Conflict Minerals: Procurement Stress? Experience from Philips
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Conflict Minerals: Procurement Stress? Experience from Philips Jan-Willem Scheijgrond, Philips 24 October, Bern. What minerals? What sector?. Tungsten (W). Gold (Au). Tantalum (Ta). Tin (Sn). Electrical Non-electrical. Simplified supply chain for electronics.

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What minerals what sector
What minerals? PhilipsWhat sector?

Tungsten (W)

Gold (Au)

Tantalum (Ta)

Tin (Sn)

Electrical Non-electrical


Simplified supply chain for electronics Philips

Finished Product

Mine

Trader

Smelter

Component producer

Contract manufacturer / assembly

End-user

Typically 7+ tiers between mine and end-user



Illustration of global tantalum supply chain
Illustration of global tantalum supply chain responsible purchasing

Ten thousands of 1st tier suppliers globally

Tens of Ta smelters globally



EICC and for DF1502GeSI Approach to Conflict-Free Sourcing

Finished Product

MINE SMELTER/REFINERY OEMS

‘bagging & tagging’

Conflict Free

Smelter Program

Due Diligence


Philips responsible sourcing of minerals
Philips’ Responsible Sourcing of Minerals for DF1502

  • Responsible sourcing of Minerals Program

Due Diligence (OECD compliant)

Risk based approach 360 risk suppliers

EICC/GeSI template

ID CFSP compliance

Smelter list online

Conflict Resolution

Conflict Free Tin Initiative

Indonesia Conflict

3rd party audit

SEC Conflict Minerals Report


Due diligence at philips results summer 2013
Due diligence for DF1502at Philips – results Summer 2013


Conflict Free Smelters in Philips supply chain for DF1502number of identified smelters per region (yes/no CFS compliant, total: 231)


The conflict free tin initiative with support of dutch government
The Conflict Free Tin Initiative for DF1502with support of Dutch Government

Finished Product

Mine in Congo

Solder manufacturer

AIM

Alpha

End users

Philips,

Tata, Blackberry, Intel,

Motorola Solutions

Exporter

Smelter

MSC

(Malaysia Smelting Corp.)

Downstream:

create a market with industry partners

Upstream:

implement traceability mechanism



At the mine site
At the mine site for DF1502

  • 800 workers are working at the mine site

  • Children and pregnant women are not allowed at the mine site.


Bagging tagging
‘bagging & tagging’ for DF1502

  • Minerals are weighed and tagged at the mine site

  • ID tags, quantities, prices, miner, trader, date, etc. are administered

  • Data is entered in a database to enable traceability.

  • Minerals without a tag cannot be sold


Bags are sold to traders negociants who further filter the minerals
Bags are sold to traders ( for DF1502negociants), who further filter the minerals


The comptoir further processes and exports the minerals to the smelter
The ‘ for DF1502comptoir’ further processes and exports the minerals to the smelter


What should eu do follow de gucht s six principles and
What should EU do? for DF1502Follow De Gucht’s six principles and…


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