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Zapi Group Conflict Minerals Policy
Background
The United Nations Group of Expert on the Democratic Republic of Congo (DRC) found that the trade of certain minerals ( Columbite-Tantalite (Coltan/Tantalum), Cassiterite (Tin), Wolframite (Tungsten) and Gold), called conflict Minerals (3TG), is helping to finance the civil conflict in the DRC characterized by extreme levels of violence, particularly sexual-and gender-based violence.
In July 2010, US President Barack Obama signed the “Dodd-Frank Wall Street Reform and Consumer Protection Act” that includes section 1502(b) on Conflict Minerals.
US Securities and Exchange Commission (SEC) released final rules on August, 2012 requiring all public companies to disclosure and report annually to the Securities and Exchange Commission (SEC) if the minerals they use in their products (Tin, Tantalum, Tungsten and Gold, so called 3TG), originated from the DRC and adjoining countries.
Policy
“Conflict Minerals” refers to minerals or other derivatives mined in the eastern provinces of the Democratic Republic of the Congo (DRC) and in the adjoining countries where revenues may be directly or indirectly financing armed groups engaged in civil war resulting in serious social and environmental abuses. In July 2010, the United States passes HR4173, the Dodd-Frank Financial Reform Bill section 1502(b) requiring all US stock listed companies and their suppliers to disclose the chain of custody usage of conflict minerals (Tin, Tantalum, Tungsten and Gold).
Zapi fully supports this legislation and the Electronic Industry Citizenship Coalition (EICC)/Global e-Sustainability Initiative (GeSI) position to assure that specified minerals are not being sourced from mines in the “Conflict Region”, which is controlled by non-government military groups. Furthermore, Zapi intends to adopt the EICC Due Diligence reporting process and will do all commercial best efforts to obtain chain of custody declarations from all Zapi sourced and managed suppliers with the aim of ensuring transparency in our supply chain. Zapi expects it’s suppliers to:
- Source materials from socially responsible suppliers who have confirmed non-conflict sources even if those sources do come from the DRC and surrounding area.
- Comply with the Dodd-Frank regulation and provide all necessary declarations in the form of the EICC-GESI Conflict Minerals Reporting Template as adopted by EICC-GESI on a regular base, or in any other form that Buyer reasonably requests.
- Pass this requirement on to their supply chain if they don’t source directly from smelters and determine the source of specified minerals.