UK Government v. Global Witness - What is it all about?

London-based non-governmental organization Global Witness recently launched a lawsuit against the British government over their refusal to put forward to the United Nations Sanctions Committee UK-based companies and individuals involved in the illegal trade of conflict minerals.

The United Nations Group of Experts, Global Witness and others have significant evidence showing the involvement by certain select British companies and citizens in supplying armed groups in the Democratic Republic of Congo. The UK government has argued that the evidence gathered by the United Nations’ own Group of Experts is insufficient for referral to the United Nations Sanctions Committee. Global Witness disagrees.

In November 2009 the United Nations Group of Experts completed a report which named THAISARCO as sourcing minerals from armed groups through their supply chains. THAISARCO is the smelting arm of Amalgamated Metal Corporation (AMC).

Though no independent verification was undertaken, the UK government has said that AMC no longer purchases minerals from eastern DR Congo and so no action is required. While this statement was made, the UK government has failed to independently verify this claim. Global Witness wants to see the UK government adequately investigate companies and individuals suspected of breaching the UK’s international legal obligations.

I find the legal approach by Global Witness unique and look forward to what happens next.

Motorola "Discloses" Hand in Conflict Minerals

Major cell phone manufacturer Motorola Inc. revealed in a recent disclosure report that in the first quarter the company spent $880,000 to lobby the federal government. According to the Associated Press, Motorola lobbied the government on laws such as those which discouraged the use of confict minerals by electronics manufacturers.

Just last week it was disclosed that Research in Motion, the maker of the BlackBerry, had directed their lobbying in a similar manner. Both companies are active members of the Electronic Industry Citizenship Coalition (EICC) which for months has been working on proposals to address the issue of conflict minerals in the supply chain. These initiatives have received significant criticism from non-government organizations.

The new laws which Motorola and Research in Motion were lobbying against requires a company to verify whether or not the raw materials used to make their products are from conflict areas such as the Democratic Republic of Congo or the countries surrounding it.

For the 3 months ending June 2010, Motorola lobbied the United States Congress, the Justice Department, the Department of Homeland Security and the State Department.

BlackBerry? BloodBerry? BlackBerry? BloodBerry? Why the Confusion?

INTEL and APPLE have been targeted for their denial and inaction with respect to their use of conflict minerals in their products. It looks like the maker of the main competitor to APPLE's iPhone has also joined the party. Enter Research in Motion, the maker of the BlackBerry.

In the second quarter, BlackBerry spent $719,000 on lobbying. A portion of these funds were on the trade of conflict minerals. Conflict minerals include tantalum, tin, tungsten and gold, and are use to make electronics components. Research in Motion has spent considerably more on lobbying in the first two quarters than in similar quarters in the past.

Why Lobby to Use Blood Minerals?

That is actually not a fair question. Research in Motion does not WANT to use conflict minerals in their BlackBerries. Few companies choose to use blood minerals. The issue is that they choose NOT to choose not to use conflict minerals.

Since 1999, the electronics companies have known they were treading on thin ice. With Obama's signing of the Wall Street Reform and Consumer Protection Act, the industry has run out of time for their lobbyists, committees, studies, etc. to come up with a proposal. Over 10 years was a enough time to have come up with an industry driven alternative.

So Now What?

It seems that the limited efforts by the electronics industry has been too little too late. The power is now in the hands of regulatory authorities in the United Stated who are drafting regulations.

The issue of conflict minerals was likely one of the furthest things from the everyday business decisions for the executive brass. That has now changed. Companies are now being forced to make a corporate decision on how they will react corporately.

Will BlackBerry choose the BloodBerry route? Will APPLE choose the iRape brand over the iPhone?

We'll see.

Supply Chain Reactions to Conflict Minerals Initiatives

Conflict minerals have seen significant coverage in the news following Obama's signing of the reform bill and Global Witness' lawsuit against the UK government. I have found it interesting how silent the industry has been in their response.

The supply chains for tantalum (coltan), tin, tungsten and gold will be greatly effected. The role these minerals have taken in financially supporting violence in conflict areas has been well documented.

I believe one of the reasons why is that until now, the companies have been united in denying any use of conflict minerals. Pretty hard to respond to these rule changes when they have for years denied using conflict minerals altogether.

Industry may be silent at the moment on this issue but they will not be able to remain that way. Consumers are now even asking companies in the electronics industry if their products are conflict free. This includes such well known brands as Intel, Apple, Nintendo, Microsoft and Research in Motion. The direction companies take in response will mark where they position themselves on the issue in the eyes of the public. This is a major decision.

Ok UK. It's Your Turn Now.

Earlier this month we saw Obama's administration pass the reform bill which included language concerning conflict minerals. This was a major milestone for activists as it marks the first step to making the minerals trade from DR Congo more transparent. The campaign was led by US-based Enough Project and will apply to companies reporting to the Securities and Exchange Commission in the US.

Now, UK-based GlobalWitness have launched their own version of pressure aimed to stop the trade of conflict minerals in central Africa. The NGO will launch legal action against the British government for allegedly failing to refer companies trading Congolese conflict minerals for sanction from the United Nations. A major target is reportedly London-based Amalgamated Metal Corporation (AMC Group) who has repeatedly denied any involvement in conflict minerals despite numerous reports to the contrary.

The trade in coltan/tantalum, tin, tungsten and gold help fund the ongoing armed violence in DR Congo. DR Congo is one of the world's poorest nations and has seen millions of its citizens die from the years of war.

This Week in Conflict Minerals

Issues in Conflict Minerals

There were two major conflict minerals news items circulated in the last week - both revealed on May 14, 2010. The two items are as follows:

Obama Administration's Call to the End-Users of Conflict Minerals

On Friday, the Associated Press released that the Obama administration is strongly encouraging American industries to end their use of conflict minerals. At a meeting at the State Department, officials met with select executives from electronics and automotive companies who are currently using tantalum, tin, tungsten or gold.

These companies are currently lobbying against initiatives which demand complete transparency for raw materials in the supply chain.

Tell INTEL

Portland's own writer/activist Lisa Shannon has organized a protest at INTEL Corp.'s campus in Hillsboro to bring attention to their use of conflict minerals such as coltan / tantalum in their capacitors and circuitry. INTEL Corp. has shown reluctance to support the Conflict Minerals Trade Act (HR4128), a bill by Washington Congressman Jim McDermott.

Lisa Shannon and others will travel to INTEL Corp.'s campus to encourage them to make changes in their raw materials purchasing process to stop supporting the purchase of conflict minerals.

INTEL's products are used to make some of today's popular electronics such as those by brands DELL and APPLE.

Lisa Shannon founded a grassroots effort to raise awareness and funds for women in the Democratic Republic of Congo through her project Run for Congo Women.

The gathering is to occur Monday, May 17, 2010, at 12:30pm. For more information: http://athousandsisters.com/blog/

Spotlight on Conflict Minerals: Tantalum, Tin, Tungsten & Gold

Welcome to the Conflict Minerals Blog.

You will find updates and comments on current events relating to conflict minerals (aka Blood Minerals). Metals such as tantalum / coltan, tin / cassiterite, tungsten and gold are used in electronics, jewelry and other consumer products and can originate from conflict zones.

I want to encourage readers to regularly check back and post comments.

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