With Rachel Heller Zaimont, Fast Company, and Carolyn Duran, Director of Intel’s Supply Chain
With Conflict Minerals Filings right around the corner (June 1), more talk about ethical sourcing and conflict minerals in supply chains will arise. For the April 2015 issue of Fast Company, Rachel Heller Zaimont, talks with Carolyn Duran, Director of Intel’s Supply Chain, on Intel’s process of identifying and eradicating conflict minerals in their microprocessors.
CFSI can now provide companies with conflict-free smelters or refiners of all four conflict minerals
The Conflict-Free Sourcing Initiative (CFSI) made a major accomplishment in its mission to fight the war on minerals deriving from human rights abuses in the Democratic Republic of the Congo. In the initiatives five year history, it has put forth hard work and effort to mitigate the consumption of raw materials being mined in the atrocities warfare in the Congo. Over 120 companies have worked with the program in hopes of gaining a transparent supply chain and partaking in international due diligence.
Deloitte RiskLab and the conflict-free tin initiative
Each year, Dutch leaders in risk management come together for the Deloitte RiskLab conference. This year over 400 risk professionals descended on Amsterdam for a day full of presentations and breakout sessions. Deloitte teamed up with the leaders to discus turning risks into opportunities.
The Conflict-Free Sourcing Initiative (CFSI) is petitioning more companies to join the effort to become conflict-free by becoming CFSI members. The group is made up of 120 companies from 7 industries and their goal is to help members make informed choices about conflict minerals in their supply chains. One of their greatest challenges in the upcoming year is to help members meet their reporting deadline related to the U.S. conflict minerals regulation.
The Democratic Republic of the Congo (DRC) and rebel group M23 signed a peace treaty in the Kenyan capital of Nairobi. The armed group began to grow weak from failed attacks against DRC troops with UN support. The M23 rebels were originally part of the country’s army but deviated in 2012 disrupting the public and deploying acts of terrorism. The militia became the latest version of Tutsi-led guerrillas, fighting over the mining and trade of rich minerals in the eastern provinces of Africa.
With the passing of section 1502 of the Dodd-Frank Wall Street Reform Act, the Democratic Republic of Congo (DRC) was given hope that an end to armed conflict in the mining communities would someday be a reality. The deadliest war on earth is located in the DRC and is funded by corporations buying tin, tantalum, tungsten and gold (3TG) from mines run by rebel groups. The law forces U.S.
Tin-mining companies that are certified as conflict-free are reported to be receiving double the price for their ore compared to those who are uncertified. Mines in participation of the “bag and tag” certification are earning $4/kg for tin compared to $2/kg for non certified. But only about 10% of the of the mines in the Democratic Republic of Congo (DRC) are currently in the traceability system and being accepted as conflict-free.
After less than a year, benefits of local trade changes in the DRC can already be seen
In a unique move by authorities in the Democratic Republic of Congo (DRC) last December, 70% of tax revenue created by mineral exports is now returned to local territories to be used on the communities. This money is a reward to production territories for having mines that are involved in the conflict-free mineral trade and is to be used by them for development of their own business plans, such as the construction of a local community hall.