SEC’s Proposed "Conflict Minerals" Rules Affect Multiple Industries and Require Public Disclosures

The Securities and Exchange Commission (SEC) recently proposed significant new reporting and supply-chain due diligence requirements relating to the use of so-called "conflict minerals." The new requirements are sweeping and, according to SEC estimates, would impact nearly 6,000 international trading companies, including manufacturers (and, in some cases, retailers) of technology, telecommunications, aerospace, automotive, electronics, industrial, jewelry and children's toy products, to name a few. The SEC's Notice of Proposed Rulemaking (NPRM) was published in the Federal Register on December 23, 2010, and the SEC has requested comments by January 31, 2011.

The proposed regulations would implement the "conflict minerals" reporting requirements directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frankjg1 Act"), which the president signed into law on July 21, 2010. Section 1502 of the Dodd-Frank Act amends Section 13 of the Securities