EU Conflict Minerals Legislation vs. US Dodd-Frank: Supply Chain Focus On Middlemen

Compliance
10/06/2015 08:59

According to Benchmark Mineral Intelligence, the proposed EU legislation on conflict minerals tantalum, tin, tungsten and gold (3TG), will include the implementation of a so-called ‚white list’, naming smelters that do not use conflict minerals to produce their intermediate products sold in the EU. Whereas the US Dodd-Frank legislation focused on smelters and downstream companies, the latter generally far removed from upstream activities, the EU proposal shifts the focus on middlemen in the supply chain, believing this will add pressure to the upstream segments, the miners and traders. While the US focuses on central African countries, especially Congo, Europe’s version could also be expanded to include other controversial source countries. At earliest, legislation is expected to be passed in Q1 2016.