How high will the cost be for disclosing the use of conflict minerals?
First, there were blood diamonds. Now we have conflict minerals. Just as with blood diamonds, conflict minerals are mined in areas of armed conflict and the proceeds from the sale of these minerals help finance human rights abuse and attacks on civilians. However, in a move to create transparency and awareness for investors, a new federal rule from the Dodd-Frank Wall Street Reform Act requires publicly traded companies to disclose annually the use of conflict minerals.
As we try to become a more socially responsible country, this rule is a definite step in the right direction. But there is a cost. A very real monetary cost to many of our global companies who use suppliers that buy minerals from several different countries. The U.S. Securities and Exchange Commission estimates initial costs for some companies could range between $3 and $4 billion, with annual costs of $207 to $609 million. Why such a huge cost? Read more about untangling the trail of conflict minerals in Conflict region mineral rule could prove costly for manufacturers.
Published by Conselium Executive Search, the global leader in compliance search.
