(IDEX Online News) – The Birmingham Assay Office (BAO) has alerted companies and organizations dealing with precious minerals to contribute to a EU Commission public consultation on so-called “conflict minerals". The consultation period ends on June 26.

 

"The Commission will use the results to help it decide whether or not to introduce legislation in relation to the responsible sourcing of minerals from for example war zones, post-war zones, and areas vulnerable to political instability or civil unrest," the BAO said in a statement. "This is an important and significant issue for the fine- and fashion-jewelry industry, watches and fashion accessories.

 

There is a possibility that EU legislative regulation could be a version of the American Dodd Frank [Wall Street Reform & Consumer Protection] Act that covers gold, tin, tungsten and tantalum originating from the Democratic Republic of the Congo or an adjoining country, the statement says.

 

"The EU consultation does not specify which geographical areas or particular minerals might be included. It could conceivably include diamonds and gemstones."

 

Alternatively, the BAO asks if members of the diamonds, gemstones, precious metals and jewelry trade might prefer to adopt the UN Guiding Principles on Business and Human Rights, and have a voluntary code along the lines of the OECD Due Diligence Guidance or the ‘Extractive Industry Transparency Initiative

 

The statement says that the Dodd Frank Act "has triggered the law of unintended consequences, such that it has become so bureaucratic and onerous for legitimate suppliers to obtain gold, tin, tungsten and tantalum from the DRC and surrounding countries that they have abandoned sourcing from that area altogether, leading to a collapse in legitimate trade. This has inevitably been replaced by criminal activity and illegitimate trade to the detriment of the artisanal mining community and the countries as a whole.

 

Whether there is a law or voluntary code, we must make sure we choose our words carefully to ensure that gold does not get labeled generally as a “conflict mineral” instead of as “a legitimately sourced mineral from a conflict-affected area” which it may sometimes be.