What does Wall Street have to do with conflict resources from the Congo? A lot, according to the US Financial Reform Act. Tucked away in an annex to the Act — widely acclaimed as a milestone in financial reform — are measures aimed at preventing armed groups in the Democratic Republic of Congo from profiting through trade in minerals, such as tantalum. Numerous American companies, including computer and cell phone manufacturers, will be obliged to disclose annually whether their products contain minerals such as tin, tungsten or tantalum sourced from the Congo or adjoining countries.



Should this be the case, the companies must submit what measures they have in place to verify the source of the minerals. Even though specific sanctions are currently still under discussion, this provision represents a significant step towards sensitizing consumers about the conflict connection in everyday appliances. Industry has always pointed to the difficulty in tracing the minerals from source to end use, especially in the area of information and communications technology. Industry leaders have also voiced opposition to comparing basic minerals with more high-profile resources like blood diamonds, for which the Kimberley Process was created in 2003 to certify gemstones’ non-conflict status.



However, Robert D. Hormats, Under Secretary for Economic, Energy and Agricultural Affairs in the US State Department is unmoved by such arguments. In his blog entries and speeches he highlights existing and encouraging industry initiatives, such as the Electronics Industry Citizenship Coalition and the Global e-Sustainability Initiative. These industry groups are attempting to certify smelting plants that source tantalum solely from mines in the Congo and neighbouring countries that follow sound social and environmental practices. Civil society initiatives like the Enough Project view such steps as more than overdue if the tragedy in the Congo is to be tackled. At the same time, in their blog Enough employees David Sullivan and Laura Heaton have responded to accusations that they are simplistically reducing the causes of the horrific situation in the region merely to conflict resources: "There are numerous other pressure points that the international community should help address, from security sector reform to justice and accountability, from ensuring a more transparent process for returning refugees, to devising a more effective strategy to dismantle the FDLR and to demobilize Congo’s many militia groups. But the conflict minerals issue resonates with a potent group of actors in the United States, namely, advocates and concerned consumers who do not want their purchases to fund armed groups in Congo, a handful of dedicated members of Congress and leaders in the Obama administration who see a lasting solution to the Congo conflict as part of their personal priorities and legacies, and increasingly, leaders in the electronics industry itself, which is responding to the moral and consumer pressure to take on this issue." (Dennis Taenzler)



The complete speech by Robert D. Hormats is available at http://www.state.gov/e/rls/rmk/2010/143784.htm



For further information on the Enough Project please see http://www.enoughproject.org/



More information about the "Financial Reform Act" is available at http://ecc-platform.org/#

Published in: ECC-Newsletter, August 2010