OECD and EITI Standards for Transparent Mineral Supply Chains
Countries that are dependent on mineral resources often struggle to maximise the benefits from their minerals because regulations are not in place to make sure that benefits flow equitably to citizens. In countries where governments lack full control of their territory or adequate systems to monitor mining activities, illegal exploitation of these resources and mineral smuggling have the potential to exacerbate conflict.
Global efforts have emerged to address these issues. Among these are the OECD Due Diligence Guidance for Responsible Mineral Supply Chains (OECD Guidance) and the Extractive Industries Transparency Initiative (EITI). In the context of managing semi-formal and informal mining activities, transparency is often key in ensuring the integrity of the supply chain.
The OECD Guidance and the EITI Standard have the over-arching goal of improving the governance of the minerals sector and preventing corruption and mismanagement of mineral resources. These standards complement each other in that both provide a disclosure and governance framework for companies to ensure that transparency across the mineral supply chain lessens corruption and conflict in extractive operations.