Stephanie Salmon, Artemis Strategies; Jeff Hannapel & Christian Richter, The Policy Group, Washington, D.C. WASHINGTON ALERT SEC Adopts Conflict Minerals Rules
METALCASTERS USING THE MINERALS MUST FILE A REPORT WITH THE SEC. Te Securities and Exchange
Commission (SEC) voted in August to adopt a rule requiring new disclosures from public companies in regards to their use of “conflict miner- als,” which are minerals mined in war-torn Central Africa or one of its nine neighboring countries. As part of the rule, companies
will be required to provide disclosure, which will be filed with the SEC. Te U.S. Congress originally man- dated the rules in 2010, with the in- tention of reducing use of key minerals such as gold, tin, tungsten and tanta- lum as a source of financing for armies battling in the Democratic Republic of Congo and other neighboring countries. Te minerals are essential in manufacturing many high-tech devices and a variety of other products. Te SEC revised its original pro- posal and included a phase-in period.
Who Must File a Conflict Minerals Report and What Has To Be Filed?
Reporting is required by companies,
including metalcasing facilities, that currently file an annual report with the SEC or companies that manufacture or contract to manufacture products that contain one of the four conflict miner- als (tin, tantalum, tungsten or gold). Te regulation does not include companies without direct control over manufactur-
ON THE HILL
Bill to Stop War on Coal Passes in the U.S. House
The U.S. House of Representatives
passed the Stop the War on Coal Act (H.R. 3409) on Sept. 21, by a vote of 233 to 17. The legislation is a combination of five bills that would prevent an array of regulations that could harm the coal in- dustry and the economy. The American Foundry Society endorsed the measure. The act would block the Environ- mental Protection Agency’s (EPA) ability to regulate greenhouse gas emissions from power plants and other
sources, prevent rules on the storage and disposal of coal ash and limit Clean Water Act rules.
The act also would prevent the U.S. Department of the Interior from tightening environmental controls on mountaintop removal coal mining and thwart other air emissions rules, including air toxin stan- dards for coal-fired power plants. Before the final vote, the House ap- proved two amendments requiring the government to publish the scientific data used as a basis for writing regulations. Another amendment requires the U.S.
Secretary of Transportation to estimate the number of jobs lost due to automo- tive emission standards.
The American Coalition for Clean Coal Electricity released a study in September that found 204 coal-fired units nationally could be closed due, in part, to regulations issued by EPA. The units are spread across 25 states and represent 31,000 MW of electric generating capacity. The vote on the Stop the War on Coal Act was the last legislative act of the House before the November elections.
October 2012 MODERN CASTING | 17
ing of their products, thus many large chain retailers will be exempt. Te rule includes metalcasting facilities using any of the conflict minerals. Tere is no set minimum amount
of mineral that needs to be present. Companies with miniscule amounts a mineral embedded in their products must file a report. Te report must be filed regardless of whether the company is domestic or foreign.
Conflict Minerals: Recycled and Scrap
Te final SEC rule allows for dif-
ferent treatment of conflict minerals from recycled or scrap sources. Conflict minerals are considered to be from re- cycled or scrap sources if they are from recycled metals, which are reclaimed end-user or post-consumer products, or scrap processed metals created during manufacturing. Minerals derived from recycled or scrap sources are considered conflict-free. In the case of tin, tantalum and
tungsten, a company must be able to reasonably conclude its minerals are from recycled or scrap sources or de- scribe the due diligence measures taken to arrive at its conclusion in a Conflict Minerals Report. If a company cannot reasonably
conclude, after its inquiry, that its gold is from recycled or scrap sources, it is
Cassiterite is the main ore of tin, one of the four confict minerals including gold, tantalum and tungsten.
required to undertake due diligence in accordance with the Office of Eco- nomic Cooperation and Development’s (OECD) Due Diligence Guidance and obtain an audit of its Conflict Miner- als Report. Gold currently is the only conflict mineral with a nationally or internationally recognized due diligence framework to determine whether it is recycled or scrap, as part of the OECD Due Diligence Guidance. Te first reports are due on May 31,
2014, for the 2013 calendar year, and annually on May 31 every year there- after, in order to ensure the minerals in use are conflict-free and did not finance or benefit armed groups. Te SEC allows a phase-in pe-
riod of two years for large companies, and four years for smaller companies. During that time, companies can state the origin of their minerals is undeter- mined while they work to trace their supply chains.
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