Conflict minerals are minerals that are mined and produced in certain politically unstable countries (such as the Democratic Republic of the Congo) and their surrounding areas. The mining of these minerals often leads to political tensions and civil conflicts.
Conflict minerals are widely used in electronic and electrical products.
source: Arena Solutions
The main regulations on conflict minerals include the following:
The Dodd-Frank Act requires companies that manufacture products that contain conflict minerals to report the source of those minerals to the Securities and Exchange Commission (SEC). Companies must submit a report on their use of conflict minerals by May 31st of each year. The report must include information on the source of the minerals, the quantity used, and the smelters and refiners that processed the minerals.
The EU Conflict Minerals Regulation requires companies that manufacture products that contain conflict minerals to take steps to ensure that the minerals are not sourced from conflict areas. Companies must develop a due diligence plan that identifies and assesses the risks of conflict minerals in their supply chain. They must also implement measures to mitigate those risks.
The China Responsible Minerals Supply Chain Due Diligence Guidelines are voluntary guidelines that provide companies with guidance on how to source conflict minerals responsibly. The guidelines recommend that companies develop a due diligence plan that includes measures to identify and assess the risks of conflict minerals in their supply chain.
Companies can respond to the challenge of conflict minerals by taking the following steps:
Conflict minerals are a serious problem that can contribute to armed conflict and human rights abuses. By taking steps to address the challenge of conflict minerals, companies can help to prevent these problems and promote peace and stability in the Democratic Republic of the Congo and other conflict-affected areas.
For more information about the CFSI reporting framework, please visit https://www.responsiblemineralsinitiative.org/.