[OPLIN 4cast] OPLIN 4cast #368: Electronics to die for

Wed Jan 15 10:30:08 EST 2014

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OPLIN 4Cast

OPLIN 4cast #368: Electronics to die for
January 15th, 2014

DRC flagAt the Consumer Electronics Show last week, Intel CEO Brian 
Krzanich made headlines by announcing 
<http://www.theguardian.com/sustainable-business/intel-conflict-minerals-ces-congo-electronics> 
that starting this year, all Intel microprocessors will be made with 
"conflict free" minerals. Conflict minerals are mined under inhuman 
conditions in the Democratic Republic of Congo, then are smelted and 
sold to electronics manufacturers, with the profits then used to fund 
the continuing armed conflict in the DRC that has killed millions. Use 
of conflict minerals in electronics is a complex and contentious issue, 
and with several first-world governments about to get involved, the 
Intel announcement was likely just the first of many.

  * 'Conflict free' minerals from the DRC will only be possible if
    companies stay
    <http://www.theguardian.com/sustainable-business/conflict-free-minerals-drc-companies-stay>
    (Guardian Sustainable Business/Simon Propper and Peter Knight) "The
    DRC is rich in tantalum, tin, tungsten and gold (3TG) - widely used
    in manufacturing, including electrical and electronic products. Many
    of the mines in the DRC have been controlled by rebels who extort
    money from mine owners and use forced labour to dig the ore. Because
    of the chaotic conditions and weak governments in the region, it is
    hard for industrial buyers to tell the difference between legitimate
    and conflict minerals. Their job is further complicated because the
    minerals are exported for smelting in distant countries."
  * Intel: All of our microprocessors made this year are "conflict free"
    <http://arstechnica.com/business/2014/01/intel-all-of-our-microprocessors-made-this-year-are-conflict-free/>
    (Ars Technica/Cyrus Farivar) "While the move might seem like a PR
    coup for Intel-indeed it's the first major tech company we're aware
    of to announce such a conscientious plan-the company is not
    necessarily doing it solely out of the goodness of its heart. In
    2012, the Securities and Exchange Commission voted to approve
    <http://sec.gov/news/press/2012/2012-163.htm> new rules that would
    require American companies to publicly disclose whether they use
    'conflict minerals' originating from the Democratic Republic of the
    Congo (DRC) or neighboring countries."
  * Conflict mineral deadline looms for electronics makers
    <http://blogs.wsj.com/cio/2013/11/15/conflict-mineral-deadline-looms-for-electronics-makers/>
    (WSJ CIO Journal/Joel Schectman) "The new rules, part of the
    Dodd-Frank financial reform, require companies to disclose whether
    their products use certain metals sourced from mines controlled by
    armed groups in the war-torn Democratic Republic of Congo. Companies
    need to make their first report in May. A legal challenge brought by
    business groups against the rule caused many companies to delay
    preparation for the requirement, in the hope that it would be
    overturned, said Howard Heppelmann, a general manager at supply
    chain software maker PTC Inc. A federal district court in the
    District of Columbia ruled against the groups
    <http://blogs.wsj.com/riskandcompliance/2013/07/24/court-rules-against-business-groups-in-conflict-minerals-lawsuit/>
    in July."
  * Toward electronics free of conflict minerals
    <http://www.huffingtonpost.com/student-reporter/towards-electronics-free_b_4171929.html>
    (Huffington Post/Wasima Khan) "In fact, it is claimed that the US
    legislation has caused a 'de facto embargo
    <http://www.nytimes.com/2011/08/08/opinion/how-congress-devastated-congo.html>'
    in some parts of DR Congo. This apparent success has led to a
    decrease in conflict financing but at the same time increased
    poverty for mining communities. In addition, when American and
    European buyers started to draw back from conflict-ridden regions in
    the DR Congo, Chinese corporations gained a virtual monopoly
    <http://www.theworld.org/2011/10/chinese-conflict-minerals-congo/>.
    Allegedly, they exploited this advantage to lower the prices of the
    minerals with 20 to 30 percent. Under such circumstances, it's
    doubtful whether the law reforms in the United States can reduce the
    problem while other countries do not restrict the purchase of
    conflict minerals."

*/Users fact:/*

How many U.S. manufacturers could be using conflict minerals? The 
Securities and Exchange Commission estimates that about 1,200 companies 
will be required to submit conflict minerals reports to them this May.
------------------------------------------------------------------------
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