Roundtable on Conflict Minerals with the Securities and Exchange Commission

On October 18, 2011, the United States Securities and Exchange Commission hosted a roundtable on the regulations surrounding conflict minerals within the Dodd-Frank Act.

The SEC Commissioners heard representatives from several companies working to derail the regulations and to promote keeping business 'as usual'. Earlier in the week, companies such as Canon and Panasonic went as far as removing posts made on Facebook urging the companies to support the Act.

Thanks to NGOs such as Enough Project, the other side of the story was presented. Companies were encouraged to pay a greater attention to their supply chains and were shown it is not unreasonable to trace and audit supply chains within conflict areas. To date, initial industry reactions were that this was impossible, too costly, etc.

View the complete webcast of the Conflict Minerals Roundtable

The SEC has indicated that they will release the final conflict minerals regulations in December.

NGO group Global Witness believe that initial activities taken by industry have significantly lack credibility as they do not include third-party audits or 'teeth'.

View a presentation by Mike Davis, Global Witness on Conflict Minerals

We'll be watching the following companies who will be reacting to the SEC's final decision on the regulations:

• Dell
• Acer
• Panasonic
• Canon
• Research in Motion (RIM)
• Best Buy
• ACER
• Adobe
• APPLE
• HP
• Intel
• Kodak
• LG
• Microsoft
• Target
• Honda
• Verizon
• Tiffany & Co.
• Kraft
• IBM
• Philips
• Samsung
• Sony

An independently audited certification process for conflict minerals such as those from eastern Congo will help legitimize the trade in tin, tungsten, tantalum, and gold. We need to help stop these minerals from fueling rape and instability.

For Congo's Sake, Get Your Nose Out Of Dodd-Frank

NGO Global Witness has recently called for the Securities and Exchange Commission in the United States to stand strong in the face of industry pressure regarding the Dodd-Frank Act.

An excerpt from their news release:

"The call comes on the day of a crucial SEC roundtable and in the face of aggressive industry lobbying aimed at making the new rules weak and ineffective."

"Section 1502 has already had positive impacts, including helping to end the Congolese army’s illegal control of the largest tin ore mine in the region earlier this year, and promoting mining sector reforms by the Congolese government. While serious challenges remain, the law presents the best chance in over a decade to establish a clean minerals trade that contributes to development, rather than fuelling instability."

View the complete news release by Global Witness

According to Mike Davis of Global Witness, “Despite these efforts, the US Chamber of Commerce is working at all levels to derail the regulations and continue business as usual.”

Global Witness has conducted research to map out the trade route from mine to manufacturer and in doing so has demonstrated that the supply chain is not nearly as complex as the corporate lobbyists would represent.

Recent developments to follow:

1. Commission meeting to consider two final rules and one proposed amendment under the Dodd-Frank Wall Street Reform and Consumer Protection Act. (hosted by the US Commodity Futures Trading Commission)

2. Canon and Panasonic deleted user posts on their Facebook page recommending the companies take action on their user of conflict minerals

3. Dell made attempts to respond to several comments on their use of conflict minerals but failed to take any real action against conflict minerals

4. AT&T criticized the Dodd-Frank Act as overreaching

5. The State of California passed the first-ever state legislation on conflict minerals

Your Time Is Now; It's Hero Time

The issue of conflict minerals has been smoldering for months and has once again caught fire.

United Nations Report Support Efforts to Change

A report recently released by the United Nations Group of Experts again linked the aweful conflict in the Congo with the trade in minerals such as tantalum, tin, tungsten and gold. The report recommends member nations to support the requirements as set out by the Organisation for Economic Co-Operation and Development (OECD) on the trade of minerals from conflict areas. I will discuss the UN report in the future.

Outcry For Congo Campaign

In the USA, Congo activist Lisa Shannon and team are gearing up to show its nation;s leaders the importance of developing a strong framework of accountability in Congo to stop the use of conflict minerals. In addition to a direct protest in Washington, an online campaign has been launched called Outcry for Congo.

The Outcry for Congo Facebook page is just a few days old but has already attracted hundreds of supporters. Make your voice heard by 'Liking' their Facebook page and participating in the group's activities.

Click Here to learn more about the Outcry for Congo Virtual Campaign

Government Fails to Throw Punch Against Congo's Conflict Minerals

The UK High Court has denied permission for a Judicial Review of the UK government's decision not to refer certain British companies for targeted sanctions by the United Nations. The move provides good insight for those working to stop the use of conflict minerals in the raw material supply chains.

According to UK-based non-governmental organization Global Witness, a number of UK companies are known to have been trading in minerals source from the eastern Democratic Republic of Congo. The most common conflict minerals are tantalum, tin, tungsten and gold.

Britain is a permanent member of the UN Security Council and major financial donor to the DR Congo. With that said, one would think that they would be prepared to investigate and refer companies to break their links to conflict minerals.

Top Conflict Minerals Videos

Videos bringing awareness to ending the use of conflict minerals:

United Nations Completes Report on Human Rights Violations in Congo; Cites Link Between Violence and Conflict Minerals

The United Nations High Commissioner for Human Rights recently released a report documenting some of the most serious violations of human rights and international humanitarian law committed within the Democratic Republic of the Congo between March 1993 and June 2003.

The report also assessed the capacities existing with the Congo's justice system to deal appropriately with the human rights violations which may be uncovered.

Click here to view the complete report

Dealing with current violations alone have proved difficult in the country. For example, a probe into the murder of high-profile human rights campaigner Floribert Chebeya revealed a role directly by local police in the murder.

According to UK-based NGO Global Witness, the report also "robustly demonstrates the need to sever the link between the mineral trade and violence, and for individuals and companies to be held to account."

To begin to address the issue, Global Witness is calling for a verifiable system of due diligence within the mineral supply chain. The key elements of such a system would be:

1. Policy on Conflict Minerals
2. Assessment of Supply Chain Risks
3. Remedial Action
4. Audit (verifiable)
5. Public Reporting

Supply Chain Needs to Smarten Up

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 has created a compliance matter for the supply chain which they are not skilled to easily address. The unique challenges will require those using coltan (tantalum), wolframite (tungsten), and cassiterite (tin) and gold to comply with upcoming Securities and Exchange Commission regulations.

Company executives are now being warned to begin to develop a strategy for dealing with their use of conflict minerals. In a recent article by Andrew Reese of Supply and Demand Chain Executive, attention is brought to the complexity of the issue. Topics brought up include ongoing Congo dynamics, lack of standards for managing mineral supply chain origins, and tracking tools needed.

One would have thought that the industry would have had time to address these issue. They had better start solving the problem because ready or not, here it comes!