Time to Get a Grip on ‘Conflict Minerals’
Congress enacted Section 1502 due to concerns that armed groups exploiting and trading minerals is helping finance conflict in the Democratic Republic of the Congo (DRC), and contributing to a humanitarian crisis. The final rule applies to companies that use minerals identified as conflict, which include tantalum, tin, gold, or tungsten, if the company files reports with the SEC under Sections 13(a) or 15(d) of the Securities Exchange Act; and the conflict minerals are “necessary to the functionality or production” of a product manufactured or contracted to be manufactured by the company.
Companies that strictly mine conflict minerals aren’t affected by the rule unless they also engage in manufacturing. Also, the rule doesn’t apply to conflict minerals “outside the supply chain” prior to January 31, 2013. Conflict minerals are outside the supply chain if they have been smelted or fully refined, or outside the covered countries.
For an overview of how to comply and report, read the full article, “Source of Minerals Gets New Scrutiny” on Chemical Processing.