{"id":1143440,"date":"2019-10-11T06:00:48","date_gmt":"2019-10-11T11:00:48","guid":{"rendered":"https:\/\/www.mining.com\/?p=1004111"},"modified":"2019-10-11T06:00:48","modified_gmt":"2019-10-11T11:00:48","slug":"number-of-companies-ensuring-they-use-conflict-free-minerals-drops","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1143440","title":{"rendered":"Number of companies ensuring they use conflict-free minerals drops"},"content":{"rendered":"<p>Nine years after the implementation<br \/>\nof a law requiring publicly traded companies to ensure their raw materials don\u2019t<br \/>\ncome from mines that use child labour or fund warlords and corrupt soldiers,<br \/>\ncompanies\u2019 efforts to comply continue to fall short. <\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>According to the <a href=\"https:\/\/www.sourcingnetwork.org\/mining-the-disclosures\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">annual report by the Responsible Sourcing Network<\/a> (RSN), now in its sixth edition, companies\u2019 attempts at talking the issue and report their practices have decreased. <\/p>\n<p>The study, which analyzed 215 companies\u2019 actions around tin, tantalum, tungsten, and gold (3TG), said firms scored 39.8 points in the last 12 months, down from 40.3 points they achieved in the same period the previous year.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-3TG.jpg\" alt=\"\" class=\"wp-image-1004114\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-3TG.jpg 713w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-3TG-280x300.jpg 280w\" sizes=\"(max-width: 713px) 100vw, 713px\" \/><figcaption><em>Source: <a href=\"https:\/\/www.sourcingnetwork.org\/mining-the-disclosures\"  rel=\"noopener noreferrer\">Mining the Disclosures 2019.<\/a><\/em><\/figcaption><\/figure>\n<p>The rating system is based on 24 performance indicators (KPIs) divided across three themes, analyzing disclosures to the US Securities and Exchange Commission (SEC), conflict minerals policies, and any other conflict-minerals-related documents or descriptions of activities on company websites.\u00a0<\/p>\n<p>Each KPI is weighted according to its significance and in relation to the number of sub-indicators for each theme. For companies to earn points for a KPI score, the corresponding information must be publicly available.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/3TG-Due-Diligence-KPI-Scoring-Structure.jpg\" alt=\"Number of companies ensuring they use conflict-free minerals drops\" class=\"wp-image-1004185\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/3TG-Due-Diligence-KPI-Scoring-Structure.jpg 870w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/3TG-Due-Diligence-KPI-Scoring-Structure-300x223.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/3TG-Due-Diligence-KPI-Scoring-Structure-768x572.jpg 768w\" sizes=\"(max-width: 870px) 100vw, 870px\" \/><figcaption><em>Source: <a href=\"https:\/\/www.sourcingnetwork.org\/mining-the-disclosures\"  rel=\"noopener noreferrer\">Mining the Disclosures 2019.<\/a><\/em><\/figcaption><\/figure>\n<p>\u201cThe comparison regrettably shows the lack of efforts of a large number of companies, highlighted by the decline or stagnation of 59.8% of the sample, and, even more regrettably, 63% of the sample scores at mediocre levels (categories of minimal and weak),\u201d RSN, a body that aims at ending human rights abuses and forced labour related to the extraction of raw materials, says. <\/p>\n<p>The report, which also ranks the efforts of 27 companies to address child labour and other human rights abuses in their cobalt&nbsp;supply chains, as established by the Dodd Frank Act&nbsp;Section&nbsp;1502,&nbsp;shows that the technology sector remains as leader on the topic.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-Cobalt.jpg\" alt=\"\" class=\"wp-image-1004115\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-Cobalt.jpg 810w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-Cobalt-300x259.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Due-Diligence-2018-2019-Cobalt-768x662.jpg 768w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><figcaption><em>Source: <a href=\"https:\/\/www.sourcingnetwork.org\/mining-the-disclosures\"  rel=\"noopener noreferrer\">Mining the Disclosures 2019.<\/a><\/em><\/figcaption><\/figure>\n<p>Companies achieving a score of 70<br \/>\nor higher have shown their ability to innovate beyond simple compliance, accomplishing<br \/>\nan integrated and robust response to conflict minerals risks, the report says.<\/p>\n<p>The six leading companies, Intel, Microsoft, Apple, <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/ford-lead-blockchain-pilot-trace-cobalt-mined-congo\/\" >Ford<\/a>, HP, and Dell Technologies, have adopted proactive, due diligence-based strategies and <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mining.com\/web\/apple-leads-way-tracing-cobalt-congo-microsoft-lags-amnesty\/\" >lead the way in terms of transparency<\/a>.<\/p>\n<p>It doesn\u2019t mean, however, that<br \/>\nsupply chains are free of conflict minerals, particularly of those coming from<br \/>\nthe resource-rich, but impoverished Democratic Republics of Congo (DRC).<\/p>\n<h2><strong>Pressure builds<\/strong><\/h2>\n<p>Allegations of abusive mining<br \/>\npractices in Congo came to light in 2015, largely focusing on informal, or<br \/>\nartisanal, small scale mining (ASM). The country\u2019s cobalt \u2014 a key component in<br \/>\nthe batteries used in electric vehicles and smart phones\u2014 is said to be mostly mined<br \/>\nby hand, in often dangerous conditions and sometimes by minors.<\/p>\n<p>According to&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.es.amnesty.org\/uploads\/media\/Time_to_recharge_online_1411.pdf\" >Amnesty International<\/a>, children as young as seven have been found scavenging for rocks containing cobalt in the DRC. The group also claims to have evidence that the cobalt those miners dig has been entering the supply chains of some of the world\u2019s biggest brands.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Mining-Rankings-3TG-Due-Diligence-1024x654.jpg\" alt=\"\" class=\"wp-image-1004116\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Mining-Rankings-3TG-Due-Diligence-1024x654.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Mining-Rankings-3TG-Due-Diligence-300x192.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Mining-Rankings-3TG-Due-Diligence-768x490.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/Mining-Rankings-3TG-Due-Diligence.jpg 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Source: <a href=\"https:\/\/www.sourcingnetwork.org\/mining-the-disclosures\"  rel=\"noopener noreferrer\">Mining the Disclosures 2019.<\/a><\/em><\/figcaption><\/figure>\n<p>Traditionally, artisanal miners<br \/>\nhave sold their ore to local cooperatives, which then sell it to local<br \/>\nmerchants and traders. They, in turn, sell to international traders or<br \/>\noperating mines with established transport links and that cobalt ends up being<br \/>\nexported mostly to China.<\/p>\n<p>Those and other allegations have put pressure on companies and on traders. The London Metal Exchange (LME), the world\u2019s biggest market for industrial metals, has <a href=\"https:\/\/www.mining.com\/lme-launches-probe-cobalt-suppliers-fears-child-exploitation-surge\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">plans to ban metal tainted by human rights abuses<\/a>. The initiative to ensure responsible sourcing&nbsp;originally had 2022 as the deadline, but LME will now wait until 2025.<\/p>\n<p>Dodd-Frank legislation requires<br \/>\ncompanies operating in conflict areas such as the DRC to conduct due diligence<br \/>\nto establish their commodities are conflict-free. The minerals involved are<br \/>\ntin, tantalum, tungsten and gold.<\/p>\n<p>The European Union in May 2017 passed a regulation to stop mine workers being abused and conflict minerals being exported to the EU. The requirement to ensure mineral imports are responsibly sourced will become effective on Jan. 1, 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nine years after the implementation of a law requiring publicly traded companies to ensure their raw materials don&rsquo;t come from mines that use child labour or fund warlords, companies&rsquo; compliance continues to fall short.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1016,2648,624,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1143440"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1143440"}],"version-history":[{"count":12,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1143440\/revisions"}],"predecessor-version":[{"id":1143568,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1143440\/revisions\/1143568"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1143440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1143440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1143440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}