EU Conflicts Minerals Update
The European Parliament recently approved draft EU legislation concerning conflict minerals, which will impose compliance supply-chain due diligence requirements. We previously reported on this issue in 2016 here and in more detail in 2015 here.
The draft legislation consists of a framework for an EU Regulation to stop profits from trading minerals being used to fund armed conflicts. The draft rules build upon the existing “OECD Due Diligence Guidance for responsible mineral sourcing” – in the US similar rules exist in the Dodd-Frank Act (Section 1502), although there are likely to also be differences between the EU and US rules.
The aim of these rules is for EU companies to source tin, tantalum, tungsten and gold responsibly, which are used in a range of products including mobile phones, cars, and, jewellery.
The next step is for the EU Council to give its formal approval to the draft legislation, which is expected soon. Following that the legislation should come into effect as from 1 January 2021, when the due diligence, risk management, disclosure and other reporting obligations are supposed to become fully operational.
When the legislation is finalized and published we will provide a full briefing about it.
For more information please contact Jonathan Armstrong or André Bywater who are lawyers with Cordery in London where their focus is on compliance issues.
|Jonathan Armstrong, Cordery, Lexis House, 30 Farringdon Street, London, EC4A 4HH||André Bywater, Cordery, Lexis House, 30 Farringdon Street, London, EC4A 4HH|
|Office: +44 (0)207 075 1784||Office: +44 (0)207 075 1785|