CCCMC and the OECD Draft Guidelines for Responsible Mineral Supply Chains in China

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The China Chamber of Commerce of Metals, Minerals and Chemicals Importers & Exporters (CCCMC), in close cooperation with the multi-national Organization for Economic Cooperation and Development (OECD) has posted, for public comment, a draft of Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains. The deadline for comment is October 31, 2015.  Information about the guidelines and links to Chinese and English versions are available on OECD’s website.  A brief summary of the guidelines is provided below.

The objective of the voluntary guidelines is to align Chinese company due diligence with international standards and allow for mutual recognition with existing international initiatives and legislations. The guidelines will apply to all companies owned, partially owned, registered in, or operating in China, which are using or are engaged at any point in the supply chain of minerals and related products.

The guidelines, which are based on OECD guidelines, detail five steps: establish sound risk management systems; identify and assess risk in the supply chain; design and implement a strategy to respond to identified risks; carry out independent third-party audit at identified risk points in the supply chain; and report on process and results of supply chain risk management.  The guidelines define two levels of risk, the first of which is defined as risks contributing to conflict and serious human rights abuses, as they are defined in the OECD Due Diligence Guidance. Type 2 Risks go beyond the risks outlined in the OECD Due Diligence Guidance. They include those risks relating to serious misconduct, as defined in the Chinese Responsible Mining Guidelines.

The guidelines also set up a program for certification of company due diligence efforts and include a model supply chain policy. In addition to these guidelines, CCCMC will release resource-specific audit protocols and supplementary materials which will provide detailed guidance for companies on how to carry out due diligence in the respective sectors.