Tag Archives: columbite

Video Introduction to Conflict Minerals tool SICMAP℠ Released

UPDATE:  The tool has been substantially updated, renamed CMCheckPoint℠ and is available from Elm Sustainability Partners, with a new video here.

As previously announced, The Elm Consulting Group International LLC today released its Self-Implemented Conflict Minerals Audit Preparation© (SICMAP℠) for commercial availability. As part of the product release, a short introductory video provides an overview of the tool, its features and functionality.

We are in the process of uploading a true HD version of the video on our website. Until that is completed, the version posted here has limited resolution even when viewed in HD mode (the “HD” icon in the upper right hand corner of the viewer window below.)

If you have access to YouTube, the video can be viewed in better quality here.

Elm Launches Groundbreaking Low Cost Conflict Minerals Audit Preparation Tool

Updated March 2012:  See our most recent announcement.

The Elm Consulting Group International LLC today announces a groundbreaking cost effective tool to support companies preparing for conflict minerals traceability audits or customer inquiries.

The delay in SEC’s final rule triggered many questions from companies about planning and pre-audit preparation.  This led us to a solution that is valuable in almost any foreseeable final regulation scope/content and companies planning responses to customer inquiries – yet significantly reduces costs during this period of uncertainty.

Elm’s Self-Implemented Conflict Minerals Audit Preparation© (SICMAP℠) is conceptually similar to a self-audit checklist.  SICMAP℠ is a spreadsheet tool that maximizes the use of internal company staff for cost reduction and implementation flexibility to develop and review conflict minerals programs in advance of third party auditing.

SICMAP℠ focuses on basic program elements equally relevant to companies responding to customer inquiries/procurement requirements and those working to comply with the upcoming SEC regulations on conflict minerals.   Successive and more complex tasks – for both program development and audit preparation – are identified based on initial SICMAP℠ findings, lessons learned from working through the SICMAP℠ process, and the final regulatory requirements once they are known.  The final rule, when published, will clarify the level of detail for some of the efforts.

Screenshots (which can be enlarged by clicking on them) show some of the features and functionality in SICMAP℠ include:

  • “At a glance” color-coding indicates progress/status of both program development and audit preparation
  • Live links to reference materials on the internet
  • Summaries of language from the U.S. legislation (which will not be changed by SEC’s final regulations)
  • Step-by-step pragmatic guidance on specific program elements
  • Highlights of emerging international initiatives in comparison/contrast to SEC audit standards
Sample Page Showing Detailed Guidance

Topics covered in an intuitive and pragmatic way include:

  • Initial scoping
  • Reasonable assurance and representative sampling concepts reflecting SEC auditor standards
  • Information management systems
  • Internal controls
  • Supply chain mapping
  • Communications planning and content
  • Scrap materials – special definitions and challenges in traceability efforts
  • Considerations in selecting an auditor and preparing for the site visit
Summary Tracking Page With Color Coding. This image shows covered topic tabs along the bottom.

The tool is based on Elm’s experience as one of four firms worldwide that have completed conflict minerals traceability independent audits. Elm’s tantalum traceability audits in 2010 resulted in the first ever “Conflict-Free Smelter” designation*, covering sites in the US and Japan.

We continue to recommend that companies move forward with planning activities, but defer third party audits until planning is substantially complete and the SEC regulations are final.  As with almost any new management program, a formal third party audit should be the last step of the implementation process – not the first.

SICMAP℠ will be commercially available beginning June 6, but feel free to contact us beforehand with questions.

* Issued by the industry association sponsoring the audits.  The Conflict Free Smelter (CFS) program is emerging as the leading conflict minerals third party certification program for smelters by the electronics industry.

Elm to Make Major Conflict Minerals Service Announcement May 31

On Tuesday May 31, The Elm Consulting Group International LLC will formally announce a major development in our conflict minerals traceability services.

Lawrence Heim, Elm Director and leader of the firm’s conflict minerals services:

SEC’s delay in promulgating their final conflict minerals rule has resulted in a significant amount of uncertainty within affected companies.  Many of these companies are challenged by cost constraints as they seek information, guidance and solutions to yet-unknown compliance standards.  Our announcement next week provides a highly cost-effective solution in balancing these challenges.

If you would like to receive the announcement and related information directly, send an email to Lheim@elmgroup.com.

Leading Edge Information Technology to Support Elm’s Conflict Minerals Traceability Services

The Elm Consulting Group International LLC (Elm) earlier this week launched our Conflict Minerals Traceability Service in response to recent US legal and international economic policy developments concerning “Conflict Minerals”.  Conflict Minerals are defined by the United States’ Securities and Exchange Commission (SEC) and the international Organization for Economic Cooperation and Development (OECD) as tin, tantalum, tungsten, gold and the ores from which these materials originate.

Today, Elm announces an enhancement to the Conflict Minerals Traceability Service.  We will be leveraging cutting-edge information technology through our relationship with Sentiment360, a leading Internet data monitoring and analytics company.  Using Sentiment360, Elm’s unparalleled depth of information review – far beyond standard data reviews – may yield critical insight into conflict mineral provenance.

Lawrence Heim, Director at Elm: “As audit activities get closer to the mining and exportation of the ore, concern increases over the veracity of the information.  These concerns have been expressed by the SEC, OECD and by trade associations developing conflict minerals traceability programs.  The public and nongovernmental organizations (NGOs) also have similar apprehensions.”

“In discussions with Sentiment360 soon after Elm broadcast information about our Conflict Minerals Traceability Service, we concluded there is an excellent fit for Sentiment360 in these audits,” Heim continued.

Scott Marticke, Chief Operating Officer for Sentiment360:  “Lawrence reviewed with us the audit frameworks and associated information needs for these complex audits.  It became clear that Sentiment360’s proven real-time data mining and analysis technology addresses specific concerns from many stakeholders on data quality/validity related to mineral sources.  We are excited to be working with Elm on this global issue.”

Sentiment360 is based in Atlanta and provides real time analysis of information trends across global Internet social networks, forums, Blogs, news, video and image sites.   They have been engaged by Fortune 500 companies and US governmental agencies to scour online and internal documents and monitor/analyze online conversations.  Contact Scott Marticke, COO, at (404) 920-4687, or visit us on the web at www.sentiment360.com.

Now Available – Summary Review/Comparison of Conflict Mineral Supply Chain Traceability Audit Programs

Elm has developed a short summary review of conflict minerals audit programs based on our industry-leading first-hand experience conducting these audits, and leveraging our extensive international senior-level health, safety and environmental (HSE) auditing expertise.

If you are interested in receiving our summary document, please send us an email (lheim@elmgroup.com) or feel free to call us.  We look forward to hearing from you soon.

 

Conflict Mineral Law Signed as Part of Wall Street Reform Legislation

In case you missed it, the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law yesterday by President Obama also included new auditing and disclosure requirements for companies who use certain ores/minerals in their products.

The requirements apply to certain materials that originate from the Democratic Republic of the Congo – called “conflict minerals”.  These are defined as columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives; or any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country.

The text of the new legislation that was included in the Dodd-Frank bill signed into law is below.

SEC. 1502. CONFLICT MINERALS.

(a) SENSE OF CONGRESS ON EXPLOITATION AND TRADE OF CONFLICT MINERALS ORIGINATING IN THE DEMOCRATIC REPUBLIC OF THE CONGO.

It is the sense of Congress that the exploitation and trade of conflict minerals originating in the Democratic Republic of the Congo is helping to finance conflict characterized by extreme levels of violence in the eastern Democratic Republic of the Congo, particularly sexual- and gender-based violence, and contributing to an emergency humanitarian situation therein, warranting the provisions of section 13(p) of the Securities Exchange Act of 1934, as added by subsection (b).

(b) DISCLOSURE RELATING TO CONFLICT MINERALS ORIGINATING IN THE DEMOCRATIC REPUBLIC OF THE CONGO.

Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m), as amended by this Act, is amended by adding at the end the following new subsection:

‘‘(p) DISCLOSURES RELATING TO CONFLICT MINERALS ORIGINATING IN THE DEMOCRATIC REPUBLIC OF THE CONGO.

‘‘(1) REGULATIONS.

‘(A) IN GENERAL.

Not later than 270 days after the date of the enactment of this subsection, the Commission shall promulgate regulations requiring any person described in paragraph (2) to disclose annually, beginning with the person’s first full fiscal year that begins after the date of promulgation of such regulations, whether conflict minerals that are necessary as described in paragraph (2)(B), in the year for which such reporting is required, did originate in the Democratic Republic of the Congo or an adjoining country and, in cases in which such conflict minerals did originate in any such country, submit to the Commission a report that includes, with respect to the period covered by the report

‘‘(i) a description of the measures taken by the person to exercise due diligence on the source and chain of custody of such minerals, which measures shall include an independent private sector audit of such report submitted through the Commission that is conducted in accordance with standards established by the Comptroller General of the United States, in accordance with rules promulgated by the Commission, in consultation with the Secretary of State; and

‘‘(ii) a description of the products manufactured or contracted to be manufactured that are not DRC conflict free (‘DRC conflict free’ is defined to mean the products that do not contain minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country), the entity that conducted the independent private sector audit in accordance with clause (i), the facilities used to process the conflict minerals, the country of origin of the conflict minerals, and the efforts to determine the mine or location of origin with the greatest possible specificity.

‘‘(B) CERTIFICATION. The person submitting a report under subparagraph (A) shall certify the audit described in clause (i) of such subparagraph that is included in such report. Such a certified audit shall constitute a critical component of due diligence in establishing the source and chain of custody of such minerals.

‘‘(C) UNRELIABLE DETERMINATION. If a report required to be submitted by a person under subparagraph (A) relies on a determination of an independent private sector audit, as described under subparagraph (A)(i), or other due diligence processes previously determined by the Commission to be unreliable, the report shall not satisfy the requirements of the regulations promulgated under subparagraph (A)(i).

‘‘(D) DRC CONFLICT FREE.  For purposes of this paragraph, a product may be labeled as ‘DRC conflict free’ if the product does not contain conflict minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or an adjoining country.

‘‘(E) INFORMATION AVAILABLE TO THE PUBLIC.  Each person described under paragraph (2) shall make available to the public on the Internet website of such person the information disclosed by such person under subparagraph (A).

‘‘(2) PERSON DESCRIBED.  A person is described in this paragraph if

‘‘(A) the person is required to file reports with the Commission pursuant to paragraph (1)(A); and

‘‘(B) conflict minerals are necessary to the functionality or production of a product manufactured by such person.

‘‘(3) REVISIONS AND WAIVERS. The Commission shall revise or temporarily waive the requirements described in paragraph (1) if the President transmits to the Commission a determination that

‘‘(A) such revision or waiver is in the national security interest of the United States and the President includes the reasons therefor; and

‘‘(B) establishes a date, not later than 2 years after the initial publication of such exemption, on which such exemption shall expire.

‘‘(4) TERMINATION OF DISCLOSURE REQUIREMENTS.  The requirements of paragraph (1) shall terminate on the date on which the President determines and certifies to the appropriate congressional committees, but in no case earlier than the date that is one day after the end of the 5-year period beginning on the date of the enactment of this subsection, that no armed groups continue to be directly involved and benefitting from commercial activity involving conflict minerals.

‘‘(5) DEFINITIONS.  For purposes of this subsection, the terms ‘adjoining country’, ‘appropriate congressional committees’, ‘armed group’, and ‘conflict mineral’ have the meaning given those terms under section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.’’.

(c) STRATEGY AND MAP TO ADDRESS LINKAGES BETWEEN CONFLICT MINERALS AND ARMED GROUPS.

(1) STRATEGY.

(A) IN GENERAL.  Not later than 180 days after the date of the enactment of this Act, the Secretary of State, in consultation with the Administrator of the United States Agency for International Development, shall submit to the appropriate congressional committees a strategy to address the linkages between human rights abuses, armed groups, mining of conflict minerals, and commercial products.

(B) CONTENTS.  The strategy required by subparagraph (A) shall include the following:

(i) A plan to promote peace and security in the Democratic Republic of the Congo by supporting efforts of the Government of the Democratic Republic of the Congo, including the Ministry of Mines and other relevant agencies, adjoining countries, and the international community, in particular the United Nations Group of Experts on the Democratic Republic of Congo, to

(I) monitor and stop commercial activities involving the natural resources of the Democratic Republic of the Congo that contribute to the activi- ties of armed groups and human rights violations in the Democratic Republic of the Congo; and

(II) develop stronger governance and economic institutions that can facilitate and improve transparency in the cross-border trade involving the natural resources of the Democratic Republic of the Congo to reduce exploitation by armed groups and promote local and regional development.

(ii) A plan to provide guidance to commercial entities seeking to exercise due diligence on and formalize the origin and chain of custody of conflict minerals used in their products and on their suppliers to ensure that conflict minerals used in the products of such suppliers do not directly or indirectly finance armed conflict or result in labor or human rights violations.

(iii) A description of punitive measures that could be taken against individuals or entities whose commercial activities are supporting armed groups and human rights violations in the Democratic Republic of the Congo.

(2) MAP.

(A) IN GENERAL.  Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall, in accordance with the recommendation of the United Nations Group of Experts on the Democratic Republic of the Congo in their December 2008 report

(i) produce a map of mineral-rich zones, trade routes, and areas under the control of armed groups in the Democratic Republic of the Congo and adjoining countries based on data from multiple sources, including

(I) the United Nations Group of Experts on the Democratic Republic of the Congo;

(II) the Government of the Democratic Republic of the Congo, the governments of adjoining countries, and the governments of other Member States of the United Nations; and

(III) local and international nongovernmental organizations;

(ii) make such map available to the public; and

(iii) provide to the appropriate congressional committees an explanatory note describing the sources of information from which such map is based and the identification, where possible, of the armed groups or other forces in control of the mines depicted.

(B) DESIGNATION.  The map required under subparagraph (A) shall be known as the ‘‘Conflict Minerals Map’’, and mines located in areas under the control of armed groups in the Democratic Republic of the Congo and adjoining countries, as depicted on such Conflict Minerals Map, shall be known as ‘‘Conflict Zone Mines’’.

(C) UPDATES.  The Secretary of State shall update the map required under subparagraph (A) not less frequently than once every 180 days until the date on which the disclosure requirements under paragraph (1) of section 13(p) of the Securities Exchange Act of 1934, as added by subsection (b), terminate in accordance with the provisions of paragraph (4) of such section 13(p).

(D) PUBLICATION IN FEDERAL REGISTER.  The Secretary of State shall add minerals to the list of minerals in the definition of conflict minerals under section 1502, as appropriate. The Secretary shall publish in the Federal Register notice of intent to declare a mineral as a conflict mineral included in such definition not later than one year before such declaration.

(d) REPORTS.

(1) BASELINE REPORT.  Not later than 1 year after the date of the enactment of this Act and annually thereafter until the termination of the disclosure requirements under section 13(p) of the Securities Exchange Act of 1934, the Comptroller General of the United States shall submit to appropriate congressional committees a report that includes an assessment of the rate of sexual- and gender-based violence in war-torn areas of the Democratic Republic of the Congo and adjoining countries.

(2) REGULAR REPORT ON EFFECTIVENESS.  Not later than 2 years after the date of the enactment of this Act and annually thereafter, the Comptroller General of the United States shall submit to the appropriate congressional committees a report that includes the following:

(A) An assessment of the effectiveness of section 13(p) of the Securities Exchange Act of 1934, as added by subsection (b), in promoting peace and security in the Democratic Republic of the Congo and adjoining countries.

(B) A description of issues encountered by the Securities and Exchange Commission in carrying out the provisions of such section 13(p).

(C)(i) A general review of persons described in clause (ii) and whether information is publicly available about

(I) the use of conflict minerals by such persons; and

(II) whether such conflict minerals originate from the Democratic Republic of the Congo or an adjoining country.

(ii) A person is described in this clause if

(I) the person is not required to file reports with the Securities and Exchange Commission pursuant to section 13(p)(1)(A) of the Securities Exchange Act of 1934, as added by subsection (b); and

(II) conflict minerals are necessary to the functionality or production of a product manufactured by such person.

(3) REPORT ON PRIVATE SECTOR AUDITING.  Not later than 30 months after the date of the enactment of this Act, and annually thereafter, the Secretary of Commerce shall submit to the appropriate congressional committees a report that includes the following:

(A) An assessment of the accuracy of the independent private sector audits and other due diligence processes described under section 13(p) of the Securities Exchange Act of 1934.

(B) Recommendations for the processes used to carry out such audits, including ways to

(i) improve the accuracy of such audits; and

(ii) establish standards of best practices.

(C) A listing of all known conflict mineral processing facilities worldwide.

(e) DEFINITIONS.  For purposes of this section:

(1) ADJOINING COUNTRY.  The term ‘‘adjoining country’’, with respect to the Democratic Republic of the Congo, means a country that shares an internationally recognized border with the Democratic Republic of the Congo.

(2) APPROPRIATE CONGRESSIONAL COMMITTEES.  The term ‘‘appropriate congressional committees’’ means

(A) the Committee on Appropriations, the Committee on Foreign Affairs, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Appropriations, the Committee on Foreign Relations, the Committee on Finance, and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(3) ARMED GROUP.  The term ‘‘armed group’’ means an armed group that is identified as perpetrators of serious human rights abuses in the annual Country Reports on Human Rights Practices under sections 116(d) and 502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d) and 2304(b)) relating to the Democratic Republic of the Congo or an adjoining country.

(4) CONFLICT MINERAL.  The term ‘‘conflict mineral’’ means—

(A) columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives; or

(B) any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country.

(5) UNDER THE CONTROL OF ARMED GROUPS. The term ‘‘under the control of armed groups’’ means areas within the Democratic Republic of the Congo or adjoining countries in which armed groups

(A) physically control mines or force labor of civilians to mine, transport, or sell conflict minerals;

(B) tax, extort, or control any part of trade routes for conflict minerals, including the entire trade route from a Conflict Zone Mine to the point of export from the Democratic Republic of the Congo or an adjoining country; or

(C) tax, extort, or control trading facilities, in whole or in part, including the point of export from the Democratic Republic of the Congo or an adjoining country.