ICGLR Mineral Tracking and Certification Scheme

ICGLR

The Four Principal Elements

1. MINERAL TRACKING -- SOURCE TO EXPORT 2. A REGIONAL DATABASE 3. REGULAR THIRD PARTY AUDITS 4. AN OVERALL AUDITOR GENERAL

ICGLR

Element 1: Chain of Custody Tracking from mine site

NO CERTIFICATION WITHOUT FULL TRACEABILITY

ICGLR

1. Chain of Custody Tracking

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

ICGLR

DRC Mineral Tracking

Porter

Miner (Bissie)

ICGLR

Barrier (Div Mines, Saesscam, others)

Manager

Kilambo Airfield

1. Chain of Custody Tracking

DRC
Artisanal Dig Site (certifiable)
Centre de Ngoce -protected by MONUC -- CEEC, Div. Mines, SAESSCAM all present to register, track productions

Rwanda
Comptoirs Domestic Production

Abroad
End Users

A B
Reprocessing
Centre

Reprocessing Centre

Formal Mine

Smelter

Artisanal Dig Site (Non-certifiable)

OGMIR

D
Div Mines CEEC SAESSCAM
ICGLR

1. ICGLR Certificates Carry Information

Sudan Uganda
Gold Gold

Gold Gold

? ?

Kenya

Exterior

? ?
Tanzania

DRC
Coltan/Sn02

Coltan/Sn02

? Rwanda ?

Gold

Gold

Burundi
Gold

Current Situation Many Undocumented Mineral Flows

ICGLR

1. ICGLR Certificates Carry Information

Sudan Uganda
Gold Gold

Gold Gold

Kenya

Exterior

DRC
Coltan/Sn02

Coltan/Sn02

Tanzania Rwanda
Gold

Burundi
Gold Gold

ICGLR Certificates Track/Document/Legalize Mineral Flows

ICGLR PAC

Element 2: Regional Tracking of Mineral Flows using an ICGLR database

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)

ICGLR

2. Regional Tracking via ICGLR Database

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

ICGLR

2. ICGLR Database
DRC
Comptoirs Artisanal Dig Site (certifiable)
Centre de Ngoce -protected by MONUC -- CEEC, Div. Mines, SAESSCAM all present to register, track productions

Rwanda
Domestic Production

Abroad
End Users

A B C D

Reprocessing Centre

Formal Mine

Smelter

Artisanal Dig Site (Non-certifiable)

ICGLR Database
ICGLR

Element 3: Regular Independent Third Party Audits

INDEPENDENT AUDITS ESSENTIAL FOR PUBLIC CONFIDENCE AND LEGITIMACY

ICGLR

3. Independent Third Party Audits

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)

ICGLR

3. Audit Committee Composition

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)

ICGLR

3. Audit Committee Powers

Accredits auditors

Determines which auditors have the competence and independence to perform credible audits Check list of where to look, what to look for 4 times per year? 3 times? Twice? Audit Committee decides Suggestion: Open bidding process

Sets audit terms of reference for audits

Determines scope and frequency of audits

Commissions Auditors

Committee receives finished results

Reads, comments, publishes on website Recommends further action

ICGLR

3. Funding Audits
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

ICGLR

3. Funding Audits
DRC
Comptoirs

Rwanda

Abroad
End Users

A B
$$

Reprocessing Centre

Formal Mine

Smelter

$$

Auditor
$ Reports $

Auditor
Reports

$$ 30/tonne

ICGLR Audit Committee

ICGLR

$ Audit Escrow Account $

3. Scope of Audits
Rwanda
Comptoirs Domestic Production

Artisanal Dig Site (certifiable)

DRC

Abroad
End Users

Centre de Ngoce -protected by MONUC -- CEEC, Div. Mines, SAESSCAM all present to register, track productions

A B C

Reprocessing Centre

Formal Mine

Smelter

Artisanal Dig Site (Non-certifiable)

Reprocessing Centre Audit

Comptoir Audit

D
Smelter Audit (Full Chain) ICGLR

Element 4: An Independent Investigator (Auditor General)

TO INVESTIGATE UNFORESEEN SITUATIONS THAT WE KNOW WILL ARISE

ICGLR

4. Independent Auditor General

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 Auditors 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

ICGLR

How the ICGLR Scheme fits with other plans in the region
BGR ITRI ICGLR

ICGLR

How Schemes Fit Together

Artisanal Dig Sites

DRC

Comptoirs

Rwanda
Domestic Production

Abroad
End Users

A
Centre de Negoce

Reprocessing Centre

B
Reprocessing

BGR/DRC

Formal Mine

BGR/OGMR

Smelter

Centre de Negoce

Centre

ITRI/DRC
Centre de Negoce

D ICGLR Database ITRI

DRC (Bissie)

ICGLR

ICGLR Mineral Tracking and Certification Scheme