Conflict minerals

Conflict minerals are tin, tantalum, tungsten, and gold (3TG) when sourced from the Democratic Republic of the Congo or adjoining countries, where mining has financed armed groups. Under Section 1502 of the Dodd-Frank Act, SEC-reporting companies whose products contain necessary 3TG must inquire into the minerals' origin, perform due diligence, and disclose annually on Form SD.

Examples

Annual CMRT campaign: An electronics maker with 420 direct suppliers sends CMRT requests each January. By the May 31 Form SD deadline it has responses covering 86 percent of suppliers and a consolidated list of 240 smelters, 11 of which lack a conformant audit status and get escalated for engagement or replacement.

Product-level dig: A medical device buyer asks its tantalum capacitor supplier for a product-level declaration instead of the company-wide template. The supplier identifies the two smelters feeding that part family, both audited, and closes the inquiry in three weeks.

Definition

The reporting obligation lands on the company that files with the SEC, but the data lives deep in the supply chain. A connector carries tin in its solder, a capacitor contains tantalum, plating lines run gold. Tracing a finished part back to a mine is rarely feasible, so the industry standardizes on the smelter or refiner as the point of traceability: identify every smelter feeding your parts, then check each one against independent audit programs.

In practice, procurement runs an annual campaign built on the Conflict Minerals Reporting Template (CMRT): send it to every in-scope supplier, chase responses, and consolidate the smelter lists. Response quality varies. A company-level CMRT listing 300 smelters says little about your specific parts, so mature programs push for product-level declarations on high-risk commodities and anchor the obligation in the supplier code of conduct. Note what the law is not: Section 1502 does not ban DRC sourcing, it requires disclosure, and the EU runs a parallel regulation aimed at importers of the raw minerals. Most teams fold the CMRT campaign into their broader CSR and compliance outreach so suppliers answer one coordinated request instead of five separate ones.

Related Terms

Corporate social responsibility (CSR)

Supplier code of conduct

Traceability

Compliance

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