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CTC - Certified Trading Chains in mineral production: the general concept

Addressing the issue of illegal mining, this workshop highlights the benefits and key features of the CTC concept for sustainable mineral production. Learn about the roadmap, drivers for success, and how to implement CTC effectively.

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CTC - Certified Trading Chains in mineral production: the general concept

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  1. 8th annual CASM conference - workshop 7 CTC- CertifiedTrading Chainsin mineral production:the general concept Markus Wagner BGR – Federal Institute for Geosciences and Natural Resources Brasilia, October 7, 2008

  2. the general problem: illegal mining and trade of mineral resourcesis a source of finance for violent groupsand contributes to regional instability 2 of 11

  3. matrix for responsible use of mineral resources good governance certification • guarantees on trading volumes • administration of mining titles • verification of origin • record of production and trade transparency • organizational structure of the mineral producer • documentation of state financial revenues • definition of standards • security of tenure for ASM • implementation of standards • adapted legal framework standards • regular inspection on the compliance with standards • third party verification, audit 3 of 11

  4. CTC dual policy objective: mining, Mutala, Mozambique • 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 alevel playing field 4 of 11

  5. CTC key features • focus on industrial commodities panning, Ile-Ife-Ilesha, Nigeria • directly link business partners • certification of specific mine sites • introduce minimum standards (e.g. OECD) on origin and CSR by voluntary certification adapted to the local context • implement the CTC concept on a regional / multinational level 5 of 11

  6. benefits of CTC (I) assessing, Nemba, Rwanda • benefits for producers and artisanal miners • security of tenure • improved market access • fair returns and improved working conditions • increased capital for investment available • benefits for the government of the producing country • regulation of informal mining • increased state revenues • competitive image of the mineral sector • conflict prevention 6 of 11

  7. benefits of CTC (II) weighing, Kayonza, Rwanda • benefitsfor mineral consumers • access to mineral production without reputational loss • enhanced supply security through diversification of sources • competitive branding 7 of 11

  8. government ofconsumercountry expert (developmentprogram etc.) consults, supports reputational protection producer: cooperative,small scale mine customer: industrial consumer contractual agreement delivers certified product support through fair price and technology transfer engages auditor reports assesses revenues reports commissions nationalcertification unit government of producer country places request dialogue accompanies international partnership gives feedback CTC concept 8 of 11

  9. CTC drivers for success • long-term mutual economic benefit trucking, Kasumbalesa, DRC • multiphase approach, progressive compliance • credibility through independent auditing • acceptance through multistakeholder participation • support on international level (identify champions!) • reality check on the ground within pilot projects 9 of 11

  10. CTC road map • 10/06 – 05/07: elaboration of concept • 06/07: G8 summit Heiligendamm • 10/07: baseline audit “assessing corporate social responsibility against international standards” security, Rutsiro, Rwanda • 12/07: Berlin conference on “transparency in the mineral sector” • 07/08: TOR study “CTC in mineral production - towards technical assistance” • 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” 10 of 11

  11. thanks! young miner, Nemba, Rwanda for more information: Markus Wagner Bundesanstalt für Geowissenschaftenund Rohstoffe (BGR) e-mail: m.wagner@bgr.de 10 of 10

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