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Makalew, Fiscal	Lead	September 2014	None
Nguyen, Thien Nhon	Observer and translator	N/A	UL Vietnam
Lam, Nguyen	Observer and translator	N/A	UL Vietnam

VII. COMPANY CONTEXT      
     ► The company was established in 1985. It is a Government owned company. Auditee is the subsidiary of National Institute of Mining – Metallurgy Science and Technology as it stated on the auditees business license.
The company has one smelting facility called Thai Nguyen Mining and Metallurgy Co, Ltd located at No 617, 3/2 Street, Thai Nguyen city, Thai Nguyen Province, Vietnam which occupies 27,000 square meters land area. The production processes are raw material receiving (tin ores), smelting and refining. The main input of the company is tin ores which sourced from their suppliers. The main output of the company is tin ingot of 99,75%, 99,95% and 99,99% and tin wire of 99,95% and 99,99%. Onsite, the company has 2 furnaces of 45 tons per month and 62 electroplating tanks.
This is the 1^st RMI (formerly CFS) audit. Auditee was prepared for the assessment and fully understands the requirements of the revised standard of 2017. There are 5 (five) tin ore suppliers, these are VSI TRADING PTE (SG) LTD – Singapore, Mining and processing tin-tungsten ore Giang Son - VQB Co., Ltd – Vietnam, Laos Viet Mining Joint Venture Co Ltd – Laos, THANH BINH SIFTING FRO TIN FACTORY – Laos and Mining Mountains Co., Ltd. VSI TRADING PTE (SG) LTD – Vietnam and Mining Mountains Co., Ltd are trader and Mining and processing tin-tungsten ore Giang Son
- VQB Co., Ltd – Vietnam, Laos Viet Mining Joint Venture Co Ltd – Laos and THANH BINH SIFTING FRO TIN FACTORY are mining sites.
Tolling process are only for VSI TRADING PTE (SG) LTD – Singapore, Mining and processing tin- tungsten ore Giang Son - VQB Co., Ltd – Vietnam, Laos Viet Mining Joint Venture Co Ltd – Laos and Mining Mountains Co., Ltd.
Auditee’s business license No: 4600664987 valid from August 2, 2007 of producing nonferrous metal and the precious metal. The procedure shows that the criteria are the sourcing country is The resources used by the company to determine this is from
     - Heidelberg institute for international conflict research, conflict barometer of 2017.
   - Fragile state index’s human rights and rule of law indicator. However, the core element of identifying is missing good governance. Auditee was then advised to include Good Governance for the identification criteria.

  VIII. ASSESSMENT OBSERVATIONS
  A. Non-Conformances

Assessment Non- Conformance	Auditee already had the CAHRA identification procedure which includes conflict and human rights. However, the core element of identifying is missing good governance.
Further Information	Auditee was aware of this requirement and will look into corrective action
Suggested Improvement Measures	CAHRAs identification procedure should include good governance

Assessment Non- Conformance	Auditee had maintained a written stand-alone report which includes management system, methodology and result of risk assessment. However, the report is not publicly available yet. Auditee stated that they will publish the report immediately.
Further Information	Auditee was aware of this requirement and will look into corrective action
Suggested Improvement Measures	Auditee's report should be publicly available

  B. Continual Improvement
Auditee was observed to have a sufficient due diligence management system. The system is also provided in writing and communicated to all relevant employees. This was the first audit against the RMI revised standard, however the auditee have understand and maintain due diligence management system sufficiently.
  C. Observations
It is recommended that the CAHRAs identification procedure should include good governance and the stand-alone report should publicly available. Auditee appeared to understand the requirement of the new standard and will look into corrective actions.
  D. Strengths
Auditee is willing to adopt improvement measures recommended according to the RMI revised standard of 2017. Auditee’s senior management fully supports the implementation of the RMI revised standard.
  E. Further Comments
There was no limitation encountered. Auditee was observed to be willing to follow RMI requirements. Assessment process was based on facility walkthrough, management interview, employee interview and document review. Policies and procedures are sufficiently documented.

  IX. ASSESSMENT PROCESS
This section should list the times and activities that the auditor(s) undertook for pre-assessment, assessment, and post-assessment phases.
  A. Pre-Assessment
Auditor prepared the assessment agenda two weeks before the assessment day to have the auditee prepare all the required documents including the assessment workbook and to have the responsible personnel available during assessment
  B. Onsite Assessment
  Assessment Agenda by day
10/8/2018
Assessment team arrives in Hanoi, Vietnam, 9/19/2018 and conducts document review, pre-Assessment planning and preparation (at the hotel).

  Day 1: 10/9/2018

8.30 – 9am	Opening meeting with facility management to review the purpose, scope and methodology of the assessment and clarify required documentation. Auditee, please ready technology for power point presentation by auditor. Auditor discloses remaining transaction sample
9 – 11am	Walkthrough and worker interviews
11 – 12pm	Overview of Supply Chain Policy and CAHRA identification procedures Overview of Internal Material Control Procedures
12.00 – 1.30pm	Lunch break
1.30 – 3pm	Auditor 1: - Review of Due Diligence Management System Design and Implementation - Transaction Review - Sales receipt review	Auditor 2: N/A
3 – 4.00pm	Continue review Due Diligence Management System and Transaction Review.
4 – 4.30pm	Short debrief with facility team.
4.30pm	Assessment team leaves the facility.

  Day 2: 10/10/2018

9.00 – 9.15am	Short review of the day’s activities with facility team
9.15am – 12.00pm	Auditor 1: - Review of High Risk Sourcing Procedures (if Applicable) - Continue Transaction Review	Audit team 2:
12.00 – 1.00pm	Lunch break
1.00 – 3.30pm	Auditor 1:	Audit team 2:
	- Review of Discrepancies and Red Flags - Finalize Internal Materials Control Review (including Mass Balance, as applicable) - Review Step 5 Reporting and Continuous Improvement.
3.30 – 4.00pm	Assessment team to compile information and debrief.
4.00 – 4.30pm	Short debrief with facility team.
4.30pm	Assessment team leaves the facility.

  C. Post-Assessment
Auditor compiles all information and finalizes the final report on October 12, 2018

  X. ASSESSMENT PROCEDURE
The auditor used a triangulation of findings to verify auditee’s ability to demonstrate tin supply traceability. Each area of RMI Standards was verified through documentation review, management interview and visual observation. The assessment processes were conducted in accordance with ISO 19011-2011. In the opening meeting, auditor used the RMI-developed opening meeting slides.
  A. Opening Meeting
The opening meeting was attended by Le Van Kien – Director, Luu Huong Ly – Business Manager, Pham Xuan Hung – Production Manager, Mai Thi Bich Hang – Accountant and Ms. Tran Thi Phuong Dung – Sales Executive of VQB Mineral and Trading Group JSC who support the auditee for the whole process of assessment.
Auditor used the opening meeting slides developed by RMI which include introduction of the auditor, confirmation of the assessment objectives, scope and criteria, confirmation of the assessment plan, presentation of the methods to be used to conduct the audit, introduction of the methods to manage risks to the organization which may result from the presence of the assessment team member, confirmation of formal communication channels between the assessment team and the auditee, confirmation of the language to be used during the audit, confirmation that, during the audit, the auditee will be kept informed of assessment progress, confirmation that the resources and facilities needed by the assessment team are available, confirmation of matters relating to confidentiality and information security, confirmation of relevant health and safety, emergency and security procedures for
the assessment team, information on the method of reporting assessment findings including grading, information about conditions under which the assessment may be terminated, information about the closing meeting, information about how to deal with possible findings during the assessment and Information about any system for feedback.
  B. Collecting and Verifying Information
Information collected was based on employee interviews, management interviews and document review. Auditor confirmed that all documents provided are complete, correct, consistent and current. The reviewed documents are
The reviewed documents are
- Auditee’s business license No: 4600664987 valid from August 2, 2007 of producing nonferrous metal and the precious metal.
- Tolling documents which include handover receipt, report of analysis, incoming material receipt, invoice, customs material import declaration, tolling agreement, packing list, certificate of origin from the ministry, in-land transportation log, Invoice of value added tax, raw material invoice, production record, finished goods record and warehouse output record.
- Tin ore purchase record which include valid purchasing agreement, report of analysis, incoming material receipt, invoice, customs material import declaration, tolling agreement, packing list, certificate of origin from the ministry, in-land transportation log, Invoice of value added tax, raw material invoice, production record, finished goods record and warehouse output record.
- Know Your Counterparty (KYC) Application Form
- Auditee’s supply chain policy
- Auditee’s website
- Auditee’s due diligence management system policy and training record
- Auditee’s report
- CAHRAs identification policy and procedure
- Procurement procedure
- Material incoming and outgoing procedure
- Production flow chart.
The reviewed documents cover the assessment scope and provide sufficient information to support the assessment objectives. Information collected is to be used for assessment purpose only. No copies of the documents were taken.
Sampling methodology for document review (material transactions) is based on RMI sampling guidance. 10 tin ore transactions were sampled since auditee has 34 transactions during the assessment period
  C. Closing Meeting
The closing meeting was held on the 2^nd day of audit on October 10, 2018 with Le Van Kien – Director, Luu Huong Ly – Business Manager, Pham Xuan Hung – Production Manager, Mai Thi Bich Hang – Accountant and Ms. Tran Thi Phuong Dung – Sales Executive of VQB Mineral and Trading Group JSC. The assessment evidence collected is based on the provided records and management statements. Assessment findings were communicated and explained to the management during the assessment day. Suggested steps for corrective actions were shared to the auditee. Management seemed to understand each finding. There were no comments or objections raised by the auditee’s management. January 17, 2019
Mr. Le Van Kien, Director of Thai Nguyen Mining and Metallurgy Co, Ltd.
Add: 3/2 Street, Thai Nguyen city, Thai Nguyen Province, Viet Nam
lekien75@gmail.com


Dear Mr. Le Van Kien,
Thank you for your participation in the Responsible Minerals Initiative (RMI) Responsible Minerals
Assurance Process (RMAP). The RMI’s Audit Review Committee (ARC) has reviewed the process and results of Thai Nguyen Mining and Metallurgy Co, Ltd.’s Responsible Minerals Assurance Process Assessment (2017), conducted at the following location on the following dates:
                   Thai Nguyen Mining and Metallurgy Co, Ltd.
3/2 Street, Thai Nguyen city, Thai Nguyen Province, Viet Nam
     9-10 October 2018
Based on the Auditor’s findings and ARC’s review, Thai Nguyen Mining and Metallurgy Co, Ltd. Is conformant with the Assessment Standard for Tin (2017). The review covers only the facility listed above and expires one year from the date of the assessment. Your conformant status will be updated on the RMI’s publicly available website shortly.
Thank you for participating in the Responsible Minerals Assurance Process.
Sincerely,
Responsible Minerals Initiative