Accelerating ESG Management by Increasing Strategic Mineral Production
Promoting On-site Inspections in Line with OECD Guidelines
On June 8, Korea Zinc announced that it has conducted on-site inspections of certain supply chains in the first half of this year to enhance supply chain transparency. This initiative is part of the company’s efforts to ensure that minerals used in its products are ethically sourced, in accordance with the on-site inspection guidelines of the Organisation for Economic Co-operation and Development (OECD).
Lee Jejung, CTO and Vice Chairman of Korea Zinc, is visiting the indium plant within the Korea Zinc Onsan Smelter to inspect the produced products. Photo by Korea Zinc
Through these on-site inspections, Korea Zinc examined whether there were any negative impacts related to major risks such as forced labor, child labor, support for armed groups, and money laundering. This measure aims to identify potential supply chain risks in advance through on-site inspections before entering into new supply contracts, thereby complying with responsible mineral sourcing policies required by international organizations. Korea Zinc also discloses its responsible mineral management policy and related reports on its official website.
The term "responsible minerals" refers to minerals that may pose risks related to social responsibility issues such as human rights and the environment during the mining process, including those produced in conflict regions. It is a comprehensive concept that encompasses minerals for which ethical sourcing is required, meaning minerals that need to be managed as a matter of social responsibility during extraction.
Korea Zinc is expanding its supply chain risk management not only for conflict minerals such as tin, tantalum, tungsten, and gold?collectively known as 3TG?but also for non-ferrous metals that are core products of the company, including zinc, lead, silver, and copper.
According to Korea Zinc’s published responsible minerals report and sustainability management report, the company has established a management system centered on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals, and meets the requirements of global certification bodies such as the Responsible Minerals Initiative (RMI), London Metal Exchange (LME), and London Bullion Market Association (LBMA). The company evaluates risks for its suppliers through self-assessments, risk checks, and on-site inspections.
Additionally, by publishing a responsible mineral management policy manual, Korea Zinc has established a concrete implementation system that includes setting principles for responsible mineral sourcing, assigning a supplier code of conduct, and notifying suppliers of the possibility of terminating contracts in case of violations.
A Korea Zinc representative stated, "Going forward, we plan to further expand the application of responsible sourcing principles company-wide, continue to build and expand supply chains that comply with global environmental, social, and governance (ESG) standards, and meet the criteria set by OECD guidelines."
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