Copper

Table of Contents

Both forced labor and child labor have been documented in copper supply chains, highlighting the need for traceability solutions that can support broader company due diligence strategies.
When forced labor, particularly of domestic or international migrants, is likely a risk, efforts should be made to identify individual worksites in the supply chain to facilitate future on-the-ground assessments of labor conditions.
The presence of informal artisanal and small-scale mines poses the highest risk for child labor and exacerbates traceability challenges in copper supply chains. In cases where child labor is likely to be a prominent risk, understanding the broader geographic footprint of mining activities in the supply chain is beneficial to evaluate potential child labor risks and root causes, as well as to inform potential remediation strategies.
Traceability systems implemented should be feasible in the context of artisanal mines, when relevant. These smaller mining operations may have less administrative capacity and capacity to engage in higher-input traceability efforts without pre-engagement, such as significant training and on-boarding efforts. Traceability efforts should be developed with an understanding of the capacity of relevant suppliers in mind – particularly small-scale mining sites.
Copper from different mining origins is mixed and aggregated at multiple downstream points in the copper supply chain. Copper mined in artisanal or small-scale mines may be traded at early supply chain nodes and become absorbed into the output of larger-scale commercial mining operations. Copper from different mines is mixed in the creation of copper cathodes by smelter and copper cathodes from different smelters are mixed in the creation of copper wire and other products. Spot trading is utilized in copper value chains and can severely limit the transparency of transactions upstream of the traders. Industry-based analyses have identified product tracking approaches that permit the mixing of materials from different sources (such as mass balance) as more flexible and feasible ways to trace copper in the copper supply chain.¹

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence of other vulnerable workers

Documented presence or significant likelihood of third-party labor recruiters

The U.S. Department of State lists the presence of forced labor and trafficking in persons in the copper industry in its 2021 Trafficking in Persons Report.² Specifically, the trafficking of Chinese nationals to work for Chinese-owned copper mines in Zambia has indicators of forced labor. These include non-payment of wages, restriction of movement, and the withholding of personal documents.³
The U.S. Department of Labor has noted the presence of child labor in the production of copper in the Democratic Republic of the Congo (DRC).⁴
Human rights organizations have reported exploitative working conditions in Chinese-owned mines in Zambia, including the threat of termination if workers refuse to work in the unsafe conditions.⁵ Similar abuses have been reported in other producing countries, as well. For example, the Canadian mining company Nevsun was sued in 2019 over their alleged complicity in forced labor, modern slavery, and other human rights abuses in their gold, zinc, and copper mines in Eritrea.⁶
There is a documented presence of foreign-born workers in the copper mining industry; however, they make up a very small percentage of the workforce. In 2014, the International Labor Organization (ILO) reported that foreign labor made up no more than one percent of the total mining workforce in Chile, the top global exporting country of copper.⁷ Similarly, the World Bank estimated in 2015 that just 0.8 percent of the population was foreign-born, but that those who came as economic migrants tended to live in the Copperbelt province (25.8 percent) due to employment opportunities in the mining sector there.⁸ Swedwatch noted high levels of internal migration to the areas where mines are located, as well.⁹

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex/opaque supply chains and/or lack of vertical integration

Large numbers of dispersed, unorganized, or informal small producers or other worksites

High degree of flexibility in procurement practices of downstream entities

Most copper mining takes place in copper mines that engage in large-scale mining (LSM), which are typically commercially managed.¹⁰ The large copper mining companies are headquartered in many locations around the world, including in the U.S., and own mining reserves in copper-producing countries.¹¹ There are a limited number of smaller producers conducting artisanal and small-scale mining (ASM), such as in the Democratic Republic of the Congo (DRC), where 10,000 tons of raw copper are mined by ASM every month.¹² Child labor risks in the copper mining sector in the DRC are associated with these ASM mines. There is more documentation of child labor associated with cobalt mining in the DRC, but since most cobalt is produced as a byproduct of copper mining, disentangling this risk from copper production is difficult.
There are multiple points of aggregation and transformation throughout the copper supply chain, as the copper ore is transformed into copper cathodes (99.99% pure copper) via a number of different processes.¹³
Copper supply chains are complex due to the number of entities involved. After the copper is mined, middlemen buy copper directly from the mines and sell it to regional smelters.¹⁴ In Sub-Saharan Africa, these smelters can be owned by international companies.¹⁵ Artisanal and small-scale mines add to this complexity by creating informal links in the supply chain.¹⁶ However, there is some degree of vertical integration of these different entities, as global corporations sometimes own and operate large copper mines.¹⁷
Procurement practices in the copper sector have tended to be largely inflexible, as downstream companies are reliant on the supply of a relatively small number of large-scale copper mines.¹⁸ However, the rise of artisanal and small-scale mining allows for an elastic supply that has led to the development of more flexible procurement practices.¹⁹ One side effect of this increased flexibility is the higher risk that copper from unidentified sources is being aggregated with copper from an identified large-scale mine.

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

To be able to use copper commercially, it has to be transformed from raw ore to a finished product.²²The copper value chain has three stages. First, the copper ore is mined and then converted into copper concentrates, which are the first commercial product in the value chain.²³ Second, cathodes (99.99 percent pure copper, once impurities are removed²⁴) are produced in three ways: from sulfidic concentrates by smelting or refining (64 percent), by leaching and electrowinning oxidic ores at the mine site (19 percent), or by processing scrap. Third, semis are fabricated that can be used for wires or strips (17 percent).²⁵ There is no single company that does both mining and semi production; rather, they are specialized in one or the other.²⁶ This means that copper has to be traded between companies at different stages of the value chain, making it the most-traded metal.²⁷

There are two distinct types of copper mining: large-scale mining (LSM) and artisanal and small-scale mining (ASM).^{²⁸Interconnected supply chains: a comprehensive look at due diligence challenges and opportunities sourcing cobalt and copper from the Democratic Republic of Congo. OECD, 2019, mneguidelines.oecd.org/Interconnected-supply-chains-a-comprehensive-look-at-due-diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-DRC.pdf.} ASM is valued for its elastic supply (its ability to respond to demand).²⁹ A large number of informal ASM operations take place on LSM concessions, leading to increased safety risks for workers.³⁰ In the Democratic Republic of the Congo, ASM produces 10,000 tons of raw copper every month. While this is a relatively low portion of the DRC‘s total copper production, it still relies on many informal workers who face a higher risk of exploitation.³¹

Mining

Copper ore processing [produces concentrates and copper ores for export & further processing]

Smelting and refining [produces refined copper cathodes for export & further processing]

Semi and final production [produces wire rod shapes, strips, tubes, cables, etc. for export & further processing]

Wholesale and distribution in global economy

Energy and Electrical

The primary use of copper cathodes is the production of wire rod, with around 60-70% of copper cathodes being converted into these. Copper cathodes are also used for billets and cakes for the production of strips and tubes.
Copper products are used as conductors in cars and transformation or transportation of electrical energy.

Electronics

Three quarters of total copper use is electrical, including: power transmission and generation, building wire, telecommunication and electrical and electronic products.
Building construction is the single largest market for copper use.
Recycling of copper by-products from manufacturing and obsolete copper products contributes to the supply of copper.

TraceMet Pilot Project – Traceability for sustainable metals and minerals The Copper Mark Chain of Custody Model provides a standard to support product-level claims of “Copper Mark Copper” which promotes responsibly sourced copper.

1
Svemin. Traceability of Sustainable Metals: a Blockchain-based Solution. May 2019. https://www.ivl.se/download/18.3caf9fbe174fee4974b25ec/1603289493500/Traceability%20of%20sustainable%20metals%20%20slutrapport%20f%C3%B6rstudie%20(002).pdf.
2
Trafficking in Persons Report, United States of America Department of State, June 2021,  https://www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.  
3
Trafficking in Persons Report, United States of America Department of State, June 2021, https://www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.
4
List of Goods Produced by Child or Forced Labor. Bureau of International Labor Affairs, 23 June 2021, https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods?tid=All&field_exp_good_target_id=5746&field_exp_exploitation_type_target_id_1=All&items_per_page=10.
5
‘“You’ll be Fired if You Refuse” Labor Abuses in Zambia’s Chinese State-owned Copper Mines’ Human Rights Watch, November 4^th 2011 www.hrw.org/report/2011/11/04/youll-be-fired-if-you-refuse/labor-abuses-zambias-chinese-state-owned-copper.
6
Harris, Kathleen. ‘Top court weighs precedent-setting case of human rights breaches at Canadian mine in Eritrea’, CBC, January 24th 2019, www.cbc.ca/news/politics/supreme-court-nevsun-eritrea-mine-human-rights-1.4990064?fbclid=IwAR37SinBap4TrdwU2ePJBs5KO5mNn_1GJim-nbzr2a81Eg4OSZMbk_WEYKs.
Fofaria, Akshai. “Modern slavery risk and the mining sector.” Pinsent Masons, 29 Nov. 2021,www.pinsentmasons.com/out-law/analysis/modern-slavery-risk-and-the-mining-sector.
7
Campbell, Bonnie, et al. “International Migrant Workers in the Mining Sector.” International Labour Office, 2016, www.ilo.org/wcmsp5/groups/public/—ed_protect/—protrav/—migrant/documents/publication/wcms_538488.pdf.
8
“International Migrant Stock (% of Population) – Zambia | Data.” World Bank, data.worldbank.org/indicator/SM.POP.TOTL.ZS?locations=ZM.
Campbell, Bonnie, et al. “International Migrant Workers in the Mining Sector.” International Labour Office, 2016, https://www.ilo.org/wcmsp5/groups/public/—ed_protect/—protrav/—migrant/documents/publication/wcms_537175.pdf.
9
Jokobsson, Linda Scott. “Copper With a Cost. Human rights and environmental risks in the mineral supply chains of ICT: A case study from Zambia.” SwedWatch, 6 May 2019, swedwatch.org/wp-content/uploads/2019/05/94_Zambia_190429_enkelsidor.pdf.
Wilson, Nicholas. “The Early 21st Century Copper Boom and HIV/AIDS in Zambia.” Department of Economics, Williams College, 2010, web.williams.edu/Economics/seminars/WilsonCopperMining.pdf.
10
Jokobsson, Linda Scott. “Copper With a Cost. Human rights and environmental risks in the mineral supply chains of ICT: A case study from Zambia.” SwedWatch, 6 May 2019, swedwatch.org/wp-content/uploads/2019/05/94_Zambia_190429_enkelsidor.pdf.
11
NS Energy Staff Writer. “Profiling the five largest copper mining companies in the world.” NS Energy, 13 April 2021, https://www.nsenergybusiness.com/features/largest-copper-mining-companies.
12
Fairbairn, Francesca. “The Global Demand for Copper and the Human Rights Challenges Ahead”, Institute for Human Rights and Business, June 28^th 2021, https://www.ihrb.org/focus-areas/commodities/global-demand-for-copper-and-human-rights-challenges.
13
Langer, Bernard E. “Examining the copper value chain.” Copper Worldwide, 2014, www.understanding-copper.com/Documents/CW_ValueChain_Langner.pdf.
14
Dymyt, Malgorzata, et al. “The Supply Chain of the Mining Industry: The Case of Copper Mining.” European Research Studies Journal, 17 Feb 2021, doi: 10.35808/ersj/1958.
Trafficking Risk in Sub-Saharan African Supply Chains, Verité, www.verite.org/africa/explore-by-commodity/copper.
15
Sweeney, John. “Panorama Questions Over Glencore Mines”, BBC, 16 April 2012, https://www.bbc.com/news/17702487.
16
Interconnected supply chains: a comprehensive look at due diligence challenges and opportunities sourcing cobalt and copper from the Democratic Republic of Congo. OECD, 2019, mneguidelines.oecd.org/Interconnected-supply-chains-a-comprehensive-look-at-due-diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-DRC.pdf.
17
Sweeney, John. “Panorama Questions Over Glencore Mines.” BBC, 16 April 2012, https://www.bbc.com/news/17702487.
18
Interconnected supply chains: a comprehensive look at due diligence challenges and opportunities sourcing cobalt and copper from the Democratic Republic of Congo. OECD, 2019, mneguidelines.oecd.org/Interconnected-supply-chains-a-comprehensive-look-at-due-diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-DRC.pdf.
19
Fairbairn, Francesca. “The Global Demand for Copper and the Human Rights Challenges Ahead.” Institute for Human Rights and Business, 28 June 2021, https://www.ihrb.org/focus-areas/commodities/global-demand-for-copper-and-human-rights-challenges.
20
Child Labour in Mining and Global Supply Chains. International Labour Organisation, 2019, www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilo-manila/documents/publication/wcms_720743.pdf.
21
Child Labour in Mining and Global Supply Chains. International Labour Organisation, 2019, www.ilo.org/wcmsp5/groups/public/—asia/—ro-bangkok/—ilo-manila/documents/publication/wcms_720743.pdf.
22
Langer, Bernard E. “Examining the copper value chain.” Copper Worldwide, 2014, www.understanding-copper.com/Documents/CW_ValueChain_Langner.pdf.
23
Langer, Bernard E. “Examining the copper value chain.” Copper Worldwide, 2014, www.understanding-copper.com/Documents/CW_ValueChain_Langner.pdf.
24
Copper Mining and Processing: Processing Copper Ores. The University of Arizona Superfund Research Centre, superfund.arizona.edu/resources/learning-modules-english/copper-mining-and-processing/processing-copper-ores.
25
Langer, Bernard E. “Examining the copper value chain.” Copper Worldwide, 2014, www.understanding-copper.com/Documents/CW_ValueChain_Langner.pdf.
26
Langer, Bernard E. “Examining the copper value chain.” Copper Worldwide, 2014, www.understanding-copper.com/Documents/CW_ValueChain_Langner.pdf.
27
Langer, Bernard E. “Examining the copper value chain.” Copper Worldwide, 2014, www.understanding-copper.com/Documents/CW_ValueChain_Langner.pdf.
28
Interconnected supply chains: a comprehensive look at due diligence challenges and opportunities sourcing cobalt and copper from the Democratic Republic of Congo. OECD, 2019, mneguidelines.oecd.org/Interconnected-supply-chains-a-comprehensive-look-at-due-diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-DRC.pdf.
29
Interconnected supply chains: a comprehensive look at due diligence challenges and opportunities sourcing cobalt and copper from the Democratic Republic of Congo. OECD, 2019, mneguidelines.oecd.org/Interconnected-supply-chains-a-comprehensive-look-at-due-diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-DRC.pdf.
30
Interconnected supply chains: a comprehensive look at due diligence challenges and opportunities sourcing cobalt and copper from the Democratic Republic of Congo. OECD, 2019, mneguidelines.oecd.org/Interconnected-supply-chains-a-comprehensive-look-at-due-diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-DRC.pdf.
31
Fairbairn, Francesca. “The Global Demand for Copper and the Human Rights Challenges Ahead”, Institute for Human Rights and Business, 28 June 2021, https://www.ihrb.org/focus-areas/commodities/global-demand-for-copper-and-human-rights-challenges.
32
List of exporters for the selected product in 2021. Product: 74 Copper and articles thereof. ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c74%7c%7c%7c2%7c1%7c1%7c2%7c1%7c%7c2%7c1%7c%7c1.

Funding is provided by the United States Department of Labor under cooperative agreement number IL‐35805. 100 percent of the total costs of the project or program is financed with federal funds, for a total of USD 4,000,000. This material does not necessarily reflect the views or policies of the United States Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement by the United States Government

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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

Nature of Labor Rights Risk/Vulnerable Workers

Features of Production and Supply Chain

Distribution of Labor Risk in Various Production Areas

Linked Upstream and Downstream Risks

Risk in Nodes in Copper Production

Associated Downstream Goods and Consumer Sectors

Top Global Countries

Examples & Resources: Traceability Efforts Associated with Copper

Footnotes