china’s role and moves in the promotion of …china’s role and moves in the promotion of...

China’s Role and Moves in the Promotion of Responsible Mining

中国在负责任矿业领域中的角色和表现

2015.06 上海

2015.June Shanghai

CCCMC

The World’s overall Tendency of Responsible Business Conduct

Introduction

CCCMC’s Involvement in RBC

Introduction to the CCCMC

Basic Consensus

•Outbound Mining Investment Coordination

•Release the Chinese Responsible Mining

Guidelines

•Lead the Development of Chinese Due

Diligence Guidelines

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中国五矿化工进出口商会China Chamber of Commerce of Metals,

Minerals & Chemicals Importers & Exporters

The LBMA Bullion Market Forum 2015 25 June 2015

Session 4 - Lihui Sun 1

CCCMC was founded in 1988 and is affiliated to MOFCOM(The Ministry of Commerce of the People’s Republic of China)。

It has 6200 members which are the leading companies from the metals, mining(including gold and silver), petrochemical, hardware & building materials and related industries。

It is China’s largest and most professional industrial association with 250 of its members ranking among China’s top 500 Enterprises

Over the years CCCMC has collaborated with multilateral organizations and governments like the UN, the EU, OECD, the U.S, Britain and Germany; international organizations like the World Bank, WWF, TNC, ICRC and IISD.



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Mining：EITI

Envieronment：Convention

on Biological Diversity

Labor：Core Labor

Standards

Agriculture：Good Agricultural

Practices

Finance: The Equator PrinciplesEconomy：The Dow Jones

Sustainability Indexes

Region: EU Code of Conduct

Climate: Kyoto Protocol

Social Accountability Standard： ISO26000

CSR Principles：Global Compat

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EconomyEnvironment

Society

To guide and assist oversea business of Chinese firms, according toMeasures for Overseas Investment Management enacted in 2009,MOFCOM has officially delegated CCCMC to coordinate, serve andpromote the work of outbound investment of Chinese mining industry,and to regulate the behavior and order of foreign investment projects.

In the past 5 years, CCCMC has cumulatively received projectsapplications from near 1000 investors, involving 981 projects from 110countries.



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Background

The Guideline was initiated underthe framework of the bilateral Sino-German Corporate SocialResponsibility Project (Sino-GermanCSR Project) by Chinese and Germangovernments, implemented by CCCMCand GIZ cooperatively. With support ofthe multi-stakeholders and experts inthe drafting process, this Guideline wasreleased in Oct 2014.

Being China’s first industrial CSRstandard, this document is a milestoneevent in the mining industry.



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Process and Principles of Guideline Development

• Background

• Risks

• Target

• References

Preparation

• Scope

• Initiative

• Core Issues

• Draft Framework

Framework• Team Building

• Set Procedure

• Timetable

• Stake Holder

Content Drafting

• Consultation

• Refine the Draft

• Peer Test

• Promotion

Finalization





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• Refer to international standard, adopt an international perspective

A globalized principle to ensure integration

• Conduct due diligence in target countries, take full concern of the local legal system, culture, and community

A localized principle to ensure adaptation

• Based on Chinese situation and industry

A Chinese principle to ensure workability




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It has referred to the principles and core issues of the guidelines of international

standard organizations and fully considered the ICMM sustainable development

framework

Strictly followed the development process of ISEAL international standards, and

listened to the views and opinions of international and domestic stakeholders.

Integrated the laws, standards and norms of China and the project host countries





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Background—Resource Extraction & Conflicts

Official initiatives The third Sector standards

or initiatives

Countries and regions rich in natural

resources：

• Severely violent dispute and war

•“Resource Curse”

•UN’s Guiding principle；

•OECD’s Guidelines；

• The U.S. legislation；• Democratic Republic of Congo and Burundi’s legislation ；

•ICGLR’s RCM；

• EU。

• EICC and GeSI• World Gold Council• RJC•LBMA• ITRI

China：

• the largest country on the production, investment, imports and exports of mineral resources• Global Focus

Purpose of the Development of the Guidelines

To operationalize and provide detail to the Chinese Responsible MiningGuidelines by providing guidance to all Chinese companies which are using or areengaged at any point in the supply chain of minerals and its related products toidentify, prevent and mitigate their risks of contributing to conflict, serious humanrights abuses and risks of serious misconduct.

This work is done cooperatively with OECD, and has been included in the OECD-

China Programme of Work for 2015-2016



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Necessity

•China Role： Irreplaceable global resource allocation•Stake Holders：Response to multi-expect and to meet enterprise’s demand•Participation in Global Resource Governance

Authority•China Government and OECD Support ：“OECD-China 2015-2016 Workplan”•Multilateral Recognition with Related International Standards•Experts Involvement：Establishment of Advisory Committee which includes most domestic experts

Integration and Inclusiveness

•Guiding Principle：In line with UN Guiding Principles on Business and Human Rights•Survey Methodology：In line with OECD Guidelines•It has integrated requirements from Dodd-Frank Act of the US, recognized the regional development certification mechanism (RCM) for the Great Lakes Region (ICGLR), and learned from the other global initiatives and norms

Feature



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Risk-based Due Diligence

• In line with the OECD Guidelines. They are to help and guide the businesses to achieve compliance in the supply chain ( if they trade with the US listed companies, the African Great Lakes Region, and EU in the future)

Type 1 risks：the risks that may lead to increased conflicts or severe violation of human rights.

• Beyond the risks listed in the OECD guidelines. They are clearly defined in the Chinese Responsible Mining Guideline, such as the child labor, aboriginals rights, environment pollution, biodiversity deterioration

Type 2 risks: the risks that may lead to severe wrongdoings.



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02

03

04

Design and develop an adaptable audit system accommodating different products (Preferentially 3TG)

MofCom or CCCMC may set up an independent organization for the implementation, supervision

Recommended list of enterprises in the supply chain and corporate compliance reports will be published。

Visible, accessible, transparent and responsible



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Thank You！Contact：Lihui Sun CCCMC Director of Liaison Department

International Council on Mining Cooperation DirectorResponsible Business Conduct Chief Expert

Tel：010-65883591Fax：010-65883592Email：[email protected]



china’s role and moves in the promotion of …china’s role and moves in the promotion of...

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