[Congressional Record Volume 160, Number 143 (Thursday, November 20, 2014)]
[Senate]
[Page S6189]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONGO CONFLICT MINERALS LAW UPDATE
Mr. DURBIN. Mr. President, it is not very often that Congress can
make a policy change that has life-or-death consequences for millions
of people, but in 2010 a law was enacted that is changing the money
supply for warlords in the Democratic Republic of Congo.
Many may not realize that almost 5.5 million people have been killed
during the long-running conflict in the Democratic Republic of Congo,
which has been the most deadly since World War II. Tragically, women
and children have suffered the most, as we too often see in conflicts.
Millions have been displaced from their homes, and the prevalence of
rape and sexual violence as a weapon of war is almost beyond belief.
The U.N. reports that about 1,000 women are assaulted every day in
Congo, which is roughly equivalent to 12 percent of all Congolese
women.
One of the drivers and funders of this conflict is paradoxically that
which fills the DRC with such potential--its natural resources. Instead
of paying for the nation's peace, education, roads and public health
programs, the DRC's mineral wealth has been siphoned off to fund the
armed groups that vie for local and regional control of vast areas far
from Congo's capital, Kinshasa.
Tin, tantalum, tungsten, and gold are found in everyday electronics,
jewelry, airplanes, and manufacturing equipment. But these minerals
also have provided weapons and salaries to fighters, including
conscripted child soldiers, who then visit unspeakable horrors on
innocent civilians in return.
Over 4 years ago, I joined former Senators Brownback and Feingold and
Congressman Jim McDermott in drafting a simple transparency reporting
requirement for U.S.-registered corporations that source these four
minerals from the DRC or its neighbors. And in early June, after
protracted legal challenges, the first of those annual reports was
filed at the Securities and Exchange Commission.
The electronics industry, in general, has been out front on this push
for great transparency, but sadly, the jewelry industry has lagged far
behind on its due diligence and reporting. Some companies have made
more than a good-faith effort to determine the origins of the minerals
they and their suppliers use, and a few of those companies, I am proud
to say, call Illinois home.
One of the leaders, across all industries, on this is Motorola
Solutions, headquartered in Schaumbergn, IL. Motorola Solutions emerged
early as a company dedicated to cleaning up its supply chain, and to do
so, it helped establish Solutions for Hope, dedicated to developing a
closed-pipe supply chain. Kester, a subsidiary of Illinois Tool Works,
makes electronic and automobile components and has been a leader in
transparency of the smelters it uses. John Deere, headquartered in
Moline, IL, painstakingly described its due diligence processes and
even detailed the sources of minerals that its suppliers used. Others,
like AAR Corporation, based out of Wood Dale, and Dover Corporation,
headquartered in Downers Grove, developed conflict-mineral specific
compliancy programs and provided detailed information on steps to
identify risks in their supply chains. Lake Forest's IDEX Corporation
underwent efforts to create a sourcing policy that in its first year of
filing covered 90 percent of suppliers.
I am sorry to say not all companies took this reporting requirement
seriously, hiding behind the 2-year grace period that allows them to
avoid questions. My hope is that these Illinois companies serve as an
example for next year's filings nationwide. And here is why--this rule
is yielding real, tangible, positive results already.
The Government Accountability Office issued a report in late June
that confirmed the opposite of claims made by those seeking to
dismantle this reporting requirement. This rule has expanded the
options for clean minerals sourcing in Central Africa. In fact, the
number of certified conflict-free smelters has more than tripled in the
past year alone. Intel has created its first conflict-free computer
chip, while using responsibly sourced minerals from Congo and took its
reporting a step further by voluntarily submitting it to third-party
audits. Under the Conflict-Free Smelter Program, the number of
international smelters operating free from conflict minerals continues
to grow. Almost 90 smelters (40 percent of the world's total smelters)
are certified as conflict-free and more than 150 companies and industry
associations participate in the program.
After being refined the origins of the material become difficult to
track. Smelters purchase materials from a variety of sources, so the
smelter or refiner is a critical point in the supply chain, where we
can look for assurances about whether the material has been purchased
from conflict-free sources. Apple has confirmed that its entire
tantalum supply chain is conflict free. Dutch smart phone manufacturer
Fairphone is making its products with conflict-free raw materials.
Fairphone has already sold 35,000 units and is hoping to expand
production as more consumers embrace conflict-free electronics.
Fairphone and others are leading by example and proving that conflict-
free is not only possible but that it can be profitable too.
The Enough Project recently reported on the effect of this
legislation, and it is good news. Armed groups and the Congolese army
are no longer present at 2/3 of tin, tantalum, and tungsten mines
surveyed in eastern Congo. It also appears that responsible sourcing
initiatives might be contagious--Congo-Brazzaville, the DRC's neighbor
to the west, has begun its own program to determine clean sources of
minerals as well. I am also happy to say that our counterparts in the
European Union are reviewing a bill based on our law to require
European companies to provide similar transparency in their own supply
chains. China has instituted similar rules, and other nations are
following close behind.
The Congress has emerged as a world leader on conflict-minerals
reporting, and the early results suggest that the people of the DRC
should not have to suffer unspeakable violence that can be traced back
to our cell phones, wedding rings, and cars. The filings are far from
perfect, but we have begun the process. I appreciate those industry
players that are leading the way. I can only hope that by cutting off
this rich source of funding for the fighting in the Congo, we can help
spare its citizens from the senseless violence that is tearing the
country apart.
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