SEC Adopts Rule Requiring Disclosing Use of Conflict Minerals

The SEC adopted a rule mandated by the Dodd-Frank Act requiring companies to publicly disclose their use of conflict minerals that originated in the Democratic Republic of Congo or an adjoining country. Companies are required to disclose their use of conflict minerals that include tantalum, tin, gold or tungsten if the minerals are "necessary to the functionality or production of a product" and the company files reports with the SEC under the Exchange Act. The final rule requires a company to provide the disclosure on a new form (Form SD) to be filed with the SEC.

SEC Chairman Mary Schapiro stated that she believes the final rule faithfully implements the statutory requirement as mandated by Congress in a fair and balanced manner. Under the final rule, issuers are required to file for the same period (a calendar year) regardless of when their fiscal year ends. Companies will file their first specialized disclosure report on May 31, 2014 and annually on May 31st every year thereafter.

Cross-Reference(s): Dodd-Frank Act Section 1502. See also the GAO's report of July 16 on conflict metals (in Dodd-Frank studies).

View Press Release and Final Rule here (links externally to SEC website). Additional Materials: Commissioner Luis A. Aguilar's Statement; See also: Proposed Rule Release Nos. 34-63547 and 34-63793.