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Dodd-Frank ‘conflict minerals’ rule draws industry lawsuit
Two powerful business groups want a federal court to modify or scrap what they call burdensome Securities and Exchange Commission (SEC) rules that force companies to disclose whether they rely on minerals from war-stricken parts of Africa.
The U.S. Chamber of Commerce and the National Association of Manufacturers have petitioned the U.S. Court of Appeals for the District of Columbia Circuit to review the rules, which are required under the 2010 Dodd-Frank financial reform law.
A divided SEC, in a 3-2 vote in August, approved rules aimed at cracking down on the use of “conflict minerals” from the militia-ravaged Democratic Republic of the Congo (DRC) and surrounding areas.
The business groups’ short petition Friday does not spell out the basis for challenge. The two groups, in a statement, said the business community “understands the seriousness of the strife occurring in the Democratic Republic of Congo.”
An SEC spokesman told the Journal that “we believe our legal interpretation and economic analysis are sound and we look forward to defending the rule that Congress directed us to write.”
Advocates call the “conflict minerals” rule a way to ensure that companies’ supply chains for gold, tin, tungsten and tantalum aren’t enriching armed groups responsible for violence in the region — including rapes by militias.
Under the measure, companies are required to publicly report whether their products contain conflict minerals from the DRC or a neighboring country, and if so, track the source and chain of custody of the minerals.
But Republicans and business groups have expressed concern about the rule, warning it heaps onerous and costly requirements on a range of industries while doing little to actually alleviate suffering in the DRC.
The Hill has more on the rules here.
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