Last Minute Conflict Minerals Report Cautions

Ten work days are all that stand between you and the SEC conflict minerals filing deadline.  Well, eleven if you count June 1, which you are allowed since May 31 is on a weekend.  As the final CMR reviews should be well underway, here are a few considerations:

  • Yes, you need to include a smelter/refiner list in your CMR.  This  question continues to pop up.  We remind everyone that not only did CorpFin Director Keith Higgins comment that such a list is required, but we also personally confirmed this in our March meeting with SEC staff.  If you are required to conduct due diligence and file a CMR, then you are expected to include a smelter/refiner list.
  • Don’t repeat last year’s North Korea reporting debacle.  The Department of Commerce list includes facilities located in countries with which the US has trade sanctions.  Gold refiners were identified in Iran and Sudan (not South Sudan).  Check your listing carefully.
  • Word your product determination properly and carefully.  As we wrote earlier, some efforts at trying to avoid the use of “DRC Conflict Undeterminable” inadvertently conveyed an interpretation that the product was DRC Conflict Free.   As Keith Higgins pointed out, it is not a good idea to implying a DRC Conflict Free determination unless the CMR is accompanied by an Independent Private Sector Audit (IPSA).
  • Remember that the country where the smelter/refiner is located is not necessarily the country of ore origin.  We’ve written on this recently so we won’t repeat.  We’ve written on this recently so we won’t repeat.
  • Do a thorough final read through.  Don’t take this for granted.  One of the companies that filed early this year submitted their CY2013 CMR verbatim, including the date references.  Oops.

Let us know if you would like us to conduct a CMR review for you.  We can provide 24 hour (or less) turnaround.

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