Because
of the Dodd- Frank financial reform act, companies have to examine their supply
chains for so called “conflict minerals” to determine whether they came from
Africa's Congolese region, where some mining operations help fund armed
militias. “Conflict minerals” include tin, tungsten, tantalum and gold.
In the first round of regulatory filings
supplied to the Securities and Exchange Commission (SEC), companies are saying
it's impossible to find out where exactly these minerals in their products are
coming from. Complex products such as electronics may pass through lengthy
supply chains.
Eight
companies based in the Charlotte area are included. Five of them had
insufficient information to determine where their materials originated: SPX
Corp., Carlisle Cos., Babcock & Wilcox, Curtiss- Wright Corp. and Speedway
Motorsports Inc.
Two
companies (Nucor and Belk Inc.) said they had “no reason to believe” their
metals originated in the countries in question, according to company filings.
Lowe's
Inc. identified 21,000 products that could include conflict minerals and said
the company would continue to figure out more information from suppliers. The
results of this Examination: an inability to pinpoint minerals' origins.
The
SEC estimated compliance would cost companies between $3 billion and $4 billion
in the first year. The agency initially said costs would decrease in subsequent
years - to somewhere from $206 million to
$609 million.
Carly
Oboth, a campaigner with nonprofit organization Global Witness, said: “They've
just checked the box without providing any details. In future years, we want to
see them following through with their commitments laid out in their reports.”
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