Conflict-free from mine to market
Sourcing raw materials responsibly is possible thanks to the first conflict-free tin supply chain in Uganda. Not only the European economy benefits, but also the local community.
Multiple pits with entrances to tunnels show evidence of mining. The light hammering of metal tools is in the air. People talk as they deliver carts full of pieces of ore. A scene from the Ugandan town of Mbarara. Here, the mining company Woodcross Resources has established a certified conflict-free supply chain for tin that extends all the way to Europe.
Tin is a key raw material for future technologies. It is used, for example, for producing solar modules and electric cars. However, like other metals and rare soils mined in the Great Lakes region of Africa, it is a known as a conflict mineral. Tensions are often the order of the day where it is mined. This means that miners and landowners often clash in disputes over usage rights. The work in the tunnels, which miners often dig themselves, is dangerous and health and safety standards are not adhered to consistently. Armed groups finance themselves by mining illegally and smuggling raw materials, and force people to work.
Hand in hand for responsible raw material procurement
It is a different story for tin from Mbarara. A new model has emerged here for mining the raw material responsibly. We have supported the African alliance of countries in the International Conference on the Great Lakes Region (ICGLR) in establishing a certified conflict-free tin supply chain. We were commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), the Dutch Ministry of Foreign Affairs and the European Union.
The Woodcross company is pursuing an integrated supply chain approach. Mining, processing and refining tin are combined under one roof. The advantage is that every step is transparent, fully traceable and can be checked with quality controls – a key difference to the fragmented supply chains in other regions. The globally recognised standards of the Organisation for Economic Co-operation and Development (OECD) are the basis for a new certification scheme. External experts monitor the supply chain from mine to export. They check processes and documents, and talk to everyone involved to ensure that they comply with the standards. It will be possible to trace the entire process digitally in future and it is linked to ICGLR’s regional mineral database.
In December 2023, Uganda became one of the first countries to benefit from ICGLR’s regional certification mechanism. The country adapted its laws and regulations accordingly, and raised awareness regarding conflict-free trade and use of raw materials among government, company and civil society organisation employees. ICGLR confirms this success. ‘The GIZ programme helped us promote dialogue between member states and create important tools for implementing the certification system, including digital solutions.’
Internationally successful local value creation
The Woodcross Resources company regularly undergoes independent audits. This ensures that all participants along the supply chain fulfill their duty of care. Dozens of mining staff have received training on how to carry out their work in a safer, more environmentally friendly and legally compliant manner. In addition, miners now sell the mining company ore more reliably and at a transparent price. They benefit from ten to 15 per cent more income.
The model also benefits European companies. The independent audits confirm that extraction of raw materials is carried out responsibly. This is a key prerequisite for permission to import raw materials such as tin into the EU. In addition, the European Union’s Special Representative for the Great Lakes Region, Johan Borgstam, emphasises: ‘For us, securing access to critical raw materials goes hand in hand with promoting peace and development in the Great Lakes region. GIZ’s support in sustainably developing Uganda’s mining sector makes a key contribution to this goal."
The International Conference on the Great Lakes Region (ICGLR) is an alliance of twelve countries in Central and East Africa. They have joined forces to strengthen peace, security and economic cooperation in the crisis region. ICGLR is the only regional organisation in Africa that deals specifically with the link between resource extraction and peace and security. Its Regional Initiative Against the Illegal Exploitation of Natural Resources (RINR) helps strengthen supply chain due diligence in line with international standards in the twelve member states. This ensures responsible procurement of minerals from the Great Lakes region.