2015 OTIC Report on Due Diligence of Tantalum Supply Chain
Ningxia Orient Tantalum Industry Co., Ltd. (hereinafter called as "OTIC"), as being one of the specialized Ta & Nb smelters in the world, has taken leading position in technology development and production scale through its continual accumulation and development during the past half century. OTIC is also one of the executive members of the Tantalum-Niobium International Study Center (TIC)..We have been doing our best in providing complete series of high-quality Ta & Nb products and excellent services to all worldwide electronic consumers to meet the final-end consumers’various and changing requirements through our continuous creativity.
OTIC strictly complies with the requirements of . As a formal member of iTSCi since 2011, OTIC actively has been giving its support andparticipating in traceability verification of tantalum mineral sourcing from theDemocratic Republic of Congo and its neighbouring nine countries. OTIC is also committed to strictly comply with the requirements of Conflict-Free Smelter Program(CFSP) regarding tantalum mineral supply chain proposed by CFSI.
OTIC has established complete supply chain control system for conflict-free raw materials through taking measures and performing procedures as follows to ensure " Conflict Minerals" from conflict-affected areas would never be purchased and used, ,and to prevent any conflict minerals from entering into OTIC supply chain.OTIC solemnly declared that OTIC only purchase tantalum raw material identified through iTSCi packing & tagging system from iTSCi formal members for the material sourcing from the Democratic Republic of Congo and its surrounding nine countries. And only purchase the tantalum intermediate products from CFS compliant smelters.
1. Open and Transparent Purchase Policy
1.1 OTIC’s Statement on Raw Material Procurement is posted to the public on thewebsite of OTIC.
1.2 OTIC released Provisions on Administration of Ta Raw Material Procurement toits all internal departments at all levels.
2. Controllable Process for Raw Material Procurement
OTIC has laid down and conducted eight process control procedures to restrict and inhibit "conflict minerals " entering into OTIC’s supply chain, including ,,, ,, ,< management procedure of intracompany Ta scraps recovery and usage>,< Management processes of purchasing documents>,etc..
3. Traceability process of Raw Material
Through conducting ,to ensure all Ta raw materials in use is under control and traceable.
4. Adopting Transportation Control System and Inspection Method in Compliance with International Standards and Norms
OTIC strictly complies with international regulations of dangerous goods transportation, including 7 class material, and OTIC has established and conducted ,and< Administrative Measures of radioactive materials>.
5. Purchasing and Recycling of Ta Scrap to recycle Resources
OTIC has conducted to purchase and recycle Ta scrap to make full use of these resources.
6. Performing Due Diligence on Raw Material Suppliers andMaintaining Continuity
6.1 OTIC performs due diligence on raw material suppliers every year, through re-auditing and evaluating the suppliers’ quality guarantee capability , legality and compliance each year, which will be used as a basis to select or disqualify as one of our suppliers. In this way, OTIC publicizes and spreads out to all suppliers ‘OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’ as well as CFSI audit standard and requirements for transparency of tantalum supply chain so as to ensure that all raw material suppliers act in accordance with EICC requirements and do not sell "conflict minerals " to OTIC and other demanders.
6.2 OTIC only seek cooperation with formal iTSCi members as cooperative partners in the Democratic Republic of Congo and its surrounding nine countries. OTIC solemnly declared that OTIC only purchases tantalum raw material identified through iTSCi packing & tagging system for the materials sourcing from the Democratic Republic of Congo and its surrounding nine countries. OTIC is also committed to only cooperating with the tantalum smelters certified to Conflict-Free Smelter (CFS) Program.
6.3 OTIC has set up its subsidiary in Rwanda so as to conduct on-site due diligenceon material suppliers.
7. Wide Public propagation and Communication Channel
7.1 OTIC performs due diligence on upstream raw material suppliers and spreads out to all suppliers the OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, reminding and supervising upstream suppliers to operate their business legally and not to sell "conflict minerals " to their buyers. The special clause requirement for conflict-free minerals is specified In the purchasing contract and all suppliers are committed to supplying with conflict-free minerals.
7.2 OTIC actively attends various meetings held by OECD or CFSI or iTSCi and often makes discussions with the downstream customers to jointly study and understand the OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as well as CFSI audit standard and requirements on transparency of tantalum supply chain. OTIC keep regular communication with the iTSCi, thereby carefully reading the iTSCi’s incidents reports and monthly production assessments and monthly regional situation evaluation reports,timely understanding the situation at mining sites.
7.3 While keeping communication with the downstream customers, in compliance with EICC requirements, OTIC provided them with Conflict Minerals Report Template so as to ensure implementation of the due diligence of supply chain.
7.4 OTIC spreads out to social public OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’ as well as CFSI audit standard and requirements on transparency of tantalum supply chain by means of OTIC website, network, magazines.
7.5 Establishment of Complaint channel, OTIC made public its Complaint channel, including telephone number and responsible person, for the purpose of willing to accept the supervision of all aspects.
8. Training OTIC's Employees in Various Forms
OTIC performs training of all employees including top managements to make them completely understand OECD Due Diligence Guidance for Supply Chain of Minerals from Conflict-Affected and High-Risk Areas as well as CFSI audit standard and requirements on transparency of tantalum supply chain by means of concentrated training, internal newspaper, office automation (OA) system, show board, etc.
9. Actively Fulfill Social Duty to Build up a Good Vision ofOTIC as a Responsible and Lawfully Operated Listed Company
OTIC always closely combines economic development of the enterprise with execution of social responsibility and fully fulfill the social duty at the premise of lawful and ethical operation through carrying out such activities as technical innovation, safe production, protecting the legitimate rights and interests of OTIC's employees, environmental protection, saving energy, reducing pollutants discharge and participation in social welfare. OTIC Social Responsibility Report is released to the public yearly.
10. OTIC has become a formal member of iTSCi since 2011 and has kept frequent communication with iTSCi to ensure no conflict material entering into our supply chain Since 2011, OTIC has accepted CFS (Conflict-Free Smelter) audit by an independent third party entrusted by CFSI each year and has been certified to the CFS audit . OTIC passed the annual CFS audit again on September 15th, 2015.