Wednesday, August 22, 2012
The SEC approved today two disclosure rules that are required by Dodd-Frank: (1) the conflict minerals rule and (2) the resource extraction issuer rule.
(1) The conflict minerals rule requires companies to publicly disclose their use of conflict minerals that originated in the Democratic Republic of the Congo (DRC) or an adjoining country. Dodd-Frank directed the Commission to issue rules requiring certain companies to disclose their use of conflict minerals that include tantalum, tin, gold, or tungsten if those minerals are “necessary to the functionality or production of a product” manufactured by those companies. Companies are required to provide this disclosure on a new form to be filed with the SEC called Form SD. The SEC included a Fact Sheet in the release. Chairman Schapiro's Opening Statement. Paredes' Dissenting Statement.
(2) The SEC also adopted rules requiring resource extraction issuers to disclose certain payments made to the U.S. government or foreign governments. Dodd-Frank directed the Commission to issue these rules requiring companies engaged in the development of oil, natural gas, or minerals to disclose the information annually by filing a new form with the SEC called Form SD.