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Supply Chain Precious metals 4/4 Consumer Protection Act has placed a requirement on US public companies that use 'Conflict Minerals' (tin, tungsten, tantalum and gold - also known as 3TG) which ensures the materials do not originate from known conflict areas, particularly the Democratic Republic of Congo (DRC) and its near neighbours. The companies initially targeted by this reform were those in the telecoms sector where tantalum, in particular, is an important element. The scope of the law is, however, much broader, affecting the automotive, jewellery and retail sectors, and products as diverse as belt buckles and toys. A catch-all solution does have its drawbacks however. Due to the extensive supply chains of many of these companies, it has not been easy to comply with this requirement, with the raw materials required for production harvested at a considerable remove from the manufacturer. One unintended consequence of the policy is the exclusion of responsible miners located in conflict zones from potential supply chains, as smelters disengage with all suppliers from these countries to meet compliance requirements of this Act. Further guidance from the OECD has also been published, the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict – Affected and High Risk Areas, to provide information regarding appropriate levels as become Industry h of both the more aware y ties to societ responsibili t but ronmen and the envi sts of of the intere also customers of due diligence and effective management systems. The OECD's guidance has been recognised by the US Securities and Exchange Commission (SEC) as an international framework for due diligence measures for companies required to file a conflict minerals report under the DoddFrank legislation. Pilots have been run on the implementation of these guidelines, and there is broad support from industry, where they are considered both practical and free from many of the side-effects experienced with the SEC approach. Also responding to sourcing issues is the European Union, which is looking to implement its own regulations and has launched a public consultation paper open until later this month (26 June 2013). The European regulations would be in addition to those affecting companies doing business in the US, and there is concern that if it differs substantially the burden on companies operating across these territories could increase significantly. Precisely what the EU ultimately implements remains to be seen, but in the interim, the precious metals industry has risen to the occasion and is adopting voluntary initiatives to meet the challenges it faces. What all of these initiatives have in common is their basis in international best practices and standardisation. In this way the processes of auditing and quality assurance can be streamlined, reducing the burden on companies, governments and agencies alike. This is only the beginning of an important trend which will hopefully continue to develop with an emphasis on mutual recognition and compatibility.