Public-Private Alliance for Responsible Minerals Trade

News

COVID-19: IMPACTS ON MEMBERS

Many thanks to all who shared reflections via our recent member survey on how the ongoing COVID-19 situation is impacting your organizations and work. We heard from members throughout the supply chain, government, and civil society. Below please find some high-level analysis of the survey responses, as well as some other member news and updates related to COVID-19 impacts. RESOLVE welcomes additional news or updated information on trends or activities as the situation evolves (mlee@resolve.ngo).

Upstream

•  Artisanal miners are financially impacted given major cash flow limitations and travel restrictions by many usual buyers, leading to market capture by illicit actors, stocks, or depressed pricing for ASM sources. Illicit buyers are able to work around border closures and travel restrictions.
• NGOs working directly with miners are being impacted, with stoppage to fieldwork and travel restrictions, and increased health and safety risks.a
  

Midstream and downstream

• There are some supply chain disruptions, but also consistent or increased demand for some components or tech such as remote work products. Chinese manufacturing is seen as essential and in recovery, which allows for supply chain re-connectivity.
• Demand may tighten in the future, given longer-term consumer and corporate economic impacts.

Members also shared some challenges related to due diligence and responsible sourcing.

• Audits are difficult or impossible to implement given travel restrictions. Some auditees have requested postponing assessments.
• Suppliers may be more reticent than usual to respond and may be deprioritizing due diligence inquiries.
• Due diligence is a core activity for members. However, some mid-tier suppliers may deprioritize requests, especially those that go beyond compliance-oriented reporting.
• Members are seeing disruption in their day-to-day activities and operations – remote work measures are common, as are event cancellations or postponements (as well as some shifts to virtual meetings).
• A common theme throughout responses was the lack of certainty around how the ongoing crisis will impact the future, and whether/if “business as usual” will resume. We will continue to check in with members as the situation evolves. Please feel free to share any news or information with RESOLVE (mlee@resolve.ngo).
  
  

Below please find some additional updates from PPA members about their ongoing activities related to COVID-19:

• KEMET: Please see this website for KEMET’s statement on COVID-19.
• Responsible Minerals Initiative (RMI): RMI recently surveyed smelters, refiners, and other upstream RMI members on impacts from COVID-19. A summary of survey results, other RMI actions, and suggestions for downstream support is now available on the RMI website.