CAPE TOWN – African and mining industry representatives have held productive talks on how to reengage several producers of so-called conflict minerals into the international markets.

Representatives from Burundi’s government held discussions with iTSCi and committed to facilitate the necessary actions to begin the project there as soon as possible. iTSCi (ITRI Tin Supply Chain Initiative) is a joint initiative that assists companies from mine to smelter to institute actions, structures and processes necessary to conform with the accepted due diligence guidances. 

Likewise, Ugandan representatives and iTSCi jointly committed to reassess possible solutions there.

Discussions with the provincial minister of Maniema, DRC, iTSCi and downstream industry led to a commitment to a phased approach to expansion of the project in the generally conflict-free Maniema Province as soon as possible.

ITRI said it remains committed to follow-up discussions across the supply chain to enable the restart of iTSCi in the Kivus, DRC, when there is a consensus to allow progress.

Representatives of the South African Department of Trade and Industry and the UN Group of Experts explained support for due diligence as a route to return to more normal trade and to encourage further investment, as well as how purchasing from the region should be part of multinational companies’ material sourcing programs. 

Senior government representatives from Burundi, the DRC and Rwanda presented challenges and progress to mineral traceability and due diligence in their regions, supported by provincial ministers of Maniema and North Kivu. Progress of the regional initiative of the ICGLR was also outlined. Challenges from the government perspective focused on the need for increased technical capacity, training and additional time and resource, something which should be considered in the phase-in of the Dodd-Frank rules. Difficulties in converting OECD guidance to practical action on the ground were also noted by ICGLR.

Industry leaders and NGOs put forward pleas for minerals from the Kivus to be accepted again in the international market.

Steps will be considered to involve and encourage major banks to fund investment in areas implementing due diligence, which the EICC will consider finding a way to promote. Increased supply chain linkages of exporters to specific mine sites would be achieved if that investment became available.

A summary of suggested actions is as follows: Consider how end-buyers can be engaged in responsible sourcing, and how funding may be leveraged from the downstream end of the supply chain; encourage donor support to increased technical capacity, training and resourcing for government field agents to assist the possibilities for converting OECD guidance to practical action on the ground; African governments can consider regulation to better reflect practicalities on the ground, and commit to implementation of OECD nationally, as well as ensure faster incident investigations in Rwanda. ICGLR can contribute to the follow-up of cross border issues; iTSCi will develop systems for industrial processes, improve speed of data collection from the field, and feedback to companies; ways to improve the general business climate and encourage investment to increase formalized supply chains, as well as increase production, should be considered, and rapid release of the SEC rules is still required to increase certainty on expectations, while including a reasonable period of phase-in to allow due diligence systems to develop, and minimize liability and penalties that otherwise drive buyers away.