| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L130, 19.5.2017 |
| Publication Date | 19/05/2017 |
| Content Type | Legislation |
|
The main objective of this proposal is to help reduce the financing of armed groups and security forces through mineral proceeds in conflict-affected and high-risk areas by supporting and further promoting responsible sourcing practices of EU companies in relation to tin, tantalum, tungsten and gold originating from such areas. The proposal builds on existing international due diligence frameworks and principles. Today, international measures exist to promote responsible sourcing of minerals in areas at risk or affected by armed conflict. The two best-known were adopted in 2011 and 2010 respectively: the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Due Diligence Guidance) and Section 1502 of the United States Dodd-Frank Wall Street Reform and Consumer Protection Act. The former is not country or region-specific and sets out a process to be followed by countries interested in developing responsible sourcing capabilities. While primarily at the disposal of companies in OECD jurisdictions, the Due Diligence Guidance is also a source of inspiration attracting the participation of companies performing significant transformative or trading functions in mineral supply chains for gold, tin, tantalum and tungsten. In 2011, the EU took a political commitment in the OECD framework to support the further uptake of the Guidance. The Dodd-Frank Act focuses on the Democratic Republic of Congo (DRC) and nine adjoining countries. Section 1502 of the Act requires companies listed on US stock exchanges which use 'conflict minerals' to report to the Security Exchange Commission on the origin of such minerals and on relevant due diligence measures. These reports require an extensive supply chain inquiry. US-listed companies are turning increasingly to their suppliers, including in the EU, for relevant information and evidence of due diligence. One of the business responses to the Act has been to redirect trade away from Central Africa with impacts on the local markets for gold, tin, tantalum and tungsten. Legitimately mined minerals make it to US and EU markets with some difficulty. The trade of conflict minerals is very well documented in the case of the DRC and is the subject of UN Security Council Resolution 1952 (2010). However, other cases abound elsewhere in Africa, Asia and Latin America and the cause is being taken up outside the OECD too. In June 2013, G8 leaders expressed their commitment to increase transparency in the extractive industry. Against this background, the European Commission and the High Representative have been working to develop a comprehensive EU responsible mineral sourcing framework. This work follows up a 2010 European Parliament Resolution calling for the EU to legislate along the lines of US legislation as well as two Communications in 2011 and 2012 that announced the Commission's intention to explore ways of improving supply chain transparency. This legislative proposal will therefore be accompanied by a Communication detailing other policy measures that can be deployed to tackle the problem as broadly as possible. |
|
| Source Link | https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2017.130.01.0001.01.ENG |
| Related Links |
|
| Subject Categories | Trade |
| Countries / Regions | Europe |
