Responsible Mineral Sourcing
We undertake responsible mineral sourcing initiatives in line with mechanisms advanced by the international Responsible Minerals
Initiative (RMI)* to ensure supply chain transparency (see diagram above). These mechanisms aim to ensure transparency in the
supply chain from upstream to downstream in a more efficient manner by starting with smelters and refineries, which are relatively
few in number.
At the finished goods manufacturers downstream from the smelters and refineries, a standardized survey is extended for the purpose
of identifying the smelters and refineries that produced the minerals used in their products. We have established an approval
process for responses to these surveys, which are sent up the supply chain from customer companies, and are working to ensure
unified responses across the SMM Group. In FY2022, we responded to 330 surveys.
Upstream of smelters and refineries, we regularly undergo third-party, international standards- based audits of responsible mineral
sourcing mechanisms at our smelters and refineries, covering matters including risk assessments of suppliers. Since audit standards
vary from mineral to mineral, we work to ensure that each standard is met by conducting due diligence, developing internal
systems and regulations, and providing internal training. The table below shows the status of third-party audits at our smelters and
refineries.
Subject Minerals | |||||
---|---|---|---|---|---|
Gold | Silver | Cobalt | Nickel | Copper | |
Audit standards (issuing organization) | RGG(LBMA) | RSG(LBMA) | RMAP Cobalt(RMI) | JDDS(The Copper Mark) | JDDS(The Copper Mark) |
Certification Body | LBMA | LBMA | RMI | RMI | RMI |
Audit start date | FY2012 | FY2018 | FY2020 | FY2022 | FY2023 |
Additionally, when the Smelting and Refining Business selects a new company as a supplier, we assess how that company carries out environmental management, including management of water resources and tailings dams. In FY2022, there were no new suppliers selected. There were also no instances of artisanal and small-scale mining (ASM) in or adjacent to the project area.
- Responsible Minerals Initiative (RMI): An international initiative on the responsible sourcing of minerals by the Responsible Business Alliance (RBA), an organization founded in 2004 for the purpose of promoting a common code of conduct in the world’s electronic equipment industry.