In March we noted the U.S. Securities and Exchange Commission’s (SEC) efforts to promulgate disclosure and reporting regulations on the use of certain minerals—including tantalum, tin, gold and tungsten—from the Democratic Republic of Congo and neighboring countries. On August 22, 2012, the SEC adopted final rules related to these “conflict minerals.”
Companies that file reports with the SEC, including domestic issuers, foreign private issuers and smaller reporting companies, are subject to the rules if conflict minerals are “necessary to the functionality or production” of a product manufactured by a reporting company. Such companies must determine, following a “reasonable country of origin inquiry,” whether their conflict minerals did in fact originate in a covered country. For more information, please click here to read about the rules in our firm’s August 24, 2012 issue of the Securities Law Advisory.