A draft EU regulation to prevent the minerals trade from funding
conflict and human rights violations was approved by MEPs on
Thursday. This “conflict minerals” law will oblige all but the
smallest EU importers of tin, tungsten, tantalum, gold to do "due
diligence" checks on their suppliers, and big manufacturers will
also have to disclose how they plan to monitor their sources to
comply with the rules.
“The new regulation has the potential to change the lives of
people caught up in war. Our system, however, will only work on
the ground if it stays flexible and all players involved learn
continuously and act responsibly”, said rapporteur Iuliu Winkler
(EPP, RO).
“We cannot turn a blind eye to the harm we cause in other parts
of the world. These rules have laid the groundwork for an
effective tool to break the link between conflicts, human rights
abuses and our consumption of everyday goods”, International
Trade Committee chair Bernd Lange (S&D, DE) added.
The draft regulation was approved by 558 votes to 17 with 45
abstentions.
Parliament wins mandatory checks for importers
MEPs persuaded EU ministers, in a November 2016 informal deal on
the text, that due diligence checks, in accordance
with OECD
guidelines, should be mandatory for importers of tin,
tungsten, tantalum and gold and their ores from conflict and
high-risk areas. The Commission and Council had initially
proposed only voluntary checks.
Authorities in EU member states will be responsible for ensuring
compliance by companies. Recycled materials and small importers,
such as dentists and jewellers, accounting for 5% of imports,
will be exempted, so as not to impose unreasonable bureaucratic
burdens.
EU manufacturers and sellers to disclose sourcing
practices
In negotiations, Parliament also secured an undertaking that big
EU firms (over 500 employees) that buy tin, tantalum, tungsten
and gold to use in their products will be encouraged to report on
their sourcing practices and will be able to join an EU registry.
High standards
The regulation stipulates that existing industry control schemes
will be used in order to avoid double burdens, but Parliament
ensured that these schemes will be checked regularly so as to
maintain high standards that are consistent with OECD guidelines.
Review clause
The EU Commission will have to review the effectiveness of the
new law regularly, covering both its impact on the ground and
compliance by EU firms. It may also have to propose additional
mandatory measures should the application of due diligence by
companies prove unsatisfactory.
Next steps
Once the Council has approved the deal, it will be published in
the EU Official Journal. Due diligence obligations will apply
from 1 January 2021 to allow member states time to appoint
competent authorities and importers to become familiar with their
obligations.
Background
Mineral-rich countries afflicted by conflicts face a vicious
circle in which revenue from illegally extracted resources feeds
armed revolts. The regulation applies to all conflict-affected
and high-risk areas in the world, of which the Democratic
Republic of the Congo and the Great Lakes region are the most
obvious examples. Experts will draw up a non-exhaustive list of
areas, but country of origin is not the only indicator:
information on transit or an irresponsible supplier should also
prompt a background check.
Tin, tantalum, tungsten and gold are used in the production
of many high-tech devices, in the automotive, electronics,
aerospace, packaging, construction, lighting, industrial
machinery and tooling industries, as well as in jewellery. “Due
diligence” is defined by international OECD
guidelines to help companies respect human rights and
avoid contributing to conflict through their trade in minerals.
Currently they have the status of recommendations.
