Responsible minerals
Korea Zinc identifies risks related to responsible
minerals and formulates and implements improvement plans.
Responsible Minerals
Korea Zinc’s Responsible Minerals Management System
Korea Zinc entrusts the Purchasing Team that purchases raw materials with the management of conflict minerals and responsible minerals. In order to identify and manage responsible mineral risks in the supply chain through the operation of the responsible minerals management process, we have established and are implementing a risk mitigation plan.
Risk Management
CAHRA(Conflict-Affected and High-Risk Areas)
We establish Conflict-Affected & High-Risk Areas (CAHRA) every year and apply them to our purchases. CAHRA is evaluated based on seven criteria: five main criteria (governance, financial and humanitarian risk, future potential risk, human rights risk, and conflict risk), as well as the prohibition of money laundering and support for terrorism, in accordance with the EU CAHRA List and the Dodd-Frank Act standards. Risk areas for 2024 were selected based on the data up to 2023. 91 countries, including the Democratic Republic of Congo, were selected. Based on this, risk classification is applied to the internal payment system, and strategies to mitigate risks are internally adopted.
Responsible Minerals Assurance Process (RMAP) Assessment
LME (Zinc, Lead)
The (LME) is the world’s largest metal market and a key initiative for non-ferrous metals such as zinc, lead, copper, and aluminum. Through its certification system, it ensures the quality of Korea Zinc’s nonferrous metal products while adhering to responsible sourcing standards. The certification guarantees that Korea Zinc’s core products, zinc and lead, are free from involvement in international issues such as human rights violations, as outlined in the OECD Guidance.
LBMA (Silver)
The London Bullion Market Association (LBMA), headquartered in London, UK, is the world’s most authoritative organization and initiative in the precious metals market. Each year, it evaluates the product quality and manufacturing processes of precious metals manufacturers worldwide. The assessment criteria include responsible sourcing standards, ensuring that Korea Zinc’s silver products are made using minerals sourced from regions free from human rights violations, labor exploitation, and environmental degradation, as outlined in the OECD Guidance.
RMI (Gold)
Korea Zinc has obtained certification for its gold products through the Responsible Mineral Initiative (RMI), under the Responsible Business Alliance (RBA). The RMI is an international initiative that supports responsible sources for all minerals from conflict-affected and high-risk areas (CAHRAs). It ensures that the raw materials for Korea Zinc’s gold products are not mined in CAHRAs and are not linked to human rights violations, forced labor, or funding of armed groups.