minerals and mining 5

Trade in minerals originating in conflict-affected
and high risk areas
INTA COMMITTEE HEARING
04.12.2014
Mr Guy Thiran, Director General,
EUROMETAUX

1


About Eurometaux

Eurometaux is composed of a wide network of companies producing, transforming and
recycling non-ferrous metals in Europe. Our membership also includes national
federations, and European and International commodity associations.

Europe’s non-ferrous metals industry

€120bn

Annual turnover

52%

500,000

Direct employees

Of pure base metals
come from recycled
sources

3 million

Indirect employees

13%

Of earth’s crust is made
up of non-ferrous
metals
2


About Eurometaux

Eurometaux is composed of a wide network of companies producing, transforming and recycling
non-ferrous metals in Europe. Our membership also includes national federations, and European
and International commodity associations.

Europe’s non-ferrous metals industry
€120bn
3 million
500,000
Annual turnover

52%

Direct employees

Of pure base metals

come from recycled
sources

Indirect employees

13%

Of earth’s crust is made
up of non-ferrous metals

3


The EU Initiative should focus on improving
the situation on the ground
•Eurometaux supports EU objective of moving towards increased transparency in
the trade of certain minerals originating in conflict areas.
•European Commission and EEAS Joint Communication:
“Any trade-related EU action in this area needs to be placed
in this broader context and complement the EU’s foreign
policy and development cooperation initiatives”

•Eurometaux urges EU authorities to develop a set of concrete measures to
break the link between minerals extraction and conflict

4


Existing voluntary initiatives should be the
basis for EU’s regulation

• Eurometaux member companies are operating in line with OECD Due
Diligence Guidelines for Responsible Supply Chain of Minerals.
• 3T+G smelters (Tin, Tungsten, Tantalum and Gold) are actively involved
in a number of responsible supply chain initiatives and auditing
programmes.
 ITRI Tin Supply Chain Initiative
 Supply Chain Initiative of CFSI of EICC/GeSI
 London Bullion Market Association (LBMA), Responsible Jewellery
Council
 Tungsten Industry Conflict Mineral Commitment, or TI-CMC
5


Success of ITRI Tin Supply Chain Initiative
99% coverage by iTSCi in first half 2014 is reached both by comparison with official
exports from the region, and with reported imports by iTSCi.

6


Need for a global playing field
• Solving the problem requires involvement of other regions, not just EU and
US.
• Without equivalent global commitments, the competitiveness of EU
companies will be undermined, as only 5% out of global 3T smelters and
gold refiners are located in the EU (Commission’s Impact Assessment,
2014).

Need for full supply chain commitment
• Without the commitment of downstream sector:

 Higher EU dependency on imports from third countries, less valueadded activities within the EU.
 Failure to fully secure the supply chain for specified minerals,
undermining objective of EU proposal
7


Eurometaux recommendations
• Exclude secondary raw materials from the Regulation scope
• Ensure major criteria are in line with already existing regulatory frameworks
and practices
• Provide mutual recognition with already existing practices, including OECD
Due Diligence Guidance, US Dodd-Frank Act Regulation, voluntary initiatives
• Create a single European authority to control compliance with the
Regulation
• Provide further clarification on third-party audits
• Address issue of commercially sensitive/confidential information
8


Thank you for your attention