GAO: Due diligence done for conflict minerals

SEC rule has been in place since 2014 and covers tin, tantalum, gold and tungsten.    Almost all companies required to disclose whether they sourced four conflict minerals from the Democratic Republic of the Congo and adjoining countries under a Securities and Exchange Commission regulation did so in 2017, but most companies reported difficulty determining country of origin, according to a Government Accountability Office (GAO) report published Thursday.
   An “estimated 100 percent” of companies reported that they performed required due diligence inquiries into the minerals’ country of origin as required by the rule, which covers tin, tantalum, gold and tungsten, the GAO said.
   As a result of the inquiries, about 53 percent of companies reported last year whether the conflict minerals in their products came from covered countries, more than the 49 percent that reported the same in 2015 and 2016, as well as the 30 percent in 2014, the report says.
   For 2017, 34 percent of companies reported that they were unable to determine country of origin, the GAO said.
   The SEC disclosure rule requires companies to file a specialized disclosure report, the Form SD, if they manufacture or contract for manufacturing products containing conflict minerals necessary to the functionality or production of those products and to file a conflict minerals report, as applicable.
   Companies were required to file under the rule for the first time by June 2, 2014, and annually thereafter by May 31.