The Role of Traceability in Critical Mineral Supply Chains
11.03.2025
On March 6, 2025, a seminar jointl.organized by the Organisation for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA) was held to present the key findings and recommendations of their joint report “The Role of Traceability in Critical Mineral Supply Chains.” The Secretariat of Kazakhstan’s National Contact Point (NCP) participated in the event. During the seminar, OECD and IEA representatives discussed major challenges and prospects for ensuring transparency and sustainability in the supply of strategically important resources, as outlined in the report.
Experts emphasized the importance of international cooperation and the implementation of traceability tools that allow tracking the origin, transport, and processing of raw materials. Transparent supply chains help reduce illicit trade, as well as environmental and social risks associated with mineral extraction. The seminar examined mechanisms for supply chain mapping, resource flow documentation, and information disclosure to stakeholders. It was noted that regulatory frameworks promoting traceability are becoming increasingly widespread. Various countries are adopting supply chain laws, rare resource management systems, product passports, and national security measures to ensure responsible sourcing and oversight. The seminar discussed the effectiveness of traceability systems, which include four key components. First, technological tools and information management systems for tracking and data handling. Second, risk assessment for specific commodities, such as critical minerals, with clearly defined desired outcomes. Third, supply chain cooperation, involving coordination among participants and data sharing. Fourth, data input, management, and verification requirements, including multi-stakeholder participation, third-party auditing, chain-of-custody standards, and capacity building. Particular attention was given to traceability of minerals such as copper, lithium, nickel, graphite, and rare earth elements. Their complex supply chains and high levels of processing require detailed monitoring, especially in the context of concentrated markets. The lack of unified standards hinders the effective operation of traceability systems. Data must be not only accurate but also reliably transmitted. Economic incentives-such as financing mechanisms and tax benefits-are also essential for encouraging compliance. In conclusion, experts stressed that to improve the efficiency of traceability systems, governments must identify priority commodities, establish data exchange standards, implement trust mechanisms, and strengthen international cooperation to ensure transparency and reduce risks across global supply chains.
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