Supply Chain Policy
Part of the supply chain policy of JHL Metallurgical Co., Ltd. is the absolute rejection to purchase pure gold and silver from a source of conflict in the company’s supply chain.
Gold and silver from conflict source, which is a raw material obtained from mining, production or shipping, either knowing or not knowing that such actions benefit the illegal armed groups or encourage conflicts or violate human rights by any means.
The raw material mentioned above will not be in the JHL supply chain and JHL’s products in the overall market are branded with the “JHL” logo, and are classified as non-conflict products.
Conflict-affected and high-risk areas (CAHRAs) are defined by the Organization for Economic Cooperation and Development Sources Inspection Manual, which is responsible for the supply chains from conflict-affected areas and high-risk areas.
Thus, JHL’s policy is to preserve a status in supply chain management in procurement of raw materials from non-conflicting sources, as follows:
- Purchasing raw materials from trustworthy vendors with a long relationship with the company or with those who passed the examination of procurement of sufficient raw materials from the procedure “Getting to know the seller”.
- Vendors and supply chain audits can be conducted in any circumstances to ensure that they are legal and not supporting the raw materials causing conflicts or human rights violations. The company will suspend and cease the engagement with those parties who are involved in procurement and linked to the serious human rights abuses.
- JHL will comply with both local and international laws dealing with materials initiating from conflicting sources, including the United Nations Security Council resolutions and the Dodd-Frank law of the United States.
- JHL will comply with the organization’s Sources of Material Verification Manual for Economic Cooperation and Development on the procurement of raw materials from conflict-affected areas and are subject to conflict and with high risk and the inspection processes for responsible procurement of raw materials for gold and silver, including the scope of work in all 5 steps according to the raw material source inspection manual.
- JHL cooperates in the audit of the Company’s supply chain. Third parties are forbidden from using raw materials from conflicting sources in the production process under a due diligence process for responsible procurement of gold and silver.
- JHL has applied a raw material source tracking and traceability program in the procurement of raw materials to ensure the transparency of Company’s raw materials procurement for example the project of labeling the source of raw materials.
- JHL employees regularly visit selected raw material vendors’ establishments to verify and test the credibility of the seller.
- JHL has a risk management strategy as outlined in the Corporate Manual for Economic Cooperation and Development and monitoring its performance for mitigating risks. The termination of the purchase of raw materials which indicates that there may be actions that are inconsistent with the Company’s policy and such actions are unacceptable by the company.
JHL’s policy is to make a difference by delivering pure gold and silver which does not contain raw materials from the conflicting sources for our customers and trading partners, so that the customers of the company can rest assured that all types of products of the company are definitely manufactured from non-conflict materials.
Mr. Monchai Koonprakarn
Managing Director, September 1, 2020