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Conflict Minerals Legal Compliance

Dodd–Frank Section 1502 and the SEC’s final rule

In recent years, there has been an increasing international focus on conflict minerals emanating from mining operations in the Democratic Republic of the Congo (DRC) and adjoining countries.

Armed groups engaged in mining operations in this region are believed to subject workers and indigenous people to serious human rights abuses and are using proceeds from the sale of conflict minerals to finance regional conflicts.




In July 2010, in response to these concerns, the United States Congress enacted legislation that requires certain public companies to provide disclosures about the use of specified conflict minerals emanating from the DRC and nine adjoining countries, also called covered countries.

Section 1502 of the Dodd–Frank Act requires companies using conflict minerals in their products to disclose the source of such minerals. The law is aimed at dissuading companies from continuing to engage in trade that supports regional conflicts.

On 22 August 2012, after much public comment and a year and a half after issuance of its proposed rule, the US Securities and Exchange Commission (SEC) issued a final rule to implement the new disclosure requirements required by Dodd–Frank.

More on these regulations and what they mean for businesses can be found at Ernst & Young