UN chief calls for justice in natural resource value chains

UNITED NATIONS, July 22 (Xinhua) -- UN Secretary-General Antonio Guterres on Wednesday called for justice in natural resource value chains.

"We must ensure mineral development delivers fair and sustainable outcomes for resource-endowed countries and communities," he said. "It is time to break the age-old pattern -- where resources are extracted, value is captured elsewhere, and impoverished communities are left behind to cope with the environmental and socioeconomic damage."

During a Security Council open debate on natural resources governance, Guterres said that it is also time to close the gap between a state's recognized sovereignty over its natural resources and its sovereign rights in practice, noting that nowhere is this sovereignty deficit wider than in Africa. "Countries and communities must benefit -- first and most -- from the resources in their own backyard," he said.

The UN chief stressed the importance of curbing illicit flows and strengthening transparency across mineral supply chains.

Natural resources are often extracted in one country, transported through another, processed elsewhere, and ultimately sold on global markets. Effective action must address the full value chain, not just the point of extraction, he said.

Cooperation among producing, transit, and consuming states is vital in closing regulatory and enforcement gaps, Guterres said.

"International and regional organizations, financial institutions, and industry all have an important role to play," he said, noting that "together, they can help prevent illicitly sourced resources from entering legitimate markets -- through enforceable legal frameworks and stronger traceability, due diligence, and information-sharing."

The challenge is to transform the way natural resources are extracted, processed, brought to market, and put to use, guaranteeing that much more added value is retained by producing countries and affected communities, the UN chief said. "No more exploitation. No more plundering."

There is also a need to deny armed groups and criminal networks the revenues that fuel protracted conflicts, he added.

"If we fail to act, the illicit exploitation of natural resources will continue to drive inequality, instability, and violence. Instead, they must be managed in ways that help finance inclusive and sustainable development, strengthen institutions, and advance peace and prosperity for all," he said. "Ultimately, this is a political choice." Enditem