The highly-touted Solutions for Hope (SfH) Project in the DRC has received global publicity as a potential model for future conflict-free mineral sourcing within the DRC. As part of the project, an independent audit of the operations was conducted to evaluate conformance of the operation to the OECD Due Diligence Guidance. This work was conducted by Gregory Mthembu-Salter, a consultant to the United Nations Group of Experts. This audit document, which forms the basis of SfH’s conflict-free mine claims, is available on the SfH website. (NOTE: When we began writing this piece, the link to this audit report functioned properly. At the time of our publication, the link appears to have become corrupted, therefore we include the document in its exact form as originally downloaded from the SfH website on April 5, 2012. SfH OECD audit report) With the world carefully watching the SfH project, one expects the highest attention to detail and scrutiny at each step in the process. However, with all due respect to Mr. Mthembu-Salter (whom Elm will be meeting at the end of this month at the ITRI Conflict Minerals Programme in Cape Town South Africa), it is unlikely that an SEC Conflict Minerals Report (CMR)
Read more →Top law firm Akin Gump recently published an Alert containing their in-depth analysis of the letter from Senator Leahy and others to SEC expressing views on the final SEC conflict minerals regulation yet to be promulgated. Akin Gump noted Leahy’s comments on the SEC’s apparent position that the conflict minerals report (CMR) be “furnished” rather than “filed”. The practical impact of the “furnished” vs. “filed” distinction is that “furnished” information is not automatically incorporated by reference into a reporting issuer’s filings with the Commission and is not subject to liability under Section 18 of the Exchange Act. Section 18 of the Exchange Act makes reporting issuers liable for “false or misleading statements” if investors rely on such statements when purchasing or selling securities at a price which was affected by such statements. Reporting issuers who are required to “furnish” information to the SEC as an exhibit to an annual filing may still be subject to liability for violations of Sections 13(a) or 15(d) of the Exchange Act if they fail to furnish a required exhibit or if the required exhibit is “unreliable”. Penalties for such violations may be injunctive, civil or criminal and may also extend to individual executives of
Read more →After the devastating tsunami in Japan early in 2011, we began exploring the interrelationship of green/ethical procurement (such as conflict minerals) with business continuity/disaster recovery planning. Now, an article from leading electronics supplier Digi-Key states that lead times are delayed up to almost 6 months for a significant amount of the world’s production of tantalum capacitors as a result of the flooding in Thailand, combined with raw material supply impacts of conflict minerals laws/policies. Of course, higher prices are also expected. ”Combine those two things together and that put a big strain on the supply of raw materials in the market as well as pricing,” said Joe Porter, vice president tantalum product marketing at Kemet Corp. based in Greenville, S.C. We continue to believe that significant opportunities exist for business continuity/disaster recovery planning efforts to incorporate growing green/ethical procurement initiatives. Robust sustainability risk assessment exercises are essential in identifying relevant gaps and areas for improvement. Feel free to contact us for more information about how we can help.
Read more →SEC has released the full transcript and archived video of the October 18 Conflict Minerals Roundtable.
View the transcript here and the video (Parts 1 and 2) here.
The following is a transcript of Elm’s opening comments and answers to questions posed by SEC staff at this week’s Conflict Minerals Roundtable in Washington DC. These comments were presented by Lawrence M. Heim, CPEA of Elm’s Atlanta office. Opening … Continue reading →
A new study on the economic impact of SEC proposed conflict minerals rule was released earlier this week by Tulane University. The study evaluated cost estimates from SEC , National Association of Manufacturers (NAM) and IPC and provides what they … Continue reading →
Elm will be a featured presenter in a free webinar on Wednesday, October 12, 2011 10:00 AM – 11:00 AM CDT sponsored by MetalMiner and Aravo. Lisa Reisman, Editor of MetalMiner, will provide opening remarks and then pass the program to Lawrence M. … Continue reading →
UPDATE: For the latest information on the 2012 relaunch of the tool, click here. Elm has released a demonstration version of its pioneering Self-Implemented Conflict Minerals Audit Preparation© tool, or SICMAP℠. The demo contains abridged content, but retains the functionality, pragmatic approach and simplicity of the full version. “While we originally designed SICMAP℠ to assist companies in preparing for audits, we have seen an unexpected interest in use of the tool as a conflict minerals program development guide/framework”, said Lawrence Heim, Elm’s conflict minerals services leader. ”The demo version was made available because of the increased demand and interest.” To request a copy of the demo version, contact Lawrence Heim at lheim@elmgroup.com.
Read more →IPC has announced a pilot study of the OECD due diligence guidance that will run until June 2012. Elm confirmed that this study is an OECD-lead study intended to help the OECD identify important changes to their document. We recently wrote about views expressed by companies who tried to implement the Guidance earlier with little success. Another post dealt with the inconsistencies between the OECD Guidance and SEC standards for auditors and auditing engagements. It appears that OECD has capitulated – essentially reverting the status of their “final” standard back to a draft. While that may be good news to some extent, critical questions arise about the uncertainty it creates in the content of SEC’s upcoming final regulations, as well as how the project timing will impact companies seeking to implement a program to meet 2012 or even 2013 reporting.
Read more →We field many phone calls asking us about the US conflict mineral law and associated requirements. As a result, we developed a Frequently Asked Questions (FAQ) document that provides concise information on the most common questions we receive. We hope you find this document useful. We welcome any comments or suggestions you may have on the document or its content. Updated FAQ
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