US congressional watchdog finds conflict minerals disclosure rule not reducing violence within DRC News
EdwinAlden.1995, CC BY-SA 4.0, via Wikimedia Commons
US congressional watchdog finds conflict minerals disclosure rule not reducing violence within DRC

Congressional watchdog US Government Accountability Office (GAO) concluded on Monday that no concrete evidence supports the effectiveness of the 2012 Securities and Exchange Commission’s (SEC) conflict minerals disclosure rule in reducing violence within the Democratic Republic of Congo (DRC).

The investigation revealed that the SEC rule did not demonstrate a decrease in the frequency or severity of violence in the eastern regions of the DRC, where numerous mines and armed groups are situated. Moreover, the report indicated a potential correlation between the rule and a spread of violence, particularly in areas hosting informal, small-scale gold mining operations. According to the report, this spike in violence might be attributed to armed groups fighting for control over gold mines due to gold’s ease of transport and lower traceability compared to other conflict minerals.

GAO also highlighted that the rule had a negligible impact on neighboring countries’ violence levels. Experts suggest that armed groups in the DRC rely on various funding sources beyond conflict minerals, and complex factors like external influences and governance deficiencies play pivotal roles in perpetuating conflicts in the region.

Despite these findings, there are indications that industry initiatives have enhanced transparency regarding the sourcing of conflict minerals. For instance, an industry association recently warned smelters participating in its assurance program about the risks associated with armed group interference in mineral supply chains from the DRC and Rwanda.

On August 22, 2012, the SEC enacted the conflict minerals disclosure rule under Section 1502 of the Dodd-Frank Act, mandating companies to disclose their use of conflict minerals originating from the DRC or neighboring countries. This rule came into effect on November 13, 2012. Section 1502 amended the Securities Exchange Act of 1934 to include Section 13(p), requiring certain companies to disclose their use of conflict minerals essential for product functionality or production. According to the rule, companies obligated to file a Conflict Minerals Report must conduct due diligence on the sourcing and custody chain of their conflict minerals.

Conflict minerals, currently include tantalum, tin, tungsten, and gold, are extracted in various regions globally. The conflict minerals have been associated with funding violent activities, including killings, and human rights abuses in conflict zones like the DRC.

Over the years, both voluntary and regulatory measures have been implemented to ensure responsible mineral sourcing and curb financing for human rights abuses linked to mineral extraction. The Organisation for Economic Co-operation and Development (OECD) published guidelines in 2011 on due diligence for responsible mineral supply chains from conflict zones. These guidelines have gained international recognition as a framework for due diligence and have been referenced in subsequent US conflict minerals legislation.

THIS DAY @ LAW

Pope Urban II sparks First Crusade

Pope Urban II threw his support behind what would become the First Crusade on November 27, 1095 during the Council of Clairmont. The Pope urged the council's participants to render aid to the Byzantine Empire, which was being attacked by the Seljuks. Pope Urban called for a wide coalition of rich and poor to combat the threat, which eventually resulted in the conquest of much of the Muslim-controlled Levant by the Crusaders and the establishment of the Crusader States. Read Pope Urban's address.  

Catholic Code of Canon Law revised

On November 27, 1983, the revised Code of Canon Law of the Roman Catholic Church went into effect. Learn more about the history of Canon Law from Professor Kenneth Pennington of the Catholic University of America's Columbus School of Law.

Alfred Nobel creates Nobel Prize in his will

On November 27, 1895, Alfred Nobel signed his will, creating the Nobel Prize. Learn more about the history of the Nobel Prize and the Nobel Commission.