How a traceability system appears to launder conflict minerals from DRC
A scheme to establish a conflict-free supply of minerals may be laundering them instead, Human Rights Watch warns of heightened trafficking risks for Ukrainian refugees in Poland, and a Hong Kong judge directs police to investigate a domestic worker’s sexual assault complaint.
An investigative report by Global Witness brings together evidence of how a traceability system designed to establish a supply of “conflict-free” minerals from the African Great Lakes region appears to launder them instead. The scheme, set up by the International Tin Association (ITA), apparently facilitates the laundering of 3T minerals from mines that are controlled by abusive militias or use child labour, as well as minerals that have been smuggled and trafficked, according to the report.
Metals obtained from 3T minerals, nearly half of which are produced in The Democratic Republic of Congo (DRC) and Rwanda, are used in electronic equipment such as mobile phones, computers, and automotive and aeronautical systems. But the Congolese army and rival armed groups in disputed parts of eastern DRC have, for decades, viewed control of mineral mines as a vital source of income. Along with the lack of effective governance in DRC and neighboring countries, this has led to the trade of minerals from DRC being linked to violent conflict and serious human rights abuses.
In an attempt to improve the sector’s governance, the regions’ governments, along with the UN and other international and regional organizations, drew up new guidelines and procedures more than 10 years ago. As part of this effort, industry interests set up traceability systems which, alongside government validation of mines, were intended to establish a supply of “conflict-free” responsibly sourced minerals, and included the ITA’s International Tin Supply Chain Initiative (ITSCI).
Government agents, acting on ITSCI’s behalf, seal and tag bags of legitimately mined minerals before they are transported for processing or export. In 2018, the Organisation for Economic Co-operation and Development (OECD) evaluated ITSCI’s standard as fully aligned with its own due diligence guidance. However, field research and interviews conducted by Global Witness and local researchers suggest that, in some areas of DRC, the bulk of tagged minerals actually come from mines in neighboring territories, including those occupied by militias and one where children frequently work.
Local NGOs have previously accused government officials and ITSCI agents of being aware of the situation and engaged in a cover-up. In response, ITSCI acknowledged allegations of laundering but omitted from its public incident reporting mention of militia involvement and its own agents’ complicity. Experts also claim that minerals are laundered by smuggling them into Rwanda, where armed groups are not known to be active. According to industry sources, a high volume of Rwanda’s mineral exports are, in fact, tainted products smuggled in from DRC – a claim rejected by ITSCI.
The sheer volume of illicitly tagged minerals and the lack of effective action to address a known problem suggests that ITA, which has ultimate oversight of ITSCI, ignores them, says the report. Tagging high volumes of minerals is in ITA’s interest as the system is largely funded by the exporters of tagged 3T minerals, creating perverse incentives which undermine ITSCI’s control function. Moreover, ITA faces a conflict of interest in running a system supposed to prevent tainted 3T minerals from entering international markets, while representing some of the largest 3T minerals buyers. When approached for the report, the ITA disagreed with its findings and denied any conflict of interest, or allegation of downplaying or ignoring incidents in its supply chains.
Companies such as Apple, Intel and Samsung, in whose products smuggled and/or conflict minerals may end up, should invest in better resources to identify and address such issues in their supply chains, says Global Witness. Although some publicly commit to responsible sourcing, they have seemingly applied few meaningful mitigation measures, it says. Other recommendations from the report include the reform of the governance structure of the ITSCI system to avoid conflicts of interest between its members and the traceability and due diligence functions of the system; the publishing of mine-level production data for minerals tagged by ITSCI; an independent investigation into the implementation of the ITSCI scheme and consideration of an alternative system; and less reliance on membership of industry schemes in due diligence investigations.
OECD holds its 15th Forum on Responsible Mineral Supply Chains this week, with a focus on its due diligence guidance for conflict-affected and high-risk areas.
Here’s a round-up of other noteworthy news and initiatives:
Cindy Dyer has been nominated to serve as director of the U.S. Department of State Office to Monitor and Combat Trafficking, with the rank of Ambassador at Large. Dyer is a human rights expert and lawyer with more than 25 years’ experience working at the local, national and international levels to address human rights abuses, with a focus on human trafficking, gender-based violence and harmful practices.
Human rights campaigners warn that China’s recent ratification of two international treaties on forced labour could obfuscate its activities in the northwestern Xinjiang Uyghur Autonomous Region. Meanwhile, U.S. Customs and Border Protection has announced it will issue letters to importers that may be affected by the rebuttable presumption outlined in the Uyghur Forced Labor Prevention Act in advance, “to encourage those importers to address any forced labor issues in their supply chains in a timely manner”.
Research by Human Rights Watch found refugees from Ukraine, particularly women and girls, face heightened risks of gender-based violence, trafficking and other exploitation due to lack of systematic protection and security measures in Poland. Human Rights Watch wrote to the government of Poland on 31 March to present research findings and request information but has not received a response.
A Hong Kong judge has directed police to renew an investigation into a domestic helper’s complaint of sexual assault against her employer, after finding officers had failed to follow government protocols in considering whether she had been subject to human trafficking or forced labour, due to the absence of bespoke legislation.
A new book, My Fourth Time, We Drowned, details the effects of ongoing failures to deal with migration into Europe and the global humanitarian crises forcing people to flee. It also highlights contradictions in the ways in which the world is viewing the war in Ukraine and welcoming the unprecedented number of people fleeing that conflict, compared with those from other countries.
The Modern Slavery and Human Rights Policy and Evidence Centre (Modern Slavery PEC) has issued a funding call for research on improving equality, diversity and inclusion (EDI) within modern slavery research in the UK. The deadline for applications is 16 June 2022.
The Freedom Fund’s Tariff Act Legal Fund provides grants of up to US$50,000 to civil society organizations to gather evidence linking forced labour practices with goods imported into the United States. The goal is to support civil society to utilize section 307 of the U.S. Tariff Act to build pressure on businesses to improve human and labour rights standards in global supply chains, and aims to support ten investigations over the next two years. A second round of funding launches today via a global request for proposals.
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