Conflict Free Materials
Small Entity Compliance Guide Regarding Conflict Free Materials
SEC Adopts Rule for Disclosing Use of Conflict Minerals
Washington, D.C., Aug. 22, 2012 — The Securities and Exchange Commission today adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies to publicly disclose their use of conflict minerals that originated in the Democratic Republic of the Congo (DRC) or an adjoining country.
The regulatory reform law directed the Commission to issue rules requiring certain companies to disclose their use of conflict minerals that include tantalum, tin, gold, or tungsten if those minerals are “necessary to the functionality or production of a product” manufactured by those companies. Companies are required to provide this disclosure on a new form to be filed with the SEC called Form SD.
Electronic Companies Unprepared for U.S. Conflict Minerals Law
Utilization of conflict minerals is widespread in the electronics market, employed in all kinds of products, from cellphones to hearing aids, to pacemakers and jet engines. For example, IHS estimates that $0.15 worth of tantalum—a conflict material— was contained in every smartphone shipped when Dodd-Frank was originally signed in 2010. In 2012, this would amount to $93 million worth of tantalum in smartphones alone.
Minerals Gets New Scrutiny
New rule offers framework for disclosing materials originating from conflict regions.
On Aug. 22, 2012, the Securities and Exchange Commission (SEC) adopted a final rule implementing Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This important and sweeping rule is effective for products manufactured in 2013, and the first annual reports are due May 31, 2014, and on May 31 every year thereafter
Conflict Minerals in Your Mobile
Global financial markets don't pay much attention to the conflict in the Democratic Republic of Congo. They should. The central African country produces major quantities of tin and tungsten, about half of the world's cobalt output and about three percent of the world's copper and gold, according to the U.S. Geological Survey.