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Certified Trading Chains in Mineral Production – the Standard

8th Annual CASM Conference. Certified Trading Chains in Mineral Production – the Standard. Anna Stetter. BGR – Federal Institute for Geosciences and Natural Resources Brasilia, October 7, 2008. Background for CTC Standard.

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Certified Trading Chains in Mineral Production – the Standard

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  1. 8th Annual CASM Conference Certified Trading Chainsin Mineral Production – the Standard Anna Stetter BGR – Federal Institute for Geosciences and Natural Resources Brasilia, October 7, 2008

  2. Background for CTC Standard Focus on Central Africa, address the problem of illegal trade of mineral resources. Standards should be achievable, not over-ambitious. Prioritize on the essential rather than being comprehensive. Standards aim at improving key problems quickly.

  3. OECD Guidelines for Multinational Enterprises (2000) OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones (2006) Principles for standard setting

  4. Prioritize on draft standards: Which are essential, which could be postponed to a second phase. Drawing from experience with other certification initiatives: Is the implementation of CTC Standards realistic? Which ones could prove difficult to implement? Aim of this workshop

  5. Transparency Labour and working conditions Security Community Development Environment The CTC Standard Five categories:

  6. 1.1. Chain of custody: Produced and traded minerals are traceable. 1.2. Meet fiscal obligations required by host government law and publish all payments in accordance with the EITI standards 1.3. Actively oppose bribery and fraudulent payments 1. Transparency

  7. 2.1. Salary / payment levels equal to or greater than those in comparable enterprises within the same country. 2.2. Ensure that no child labourers work on company sites 2.3. Support workers’ organizations and collective bargaining 2. Labour and Working Conditions I

  8. 2.4. Provide essential protective and production services to support the work of artisanal miners 2.5. Ensure occupational health in all company operations 2.6. Provide training for employees and contractors on safety, health and effective use of on-site facilities 2.Labour and Working Conditions II

  9. 3.1 Provide sufficient and adequately trained security forces 3.2 Undertake security risk assessments 3. Security

  10. 4.1. Interact regularly with communities and local governments to address grievances / common concerns 4.2. Support local supply chains to company operations 4.3. Implement integrated development programs in nearby communities for livelihood security, social and physical infrastructure and capacity building 4.4. Obtain free, prior and informed consent before acquiring land or property 4. Community Development

  11. 5.1. Carry out an environment impact assessment as the basis for developing an environmental management and protection plan and strategy 5.2. Properly treat or dispose of hazardous material and waste 5.3. Make provision for the full cost of rehabilitation upon closure 5. Environment

  12. Example: Levels of compliance to Standard 2.1 (Maintain salary or payment levels equal to or greater than those in comparable enterprises) Gross salary of employees or pay provided to workers 4= exceeds those of comparable enterprises. 3= roughly equal to those of comparable enterprises. 2= modestly inferior to those of comparable enterprises. 1= significantly inferior to that of comparable enterprises. 0= is irregular and inadequate Indicators for compliance

  13. Best practice Checklist approach Compliance mechanism Transparency Standard CSER Standard Minimum acceptible practice Pass marks approach

  14. Thank you! Cassiterite, Nemba, Rwanda For more information: Anna Stetter / Markus Wagner Bundesanstalt für Geowissenschaftenund Rohstoffe E-mail: anna.stetter@bgr.de / m.wagner@bgr.de www.bgr.bund.de 18 of 18

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