The European Commission this week released its proposed conflict minerals law amid criticism the proposal is too weak and narrow to be effective.

Conflict minerals are those that are mined under conditions of armed conflict or human rights abuses, such as forced labor, and mainly come from the eastern regions of the Democratic Republic of the Congo. The most common conflict minerals are coltan, cassiterite, wolframite, and gold, many of which are used by electronics manufacturers for items like cell phones and tablet computers.

The commission's proposal, announced Wednesday by Trade Commissioner Karel De Gucht, consists of a voluntary self-certification scheme for importers of the minerals to ensure “a clean source” through guidelines previously issued by the Organization for Economic Cooperation and Development (OECD). The proposal only applies to importers or smelters rather than companies further down the supply chain. It also only covers the minerals tin, tantalum, tungsten, and gold.

De Gucht said the proposal is a realistic one to stop the problem of conflict minerals at the source. “So by targeting the importers, i.e. before the minerals get spread across Europe to hundreds and thousands of factories to be used in millions of products, we focus on a critical point in the EU supply chain: the approximately 400 importers of these minerals,” De Gucht said in a statement. “That is realistic to control.”

The EU also would work with OECD to publish an annual list of “responsible smelters and refiners.”

De Gucht said just because the commission's proposal is voluntary and not legally enforceable like the United States Dodd-Frank Act, does not mean it is inferior. Dodd-Frank requires U.S. listed companies using conflict minerals to declare their origin and conduct supply chain due diligence. De Gucht said the U.S. “stick approach” can have unintended consequences, like moving risk-averse companies away from traditional sources, causing mines to go out of business, and communities to collapse. He said a large share of EU downstream users already must comply with Dodd-Frank, and the commission's proposal will be further boosted by public procurement incentives for those complying.

“For the harshest critics of such a ‘voluntary scheme,' I'd simply say, we are not naïve and we should give this scheme a chance,” De Gucht said in his statement. The commission's release also noted that the proposal was arrived at following more than three years of study and consultations, which brought to light “the difficult market situation” in Africa's Great Lakes region.

But the proposal already has been the subject of much criticism from other EU legislators and advocacy groups. Critics told EurActiv, which had seen a leaked draft of the proposal, that the legislation was weak and hinted that the commission caved to business lobbyists.

Member of Parliament Judith Sargentini of the Netherlands, the lead legislator on the issue for Parliament's Development Committee, said the “timid” proposal falls far short of what is needed to tackle the problem. The proposal is “behind the curve on every front,” Sargentini said in a statement.

“The voluntary proposals on supply chain transparency, via a self-certification scheme, lack teeth and will not suffice. On top of this, they would only apply to select companies in the supply chain,” Sargentini said. “The scope is far too restrictive, as it only applies to goods produced in the EU. Given most of the affected consumer goods are produced outside the EU, it would only address the tip of the iceberg.”

Last month Parliament's Development Committee endorsed Sargentini's report calling for binding legislation on the matter. It said all companies using or trading minerals from conflict-affected areas or high-risk areas should be required to perform supply chain due diligence outlined by the OECD. The Parliament committee said the regulation should apply to all upstream companies in the EU and all downstream companies that are the “first placer on the European market.”  

The Parliament committee wanted the law to apply to all natural resources hailing from conflict-affected areas and high-risk areas, unlike the limits in the commission's proposal. MEPs also recommended regular independent audits and a way to sanction companies for non-compliance.

Sargentini in her statement said MEPs would push to strengthen the proposal during the legislative process, including the use of sanctions for non-compliance. The matter also will be discussed at next month's EU-Africa Summit.

“The phenomenon of conflict minerals is now well-known and we have plenty of evidence to act. There can be no excuses,” Sargentini said.

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