What is the Dodd-Frank Act conflict minerals?
What is the Dodd-Frank Act conflict minerals?
Pursuant to Section 1502 of the Dodd-Frank Act of 2010, the SEC issued its conflict minerals rule in 2012, requiring reporting companies to report on their use and sourcing of tin, tantalum, tungsten and gold (3TG).
Which minerals are conflict minerals?
These so-called ‘conflict minerals’ such as tin, tungsten, tantalum and gold, also referred to as 3TG, can be used in everyday products such as mobile phones and cars or in jewellery. It is difficult for consumers to know if a product they have bought is funding violence, human rights abuses or other crimes overseas.
What is a conflict minerals statement?
Section 1502 of the Dodd-Frank Act obliges companies filing reports with the U.S. SEC to disclose the conflict minerals contained in the products they manufacture or contract to manufacture, where such minerals are “necessary to the functionality or production” of the products. …
What is the 1502 Dodd-Frank Act?
Section 1502 of the Dodd-Frank Act requires all Securities and Exchange Commission (SEC) reporting companies to disclose whether their products contain minerals from the Democratic Republic of the Congo (DRC), or one of its neighboring countries.
Where are conflict minerals used?
Uses for 3TG Conflict Minerals Stores electricity and is used in alloys for its strength. Commonly used in tools, cell phones, and high-temperature situations, also used in alloys for its strength. Malleable, not highly corrosive, and highly conducive to electricity and heat.
How do you report conflict minerals?
What Must Be Included in the Conflict Minerals Report:
- Obtain an independent private sector audit of its Conflict Minerals Report.
- Certify that it obtained such an audit.
- Include the audit report as part of the Conflict Minerals Report.
- Identify the auditor.
How are conflict minerals collected?
In the eastern provinces of the country, some mines are accessed exclusively by small-scale miners or armed groups. Production from the sites pass through many parties before export and this opens it up to exploitation by armed forces.
Why are conflict minerals a problem?
Certain minerals (including tin, tantalum, tungsten and gold) have been linked with funding killings, violence, rape, and other human rights abuses in the Democratic Republic of Congo and other conflict zones.
What is conflict minerals Reporting Template?
The Conflict Minerals Reporting Template (CMRT) is a free, standardized reporting template developed by the Responsible Minerals Initiative (RMI) that facilitates the transfer of information through the supply chain regarding mineral country of origin and the smelters and refiners being utilized.
Does Apple use conflict minerals?
Apple works at multiple levels in its supply chain to identify and assess risk. Apple requires its suppliers that utilize 3TG to submit an industry-wide standard Conflict Minerals Reporting Template (“CMRT”).
What are the Dodd Frank Act conflict minerals?
Dodd-Frank Act – Conflict minerals (section 1502) The Dodd-Frank Act includes reporting requirements for SEC registrants about the source of conflict minerals. Companies must make a reasonable determination whether products involve specified materials from the region. The Act ’s intent is to reduce violence in the region
When did the SEC start requiring disclosure of conflict minerals?
In 2010, Congress passed the Dodd-Frank Act, which directs the Commission to issue rules requiring certain companies to disclose their use of conflict minerals if those minerals are “necessary to the functionality or production of a product” manufactured by those companies.
Why was the conflict minerals act of 1934 created?
Congress enacted Section 1502 of the Act because of concerns that the exploitation and trade of conflict minerals by armed groups is helping to finance conflict in the DRC region and is contributing to an emergency humanitarian crisis. Section 1502 of the Act amends the Securities and Exchange Act of 1934 to add Section 13 (p).
What do companies need to know about conflict minerals?
Under the final rule, companies that are required to file a Conflict Minerals Report must exercise due diligence on the source and chain of custody of their conflict minerals.