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Conflict minerals ... where do we start?

Conflict minerals — tungsten, tin, tantalum and gold — are fueling some of the deadliest conflicts since World War II.

Most of these materials come from mines in or near the Democratic Republic of Congo.  Armed groups are at war to control profits, worth hundreds of millions of dollars every year.

The problem may seem far away, but conflict minerals are closer than you think. They are essential to most electronic products, including smartphones, TVs and computers. They’re in every Tellabs product, too.

As electronics companies began to realize how big the problem is, the Dodd-Frank bill became U.S. law. From this legislation, the Security and Exchange Commission drafted reporting requirements for public companies.

Tellabs will follow the new reporting rules, including due diligence to know where conflict minerals come from. But the industry is still working through some tough questions.

  • What is “due diligence” if it has not been defined in the Dodd-Frank bill?
  • Is it possible to know exactly where minerals are being mined and guarantee we are not contributing to conflict in these areas?
  • How do we know where the materials come from when we can have anywhere from 2 to 20 layers between us and the mines?

Where do we start? While Tellabs does not source metals directly from mines or smelters, we are working closely with our suppliers to address this issue effectively.

The Electronic Industry Citizenship Coalition (EICC) and Global e-Sustainability Initiative (GeSI) developed a template to help suppliers report on conflict minerals. Tellabs used this industry template when we recently surveyed our key suppliers. We’re just starting to get responses, and it’s already apparent we all have a lot to learn.

To be clear, Tellabs condemns mining activities that fuel conflict. We recently released our first conflict minerals policy. Together with our supply chain, we’ll make progress on this issue.

We don’t have all the answers, but it’s a start.

Comments:
In connection with this issue, I recommend reading "The Heartless Stone" by Tom Zoellner.
Jim Harvey — December 29, 2011 1:07 PM
Thank you for raising this issue. The products we manufacture generate a portion of the demand for raw materials from the DRC. Your link to "Raise Hope for Congo" is a good starting point to understand the situation. Consumption of electronic based products is driving tremendous misery. We share responsibility in ending that misery.
Jose Enciso — January 24, 2012 12:50 PM