The New EU Conflict Minerals Regulation — Is It Something to Be Thankful for?

Nov 24, 2016 | Dynda A. Thomas and Christina Economides
View Original

Since the US Presidential Election 2 weeks ago, some have been looking forward to a possible repeal of the US conflict minerals rule by a newly-elected Trump Administration. But, the completion of the negotiations on the new EU conflict minerals regulation makes it clear that companies should not slow their due diligence efforts on the source and chain of custody of the tin, tantalum, tungsten and gold in their products. The negotiations of the EU conflict minerals regulation concluded on November 22, 2016, through the so-called “trilogue negotiations.” This is another major step toward the final adoption of the legislation and the establishment of an EU legislative framework for conflict minerals.  Under the new regulation, starting on January 1, 2021, an estimated 95 percent plus of the minerals processed in smelters or refiners within the EU will be required to go through a due diligence process. Large manufacturers in the EU will be obliged to disclose their strategies for monitoring the sources of their minerals.