While the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010, may be best known for its overhaul of financial regulations, it also contains an important piece of human rights legislation: Section 1502 addresses the problems that arise from the international trade and use of conflict minerals.
Similar to “blood diamonds,” given international notoriety from many sources (including a major 2006 film), conflict minerals come from areas with conflict and civil unrest. The minerals covered by Dodd-Frank are specifically tied to the bloody civil strife in the Democratic Republic of Congo (DRC).
Which Minerals are Covered?
The minerals covered by this legislation include tantalum, tin, tungsten, and gold, which are commonly referred to as 3Ts & G. These materials and their derivatives are used in a wide variety of applications and manufactured parts, including sports equipment, automobiles, consumer electronics, and jewelry.
Why is this Legislation Important?
The labor used to mine these minerals is often coerced. Rebel groups and the Congolese National Army tax, extort, and physically force their workers to work long hours in deplorable conditions. This workforce primarily composed of civilians and their children are often threatened at gun-point to toil in difficult locations with inadequate tools. The mines are notoriously unsafe, with frequent mudslides and tunnel collapses killing many mine workers. Militants on all sides of the conflict have been known to use violence and rape to keep the population and workforce under control. The backdrop of this human rights travesty, the bloody civil war in the Congo, continues to take a terrible toll in lives. Over 5.4 million have perished so far, with the body count continuing to grow.
How Does Section 1502 Help?
The Dodd-Frank Act shines the light of accountability on any company doing business with the DRC during this period of unrest. Section 1502 requires companies to identify the origin of any tantalum, tin, tungsten, or gold used in their products. Virtually no companies wish to be associated with the activities occurring in the eastern Congo, and this has led to a large drop-off in funding for these militant groups. Militias have had their mineral revenue drop by 65% compared to their earnings before the passage of Dodd-Frank.
Responsible Sourcing Leads to Real Results
When all citizens, corporate and individual, take a stand against atrocities of this nature, quantifiable positive results follow. While the region remains insecure, the Dodd-Frank Act has introduced meaningful reforms that not only de-fund Congolese militias, but also make life better for the civilians suffering from this crisis.
Companies that adhere to Section 1502 and source responsibly have helped cut a major source of revenue for the militants creating this humanitarian crisis, which is why we at Quist Electronics have worked with all of our suppliers to ensure compliance.