Can Securities Regulation Stymie Conflict in Africa?

Jun 8, 2016 | Katie Cramer
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The “conflict minerals provision” contained in Dodd-Frank Wall Street Reform and Consumer Protection Act instructed the SEC to develop reporting requirements for companies producing goods containing tantalum, tin, tungsten, or gold. Use of these four identified conflict minerals spans a multitude of products, from jet engines to food packaging to mobile phones to light bulbs. Congress anticipated mandatory disclosure would likely prompt the public to scrutinize firms’ mineral sourcing and pressure companies to transition to conflict-free suppliers.

Companies first filed conflict minerals disclosures in 2014. According to an analysis of these disclosures by the U.S. Government Accountability Office (GAO), not even one company out of the 1,321 that filed reports could figure out whether the minerals it used helped finance rebel groups involved in the DRC conflict. Although nearly all firms inquired into their minerals’ country of origin, only one-third of the companies could determine if the conflict minerals originated in the DRC or bordering countries.