Hillside Mining Company Ltd Supply Chain Policy for a Responsible Global Supply Chain of Minerals from Conflict- Affected and High-Risk Areas.
Hillside mining company Ltd recognizes that risks of significant adverse impacts may be associated with extracting, trading, handling and exporting minerals from conflict-affected and high risk areas, and that practices of Hillside mining company Ltd or its suppliers may adversely impact human rights or contribute to conflict. Hillside mining company Ltd therefore commits to adopt, widely disseminate and, subject to each --supplier’s position in the supply chain, incorporate in contracts and / or agreements with suppliers the following policy on transparency and responsible sourcing of minerals from conflict-affected and high risk areas. Hillside mining company Ltd further commits not to knowingly contribute to the financing of conflict in conflict- affected and high risk areas. Hillside mining company Ltd will make this policy available on its website.
Regarding serious abuses associated with the extraction, transport or trade of minerals:
1. Hillside mining company Ltd will take reasonable steps to determine if the sources of minerals purchased are not coming from conflict-affected and high risk areas. Further, Hillside mining company Ltd will seek contractual obligations, by means of reference to this policy, from its suppliers that prohibit such suppliers from, in connection with Hillside mining company Ltd minerals procurement, allowing, profiting from, contributing to, assisting with, or facilitating the commission by any party of: any form of torture, cruel, inhuman and degrading treatment; Any form of forced or compulsory labor, which means work or service which is exacted from any person under the menace of penalty and for which said person has not offered him voluntarily. the worst forms of child labor, as described by the International Labor Organization Convention No.182 (Worst Form of Child Labor Convention, 1999); other gross human rights violations and abuses such as widespread sexual violence; or War crimes or other serious violations of international humanitarian law, crimes against humanity or genocide.
Concerning risk management of serious abuses
2. If Hillside mining company Ltd determines that any minerals supplier (mining company or mining cooperative) carries a reasonable risk of knowingly sourcing minerals from, or is linked to, any party committing serious abuses as defined in Section 1 Hillside mining company Ltd will seek to enforce the contractual obligations described in Section 1 by means of reasonable series of escalations. Such escalations may range from prompt engagement with the supplier to confirm the sourcing issue, to requiring such supplier to implement a risk management plan (which plan may involve, as appropriate, remedial action up to and including disengagement with minerals suppliers), to disengage by Hillside mining company Ltd with the applicable supplier.
Regarding direct or indirect support to non-state armed groups
3. Subject to each supplier’s position in the supply chain, Hillside mining company Ltd will seek contractual obligations, by way of reference to this policy, from its minerals suppliers that prohibit such suppliers from, in connection with Hillside mining company Ltd’s minerals procurements, contributing any funds obtained from Hillside mining company Ltd to be used for any known direct or indirect support to non-state armed groups through the extraction, transport, trade, handling or export of minerals. “Direct or indirect support” to non-state armed groups through the extraction, transport, trade, handling or export of minerals includes, but is not limited to, procuring minerals from, making payments to or otherwise providing logistical assistance or equipment to, non- state armed groups or affiliates who: i. Illegally control mine sites or otherwise control transport routes, points where minerals are traded ; and / or Illegal taxes or extort money or minerals at points of access to mine sites, along transportation routes or at points where minerals are traded; and / or Illegal tax or extort intermediaries or export companies.
Regarding risk management of direct or indirect support to non-state armed groups:
4. If Hillside mining company Ltd determines that any minerals supplier carries a reasonable risk of knowingly providing direct or indirect support to non-state armed groups as defined at section 3, Hillside mining company Ltd will seek to enforce its contractual terms described in Section 3 by means of a reasonable series of escalations. Such escalations may range from prompt engagement with the supplier to confirm the sourcing issue, to requiring such supplier to implement risk management plan (which plan may involve, as appropriate, remedial action up to and including disengagement with mining company, mining cooperative or small minerals trader “comptoir”), to disengagement by Hillside mining company Ltd with the applicable supplier.
Regarding public or private security forces:
Hillside mining company Ltd shall not knowingly provide direct or indirect support to public or private security forces who illegally control mine sites, transportation routes and, illegally tax or extort money or minerals at points of access to mine sites, along transport routes; or illegally tax or extort intermediaries “minerals comptoirs”. Hillside mining company Ltd shall require, by means of reference to this policy, its minerals suppliers to, directly or indirectly, ensure that the role of public or private security forces at mine sites and / or surrounding areas and / or along transportation routes from which such suppliers knowingly source minerals and / or which are used to transfer such minerals , as applicable, is to maintain the rule of law, including safeguarding human rights, providing security to mine workers, equipment and facilities and protecting the mine site or transportation routes from interference with legitimate extraction and trade. Hillside mining company Ltd shall require, by means of reference to this policy, its minerals suppliers who contract public or private security forces to require that such security forces will be engaged in accordance with the Voluntary Principles of Security and Human Rights, including requirements to support or take steps to adopt screening policies to ensure that individuals or units of security forces that are known to have been responsible for gross human rights abuses will not be hired. Subject to each minerals supplier, Hillside mining company Ltd will require, by means of reference to this policy, to directly or indirectly, reasonably engage with central or local authorities, international organizations and civil society organizations to contribute to workable solutions on how transparency, proportionality and accountability in payments made to public security forces for the provision of security could be improved. Subject to each supplier, Hillside mining company Ltd shall require, by means of reference to this policy, its minerals suppliers to, directly or indirectly, engage with local authorities, international organizations to avoid or minimize the exposure of vulnerable groups, in particular artisanal miners or small scale mining, to adverse impacts associated with the presence of security forces, public or private, on mine sites.
Regarding risk management of public or private security forces:
10. In accordance with the specific position of the company in the supply chain, Hillside mining company Ltd will immediately advise, adopt and implement a risk management plan with minerals suppliers and other stakeholders to prevent or mitigate the risk of direct or indirect support to public or private security forces, as identified in Section 5, where we identify that such a reasonable series of escalations .Such escalations may range from prompt engagement with the supplier to confirm the sourcing issue, to requiring such supplier to implement a risk management plan ( which plan may involve , as appropriate, remedial action up to including disengagement with the minerals supplier), to disengagement by Hillside mining company Ltd with the applicable supplier. Where Hillside mining company Ltd identifies the reasonable risk of activities inconsistent with paragraph 8 and 9 of this Policy, Hillside mining company Ltd will respond in the same vein.
Regarding bribery and fraudulent misrepresentation of the origin of minerals:
11. In compliance with existing Hillside mining company Ltd policy prohibiting Hillside mining company Ltd employees from engaging in acts of bribery related to Hillside mining company Ltd practices, Hillside mining company Ltd will not offer, promise, give or demand any bribes, and will resist the solicitation of bribes to conceal or disguise the origin of minerals, to misrepresent taxes, fees and royalties paid to governments for the purposes of minerals extraction, trade, handling, transport and export.
Regarding money laundering:
12. Hillside mining company Ltd supports efforts to contribute to the effective elimination of money laundering where there is a reasonable risk of money-laundering resulting from, or connected to, the extraction, trade, handling, transport or export of minerals derived from the illegal taxation or extortion of minerals at points of access to mine sites, along transportation routes or at points where minerals are traded by upstream suppliers.
8. As detailed in Step 3(D) of Annex I, companies should conduct an additional risk assessment on those risks requiring mitigation after the adoption of the risk management plan. If within six months from the adoption of the risk management plan there is no significant measurable improvement to prevent or mitigate the risk of direct or indirect support to public or private security forces, as identified in paragraph 5, companies should suspend or discontinue engagement with the supplier for a minimum of three months. Suspension may be accompanied by a revised risk management plan, stating the performance objectives for progressive improvement that should be met before resuming the trade relationship. 9. See OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997); and the United Nations Convention Against Corruption (2004).
Regarding the payment of taxes, fees and royalties due to governments:
13. Hillside Mining Company Ltd will ensure that all taxes, fees, and royalties related to mineral extraction, trade and export from conflict-affected and high-risk areas are paid to governments and, in accordance with the company’s position in the supply chain, Hillside Mining Company Ltd commit to disclose such payments in accordance with the principles set forth under the Extractive Industry Transparency Initiative (EITI).
Regarding risk management of bribery and fraudulent misrepresentation of the origin of minerals, money-laundering and payment of taxes, fees and royalties to governments:
14. In accordance with the specific position of the company in the supply chain, Hillside Mining Company Ltd commit to engage with suppliers, central or local governmental authorities, international organizations, civil society and affected third parties, as appropriate, to improve and track performance with a view to preventing or mitigating risks of adverse impacts through measureable steps taken in reasonable timescales. Hillside Mining Company Ltd will suspend or discontinue engagement with upstream suppliers after failed attempts at mitigation.10
10. As detailed in Step 3(D) of Annex I, companies should conduct an additional risk assessment on those risks requiring mitigation after the adoption of the risk management plan. If within six months from the adoption of the risk management plan there is no significant measurable improvement to prevent or mitigate the risks of bribery and fraudulent misrepresentation of the origin of minerals, money-laundering and payment of taxes, fees and royalties to governments, companies should suspend or discontinue engagement with the supplier for a minimum of three months. Suspension may be accompanied by a revised risk management plan, stating the performance objectives for progressive improvement that should be met before resuming the trade relationship.