RESOLVE April 2010
BGR – German Federal Agency for Geosciences and Natural Resources
Project Summary
In 2006, the German government through the Federal Institute for Geosciences and Natural
Resources (BGR) took on a UN proposal to track coltan and other minerals from the Democratic
Republic of the Congo (DRC.) Their research had two tracks: to test the feasibility of
‘fingerprinting’ coltan samples based on mineralogical characteristics; to develop a chain of
custody assurance system based on the establishment of transparent, traceable, and ethical
trading chains.
Project Description
In 2006, the German government through the Federal Institute for Geosciences and Natural
Resources (BGR) took on a UN proposal to track coltan and other minerals from the Democratic
Republic of the Congo (DRC.) Their research had two tracks: to test the feasibility of
‘fingerprinting’ coltan samples based on mineralogical characteristics; to develop a chain of
custody assurance system based on the establishment of transparent, traceable, and ethical
trading chains. This concept of Certified Trading Chains (CTC) found entry to the G8 summit in
Heiligendamm in 2007. The summit declaration expressed support for “a pilot study…
concerning the feasibility of a designed certification system for selected raw materials” (article
86.)
BGR approached the first task through examination of the mineral and chemical variability of
specific tantalum ores. Although initial results indicated that such an analytical proof of origin is
possible, the processes are very demanding in terms of cost, time, and the required skills of
laboratory personnel. Their testing confirmed the presence of identifiable regional and local
variations in the composition of coltan, due to differences in mineralogical, chemical, and
isotopic composition of the ore minerals. According to BGR, this allows distinction of locations
even in districts and provinces of similar geological ages, similar host rocks or similar parent
melt compositions. Each tantalum deposit has its unique characteristics. Therefore, a fingerprint
of samples of suspect or unknown origin should be possible when a large and high-quality
analytical data base is available.
The second phase of the project (2008-2009) aimed at simplifying and rationalizing the method
and at increasing the reference data base. As a result, a technique is now available that allows for
the analysis of ore concentrates in a shorter time. The analysis requires the use of a scanning
electron microscope and a laser ablation-ICP-mass spectrometer. Data needed to fully
characterize a concentrate can be acquired within a few hours. Sample preparation,
measurement, and data processing can be completed within two to three days. This allows for an
estimated capacity of up to 1000 samples per year in a properly equipped laboratory. At present,
BGR is developing methods to fingerprint the origin of tin (cassiterite) and tungsten (wolframite)
ore concentrates using the same instrumentation.
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RESOLVE April 2010
The second task BGR undertook was to develop a chain of custody assurance system (certified
trading chains - CTC), based on the establishment of transparent, traceable, and ethical trading
chains. Key features would include:
A focus on industrial commodities (coltan, tin, tungsten)
Direct linkages between business partners (producer and industrial consumer, as far as
possible)
Certification of specific mine sites by third party audit
The introduction of minimum standards (based on OECD guidelines) on the origin and
Corporate Social Responsibility (CSR) through voluntary certification
Implementation of the CTC on a regional and multinational level.
The pilot project on CTC has been started in Rwanda within the framework of a technical co-
operation programme to strengthen the competitiveness of the Rwandan mineral sector by
developing best practice and enhancing transparency. It is implemented in cooperation with the
Office de la Géologie et des Mines du Rwanda (OGMR) and private mining and processing
companies. A workshop with stakeholders from government institutions and the mining industry
started implementation in March 2009.The pilot program’s goal is to clarify all the necessary
steps in establishing a transparent, fair, and sustainable raw materials industry, specifically for
conflict regions, and test its implementation. The companies and their mine sites in Rwanda are
assessed according to five principles (including 20 standards) related to transparency of the
trading chain and finance (transparency of payment according to international standards such as
EITI), health, safety and environment. Similar to the Kimberley Process, the critical piece of
these trading chains is the certificate of origin, which includes an appraisal based on plausibility
checks of the documentary system as well as the trading volume. The fingerprinting method is
incorporated as a possible additional checking instrument in case of doubt. The audit by an
internationally accredited auditor is key to ensure compliance with the guidelines. The goal of
this pilot is to create lessons learned for a certification system for metallic ores as well as for
gold to be established in DRC as well as on a regional scale. As a next step, technical
cooperation between BGR and the Congolese Ministry of Mines with the aim of introducing a
certification system for coltan, cassiterite, wolframite and gold has been started in 2009. The
cooperation will combine pilot implementation of CTC (with a focus on transparency of origin
and finance) at selected mining sites in South Kivu with capacity building of sector institutions
so that they can fulfill their mining oversight function.
The International Conference on the Great Lakes Region’s (ICGLR) signed the Protocol against
the Illegal Exploitation of Natural Resources, which includes implementing a mechanism for the
certification of natural resources in its Article 11. The lessons learned of the CTC are brought to
the ICGLR by Rwanda as a contribution to the development of a regional certification
mechanism.
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RESOLVE April 2010
Nature of Supply Chain, Products and Issues
Large-scale industrial sources are typically highly formalized, mechanized, technologically
advanced, and capital-intensive. While these sources are therefore relatively easy to identify,
metals generally lose track-ability as they move through processing and into the economy. This
“loss” can occur in the refining process, in the marketplace (as metals are traded or exchanged),
and/or in the manufacturing process as metals are combined or become parts of components or
subcomponents of products utilized in consumer products, industrial processes or construction.
Coltan is comprised of columbite-tantalite ore, from which niobium and tantalum are extracted.
Tantalum is used in the production of capacitors, which in turn are used in a wide variety of
consumer electronic products from pacemakers to automobile anti-lock braking systems, but
more notably in computers, cameras, video game consoles, DVD players and cell phones. In the
last decade, as demand for these electronic products has risen, the cost has fluctuated and new
sources of these ores have been sought around the world.
Although deposits of these minerals are known on nearly every continent, it is the deposits in
Africa, particularly those located in the Democratic Republic of the Congo (DRC), which have
instigated the most controversy and currently necessitate the most scrutiny. Like many of the
other natural resources extracted from the DRC, coltan ores are associated with violent conflict,
exploitation of artisanal miners, illegal trading and the diversion of state funds. In addition to the
harm caused to humans, much of this mining results in deforestation, which often takes place in
and around the habitat of the endangered mountain gorillas.
The supply chain for coltan ores, like other conflict minerals, is complex, with the minerals
changing hands numerous times. Coltan minerals typically lose their track-ability through
refining and manufacturing.
Analysis
Supply Chain Complexity (Complex)
The supply chain is very complex with regard to material flow between the various links in the
supply chain, and the change in composition from its raw form during manufacturing.
Formalization of Sector (Informal)
The supply chain for the ASM industry is typically informal. Certified-trading-chains are formal
in their establishment of transparent, traceable, and ethical sourcing from the source through to
the final product.
Material Processing, Coherence (Mixed)
As materials mix in processing, there is often an inability to track sources or provenance of
metals. Separate handling and sealing of production from certified sites until export are therefore
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crucial. Also, the process can only certify legal production. Formalization of the ASM sector is
needed, but can also be supported by CTC.
Significance in Product Composition (Typically low %)
Metals in an electronics product are typically parts of or ingredients in subcomponents or used to
connect components. Each metal typically represents a small fraction of a particular product.
Issue/Source Geography (Relevant)
This initiative directly addresses the DRC and minerals used in electronics products.
Stage of Development, Maturity (Early Testing)
The pilot scheme for coltan ‘fingerprinting’ is complete, with further work being done on
improving feasibility in terms of time and resource requirements. The pilot in Rwanda, to test out
the initial guidelines and feasibility of implementation, is in progress. Broader stakeholder
engagement is still in progress.
Nature of Governance (Multiple companies, multiple stakeholders)
Although currently still being structured, the goals for this project are to create stakeholder
groups representing governments, industrial, manufacturing, and commercial interests, NGOs,
and other interested parties. There will be a steering committee consisting of representatives
from the member countries that presides over the regional mechanism (which will be based on
the Kimberley Process) and that systematically monitors the extraction and trade in the raw
material exports.
Standards Breadth or Focus (Multi-Issue: Environmental and Social Objectives)
This project has goals and objectives on both the social and environmental levels. It aspires to
create transparency, both through a regular reporting/monitoring/auditing process, but also
ensured through the ‘fingerprinting’ processes which have been developed. It hopes to utilize the
mineral resources in these developing countries to mitigate existing poverty and strengthen
regional stability.
Nature of Standards/Program Development (Multiple Companies with Stakeholder Input)
This project seeks to work with the entire supply chain and all pertinent stakeholders.
Approach to Verification (Independent, Third Party Auditing)
The pilot in Rwanda includes independent third party auditing to ensure compliance with those
guidelines. It is linked to the national governmental bodies to issue the certificate and supervise
the process. The verification systems for this project will likely utilize a similar system to that
used in the Kimberley Process.
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RESOLVE April 2010
Key Findings
This project is still being piloted, but has direct implications for what EICC-GeSI is seeking to
do.
BGR’s determination that coltan minerals can be ‘fingerprinted’ indicates a possible means of
backup verification for monitoring and auditing processes.
The CTC mechanism seeks to improve transparency and mining conditions in the ASM sector
and support regional stability as well as to minimize the environmental impacts of these mining
processes. This process may, apart from the regional implication, be applicable with other
minerals around the world.
Pilot programs will help refine the initial guidelines and enable the creation of stronger yet
flexible standards that can be applied globally.
BGR is also still attempting to generate a broader stakeholder group, as well as locate the
champions to push the global acceptance of standards and mechanisms.
Regarding the fingerprinting to achieve broader application and implementation in the future, it
will be important to identify ways to reduce the resource requirements for these fingerprinting
processes, as well as to create a global database.
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