Public companies engaged in manufacturing or contracting to manufacture products will now need to assess, and potentially disclosure, the use of four specific minerals and their origin.
On Aug. 22, the SEC adopted a disclosure requirement unlike any other in the federal securities laws. A new Form SD will require that public companies evaluate the use of certain minerals―columbine-tantalite, cassiterite, gold, wolframite or their derivatives―and make specific disclosures regarding the use and origin of these minerals (referred to collectively as “conflict minerals”).
What must a company disclose?
If a company knows that the minerals did not originate in the covered countries or are from scrap or recycled materials, or the company has no reason to believe that the minerals may have originated in the covered countries or may not be from scrap or recycled sources, then the company must disclose its determination and a brief description of the country of origin inquiry and the results of that inquiry in Form SD and on its website.