At the Consumer Electronics Show last week, Intel CEO Brian Krzanich made headlines by announcing that starting this year, all Intel microprocessors will be made with “conflict free” minerals. Conflict minerals are mined under inhuman conditions in the Democratic Republic of Congo, then are smelted and sold to electronics manufacturers, with the profits then used to fund the continuing armed conflict in the DRC that has killed millions. Use of conflict minerals in electronics is a complex and contentious issue, and with several first-world governments about to get involved, the Intel announcement was likely just the first of many.
- ‘Conflict free’ minerals from the DRC will only be possible if companies stay (Guardian Sustainable Business/Simon Propper and Peter Knight) “The DRC is rich in tantalum, tin, tungsten and gold (3TG) — widely used in manufacturing, including electrical and electronic products. Many of the mines in the DRC have been controlled by rebels who extort money from mine owners and use forced labour to dig the ore. Because of the chaotic conditions and weak governments in the region, it is hard for industrial buyers to tell the difference between legitimate and conflict minerals. Their job is further complicated because the minerals are exported for smelting in distant countries.”
- Intel: All of our microprocessors made this year are “conflict free” (Ars Technica/Cyrus Farivar) “While the move might seem like a PR coup for Intel—indeed it’s the first major tech company we’re aware of to announce such a conscientious plan—the company is not necessarily doing it solely out of the goodness of its heart. In 2012, the Securities and Exchange Commission voted to approve new rules that would require American companies to publicly disclose whether they use ‘conflict minerals’ originating from the Democratic Republic of the Congo (DRC) or neighboring countries.”
- Conflict mineral deadline looms for electronics makers (WSJ CIO Journal/Joel Schectman) “The new rules, part of the Dodd-Frank financial reform, require companies to disclose whether their products use certain metals sourced from mines controlled by armed groups in the war-torn Democratic Republic of Congo. Companies need to make their first report in May. A legal challenge brought by business groups against the rule caused many companies to delay preparation for the requirement, in the hope that it would be overturned, said Howard Heppelmann, a general manager at supply chain software maker PTC Inc. A federal district court in the District of Columbia ruled against the groups in July.”
- Toward electronics free of conflict minerals (Huffington Post/Wasima Khan) “In fact, it is claimed that the US legislation has caused a ‘de facto embargo’ in some parts of DR Congo. This apparent success has led to a decrease in conflict financing but at the same time increased poverty for mining communities. In addition, when American and European buyers started to draw back from conflict-ridden regions in the DR Congo, Chinese corporations gained a virtual monopoly. Allegedly, they exploited this advantage to lower the prices of the minerals with 20 to 30 percent. Under such circumstances, it’s doubtful whether the law reforms in the United States can reduce the problem while other countries do not restrict the purchase of conflict minerals.”
Users fact:
How many U.S. manufacturers could be using conflict minerals? The Securities and Exchange Commission estimates that about 1,200 companies will be required to submit conflict minerals reports to them this May.
