Geoscience Policy Monthly Review
april 2014
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natural resources
Federal appeals court strikes down portions of conflict minerals disclosure rule
On April 14, the U.S. Court of Appeals for the District of Columbia Circuit struck down portions of a Securities and Exchange Commission (SEC) rule requiring companies to disclose whether their products contain conflict minerals. The new ruling indicates that such disclosures violate companies’ right to freedom of speech under the First Amendment.
The previous SEC rule, which stemmed from the 2011 Dodd-Frank Wall Street Reform and Consumer Protection Act, aimed to curb violence in the Democratic Republic of the Congo by discouraging companies from using minerals sourced in that region of Africa such as gold, tantalum, tin, and tungsten. Purchasing these minerals may directly or indirectly finance armed groups in the region, possibly contributing to outbreaks of violence and human rights violations. Opponents of the rule argued that the specific disclosures were overly cumbersome since many of their products require only very small quantities of the minerals in question.
The new ruling strikes down disclosures relating to specific products, but upholds portions of the rule requiring companies to investigate whether their products contain conflict minerals and file public reports on their findings. Companies would not, however, be required to list the specific products that contain the minerals.
Groups on both sides of the issue expressed confidence that the SEC will find alternate methods for increasing transparency in extractive industries.
Sources: E&E News, Wall Street Journal
Updated 5/5/14
Study finds global REE supplies sufficient for U.S. defense needs
A recent Department of Defense (DOD) report finds that for the foreseeable future, the global supply of rare earth elements (REEs) should be sufficient to meet U.S. defense needs. Despite concerns about availability and price of REEs, DOD finds an 11.8 percent decline in global REE demand from 2010 to 2013. During that period, REE demand and prices declined while available supplies increased.
Global REE prices soared in 2010 in the wake of new Chinese export controls, prompting decision makers and companies to examine alternatives, including mining REEs outside China and exploring substitute materials. Rare earth advocates point out the potential negative impacts of relying on foreign nations to provide critical defense supplies. They suggest promoting domestic production of REEs where possible and developing methods of recycling and remediating REEs. DOD responded that recycling has proved infeasible due to financial, regulatory, and technical challenges. However, the Administration will continue pursuing a strategy of diversifying supply, exploring substitutes, and recycling waste.
Sources: Department of Defense, E&E News