (OECD and non-OECD), international organisations, business,
civil society and other experts
 Information-sharing and promotion of due diligence
– Tools, workshops, webinars and training
– Outreach: Africa (Great Lakes region, West Africa), China, Colombia, India,
Middle East
– Peer learning
 Collaboration and problem-solving
– Coordinated solutions
– Harmonisation and mutual recognition of industry programmes
– Promotion of responsible mineral sourcing from conflict-affected and high-
risk areas
 Forum and workshops on Responsible Mineral Supply Chains
14

15. Indications that due diligence is working towards
breaking the link between mineral extraction, trade
and conflict in the Great Lakes region in Africa
• Militarization of mining sites and trading networks in the Great Lakes region
remains a challenge, particularly for gold
• In 2012 UN Group of Experts on the DRC: “Security situation at 3T mine sites
has improved and trade in 3T has become a much less important source of
financing for armed groups.”
• Need for additional scalable on-the-ground gold supply chain programmes
But it remains difficult to demonstrate the actual results on economic
development and overall improvements of livelihoods
Impacts and challenges:
Affected populations

16. Increased focus on mining sector governance
 Improved data on production and trade
 Improved capacity to raise taxes and levies
 Implementation challenges remain in the Great Lakes region in Africa
Increased visibility of ASM with international buyers, donors and
governments
 Guidance first instrument with roadmap for economic and
development opportunities for artisanal miners and formalization
 Market-oriented perspective: secure buy-in of international trading,
processing and consuming companies to buy responsible ASM
minerals (e.g. “Just Gold” and “CBRMT” projects)
See OECD FAQ on sourcing gold from ASM miners
Impacts and challenges:
Governance and ASM

17. OECD Guidelines for Multinational Enterprises
OECD Due Diligence Guidance for Responsible Supply Chains of
Minerals from Conflict-Affected and High-Risk Areas
FAQ on sourcing gold from artisanal and small scale miners
Mineral supply chain and conflict links in Eastern Democratic
Republic of Congo
Report on due diligence in Colombia's gold supply chain
OECD Council report on the implementation of the due diligence
guidance
For further information on the OECD’s work on Responsible
Business Conduct