Conflict Mineral – edit page

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The Conflict Minerals provision, Section 1502, requires companies that are publicly-traded in the U.S. to disclose annually whether tin, tantalum, tungsten or gold in their products originated in the Democratic Republic of the Congo (DRC) or adjoining countries (Angola, Burundi, Central African Republic, the Republic of Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia), and if “Conflict Minerals are necessary to the functionality or production of a product manufactured.”

The Securities and Exchange Commission (SEC) asked for three step process, requiring an issure to:

  1. Determine whether it is subject to the requirements of the Conflict Minerals Statutory Provision.
  2. Determine after a “reasonable country of origin inquiry” whether conflict minerals in its products originated in the Covered Countries or are from recycled or scrap sources.
  3. Exercise due diligence on the source and chain of custody of its conflict minerals and provide a Conflict Minerals Report.

 

SBS work process will help to reduce the time consuming that Conflict Minerals Statutory Provision takes.

SBS will assess applicability of SEC rule to company.

SBS will perform supply chain review for component minerals.

SBS will conduct a reasonably country of origin inquiry.

SBS will collect all the necessary DATA.

SBS provide reports according to the known common standards format.

SBS perform “Due diligence” on relevant minerals source and chain of custody to support legislation

SBS escort with Legal support.

 

from greensoft:

Based on the Conflict Minerals Statutory Provision, the SEC adopts a three-step process, requiring an issuer to:

  1. Determine whether it is subject to the requirements of the Conflict Minerals Statutory Provision.
  2. Determine after a “reasonable country of origin inquiry” whether conflict minerals in its products originated in the Covered Countries or are from recycled or scrap sources.
  3. Exercise due diligence on the source and chain of custody of its conflict minerals and provide a Conflict Minerals Report.

Additionally, the final rule exempts any conflict minerals that are “outside the supply chain” prior to January 31, 2013. Under the final rule, conflict minerals are “outside the supply chain” if they have been smelted or fully refined or, if they have not been smelted or fully refined, they are outside the Covered Countries.

The final rule also provides a transition period: “two years for all issuers and four years for smaller reporting companies.” During the transition period, issuers may describe their products as “DRC Conflict Undeterminable” and not file an independent private-sector audit of its Conflict Minerals Report if they are unable to determine that their minerals meet the statutory definition of “DRC Conflict Free.”

from Q-point:

Our service provides you with supplier declarations and supporting data to ascertain the use by your suppliers of conflict-free minerals for Tantalum, Tungsten, Tin, Gold (3TG). Q Point manages all aspects of the supplier engagement process for you, including:

  • Analysis and cleansing of your supplier list to identify the current and correct suppliers
  • Identifying the appropriate contact at each of your suppliers
  • Communicating the requirements of Conflict Minerals to your suppliers
  • Supporting suppliers in understanding the regulations
  • Providing support and training resources to assist suppliers in completing declarations
  • Reviewing data submissions by your suppliers
  • Active follow-up to ensure suppliers respond in a timely manner

For over a decade the trade in minerals has fueled a war in DRC that has cost over 5.4 million lives. The country’s natural resource wealth is not the root cause of the violence, but competition over the lucrative minerals trade in its eastern Kivu provinces has become an incentive for all warring parties to continue fighting. The metals mined in eastern DRC enter global markets and make their way into products such as mobile phones, cars, airplanes and jewelry. Meanwhile the population in Congo’s east bear the brunt of a conflict characterized by murder, pillage, mass rape and displacement.

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