Responsible Sourcing Audits – Practical Guide for Industrial Minerals
1 Why conduct responsible‑sourcing audits?
| Driver | Obligation or incentive |
|---|---|
| EU Conflict Minerals Regulation (2021) | Mandatory for tin, tantalum, tungsten, gold – antimony likely next; buyers cascade OECD DDG down the chain. |
| LME “Due Diligence” requirements | Metal brands traded on LME must prove OECD‑aligned sourcing by 2025. |
| Customer ESG requirements | Auto, electronics OEMs request RMAP‑type audits for all minerals. |
| Finance & insurance | Banks apply Equator Principles; premiums lower for audited supply. |
2 Applicable standards & frameworks
| Standard | Scope | Mineral relevance |
|---|---|---|
| OECD Due Diligence Guidance, 3rd ed. | Five‑step risk assessment | All minerals inc. talc & Sb. |
| Responsible Minerals Initiative (RMI) | RMAP audits, EMRT template | Antimony trioxide smelters joining 2024. |
| IRMA | Mine‑site certification | Talc, barite, lithium. |
| ISO 14001 & 45001 | Environment & safety management | Used as evidence of Step‑4 risk mitigation. |
3 Five‑Step DD process (OECD) and audit evidence
| Step | What auditor checks | Example evidence |
|---|---|---|
| 1 Establish management system | Policy, supply‑chain map, grievance mechanism | Signed Responsible‑Sourcing Policy; org‑chart with compliance officer. |
| 2 Identify & assess risks | Supplier screening, country risk | World‑Check screenshots, EMRT table, mine GPS. |
| 3 Design risk‑mitigation plan | Corrective‑action timetable | CAPA log with deadlines, training records. |
| 4 Carry out third‑party audit | Independent on‑site review | SGS / RMI audit report; sampling photos. |
| 5 Public reporting | Annual disclosure | PDF Sustainability Report section “Responsible Sourcing”. |
4 On‑site audit checklist (minerals trader view)
| Area | Key points |
|---|---|
| Legal permits | Valid mining licence; export authorisation. |
| Human rights & labour | No child/forced labour; wages logs; worker interviews. |
| Environment | Waste‑rock & tailings management; water quality tests. |
| Health & safety | PPE, incident logs, training records. |
| Traceability | Mine‑bag tagging, weighbridge linkage to lot IDs. |
| Security | No armed groups, illegal checkpoints. |
5 Audit frequency & grading
| Risk tier (OECD) | Audit cycle | Passing score |
|---|---|---|
| High‑risk country + small‑scale mine | Every 12 months | ≥90 % findings closed in 90 days |
| Medium | 24 months | ≥85 % |
| Low | 36 months | Desk review only |
6 Supplier improvement plan template
Finding # 03 – Missing tailings water monitoring
Action: Install pH/TSS sensor, monthly lab test
Owner: HSE Manager
Due date: 30 Sep 2025
Follow‑up audit: Nov 2025
7 Integrating audit data into ESG reports
Summarise % of tier‑1 suppliers audited (target ≥90 %).
Report materiality‑weighted risk score improvement YoY.
Publish corrective‑action closure rate.
Updated June 2025