Conflict Minerals Regulation
EU regulation 2017/821 concerning conflict minerals applies to companies that import tin, tantalum, tungsten, and gold into the EU as raw materials or metals.
Conflict Minerals Regulation EU 2017/821 came into force in 2021. This law applies to companies that import tin, tantalum, tungsten, and gold into the EU as raw materials or metals. The regulation was already signed into law in June 2017, this gave companies plenty of time to adapt to the new rules.
What are conflict minerals?
In politically unstable regions, the trade in certain minerals can be used to fund armed groups, fuel forced labour and human rights abuses, and support corruption and money laundering. These so-called conflict minerals are found in everyday products like mobile phones, cars, and jewellery. For consumers, it is often impossible to know if a product they bought is indirectly funding violence, human rights abuses or other crimes overseas.
The EU regulation (only) focuses on tin, tantalum, tungsten, and gold – also referred to as 3TG. These minerals are most frequently linked to armed conflicts and related human rights abuses. The law directly applies to companies that import 3TG minerals or metals into the EU, regardless of where the materials come from.
Regions are considered conflict-affected or high-risk if they:
- have natural resources, especially minerals, that are in high demand locally, regionally, or globally
- are experiencing armed conflict (such as civil war), fragile post-conflict situations, or weak or non-existing governance and systematic violations of international law, including human rights abuses.
EU Conflict Minerals Regulation
The regulation requires companies in the EU supply chain to import tin, tungsten, tantalum, and gold (3TG) only from responsible, conflict-free sources.
The main goals are to:
- Ensure that EU importers of 3TG comply with international responsible sourcing standards, as defined by the Organisation for Economic Co-operation and Development (OECD)
- Make sure that smelters and refiners, both within the EU and globally, source these minerals responsibly
- Break the link between the trade in minerals and armed conflict or illegal exploitation
- End the exploitation and abuse of local communities, including mine workers, while promoting local development
The EU regulation is based on well-established international standards designed to curb the trade in conflict minerals. These standards were developed by experts at the Organisation for Economic Co-operation and Development (OECD), an international group of 38 developed countries, in cooperation with industry, civil society, and governments.
As the world’s largest trading bloc, the EU plays a major role in addressing the issue. This regulation represents a significant step forward in cutting the link between mineral trade and conflict. However, since many countries around the world use or trade in products containing these minerals, it’s crucial to encourage global action. Laws must not only be introduced, but also effectively enforced to create real change.
What is the EU's due diligence system?
Due diligence refers to the process of acting with reasonable care and investigating potential risks before making decisions. In the context of business, it’s an ongoing, proactive and reactive process. Companies implement systems to identify, manage, and report risks—especially within their supply chains.
When it comes to the minerals covered by the regulation, due diligence means ensuring that sourcing is done responsibly and does not contribute to conflict, forced labour, or other illegal practices.
Under the regulation, EU importers of tin, tantalum, tungsten, and gold (3TG) must verify that the materials they purchase have not contributed to conflict or illegal activity. To do this, importers must follow a five-step framework developed by the Organisation for Economic Co-operation and Development (OECD). This is outlined in the OECD Due Diligence Guidance for Responsible Supply Chains from Conflict-Affected and High-Risk Areas.
These steps require importers to:
- Establish robust internal management systems
- Identify and assess risks within their supply chain
- Develop and implement a strategy to address those risks
- Conduct an independent third-party audit of their due diligence practices
- Report annually on their supply chain due diligence activities