The U.S. Congress is considering various measures to weaken the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. One threatened part of the law – Section 1502 – requires companies with potential exposure to conflict minerals to audit their supply chains and report if they use resources known as conflict minerals. Conflict minerals are metals mined in the Democratic Republic of Congo that fund and perpetuate widespread violence.
In response to Congress, a coalition of investors, including Praxis Mutual Funds®, reached out to the Securities and Exchange Commission and the current presidential administration asking them to continue the comprehensive implementation of Section 1502.
While no single law can solve all the underlying problems that are causing conflict in the Democratic Republic of Congo and surrounding region, Section 1502 successfully diminished revenue flows to militia groups. The law has catalyzed positive change in the region's mining sector, encouraged U.S. companies to address material risk in their supply chains, and contributed to responsible economic development in the Democratic Republic of Congo.