House Dems tell SEC to finish up conflict mineral rules ASAP

By Peter Schroeder - 09/26/11 03:49 PM ET

A group of House Democrats has a simple message for the Securities and Exchange Commission (SEC) when it comes to its new rules on conflict minerals: get moving.

In a letter sent to the SEC Monday, five Democratic lawmakers pressed the regulator to finalize and implement new rules in the coming weeks — before the end of the year.

The rules are intended to implement a provision of the Dodd-Frank financial reform law that would make companies more accountable for the trade of minerals that have been the source of conflict in the Democratic Republic of the Congo (DRC).

Under the measure, companies are required to track the source of certain materials, and publicly report whether they contain conflict minerals from the DRC.

Those minerals have been the driving force behind "untold tragedy, wide-spread destruction, and more than five million war-related deaths," the lawmakers wrote.

The SEC announced earlier this year that it would be missing its April 17 deadline to finalize the rules set by Dodd-Frank, and the Democrats are getting antsy.

"We are now almost five months past that April deadline," they wrote.

Under the provision companies have to begin tracking and reporting on minerals in the first fiscal year after the rules are finalized. If the SEC fails to finish the rules by the end of the year, it could delay implementation for another 12 months, as most companies start their fiscal year in January, the lawmakers warned.

Furthermore, the members urged the SEC to not weaken the rules as they finalize them. They argued there should be no delay or phase-in period for the rules, and that companies should not be allowed to simply state their minerals are of "indeterminate origin" — they either are DRC conflict-free or not.

In addition, the lawmakers want to see all the minerals under the law — tin, tungsten, tantalum and gold — adhere to the same reporting standards, and all manufacturing companies should be required to comply.

The lawmakers signing on to the letter were Reps. Karen Bass (Calif.), Howard Berman (Calif.), Barney Frank (Mass.), Jim McDermott (Wash.) and Donald Payne (N.J.).