Under the draft EU regulation, which now has to go through the EU legislative approval system, MEPs, ministers and the European Commission plan to introduce tough due diligence requirements for conflict minerals covering tin, tungsten, tantalum, gold and their ores, to clamp down on questionable supply chains.

The new directive aims to stop the financing of armed groups and human rights abuses through trade in minerals from conflict areas.

The regulation applies to all conflict-affected and high risk areas in the world, of which the Democratic Republic of the Congo and the Great Lakes region are the most obvious examples.

‘We have laid the groundwork for an effective tool to break the link between conflicts, human rights abuses and our consumption of everyday goods,’, said International Trade Committee chair Bernd Lange.

‘It is high time that we took action and stopped turning a blind eye to the harm we cause in other parts of the world. This is not the end of the road.

‘Due diligence requires continuous learning and that the systems we put in place stay flexible to ensure their effectiveness,’ he added.

‘The interests of communities and people caught in war and conflict must be our priority,’ said Commission rapporteur Iuliu Winkler.

‘The new conflict minerals regulation has the power to improve realities on the ground in war zones, and its power to bring about change comes from the shared responsibility approach on which it is built,’ he stressed.

Mandatory due diligence rules for importers

MEPs persuaded EU ministers that due diligence checks, in accordance with OECD guidelines, should be mandatory for importers of tin, tungsten, tantalum and gold and their ores from conflict and high-risk areas. The Commission and Council had initially proposed only voluntary checks.

Authorities in EU member states will be responsible for ensuring compliance by companies and also for determining penalties for non-compliance, to be monitored by the Commission.

The effectiveness of the rules will also be reviewed two years after implementation to ensure they meet the requirements and are not creating additional administrative burden for companies.

Disclosure requirements for big EU manufacturers and sellers

In negotiations in July, the European parliament also secured an undertaking that big EU firms, ie, those subject to EU law on non-financial reporting (above 500 employees) - that buy tin, tantalum, tungsten and gold to use in their products will be encouraged to report on their sourcing practices based on new performance indicators. These businesses will be able to join an EU registry and report voluntarily on their due diligence practices.

Full details of 2014/0059(COD) Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas are available here