Eurasia Group Global Trends Quarterly - First Quarter 2013

African Conflict Minerals & Disclosure Provisions Ignite Controversy

As governments and activists seek to address corruption in resource-rich countries, there is significant controversy surrounding efforts to require mandatory disclosure of payments and mineral purchases by companies. Industry groups have fought and will continue to fight the rules in court, which could result in modifications to their application. Congressional challenges, while also possible, are not likely to gain traction.

But the changes to reporting requirements in the US are lending renewed momentum to international efforts to boost transparency, with the EU and Canada looking to follow the US lead. Requirements will not be harmonized across countries, creating competitiveness challenges for obligated companies.