Hambrox Ltd
26 Nov 2025
Due diligence in the global mining industry is a risk-management process for companies to identify, prevent, and respond to negative impacts across their supply chains and operations.
As the global clean energy transition accelerates, the world is gradually reducing fossil fuel consumption and steadily turning to electrification. As a result, the focus on energy security over the next decade will shift from oil to natural minerals.
“The supply of minerals will need to quadruple for use in clean energy technologies by 2040 to meet the objectives of the Paris Agreement” (OECD)
To meet this projected increase in demand, it will be important to source a large percentage of minerals necessary for the energy transition from conflict-affected or high-risk areas (CAHRA) due to their vast reserves. The wrong approach to produce, source and obtain these transition minerals risks exacerbating the delicate situations relating to corruption, armed conflicts, human rights abuses and environmental damage in those areas. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from CAHRA provides a framework for companies to identify, address and mitigate those risks.
The Due Diligence Guidance is endorsed by governments and applies to all minerals and is global in scope. It proposes step-by-step management recommendations specifically to companies operating in the entire metals and minerals supply chain, from mines to end users. Even though the guidance is voluntary, enterprises and stakeholders operating in the industry are encouraged to adopt all or part of its recommendations to better understand their responsibilities in the implementation of an effective due diligence policy.
Trade and investment in exploration and mining of natural mineral resources can foster local development and sustain livelihoods in deprived areas by generating income, growth and prosperity. To that end The Due Diligence Guidance establishes the groundwork for global responsible supply chains of all minerals in order for companies to respect human rights and avoid contributing to conflict through their mineral or metal purchasing decisions and practices. It is also intended to cultivate transparent, conflict-free supply chains and sustainable corporate engagement in the minerals sector.
https://www.duediligenceguidance.org