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CMR template draft


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From the 12th Conflict-Free Sourcing Initiative Workshop: the CMR template draft

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CMR template draft

  1. 1. 1 DRAFT - FOR DISCUSSION PURPOSES ONLY CONFLICT MINERALS REPORT OF COMPANY X CORPORATION IN ACCORD WITH RULE 13P-1 UNDER THE SECURITIES EXCHANGE ACT OF 1934 This is the Conflict Minerals Report of Company X for calendar year 20xx (excepting conflict minerals that, prior to January 31, 2013, were located outside of the supply chain) in accord with Rule 13p-1 under the Securities Exchange Act of 1934 (“Rule 13p-1”). Numerous terms in this Report are defined in Rule 13p-1 and Form SD and the reader is referred to those sources and to 1934 Act Release No. 34-67716 (August 22, 2012) for such definitions. In accord with Rule 13p-1, Company X undertook due diligence to seek to determine whether the necessary conflict minerals in the Company X Product Category A and B were or were not “DRC conflict free”. Company X designed its due diligence measures to be in conformity, in all material respects, with the nationally or internationally recognized due diligence framework in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD 2011) (“OECD Framework”) and related Supplements for each of the conflict minerals. As a result of our due diligence efforts, Company X has concluded in good faith that during 20xx and with respect to the necessary conflict minerals that originated or may have originated from the Covered Countries, a portion are “DRC conflict free” (as defined) and a portion are “DRC conflict undeterminable” (as defined). This Report has been subject to an independent private sector audit (the “Audit”) by the firm _____________________ and the audit report of ____________________ is attached to this Report. Company X’s due diligence measures were based on multi-industry initiatives with the smelters and refiners of conflict minerals who provide those conflict minerals to Company X’s suppliers. Company X as a purchaser is many steps removed from the mining of the conflict minerals; Company X does not purchase raw ore or unrefined conflict minerals, and does no purchasing in the Covered Countries. The origin of conflict minerals cannot be determined with any certainty once the raw ores are smelted, refined and converted to ingots, bullion or other conflict mineral containing derivatives. The smelters and refiners are consolidating points for raw ore and are in the best position in the total supply chain to know the origin of the ores. Company X’s due diligence measures included: • Conducting a supply-chain survey with direct suppliers using the EICC/GeSI Conflict Minerals Reporting Template to identify the smelters and refiners who contribute refined conflict minerals to Company X Fab Products and Other Company X Products. • Comparing the smelters and refiners identified by direct suppliers via the supply-chain survey against the list of smelter facilities which have received a “conflict free” designation (such as EICC/GeSI Conflict Free Smelter (CFS) program’s lists for tantalum, tin, tungsten and gold) by participating in an independent third party smelter audit. As a result of Company X’s due diligence efforts, we have identified and obtained sourcing information on >##% of the smelters who contribute to the processing of Company X’s necessary conflict minerals. On the basis of the due diligence measures described above, Company X has determined that Product Category A is DRC conflict free. Product Category A includes widgets which are manufactured by Company X wholly owned manufacturing. On the basis of the due diligence measures described above, Company X is unable to determine whether or not various components/materials which contribute to Product Category B are DRC Conflict Free. All products within Product Category B are considered to be DRC conflict undeterminable and include the following widgets: tbd. Company X is making this determination because it does not have sufficient information from suppliers or other sources to conclude whether the necessary conflict minerals originated
  2. 2. 2 DRAFT - FOR DISCUSSION PURPOSES ONLY in the Covered Countries and, if so, whether the necessary conflict minerals were from recycle or scrap sources, were DRC conflict free or have not been found to be DRC conflict free. Further on account of this lack of information, Company X is unable to determine and to describe the facilities used to process those necessary conflict minerals or their country of origin. Company X’s efforts to determine the mine(s) or location of origin with the greatest possible specificity included the use of the due diligence measures described above. Company X will undertake the following steps during the next compliance periods to improve the due diligence conducted to further mitigate the risk that its necessary conflict minerals do not benefit armed groups, including: • Increase the response rate of suppliers’ smelter surveys. • Contacting smelters identified as a result of the RCOI process and requesting their participation in obtaining a “conflict free” designation from an industry program such as the EICC/GeSI Conflict Free Smelter program. • Comparing RCOI results to information collected via independent conflict free smelter validation programs such as the EICC/GeSI Conflict Free Smelter program.