[PDF] On Conflict Minerals Challenges and Moving Beyond Compliance

Author: Bureau Veritas & Estelle Levin, Published on: 19 February 2014

In 2010, Section 1502 of the Dodd-Frank...Act was put forth in the US Congress to address the problem of conflict minerals by requiring publicly listed companies to disclose their use of specific minerals originating in the DRC and adjoining countries...The legislative aim of the current conflict minerals regulation is to bring transparency to the supply chain so that financial links to armed groups can be identified. Indeed, with requirements for due diligence, reporting, and public disclosure, the legislation has been designed to ensure accountability and discourage companies from doing business in ways that ultimately support exploitation and conflict. There is also potential for unintended consequences to arise from this legislation. In aiming first and foremost to ensure conflict-free supply chains, many companies are deciding to source from outside of the DRC and its adjoining countries altogether. A mass disengagement from these economies is having clear impacts on local poverty and...this could even create drivers for conflict. Thus, it is important to highlight that constructive engagement with mineral supply chains originating in conflict areas is the most effective solution to the difficult problem of conflict minerals.

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