1. European Precious Metals Federation Conflict Minerals-Implications for the European Precious Metals Industry
24 September 2017 | Vicenza, Italy

2. Content Challenges EPMF introduction
The EU conflict minerals regulation in a nutshell
Challenges
Opportunities
The overall picture
Conclusions

3. EPMF introduction

4. The EU conflict mineral regulation in a nutshell
Regulation applies from 1 January 2021
Final adoption expected by June 2017
22 November 2016 –Agreement 5th trilogues meeting
18 December Council of Ministers' mandate
20 May 2015 –European Parliament mandate
5 March 2014 –European Commission proposal
The EU conflict mineral regulation in a nutshell
A summary:
Mandatory due diligence for European Union importers of 3TG minerals and metals where annual import volumes exceed thresholds (100kg/y for gold)
Global geographical scope: due diligence irrespective of origin
Obligations for EU importers consistent with the 5-step framework of and risks set out in the OECD Due Diligence Guidance
EU Recognition of supply chain due diligence industry schemes largely based on OECD methodology and criteria
EU list of global responsible smelters/refiners

5. The challenges Recognition of existing schemes
OECD Alignment process of existing industry’s schemes
5 existing industry’s schemes in the Pilot Project
Currently re-assessment phase – will be used as a mechanism to recognize existing schemes
Conclusions are expected by the end of 2017
Definition of the conflict and high-risks areas
Guidelines for identifying conflict-affected and high-risk areas under preparation by the Commission
End of 2017
100 kg/year threshold for gold
Some EU authorities understand the risks related to high thresholds
95% of all imports of 3TG
100 Kg on refined gold is still too high!
« Selective » mandatory scheme
Additional tools for downstream companies BUT on voluntary basis!
Significant loopholes!

6. The opportunities
EU list of responsible smelters/refiners
White list of smelters and refiners will be published
Recognition of recyclers compliance
Exemption of recycled materials BUT recognition of compliance of recyclers is ensured view the White list of smelters and refiners

7. The overall picture
European Partnership for Responsible Minerals (EPRM)
The EPRM is a joint voluntary initiative by civil society groups and non- governmental organisations (NGOs), industry, and government.
Its main goals are to:
create a forum in which members can exchange experiences of procuring minerals and metals responsibly
invest in conflict-affected and high-risk mining areas to make mineral extraction sustainable
For more info:

8. The overall picture OECD Minerals Risk Handbook
OECD initiative for a Minerals Risk Handbook to cover additional minerals apart from 3Ts and Gold.
Encourage due diligence for responsible supply chains of ALL minerals – more specifically to help enterprises to implement OECD due diligence guidance.
The 1st version of The Handbook will be in hard-copy but is also exploring possibility of an online facility (with the European Partnership on Responsible Minerals).
The methodology has been presented early May 2017
The Handbook will be released in December 2017
The OECD will hire a consultant to fulfill all data needed by end of 2017

9. Conclusions
Important to ensure that the existing schemes in the PMC industry are recognized by the EU
Need to review Gold threshold asap
Pressure on the supply chain and especially on users will increase via new recommendations from the Commission
Mega trend: extend responsible sourcing beyond the 3Ts and Gold
Increase of the need to work on the ground!