The document discusses the concept of Certified Trading Chains (CTC) in the mining sector. CTC aims to introduce transparency and minimum social and environmental standards for artisanal and small-scale mining. It does so through a voluntary certification system that verifies the origin of minerals and ensures standards are followed. CTC is being piloted in Rwanda and the Democratic Republic of Congo, and aims to benefit miners through fair prices and technology transfer, governments through increased revenues, and consumers through responsible sourcing. The International Conference on the Great Lakes Region supports integrating CTC into initiatives against conflict minerals.
1. CTC - Certified Trading Chains in mineral production: the present context Markus Wagner BGR – Federal Institute for Geosciences and Natural Resources Brasilia, October 9, 2008 8th annual CASM conference - partnerships
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5. statistical consumption per capita during an average 79 years lifetime iron ore – < 4% 1.350 kg 35 t copper – 0,5% 1.100 kg 5 kg zinc – 1% 700 kg 7,5 kg lead – 3% 350 kg 10 kg tin – 25% 20 kg 5 kg tungsten – >6% 7 kg 450 g cobalt – 30% 2 kg 600 g silver – 8% 1.200 g 100 g tantalum – 20% 300 g 60 g gold – 10% 50 g 5 g total consumption statistical share of ASM Why ASM? German mineral consumption Source: BGR databank 4 of 24
6. tantalum ore: african production statistics 50 100 150 200 250 300 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Ta [t metal content] Ethiopia Nigeria Namibia DR Congo Zimbabwe Mozambique Rwanda (REDEMI) Burundi Rwanda Source: USGS Minerals Yearbook, BGR databank „ coltan boom“ 5 of 24
7. what minerals? the CTC window Source: BGR databank 0,01 0,1 1,0 10 100 1.000 10.000 100.000 commodity, relative crustal abundance [ppm] value per unit [USD / kg] FeO (9.1%) Diamonds ( 0.0001) Cu (75), Co (29) Au (0.004) Sn (2.5), Ta (1) high value impedes cooperative 12 USD/ct 18.5 USD/ct 650 USD/oz 400 USD/oz iron ore: 80 US cents/mtu Cu: 5 USD/kg Co: 35 USD/kg gold diamonds Sn: 7,000 USD/t coltan: 12,000 USD/t tantalite: 77,000 USD/t heterogenite: 250 USD/t cassiterite: 1,500 USD/t industrial product artisanal product 6 of 24 low value prohibits ASM 100,000 t 10,000 t 10 - 100 t 100 kg <1 kg
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11. CTC concept reports commissions places request national certification unit assesses reports engages auditor contractual agreement delivers certified product support through fair price and technology transfer producer: cooperative, small scale mine customer: industrial consumer gives feedback revenues dialogue accompanies international partnership government of producer country consults, supports reputational protection expert (development program etc.) government of consumer country 10 of 24
12. geology modal mineralogy radiometric age geochemistry trace elements major elements CTC analytical fingerprint for coltan ores 11 of 24 Burundi Rwanda Uganda DRC „ Kibaran“
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14. rough diamonds gold cassiterite coltan >750 MUSD 450 MUSD 250 MUSD 35 MUSD 30 MUSD 9,000 kg 18 Mct. 12,000 t Sn metal content 50 t Ta metal content DRC: post-war illegal trade estimated unrecorded annual exports (2005 - 2006) total market value 13 of 24 Source: BGR databank
15. transparent material flows transparent revenue streams mine supervision, certification fiscalisation Module 1 Module 2 mineral production sustainable development DRC: two modules, one programme CTC 14 of 24
16. CTC in DRC reports commissions CEEC assesses reports Division des Mines delivers certified product fair price producer: cooperative, small scale mine customer: processing company revenues dialogue accompanies IC/GLR revenue authorities DGI, DGRAD supports reputational protection SAESSCAM consumers 15 of 24
20. International Conference on the Great Lakes IC/GLR member states Sudan DRC CAR Tanzania Kenya Uganda Rwanda Burundi Sambia Angola Ethiopia Egypt Namibia Botswana Zimbabwe Malawi Moza mbique www.icglr.org Congo Bujumbura Nairobi 19 of 24 co-opted countries involved
21. IC/GLR : a house for peace-building and development / www.icglr.org pact on security, stability and development: the Dar es Salaam Declaration peace and security democracy and good governance economic development and regional integration humanitarian and social issues technical instrument: regional programmes of action legal instrument: protocols financial instrument: special reconstruction and development fund regional follow-up mechamism (RFM) 20 of 24
22. CTC partnership ICGLR - PROTOCOL AGAINST THE ILLEGAL EXPLOITATION OF NATURAL RESOURCES 11. member states undertake to establish a regional mechanism […] to serve as a tool for combating the illegal exploitation of natural resources. this mechanism shall institute accredited standards as regards natural resource exploitation and shall include provisions on certification of origin […]. 21 of 24
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25. muito obrigado! for more information: Markus Wagner Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) e-mail: [email_address] 24 of 24
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Notas del editor
I would like to present our approach to the implementation of traceability as well as minimum standards in mineral production. We are focusing on the support of artisanal and small scale mining of metals for industrial use. We do not deal with gold, gemstones or jewellery products which are directly linked to end-consumers It is a B2B approach. At present, our regional focus is the Great Lakes region of Central Africa and the metals we are looking at are Tungsten, Tin and Tantalum.