China publishes guidelines for responsible mineral supply chains

8 Dec 2015 12:48 PM

After a year long drafting process, Chinese guidelines for responsible mineral sourcing emerge

China's guidelines for responsible mineral supply chains were launched last week during a workshop on the issue held by the OECD and Chinese Chamber of Commerce for Metals, Minerals and Chemicals (CCCMC) in Beijing on 2-3 December.

The guidelines, drawn up by the CCCMC, which is supervised by the Ministry of Commerce, align with the OECD's due diligence guidelines and follow public consultations and a year-long drafting process.

The aim of the guidance is to provide "all Chinese companies which are extracting and/or are using mineral resources and their related products and are engaged at any point in the supply chain of minerals to identify, prevent and mitigate their risks of contributing to conflict, serious human rights abuses and risks of serious misconduct."

The CCCMC will prioritise gold, tin, tungsten and tantalum (the metals, including derivative metals, minerals, ores and mineral concentrates).

The guidance outlines a 5-step model for carrying out risk-based supply chain due diligence. The CCCMC will also compile and release resource-specific audit protocols and supplementary materials to help companies carry out due diligence in each sector.

In a recent presentation at the International Raw Materials Conference hosted by the Ministry for Economy in Berlin, the OECD indicated that it wanted to see supply chain due diligence reporting embedded in common business practices within the next 5 years. It also wanted to see more natural resources covered along with an expanding geographic scope. 

Meanwhile, negotiations between the EU institutions, on the European Parliament's proposed changes to the conflict minerals Regulation, are expected to start in the first half of next year.