Screen for Conflict Minerals with HDXRF
The Securities and Exchange Commission (SEC) adopted a final rule as mandated by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank Act) to require publicly-held companies, or issuers, to publicly disclose their use of conflict minerals that originate from the Democratic Republic of the Congo (DRC) or an adjoining country. The first step in risk assessment for this directive is to determine if your products contain any of the 3TG elements. Screening for the presence of 3TG elements with High Definition X-Ray Fluorescence (HDXRF®) is fast, precise, and requires minimal training.
Who, What, When, & Why
Who is required to comply with the section 1502 disclosure regulation?
A company is required to comply with section 1502 of the Dodd-Frank Act and file a conflict minerals report to the SEC if all of the following criteria are met:
- The company files reports with the SEC under Securities 13(a) or 15(d) of the Exchange Act.
- The company is publicly traded and manufactures products or contracts products to be manufactured.
- If the manufactured products contain conflict minerals necessary to the functionality or production of the product.
What materials are subject to the 1502 regulation and where could these elements be found in consumer products?
- Tin, Tungsten, Tantalum, and Gold (3Ts and G) are the elements referenced in 1502 with no de minimus listed. Even trace amounts of these materials, if found to be in a component necessary to the functionality or production of the product, must be reported.
- These elements can be found in a variety of consumer products including, but not limited to, solder in electrical goods, jewelry, belt buckles, zippers, key chains, and eyeglasses.
When did this regulation take effect?
The first annual disclosure report was due to the SEC by May 31, 2014 and should cover all products manufactured during the 2013 calendar year.
Why was this regulation put into place?
Most elemental regulatory directives are put in place to protect consumers from exposure to potentially hazardous heavy elements. This particular regulation was brought about to protect the people living in regions where Tin, Tungsten, Tantalum, and Gold are often sourced. The mining of these minerals from the DRC and adjoining regions are often led by violent and abusive armed groups and the Dodd Frank Act is an effort to stop funding of this humanitarian crisis.