About Conflict Minerals
Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act (2010) came into effect on 13 November 2012, and requires all public US companies that manufacture products that contain tin, gold, tantalum or tungsten to investigate the source of those minerals to discover whether they originated in the Democratic Republic of the Congo (DRC) or its nine adjoining countries. The ruling was fueled by concerns that the trade of conflict minerals is funding rogue military forces responsible for crimes against humanity and extreme violence in the DRC.
Although the rule only applies to publicly traded companies that manufacture or contract to manufacture products that contain conflict minerals, the law in fact has a much wider impact. Private and international suppliers, distributors, importers, refiners and others have often had to field a massive number of information requests from the companies subject to the law.
Affected companies are required to seek and obtain 'reasonably reliable representations' from their suppliers regarding the facility used to process the minerals and the country of origin of the minerals. Suppliers often do not know their own supply chains, so this request entails a lot of work for them.
Challenges include communicating with suppliers, fielding requests, changing contracts, making public statements on the adopted conflict minerals policy and educating suppliers about why this information is necessary. It is especially challenging to do this across time zones in different languages and has been a hurdle when proprietary information has seemed at risk.
You can learn more about Conflict Minerals with the help of these following resources:
3E Webinars On Demand
Conflict Minerals: Regulatory Updates and Notable Trends in 2016 Reporting
Conflict Minerals in Your Supply Chain? Understanding Your Obligations Under the Dodd-Frank Act
Conflict Minerals Compliance: Preparing for the End of the ‘Transition Period’
Conflict Minerals Compliance: Preparing for your SEC Filing
Conflict Minerals Compliance: Planning Your SEC Disclosure
3 Things You Should Know About the Revised Conflict Minerals Rule (NAEM’S Green Tie Blog)
3E Releases Supply Chain Product Compliance Platform (Environmental Leader)
Conflict Minerals Regulations: Exploring the Potential Impact on Risk Management (Verisk Review)
3E EH&S Expressions Blog
US Sanctions Now Include Conflict Minerals in the Democratic Republic of the Congo
List of “Worldwide Conflict Minerals Processing Facilities” Produced by Commerce Department
Conflict Minerals Compliance – Heads Up: Purchases you make this year may end up reportable at the end of the transition period
Conflict Minerals Rule Remains in Force After Court Ruling
3E Company Supply Chain (3ESC) offers a comprehensive service to help your organization comply with Conflict Minerals regulations. 3ESC leverages their global supplier network to quickly identify critical Conflict Mineral contacts within your supply chain. 3ESC utilizes their own experienced North American-based obtainment team to reach deep into your supplier base to gather, validate and enrich the needed supplier and product level data. The data is securely stored in 3ESC’s industry leading web-based software platform, which feeds into your ERP system. 3ESC’s Conflict Minerals compliance program allows your organization to quickly respond to and fulfill Conflict Minerals requests from your downstream customers and report findings annually to the SEC. At a fraction of the cost to manage the program in-house, your organization can partner with 3ESC and launch your Conflict Minerals compliance program today.