Trade in minerals originating in conflict-affected and high risk areas INTA COMMITTEE HEARING 04.12.2014 Mr Guy Thiran, Director General, EUROMETAUX About Eurometaux Eurometaux is composed of a wide network of companies producing, transforming and recycling non-ferrous metals in Europe Our membership also includes national federations, and European and International commodity associations Europe’s non-ferrous metals industry €120bn Annual turnover 52% 500,000 Direct employees Of pure base metals come from recycled sources million Indirect employees 13% Of earth’s crust is made up of non-ferrous metals About Eurometaux Eurometaux is composed of a wide network of companies producing, transforming and recycling non-ferrous metals in Europe Our membership also includes national federations, and European and International commodity associations Europe’s non-ferrous metals industry €120bn million 500,000 Annual turnover 52% Direct employees Of pure base metals come from recycled sources Indirect employees 13% Of earth’s crust is made up of non-ferrous metals The EU Initiative should focus on improving the situation on the ground •Eurometaux supports EU objective of moving towards increased transparency in the trade of certain minerals originating in conflict areas •European Commission and EEAS Joint Communication: “Any trade-related EU action in this area needs to be placed in this broader context and complement the EU’s foreign policy and development cooperation initiatives” •Eurometaux urges EU authorities to develop a set of concrete measures to break the link between minerals extraction and conflict Existing voluntary initiatives should be the basis for EU’s regulation • Eurometaux member companies are operating in line with OECD Due Diligence Guidelines for Responsible Supply Chain of Minerals • 3T+G smelters (Tin, Tungsten, Tantalum and Gold) are actively involved in a number of responsible supply chain initiatives and auditing programmes ITRI Tin Supply Chain Initiative Supply Chain Initiative of CFSI of EICC/GeSI London Bullion Market Association (LBMA), Responsible Jewellery Council Tungsten Industry Conflict Mineral Commitment, or TI-CMC Success of ITRI Tin Supply Chain Initiative 99% coverage by iTSCi in first half 2014 is reached both by comparison with official exports from the region, and with reported imports by iTSCi Need for a global playing field • Solving the problem requires involvement of other regions, not just EU and US • Without equivalent global commitments, the competitiveness of EU companies will be undermined, as only 5% out of global 3T smelters and gold refiners are located in the EU (Commission’s Impact Assessment, 2014) Need for full supply chain commitment • Without the commitment of downstream sector: Higher EU dependency on imports from third countries, less valueadded activities within the EU Failure to fully secure the supply chain for specified minerals, undermining objective of EU proposal Eurometaux recommendations • Exclude secondary raw materials from the Regulation scope • Ensure major criteria are in line with already existing regulatory frameworks and practices • Provide mutual recognition with already existing practices, including OECD Due Diligence Guidance, US Dodd-Frank Act Regulation, voluntary initiatives • Create a single European authority to control compliance with the Regulation • Provide further clarification on third-party audits • Address issue of commercially sensitive/confidential information Thank you for your attention