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Home » Cobalt Producer to Tackle Child Labor Concerns With Supply Probe

Cobalt Producer to Tackle Child Labor Concerns With Supply Probe

December 6, 2017
Bloomberg

Shandong-based Yantai is working with China’s Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters, and shipping services firm RCF Capacity Planners to audit its supply chain, Liu Xiaohan, a manager at the company, said by phone. The producer delivered metal to LME warehouses after gaining an export license in June.

“They will help us set up a responsible supply chain system,” Liu said. ‘‘We are going to set up a code of conduct and we will ask our suppliers to clarify the source of raw materials we buy.”

Scrutiny of the industry has intensified since an Amnesty International report in early 2016 alleged that electronics from the world’s biggest technology companies may contain cobalt sourced from artisanal mines in the Democratic Republic of Congo that often rely on child labor. The impoverished African nation supplies about two-thirds of the world’s cobalt.

Broader Push

The LME has told suppliers of all metals trading on the bourse to provide information on their initiatives to ensure products are sourced responsibly. 

“The survey is part of a broader push with regard to responsible sourcing standards and not related to any particular producer or brand,” a spokeswoman for the bourse said. “However, we would expect that any specific concerns will be addressed as part of our existing efforts and we look forward to engaging with the market further on this important topic.”

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KEYWORDS Business Strategy Alignment Chemicals & Energy Global Supply Chain Management HR & Labor Management Industrial Manufacturing Pharmaceutical/Biotech Sourcing/Procurement/SCM Technology
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