Overview of Dodd-Frank Act Conflict Minerals (Section 1502) 

This paper adds additional reporting requirements for SEC filing on the sources of certain "conflict minerals" in "Section 1502" of Dodd-Frank Act.


The Dodd-Frank Act's intent is to try and curb the violence and exploitation in the Democratic Republic of Congo and neighboring countries by exposing companies that use minerals derived from this region through disclosure and public pressure. A final ruling from SEC is expected sometime between August and December 2011.


A company will be impacted by this rule if it files reports with SEC under the Exchange Act, and Conflict minerals are "necessary to the functionality or production" of its product manufactured. Metals and ores currently classified as "Conflict Minerals" are (1) Tin – Cassiterite, (2) Tantalum - Columbite-tantalite, (3) Tungsten - Wolframite and (4) Gold. These metals are also referred to as "3TG". This requirement affects most manufacturers of Electronics and Communications, Aerospace, Automotive, Jewelry, Health care devices, Industrial machinery. Even companies that don’t file with the SEC may be affected if they are part of the supply chain for these metals to SEC filing companies.


Affected companies will need to:


1. Determine where 3TG metals are being used in products or processes at both in-house manufacturing or at contract manufacturers


2. Conduct supply chain due diligence, 3rd party verification, and in some cases private sector audits on the sources of these metals - all the way down to mine of origin


3. Report out the findings of the due diligence on the company’s annual SEC filing and website.


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