Natural mineral resources not only provide excellent commercial opportunities for investors; they also hold great potential for supporting development in some of the world’s poorest countries. However, significant shares of these resources are in areas where the production and trade in minerals can contribute towards armed conflict, human rights abuses or other adverse impacts.
Managing risks in mineral supply chains and navigating the growing volumes of compliance requirements relating to the issue of ‘conflict minerals’ can be extremely challenging for companies.
At Kumi we bring an intimate knowledge of the key global frameworks and industry standards for conflict minerals, including the following:
- OECD Due Diligence Guidance for Responsible Mineral Supply Chains
- Conflict-Free Smelter Initiative (CFSI).
- Dubai Multi Commodity Centre Responsible Gold programme (DMCC).
- London Bullion Market Association Responsible Gold programme (LBMA).
- iTSCi (the mineral supply chain programme operating on-the-ground in the Great Lakes region of central Africa and focusing on the production and export of conflict-free tin, tantalum and tungsten).
- Responsible Jewellery Council (RJC).
- World Gold Council Conflict-Free Gold Standard.
We combine this with extensive experience of designing, implementing and evaluating due diligence processes and risk management systems with miners, with smelters and refiners and with manufacturers whose products contain these minerals.
The support we offer is tailored according each client’s specific needs and role within the minerals supply chain. Kumi’s conflict minerals services include:
- Providing due diligence support to companies seeking to understand potential risks and due diligence effectiveness in their mineral supply chains. This may include on-the-ground visits to suppliers or potential suppliers to assess their operations.
- Benchmarking due diligence systems and processes of your company or your suppliers against the requirements of the OECD Due Diligence Guidance, using our proprietary methodology developed with the insights gained from our unique experience of delivering the Alignment Assessment project for the OECD.
- Supporting upstream mineral producers and traders with the design and implementation of policies and management practices that meet the responsible sourcing requirements of downstream customers and are aligned to the recommendations of the OECD Due Diligence Guidance.
- Supporting smelters and refiners with the design and implementation of policies and management practices that meet the responsible sourcing requirements of an industry programme or certification scheme.
- Supporting downstream companies in developing and implementing their corporate strategy for conflict minerals. This could include evaluating current conflict minerals activities, supporting corporate goal-setting, evaluating suppliers, capacity building and reporting on performance.
Our expertise in conflict minerals has been recognised by arguably the leading global authority on responsible mineral supply chains, the OECD, who commissioned Kumi to deliver the highly strategic Alignment Assessment project (more information is available here).