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Press Release

Hannover, March 27, 2009

BGR Pilot Project in Rwanda: Promoting Transparency, Social and Environmental Standards by Mineral Resource Certification

The Federal Institute for Geosciences and Natural Resources (BGR) carried out a joint pilot project with the Rwandan Geological Survey (OGMR) on the certification of trading chains for mineral resources. A planning workshop on this topic is held in the Rwandan capital Kigali on 25 and 26 March 2009 with the involvement of representatives of the participating institutions and companies.

The aim of this project, which is jointly funded by the Federal Ministry of Economics and Technology (BMWi) and the Federal Ministry for Economic Cooperation and Development (BMZ), is to support transparency, fairness and sustainability in the natural resources industry in regions of conflict. The most important components of this procedure comprise verification of origin and analysing the trading volume of the mineral resources tin, tungsten or tantalum ore. An additional objective is to promote adherence to minimum social and ecological standards in resource production.

The project can be traced back to an initiative of the G8 countries who agreed to support a pilot study on mineral resources certification at the June 2007 summit in Heiligendamm, Germany. 'There has previously been no quality hallmark for observing sustainability and development standards in the small-scale mining industry – this Rwandan pilot project can represent a first step in that direction', says Prof. Hans-Joachim Kümpel, BGR president. ‘In central African countries in particular, extraction and export of high-quality mineral resources often does not fall under state control. Small-scale mining, currently representing the greatest proportion of mineral resource extraction in Rwanda, is often carried on illegally. Trade and export are often not transparent’, explains Kümpel.

'In Rwanda, certification will be implemented for companies supporting the project on the basis of an appropriate management and monitoring plan', BGR project manager Dr. Gudrun Franken describes the aims of the pilot study. The project partners are local companies awarded licenses in 2006 by the state-owned 'Redemi' company during restructuring of the mining sector with the aim of achieving productivity increases in mining by continually improving operating resources and equipment.

On the customer side of the trading chain, metal-producing companies in the industrialised nations participate in the pilot project, including H.C. Starck from Goslar, Lower Saxony. The supply of ore concentrates from Rwanda to Europe is the subject of the agreement between the resource producers and the processors. Local company audits ensure the right balance of production, supply and stock capacities.

The Organisation for Economic Cooperation and Development (OECD) offers integrity instruments to multinational corporations as a basis for evaluating trading chains. The initial situation for the planned supply relationships was investigated by independent experts.

The project duration is 18 months. BMWi and BMZ share the total costs of € 500,000. The project component funded by the BMWi includes international coordination of the certification concept. The BMZ supports pilot implementation of mineral extracting company certification in Rwanda.

'Development of the national natural resource extraction industry provides Rwanda with an opportunity for local economic development', explains Dr. Volker Steinbach, head of the BGR energy and mineral resources department. It is estimated that there are currently up to 100,000 people active in SSM (small-scale mining) in Rwanda. Around 15% of the total population therefore depend indirectly on mining as the basis of their income. ‘The pilot project can make an important contribution to stabilising and improving living conditions in Rwanda', Steinbach emphasises. Rwanda is one of the principal suppliers of tantalum ore. Around 50% of world demand is met by African nations such as Ethiopia, Mozambique, the Democratic Republic of Congo and Rwanda.

In another project, BGR has developed an analytical process for verifying the origin of tantalum ores. What is known as the chemical-mineralogical 'fingerprint' allows the identification of tantalum ore concentrates from recognised or registered companies within the trading chain. This forensic proof means that the original tantalum ore deposit can be localised and dubious supplies from regions of conflict thus be identified, based on chemical and mineralogical parameters. This project focuses on the African continent as a whole.

Thanks to its high temperature and corrosion resistance properties, metallic tantalum has numerous industrial uses. For modern microelectronics in particular, tantalum is now indispensable. Tantalum is a primary constituent in the production of minute, powerful capacitors used in mobile telephones, laptops and flat screens.

Photos:
http://www.bgr.bund.de/DE/Gemeinsames/Oeffentlichkeitsarbeit/Pressemitteilungen/BGR/bgr-090313-bilder.html


Additional information:
http://www.bgr.bund.de/EN/Themen/Zusammenarbeit/BGR_TZ/bgr_tz_node_en.html


German Press Release from 13.03.2009: http://www.bgr.bund.de/DE/Gemeinsames/Oeffentlichkeitsarbeit/Pressemitteilungen/BGR/bgr__090313.html


Contact:
Dr. Gudrun Franken (Projekt Zertifizierung)
Tel.: 0511-643-2370 , E-Mail: Gudrun.Franken@bgr.de

Fritz Rainer Haut (Arbeitsbereich Afrika)
Tel.: 0511-643-2329, E-Mail: fritzrainer.haut@bgr.de

Dr. Frank Melcher (Projekt „Fingerprint“)
Tel.: 0511-643-2562, E-Mail: Frank.Melcher@bgr.de


Logos der drei Institutionen im GEOZENTRUM HANNOVER


Press spokesman: Andreas Beuge, Tel.: 0511 643 2679, mobil: 0170 8569662
E-mail: info@bgr.de Internet: http://www.geozentrum-hannover.de
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