The US Securities and Exchange Commission (SEC) has released a final rule on conflict minerals that is expected to have a broad impact on many companies, both public and private.
The rule implements Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Its reporting requirements are designed to help investors understand the risks in a company’s reputation and supply chain. This same information will also help consumers understand the extent to which companies are using minerals sold by armed groups to fund conflict and abuses of human rights in Africa. For public companies, the rule requires annual reporting to the SEC and on companies’ websites of information about the sources of minerals, such as gold and a group known as the 3Ts (tantalum, tin, and tungsten).
This Messenger summarizes the requirements and challenges that lie ahead, including the effects on private companies, and it explains how Mayer Hoffman McCann can help. The PDF version also includes a flow chart on pages 4 and 5 for your company to determine what steps it should take.