Context
Conflict minerals include the tin, tantalum, tungsten and gold ("3TG") from the Democratic Republic of Congo and the adjoining countries. The armed groups in these countries reportedly force labours to exploit the minerals to finance violent conflicts. Purchasing the minerals from these countries would thus fuel social and environmental instability.
As the awareness of conflict minerals grows with more prominence, the defined minerals extends to cobalt and mica. The conflict regions are no longer limited to the counties aforementioned, but redefined as the Conflict-Affected and High-Risk Areas (CAHRAs) by OECD and EU, which includes regions with high risks of armed conflicts and instability.
Milestones
In 2008, the Responsible Business Alliance (RBA) founded the Responsible Minerals Initiative (RMI), which provides some of the most widely accepted reporting templates and smelter assurance process. In 2011, the OECD introduced the first edition of the Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Serving as the most prominent due diligence guidance in responsible sourcing, the work is often referenced by other responsible sourcing entities, including the RMI.
In 2010, the U.S. Congress passed the Dodd Frank Wall Street Reform and Consumer Protection Act (DFA), requiring US-listed companies to disclose the source of the 3TG they use. In 2017, EU enacted the Conflict Minerals Regulation (Regulation (EU) 2017/821). Since then, importers of 3TG minerals in EU are obliged to comply with the OECD due diligence guidance.
What can companies do?
● Due diligence: Establish and perform due diligence process. Companies may follow OECD’s guidance and the Conflict Minerals Reporting Template by RMI to verify suppliers and smelters. RMI has also introduced the Extended Minerals Reporting Template to include cobalt and mica.
● Assurance: Companies and suppliers may apply for the Responsible Minerals Assurance Process of RMI to conduct independent, third-party audits, making sure their smelters and refiners meet global standards for non-conflict minerals.
● Procurement decisions: Refer to the conformant facilities list published by RMI to ensure responsible mineral sourcing.