Conflict minerals: new rules and next steps

SEC disclosure process

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The SEC final rule provides for a three-step disclosure process:


An issuer needs to determine whether its manufactured products contain conflict minerals that subject it to the requirements of Dodd–Frank Section 1502.

An issuer needs to determine whether its necessary conflict minerals originated in the covered countries.

An issuer with necessary conflict minerals from covered countries that are not from recycled or scrap sources needs to conduct due diligence, and potentially provide a Conflict Minerals Report.

The SEC has estimated that 75% of registrants subject to Section 1502 will need to develop a Conflict Minerals Report and have it audited by an independent third party.

Conflict Minerals Report

If the issuer determines that its conflict minerals are from covered countries and are not from scrap sources or recycled, it must file a Conflict Minerals Report as an exhibit to Form SD.

The Conflict Minerals Report must include the following information:

  • The country of origin of those conflict minerals
  • Any efforts made to determine the mine or location of origin with the greatest possible specificity
  • The facilities used to process those conflict minerals, such as the smelter or refinery through which the issuer’s minerals pass
  • A description of any products that are not “DRC conflict free.” The form of this description is not prescribed and can be determined by the issuer, depending on its industry and individual circumstances

An issuer must obtain an independent private sector audit of its Conflict Minerals Report and include a statement in the report to this effect.

The SEC has estimated that 75% of registrants subject to Section 1502 will need to develop a Conflict Minerals Report and have it audited by an independent third party.