What are Conflict Minerals?

Conflict Minerals term refers to the metals and minerals sourced from politically unstable locations that are affected by conflict, and can be directly associated with conflict, forced labor, child labor, human rights abuses, unacceptable  working conditions, and other unpropitious impacts.

The main Conflict Minerals include the minerals cassiterite (source of Tin), coltan (source of Tantalum, wolframite (source of Tungsten), and Gold. Conflict Minerals are often referred to 3TG (Tin, Tantalum, Tungsten, Gold). However, it should be noted that recently it is not only 3TG minerals that are of concern – there has also been an increasing emphasis on Cobalt and Mica. All impacted stakeholders must ensure that these metals and minerals are sourced responsibly.

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Conflict Minerals & ESG

“Conflict Minerals” is no longer a matter of obligations falling under Section 1502 of the U.S. Dodd-Frank Act or Regulation (EU) 2017/821. Conflict Minerals have also become part of the social aspects of so-called ESG (Environmental, Social, Governance) requirements and go beyond the 3TG scope.

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Conflict Minerals & Due Diligence

Conflict Minerals is no longer a legislation-driven topic for market access. Reporting on Conflict Minerals’ due diligence and transparency in the supply chain has become mandatory due to significant pressure from customers and investors. Companies are expected to show a robust due diligence process in order to win business.

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How can we help you?

Demonstration of due diligence on Conflict Minerals impacts company internal processes as well as supply chain communication. This requires resources, expertise, and time. Sources-Matter can help you set up your internal processes and collect all necessary data in the supply chain, on your behalf.

The main legislations that are directly related to Conflict Minerals are the Dodd-Frank Act, section 1502, and EU Regulation (EU) 2017/871, laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas (CAHRA countries).

Other equally important legislation, that is however not only related to the Conflict Minerals, is established under so-called ESG (Environmental, Social & Governance) requirements. Which include the European Directive on Corporate Sustainability Reporting (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD, also known as CS3D), and the German Supply Chain Due Diligence Act (LkSG) laying down due diligence obligations in the companies’ supply chains in relation to the social aspects (human rights) and environmental risks.