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What is the Dodd-Frank Act Section 1502?

In July 2010, the United States passed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, which includes Section 1502 regarding the use of ‘conflict’ minerals in products manufactured within the United States.   The intent of Section 1502 is to try and curb the violence and exploitation in the Democratic Republic of Congo and neighboring countries by exposing companies that use minerals derived from this region through disclosure.

Update: August 23, 2012 On August 22, 2012, the SEC adopted the rules regarding "conflict minerals" disclosure and disclosure by resource extraction issuers, as outlined on their website: .

       What are conflict minerals?

‘Conflict’ minerals listed in Section 1502 of the Dodd-Frank act include:

(1)  Tin – Cassiterite, (2) Tantalum - Columbite-tantalite, (3) Tungsten - Wolframite and (4) Gold originating in the Democratic Republic of the Congo or adjoining countries. These minerals are also referred to as “3TG” minerals.

        Which US companies are affected by the Dodd-Frank Act?

A company will be impacted by this rule if it files reports with SEC under the Exchange Act, and Conflict minerals are “necessary to the functionality or production” of its product manufactured.

This requirement affects most manufacturers of Electronics and Communications, Aerospace, Automotive, Jewelry, Health care devices, Industrial machinery. Even companies that don’t file with the SEC may be affected if they are part of the supply chain for these metals to SEC filing companies.

        What is involved with compliance to the Dodd-Frank Act?

Affected companies will need to:

1. Determine where 3TG metals are being used in products or processes at both in-house manufacturing or at contract manufacturers

2. Conduct supply chain due diligence, 3rd party verification, and in some cases private sector audits on the sources of these metals – all the way down to mine of origin

3. Report out the findings of the due diligence on the company’s annual SEC filing and website.

        Aimtec’s compliance to the Dodd-Frank Act:

Aimtec is fully committed to respecting the Dodd-Frank Act Section 1502. We strive to maintain the highest standards and best practices as it relates to providing products that meet the regulatory standards in the regions in which they are sold.

Aimtec’s suppliers and business partners are an integral part of our due diligence process and ultimately our ability to provide our US based clients with the documents which confirm that the minerals and metals of interested present within Aimtec’s products  are not sourced from ‘conflict’ regions.  In view of the current December 2011 deadline, Aimtec is working closely with its entire supply chain to gather the documents which confirm the source for minerals and metals of interest which are used in Aimtec’s products.


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