Conflict Minerals refer to natural mineral resources mined in regions experiencing conflict, such as the Democratic Republic of the Congo (DRC) and adjoining countries. Under U.S. conflict minerals legislation, conflict minerals refer to four types of minerals — tin, tantalum, tungsten, and gold — commonly referred to as ‘3TG.’ The concept of conflict minerals emerged as the international community focused attention on the DRC civil war and human rights abuses between 2000 and 2010. In some regions centered on the DRC, funds from mineral sales flow to armed groups and are used in the massacres of their own citizens. Moreover, serious human rights violations such as child and civilian labor exploitation and abuse of women are occurring at mining sites.
Tantalum, one of the types of conflict minerals, is the material for tantalum capacitors (capacitors using tantalum, which has excellent electrical storage capabilities, in a component that temporarily stores electricity) used in electrical circuits. As it accounts for a high proportion of reserves and is an essential component for small electronic devices, it is the most problematic of the four minerals. Tungsten, another type of conflict mineral, consists of high-strength alloy components, while tin is a metal that is a component of bronze.
[Conflict Minerals Ⓟ ESG.ONL/ESG Today]
In addition, while not legally regulated as a conflict mineral, there is cobalt — the main component of lithium-ion batteries widely used in electric vehicles and smartphones. Cobalt has been a source of concern as Chinese-owned companies mining cobalt in the DRC are causing human rights issues such as child labor.
To block the flow of funds to armed groups and prevent human rights violations, the U.S. Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, mandating the reporting of conflict mineral usage. Under Section 1502 of this Act, companies listed on U.S. stock exchanges must investigate the use of conflict minerals, including their origin and whether they are linked to conflict. They must then conduct supply chain due diligence and report the results to the U.S. Securities and Exchange Commission (SEC). In the wake of this, many companies now verify and disclose whether the conflict minerals they use are associated with armed groups or human rights issues.
Even today, companies continue their efforts to use minerals unrelated to conflict. The regulation of conflict minerals is an international trend that strengthens corporate responsibility to ensure that mineral extraction does not harm human rights and peace.
by Editor O