Preparing for Section 1502 of the Dodd-Frank Act

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Conflict Minerals: Extractive sector

Section 1502 of the Dodd-Frank Act requires annual disclosure by SEC Registrants, which will depend on Chain of Custody representations from the extractives sector.

What is Section 1502: Conflict Minerals
The United States Securities and Exchange Commission (US SEC) recently adopted Section 1502, Conflict Minerals of the Dodd-Frank Act. This rule requires that SEC Registrants annually disclose whether Conflict Minerals necessary to the functionality or production of their products, are sourced from the Democratic Republic of Congo (DRC) or adjoining countries.

What are Conflict Minerals
Conflict Minerals are mined in conditions of armed conflict and human rights abuses that finance or benefit armed groups in the DRC or adjoining countries. This rule aims to reduce funding for those groups. With persuasive use of 3TG minerals in electronics, jewellery, industrial products and packaging, this section of the Dodd-Frank act impacts most products.

Dodd-Frank Section 1502 requires companies to determine whether their minerals are conflict free by:

  • Examining products to determine whether, and to what extent, Section 1502 applies
  • Developing and conducting reasonable country-of-origin inquiry and due diligence
  • Acquiring an independent audit
  • Complying with disclosure requirements

Read this publication to learn more about how the mining sector can comply with Section 1502 of the Dodd-Frank act.