This presentation summarises the final version of the Report submitted to the OECD Council on the implementation of the Recommendation on Due Diligence Guidance for Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas. Full report accessible here: http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=COM/DAF/INV/DCD/DAC(2015)3/FINAL&docLanguage=En

1. Report to OECD Council
Due Diligence for responsible mineral supply chains:
an analysis of five years implementing the OECD Guidance
Hannah Koep-Andrieu and Louis Maréchal

2. Significant uptake by all stakeholders supports
global implementation

3. 3
Global implementation

4. Impact and challenges:
International business
• Improved transparency and integrity of mineral supply chains
• But long way to go for companies to fully implement the
Guidance, in particular insufficient company reporting
• Specific challenges for SMEs remain
• Integrity and alignment of industry programmes globally
• Need for cost optimisation of due diligence efforts across the supply
chain
Business case for doing due diligence
• upfront costs but better understanding of sources of raw materials and
suppliers
• improved internal controls, record keeping, reporting
• better opportunities to access finance and inform better decision making
OECD Secretariat Alignment Assessment of Industry Programmes

5. Indications that due diligence is working towards
breaking the link between mineral extraction, trade
and conflict in the Great Lakes region
• 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
OECD projects on Measuring Results and on the Worst
Forms of Child Labour
Impacts and challenges:
Affected populations

6. 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
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)
OECD FAQ on sourcing gold from ASM miners
Impacts and challenges:
Governance and ASM

7. Looking ahead
 The 3rd Edition clarifies that the Guidance
provides a framework for detailed due
diligence as a basis for responsible supply
chain management of all minerals.
 No other amendments necessary at this
stage – Focus on implementation globally!
 OECD Committees encourage continued
efforts to implement the Guidance and
invited Adherents to report on their
activities to the Secretariat on an annual
basis
OECD Mineral Risk Handbook project

8. THANK YOU
For further information on the OECD’s work on
Responsible Business Conduct
http://mneguidelines.oecd.org/
http://www.oecd.org/corporate/mne/mining.htm