At Ardel we are always monitoring industry news and one issue we’ve been watching recently is about conflict mineral statements.
In 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed to help bring about financial reforms in the wake of the Great Recession. In an effort to help promote financial stability the act also includes provisions to dissuade companies from engaging in trade that supports regional conflicts. These provisions are now causing manufacturers to take a closer look at their supply chain as publicly traded companies must now be in compliance.
This means that any publicly traded US company must review its supply chain and determine whether any of its products contain any traces of conflict minerals. Conflict minerals generally refer to tin, tantalum, tungsten, and gold, which have come from the Democratic Republic of the Congo. As of May of this year companies must have determined if their products contain conflict minerals, find out whether they have originated from the DRC or any of the nine bordering countries, and conduct due diligence.
This largely affects electronics manufacturers as they are the ones who are commonly using tin, tantalum, tungsten, and gold however many companies will need to review their supply chain and create a plan for compliance. The goal is that this regulation will help bring about social change with a conflict-free supply chain.
You can read more about conflict minerals here. Be sure to follow Ardel on Twitter and LinkedIn to get more industry news. You can also contact us with any questions and view our capabilities to learn about the industries we serve.