The Congo Mines That Supply 'Conflict Minerals' For The World's Gadgets
KELSEY CAMPBELL-DOLLAGHAN for National Geographic
Most people who own a smartphone or a laptop, or a new car arent familiar with tantalum, the rare, blue-grey metal that conducts electricity through these devices. But thanks to skyrocketing demand from electronics makers, tantalum along with a handful of other rare minerals is an incredibly sought-after metal. And its fuelling the ongoing conflict in Congo. In the October 125th Anniversary issue of National Geographic, Jeffrey Gettleman and photographer Marcus Bleasdale travel into eastern Congo to investigate the current state of the countrys mineral trade, which Bleasdale describes as an antlike army expending millions of calories and gallons of sweat to feed a vast and distant global industry.
Eastern Congo is home to a huge wealth of precious metals, though its one of the the poorest countries in the world. The countrys mines produce near half of the worlds supply of tantalum, as well as a large percentage of its tin ore, tungsten, gold and dozens of other minerals used in electronics. And the militia groups that control them have long funded their activities by employing locals and kids to mine minerals in horrifying conditions.
These are conflict minerals, and theyve been a simmering topic in the tech world for years (in 2010, Steve Jobs described it as a very difficult problem). The same year, Barack Obama signed a bill that required all public companies to disclose their use of conflict minerals, and companies like Intel and Motorola pledged to ban them. And indeed some of these mines are now able to tag their products as conflict free.
But reform has been hard. Today, experts estimate that more than half of Congos mines are still controlled by rebel groups, and the reality of the situation remains murky. Gettleman and Bleasdale, for example, were detained at one site after stumbling into a double game where officials collude with rebels to profit from the mines.
Read more at: http://www.gizmodo.com.au/2013/09/the-congo-mines-that-supply-conflict-minerals-for-the-worlds-gadgets/
Workers rip the earth apart in search of gold at the Sufferance mine in the Ituri region. Much of Congos gold, more than $US600 million worth a year, is smuggled across borders. Marcus Bleasdale/National Geographic.
Gold is now the most lucrative of conflict minerals. Illicit profits from tin, tungsten, and tantalum have dropped 65 per cent since 2010, when the campaign to link minerals with violence began gaining ground. Marcus Bleasdale/National Geographic.
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(20,582 posts)undeterred
(34,658 posts)By Dustin Walsh
After years of education and preparation, the automotive industry has begun to identify whether certain metals from nine African countries exist in the supply chain. Section 1502 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act, finalized in August 2012, requires public companies to disclose whether they use "conflict minerals" -- tin, tungsten, tantalum and gold -- from the Democratic Republic of Congo and eight other African countries that are said to fund violence.
Although the intent of the rule is to limit the funding of armed conflicts in the Congo region by no longer sourcing from militant-controlled mines, executing it requires a new level of understanding the supply chain, experts say. All companies registered with the U.S. Securities and Exchange Commission are required to establish reporting processes by May 31, and it has been a struggle, said Aaron Sikora, automotive partner at PricewaterhouseCoopers LLP in Detroit.
"Whether the metals in the supply chain are coming from the conflicted region of the world is still a big unknown at this point," Sikora said. "The information that is available coming from the mine and where the minerals are originating from is still unreliable, and it's created a lot of challenges." Then there is cost. The SEC predicts roughly 6,000 registered companies are affected by the rules, but that will trickle down to tens of thousands more private companies that may or may not use minerals from Africa.
The initial cost of compliance for U.S. companies is estimated at $3 billion to $4 billion, with ongoing compliance costing between $206 million and $609 million, according to the SEC. But the National Association of Manufacturers says the costs will be much higher -- $9 billion to $16 billion. The compliance costs have drawn the ire of several organizations. The U.S. Chamber of Commerce, NAM and the Business Roundtable filed a lawsuit against the SEC claiming the ruling was too costly and violated the companies' First Amendment rights of free speech. However, a federal court judge ruled in favor of the SEC in July. Several law firms and industry action groups have sent letters to the SEC asking for more time to adhere to the ruling, including a Sept. 11 letter from Atlanta-based Troutman Sanders LLP.
Read more at: http://www.crainsdetroit.com/article/20130922/NEWS/309229971/auto-industry-steels-itself-for-conflict-minerals-rule#