icglr mineral tracking and certification scheme 2010
TRANSCRIPT
ICGLR Mineral Tracking and Certification Scheme
ICGLR
1. MINERAL TRACKING -- SOURCE TO EXPORT
2. A REGIONAL DATABASE
3. REGULAR THIRD PARTY AUDITS
4. AN OVERALL AUDITOR GENERAL
The Four Principal Elements
ICGLR
“NO CERTIFICATION WITHOUT FULL TRACEABILITY”
Element 1: Chain of Custody Tracking from mine site
ICGLR
1. Chain of Custody Tracking
ICGLR
1. Chain of custody tracking from mine site to export, builds on national systems already in place
implemented by national governments prior to export must be able to track national production from pit to export point
must be able to track minerals imported and then re-exported
Before export, review chain of custody documents to establish that minerals can be tracked from mine site to exporter (producer countries), or border post to exporter (reprocessing countries)
ICGLR Regional Certificate issued to mineral exports that have the appropriate chain of custody documents Certificate serves as sole proof of compliance throughout region
DRC Mineral Tracking
ICGLR
Miner(Bissie)
Porter
Barrier(Div Mines, Saesscam, others) Manager Kilambo Airfield
1. Chain of Custody Tracking
ICGLR
Centre de Négoce-protected by
MONUC-- CEEC, Div. Mines,
SAESSCAM all present to register, track productions
A
B
D
Rep
rocessing
Cen
tre
Formal Mine
Smelter
Artisanal Dig Site(certifiable)
Comptoirs
DRC Rwanda AbroadDomestic Production End
Users
Artisanal Dig Site(Non-certifiable)
Rep
rocessing
Cen
tre
Div MinesCEECSAESSCAM
OGMIR
1. ICGLR Certificates Carry Information
ICGLR
Sudan Uganda Kenya Exterior
DRCRwanda Tanzania
Burundi
Current Situation – Many Undocumented Mineral Flows
Gold
Gold Gold
Gold
Gold
GoldGold
Coltan/Sn02
Coltan/Sn02
?
? ??
?
??
??
?
1. ICGLR Certificates Carry Information
ICGLR
Sudan Uganda Kenya Exterior
DRC
Rwanda
Tanzania
Burundi
ICGLR Certificates Track/Document/Legalize Mineral Flows
Gold
Gold Gold
Gold
Gold
GoldGold
Coltan/Sn02
Coltan/Sn02
PAC
“DATA FLOWS OPEN AND PUBLIC FOR TRANSPARENCY AND LEGITIMACY”
SUPPORTED BY UN RESOLUTION 1896 ARTICLE 17:
“RECOMMENDS FURTHER THAT MEMBER STATES, PARTICULARLY THOSE IN THE GREAT LAKES REGION,
REGULARLY PUBLISH FULL IMPORT AND EXPORT STATISTICS FOR GOLD, CASSITERITE, COLTAN AND
WOLFRAMITE”
(NOVEMBER 2009)
Element 2: Regional Tracking of Mineral Flows using an
ICGLR database
ICGLR
2. Regional Tracking via ICGLR Database
ICGLR
2. Regional Tracking of mineral flows via ICGLR database
Data on regional mineral flows transmitted to ICGLR on a monthly basis
For each participant, data will be analysed to determine if exports equal legal imports
In case of imbalance, participant given a chance to explain and correct. If this is not done, participant will be declared non-compliant
All data and analyses will be stored on publicly accessible database
2. ICGLR Database
ICGLR
Centre de Négoce-protected by
MONUC-- CEEC, Div. Mines,
SAESSCAM all present to register, track productions
A
B
C
D
Rep
rocessing
Cen
tre
Formal Mine
Smelter
Artisanal Dig Site(certifiable)
Comptoirs
DRC Rwanda AbroadDomestic Production
End Users
Artisanal Dig Site(Non-certifiable)
ICGLR Database
“INDEPENDENT AUDITS – ESSENTIAL FOR PUBLIC CONFIDENCE AND LEGITIMACY”
Element 3: Regular Independent Third Party Audits
ICGLR
3. Independent Third Party Audits
ICGLR
3. Regular Independent Third Party Audits System is ‘dual-key’ – need to prove chain of custody to
get ICGLR certificate and have to pass third party audit
All industry participants must submit to regular audits by independent third party auditors
Industry participants must pass audits (i.e. those failing audits will be declared non-compliant)
3. Audit Committee – Composition
ICGLR
An Audit Committee that works within ICGLR, but is independent of ICGLR Does not take orders from ICGLR Secretariat, or any other ICGLR
committee
Audit Committee should be composed equally of government, industry and civil society Suggestion: 3 government, 3 industry and 3 civil society members
Industry – for example: FEC, ITRI
Civil Society – National NGOs (e.g. CENADEP, OGP, etc) and International NGOs (PAC, GW, IPIS, etc)
3. Audit Committee – Powers
ICGLR
Accredits auditors Determines which auditors have the competence and
independence to perform credible audits
Sets audit terms of reference for audits Check list of where to look, what to look for
Determines scope and frequency of audits 4 times per year? 3 times? Twice? – Audit Committee decides
Commissions Auditors Suggestion: Open bidding process
Committee receives finished results Reads, comments, publishes on website
Recommends further action
3. Funding Audits
ICGLR
Industry should fund third party audits. to maintain independence of auditors, payments cannot be
made directly from the company to the auditor
audits will be commissioned by the ICLGR, which then becomes the client and paymaster.
Funding should be channelled from industry to an auditing fund housed at the ICGLR. Funding based on volumes of material
Initial calculations indicate audits could be funded via $30/tonne, similar to ITRI.
To avoid misuse of funds, contributions placed in escrow Industry pays solely for auditors, not for system admin
3. Funding Audits
ICGLR
A
B
Rep
rocessing
Cen
tre
Formal Mine
Smelter
ComptoirsDRC Rwanda Abroad
End Users
ICGLR Audit Committee $ Audit Escrow Account $
$$ 30/tonne
$$
$$
Auditor
$ Reports
Auditor
$ Reports
3. Scope of Audits
ICGLR
Centre de Négoce-protected by
MONUC-- CEEC, Div. Mines,
SAESSCAM all present to register, track productions
A
B
C
D
Rep
rocessing
Cen
tre
Formal Mine
Smelter
Artisanal Dig Site(certifiable) Comptoirs
DRC Rwanda AbroadDomestic Production End
Users
Artisanal Dig Site(Non-certifiable)
Comptoir Audit
Reprocessing Centre Audit
Smelter Audit (Full Chain)
“TO INVESTIGATE UNFORESEEN SITUATIONS THAT WE KNOW WILL ARISE”
Element 4: An Independent Investigator (Auditor General)
ICGLR
4. Independent Auditor General
ICGLR
4. Mineral Chain Auditor (Auditor General) The Mineral Chain Auditor will monitor the full mineral
chain for discrepancies and anomalies arising from data collected in system
The Mineral Chain Auditor has authority and resources to initiate investigations at their own discretion
The Mineral Chain Auditor’s appointment is structured to provide full independence and freedom of action.
The Mineral Chain Auditor is the last line of defence can react to unforeseen situations
closes loopholes that were not foreseen when system created
BGR
ITRI
ICGLR
How the ICGLR Scheme fits with other plans in the region
ICGLR
How Schemes Fit Together
ICGLR
Centre de Negoce
A
B
D
Rep
rocessing
Cen
tre
Formal Mine
Smelter
ArtisanalDig Sites
ComptoirsDRC Rwanda Abroad
Domestic Production End
Users
Rep
rocessing
Cen
tre
Centre de Negoce
Centre de Negoce
ICGLR Database
BGR/DRCBGR/OGMR
ITRI/DRC
DRC (Bissie)
ITRI
ICGLR Mineral Tracking and Certification Scheme