Companies listed in the U.S. are required by Section 1502 of the Dodd-Frank
Act to report whether they manufacture products that incorporate so-called
conflict minerals (defined as gold, tin, tungsten and tantalum coming from the
Democratic Republic of Congo and its neighboring countries).
McGuireWoods partners Yves Melin and Alex Brackett, along with Estelle Levin
– Director of responsible mining and sourcing consultancy, Estelle Levin Limited
in Cambridge, UK – recently co-authored an
article that reviews and assesses the impact of the conflict minerals rules
of Dodd-Frank, summarizes the proposed European Commission rules for the EU,
compares the EU proposal with the U.S.’s Dodd-Frank, and critically reviews it
in view of its stated objective.
In the authors’ opinion, the EU proposal helps improve the ability of
operators to perform due diligence of their supply chain. But, it does not
contain any meaningful incentive meant to foster the responsible sourcing of
minerals from conflict areas. If adopted as such, the proposed EU rules are
likely to result in the same embargo as the one Dodd-Frank created, but for the
EU this time, and for potentially a lot more countries than the African
countries targeted by Dodd-Frank.
To view the full article, click here.
This article appeared on the McGuireWoods blog Subject to
Inquiry, which provides commentary on white collar, congressional, SEC,
energy enforcement and other government inquiries.