【Democratic R】Not Someone Else’s Problem: ‘Conflict Minerals’ – Reasons for Regulation and Human Rights Issues You Should Know

Conflict minerals are minerals mined in conflict zones that become a source of funding for armed groups. Conflict zones particularly refer to African countries, including the Democratic Republic of the Congo (DRC).
For impoverished African nations, mineral resources are a crucial means of earning foreign currency. While many laborers work at mining sites, various issues such as conflict, human rights abuses, and exploitation are intertwined.
The catalyst for conflict minerals being recognized as a major international issue was diamonds. While they are beautiful, sparkling gemstones, they were used as a source of funding for wars during the civil wars in Angola and Sierra Leone.
You may have heard the terms “Conflict Diamond” or “Blood Diamond.” While conflict diamonds became known to the world through famous films, the problem is not limited to them.
The reason conflict minerals are considered problematic is that companies and consumers in developed countries end up supporting the troubles faced by the mining countries. Trading minerals moves money. That money can exacerbate problems like conflict, human rights abuses, and exploitation. To prevent such situations, regulatory movements have progressed globally.

In July 2010, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in the United States. The OECD also published the “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.” In 2021, the EU’s “Regulation on Conflict Minerals” also came into effect.
The US Dodd-Frank Act stipulates that “manufacturing companies registered with the SEC (U.S. Securities and Exchange Commission) that use conflict minerals in their products must disclose the country of origin through reasonable investigation means.” By establishing a conflict mineral disclosure system, it effectively prohibits the use of conflict minerals.

The targeted minerals are tin, gold, tantalum, and tungsten mined from the DRC and neighboring countries, which are designated as conflict minerals. These four minerals are collectively referred to as “3TG” based on their initials.

The Dodd-Frank Act targets the following nine countries:
Democratic Republic of the Congo, Republic of Sudan (including South Sudan), Central African Republic, Republic of Uganda, Republic of Rwanda, Republic of Burundi, United Republic of Tanzania, Republic of Angola, Republic of Zambia.
While all these countries possess abundant resources, their Human Development Index (HDI), calculated from health, education, and income aspects, remains low. It is clear that conflict minerals and their distribution mechanisms are partly responsible for this.

For those of us living in modern Japan, the conflict mineral issue might seem like “something happening in a distant foreign country.” However, products containing 3TG are surprisingly close to us. The problems associated with conflict minerals are by no means someone else’s concern. To understand it more closely, let’s explain conflict minerals and human rights abuses using the DRC as an example.
The Democratic Republic of the Congo was born in 1960 upon independence from Belgium. It is a country with the third-largest area in Africa and abundant natural resources. However, its history has been one of incessant civil war.
Shortly after independence in 1960, the First Congo Crisis (1960–63) and the Second Congo Crisis (1964–65) broke out. Furthermore, it experienced the First Congo War in 1996 and the Second Congo War in 1998. The death toll from these wars is said to exceed 5 million.
The causes of the civil wars are varied, deeply intertwined with the DRC’s internal political issues, history, and relations with neighboring countries. The 3TG minerals were used as a source of funding for these wars. Because both the military and opposition forces used the abundant resources as funding, the conflicts became prolonged.
The problems created by conflict minerals do not end there. The eastern region of the DRC is an area where human rights abuses against women occur so routinely that it is called “the rape capital of the world.”
In this region, sexual violence is systematically used as a weapon of war. Sexual violence leads to the destruction of women’s minds and bodies, and even the communities they belong to. Sexual violence traumatizes women, and cases where they are injured to the point of being unable to conceive or give birth are endless.
By devastating the agriculture and commerce that women engage in, they are economically cornered, and by injuring their bodies, the population is reduced. Targeting women also aims to control entire regions. While the national-level number of sexual violence cases in the DRC is not clear, there is data indicating that among women aged 15 to 49, 52% have experienced physical violence and 27% have experienced sexual violence.

Amidst these harsh realities, regulatory movements are strengthening worldwide to solve the problem. Let’s introduce a few countries as examples.

Operating under the aforementioned Dodd-Frank Act, the United States effectively restricts the trade of conflict minerals.
Under this law, companies whose products contain 3TG are obligated to investigate whether conflict minerals are used. The investigation results must be reported to the SEC and disclosed on their website. If the investigation reveals that the minerals used are not involved in conflict, they are certified as “DRC Conflict-Free.”

In the EU, the European Commission proposed a “Regulation on Conflict Minerals” in 2014. Following discussions with the European Council and the European Parliament, an informal agreement was reached on November 22, 2016, with application expected from 2021.
The EU’s proposed regulation targets all metal minerals, including 3TG. The targeted regions are also not limited to specific countries. Due diligence is mandated for minerals mined in conflict-affected and high-risk areas worldwide.

Japan has no laws regulating the trade of conflict minerals. Compared to the US and EU, it can be said that the national response is lagging.
However, this does not mean Japanese companies are taking no measures regarding conflict minerals. When trading with US-listed SEC companies, procedures based on the Dodd-Frank Act are required, and similarly for the EU.
As awareness of “DRC Conflict-Free” increases, more Japanese companies are actively conducting due diligence. In 2012, the Japan Electronics and Information Technology Industries Association (JEITA) established the “Responsible Minerals Sourcing Working Group.” Many companies participate, discussing and implementing various measures to avoid using minerals that contribute to human rights abuses.
There are numerous conflict-affected and high-risk areas in the world, including the DRC. The rich natural resources from these areas have brought prosperity to developed countries. However, behind this lies a history where local people have faced many problems, such as the worsening of civil wars and human rights abuses against women.
It is important not only for companies manufacturing products using these minerals but also for individual consumers to be conscious of “conflict-free.”