ICGLR Mineral Tracking and Certification Scheme 2010

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




A

B

C

D

Rep

rocessing

Cen

tre

Formal Mine

Smelter

Artisanal Dig Site(certifiable)

Comptoirs

DRC Rwanda AbroadDomestic Production

End Users


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




A

B

C

D

Rep

rocessing

Cen

tre

Formal Mine

Smelter

Artisanal Dig Site(certifiable) Comptoirs

DRC Rwanda AbroadDomestic Production End

Users


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

ICGLR Mineral Tracking and Certification Scheme 2010

Documents

Transcript of ICGLR Mineral Tracking and Certification Scheme 2010