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