Quantcast
Environmental News for a Healthier Planet and Life

Leaked Memo Shows Trump Could Let U.S. Firms Buy 'Conflict Minerals'

Popular
Leaked Memo Shows Trump Could Let U.S. Firms Buy 'Conflict Minerals'
Workers rip the earth apart in search of gold at the Sufferance mine in the Ituri region. Much of Congo's gold, more than $600 million worth a year, is smuggled across borders. Photo credit: Marcus Bleasdale / National Geographic

By Lee Fang

The leaked draft of a presidential memorandum Donald Trump is expected to sign within days suspends a 2010 rule that discouraged American companies from funding conflict and human rights abuses in the Democratic Republic of Congo (DRC) through their purchase of "conflict minerals."


The memo, distributed inside the administration on Friday afternoon and obtained by The Intercept, directs the Securities and Exchange Commission to temporarily waive the requirements of the Conflict Mineral Rule, a provision of the Dodd Frank Act, for two years—which the rule explicitly allows the president to do for national security purposes. The memorandum also directs the State Department and Treasury Department to find an alternative plan to "address such problems in the DRC and adjoining countries."

The idea behind the rule, which had bipartisan support, was to drain militias of revenue by forcing firms to conduct reviews of their supply chain to determine if contractors used minerals sourced from the militias.

The impending decision comes as Trump held a meeting Wednesday with Brian Krzanich, the chief executive of Intel, one of the leading firms impacted by conflict mineral regulations. At the White House today, Krzanich appeared with the president to announce a new manufacturing plant in Arizona.

Human rights advocates—who had celebrated the conflicts rule as a major step forward—were appalled.

"Any executive action suspending the U.S. conflict minerals rule would be a gift to predatory armed groups seeking to profit from Congo's minerals as well as a gift to companies wanting to do business with the criminal and the corrupt," said Carly Oboth, the policy adviser at Global Witness, in a statement responding to a Reuters article that first reported the move.

"It is an abuse of power that the Trump administration is claiming that the law should be suspended through a national security exemption intended for emergency purposes. Suspending this provision could actually undermine U.S. national security."

Advanced computer chips, including technology used in cell phones and semiconductors, contain minerals often sourced from war-torn countries in central Africa. Firms such as Intel, Apple, HP and IBM use advanced chips that contain tantalum, gold, tin and tungsten—elements that can be mined at low prices in the the DRC, where mines are often controlled by militias fueling a decades long civil war.

American tech companies, such as Intel, lobbied directly on the rule when it was proposed. But since passage, tech firms have largely used third party business groups to stymie the rule. Trade groups representing major U.S. tech firms and other manufacturers, including the U.S. Chamber of Commerce and the Business Roundtable, attempted to block the rule through a federal lawsuit. In 2014, a federal court struck down a part of the rule that forced firms to reveal DRC conflict minerals on their corporate websites.

Intel is also one of the firms that has touted its effort to comply with the law, publishing a report that notes the company has conducted 40 on-site reviews of smelters in the eastern DRC.

Reuters also reported that acting SEC chief Michael Piwowar has taken steps to also weaken enforcement, asking staff to "reconsider how companies should comply."

Reposted with permission from our media associate The Intercept.

A hiker looking up at a Redwood tree in Redwoods State Park. Rich Wheater / Getty Images
By Douglas Broom
  • Redwoods are the world's tallest trees.
  • Now scientists have discovered they are even bigger than we thought.
  • Using laser technology they map the 80-meter giants.
  • Trees are a key plank in the fight against climate change.

They are among the largest trees in the world, descendants of forests where dinosaurs roamed.

Read More Show Less

EcoWatch Daily Newsletter

A female condor above the Hopper Mountain National Wildlife Refuge in Ventura County, California. Mel Melcon / Los Angeles Times via Getty Images

One environmental downside to wind turbines is their impact on birds.

Read More Show Less

Trending

Kentucky received record-breaking rainfall and flooding this past weekend. Keith Getter / Getty Images

Kentucky is coping with historic flooding after a weekend of record-breaking rainfall, enduring water rescues, evacuations and emergency declarations.

Read More Show Less
The Forest Vixen's CC Photo Stream. Flickr / CC BY 2.0

Spring is coming. And soon, tree swallows will start building nests. But as the climate changes, the birds are nesting earlier in the spring.

Read More Show Less
An Exxon oil refinery is seen at night. Jim Sugar / Getty Images

Citigroup will strive to reach net-zero greenhouse gas pollution across its lending portfolio by 2050 and in its own operations by 2030, the investment group announced Monday.

Read More Show Less