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CTC - Certified Trading Chainsin mineral production: the general concept
Markus Wagner
BGR – Federal Institute for Geosciences and Natural Resources
Brasilia, October 7, 2008
8th annual CASM conference - workshop 7
the general problem:
illegal mining and trade of mineral resources
is a source of finance for violent groups
and contributes to regional instability
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matrix for responsible use of mineral resources
good governance
• administration of mining titles
• record of production and trade
• adapted legal framework
• regular inspection on the
compliance with standards
• guarantees on trading volumes
• documentation of state
financial revenues
• security of tenure for ASM
• verification of origin
• organizational structure of
the mineral producer tran
spar
ency
stan
dard
s • definition of standards
• third party verification, audit
certification
• implementation of standards
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CTC dual policy objective:
• utilize mineral potentials in
developing countries for the
alleviation of poverty and the
strengthening of regional stability
• create open and fair access to the worldwide
potential of strategic raw materials indispensable
to the industrial value chain through creation of a
level playing field
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, Mo
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CTC key features
• directly link business partners
• introduce minimum standards (e.g. OECD)
on origin and CSR by voluntary certification
adapted to the local context
• certification of specific mine sites
• implement the CTC concept on a regional /
multinational level
• focus on industrial commodities
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, Ile-Ife
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benefits for producers and artisanal miners• security of tenure • improved market access• fair returns and improved working conditions• increased capital for investment available
benefits of CTC (I)
benefits for the government of the producing country• regulation of informal mining• increased state revenues• competitive image of the mineral sector• conflict prevention
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benefits for mineral consumers• access to mineral production without
reputational loss• enhanced supply security through
diversification of sources• competitive branding
benefits of CTC (II)
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CTC concept
reportscommissions
places requestnationalcertification unit
assesses
reportsengages
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
internationalpartnership
government ofproducer country
consults, supports reputational protection
expert(developmentprogram etc.)
government ofconsumer country
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CTC drivers for success
• long-term mutual economic benefit
• multiphase approach,
progressive compliance
• acceptance through multistakeholder participation
• credibility through independent auditing
• support on international level (identify champions!)
• reality check on the ground within pilot projects
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CTC road map secu
rity, Ru
tsiro, R
wa
nd
a
• 10/06 – 05/07: elaboration of concept
• 06/07: G8 summit Heiligendamm
• 12/07: Berlin conference on “transparency in
the mineral sector”
• 07/08: TOR study “CTC in mineral production -
towards technical assistance”
• 10/07: baseline audit “assessing corporate social
responsibility against international standards”
• 09/08: scoping study ”CTC & EITI: synergies and scope
for collaboration”• 10/08: consultation “8th annual CASM conference”
• 11/08: consultation “fatal transactions conference”
• 12/08: implementation WS / round table “pilot project Rwanda”
• 03/09: start-up bilateral project “transparency and control in the mineral
sector DRC”
thanks!
for more information:
Markus Wagner
Bundesanstalt für Geowissenschaften
und Rohstoffe (BGR)
e-mail: [email protected]
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