By Stephen Slade on Mar 14, 2012
For the last decade, trade in 'conflict minerals' has fueled human rights abuses and promoted insecurity in the African Congo (DRC). The Dodd Frank Wall Street Reform and Consumer Protection Act, passed by the US Congress July 2010, includes a provision – Section 1502 – aimed at stopping the national army and rebel groups from illegally using profits from the minerals trade to fund their fight. Section 1502 is a disclosure requirement that calls on companies to determine whether their products contain 'conflict mineral's – by carrying out supply chain due diligence – and to report to the Securities and Exchange Commission (SEC). The most commonly mined minerals are cassiterite, wolframite, coltan, and gold, extracted from the Congo and passed through a variety of intermediaries before being purchased by multinational electronics companies. These minerals are essential in the manufacture of a variety of devices, including consumer electronics as mobile phones, laptops and MP3 players. Minerals mined in Eastern Congo pass through the hands of numerous middlemen as they are shipped out of Congo, sourced through neighboring countries such as Rwanda or Burundi, to East Asian processing
Do you know where your source marterials originate? Do you have control of your supply chain? Every supply chain executive should be aware of the Conflict Materials clause and have transparancy into their product components.