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Intel not abandoning DRC despite country's conflict-mineral problems

By , Editor, ITWeb Africa
Congo (DRC) , 18 Jun 2014

Intel not abandoning DRC despite country's conflict-mineral problems

Chip-maker Intel says it could stop sourcing metals from the Democratic Republic of the Congo (DRC) altogether to prevent the risk of using conflict-minerals.

But instead the company has decided to ensure its supply chain in the African country is clean.

Five years ago, Intel started focusing on its supply chain smelters across the globe to ensure they do not use conflict-minerals.

In particular, tantalum, tungsten, tin and gold are at risk of being conflict-minerals as they can be sourced from the likes of the DRC: a country where militant and rebel groups have smuggled and sold metals to fund violent operations.

Yet only 20% of the world’s tantalum comes from the DRC, according to the US Securities and Exchange Commission (SEC).

And referencing this figure, Intel representatives say the company could theoretically abandon sourcing metals from the DRC altogether, as the African country produces even lower global volumes of tungsten, tin and gold.

“This would have been the easy way, to just step away and say let’s abandon the use of minerals from the Democratic Republic of the Congo,” Guenther Juenger, the director of corporate affairs for Intel Europe, Middle East and Africa, told ITWeb Africa.

“But I don’t think this would have been in the spirit of helping the people on the ground.

“So, we thought the right way was to implement a process across the entire value chain to really ensure the sourcing of minerals is conflict-free. And by conflict-free we mean none of the money, which is sourced by producing these minerals, is flowing back to supporting the activities of the militants,” Juenger told ITWeb Africa.

Juenger explained to ITWeb Africa that the “gateway” for conflict minerals lies with smelters.

Therefore, Intel has moved over the last five years to ensure that the 86 smelters it uses across the globe commit to using conflict-free minerals.

“We only source from those who can really guarantee conflict-free minerals,” Juenger said.

“It’s not a question of paying more or less; it’s a question of doing the right thing and making sure we implement the right processes across the entire value chain,” he added.

Juenger; though, notes that the DRC is the world’s main source of conflict minerals.

US legislation attempts to curb problem

Earlier this year, Intel chief executive officer Brian Krzanich announced at the Consumer Electronics Show (CES) in Las Vegas that its supply chain for metals is conflict-free.

Prior to becoming Intel CEO, Krzanich headed up Intel’s conflict-free mineral programme five years ago, Juenger told ITWeb Africa.

But the company’s move to be labelled a conflict-free mineral user has also come about as US legislation to curb the use of conflict metals has kicked in this year.

US companies have to comply with the Dodd Frank Act, which calls for the disclosure of the presence of conflict minerals in their supply chains.

Companies covered by the Dodd Frank Act must publish details of their efforts to check their supply chains.

“We started way before the Dodd Frank Act has been put in place,” Juenger told ITWeb Africa.

Juenger added that it is promising to see Europe moving to implement similar legislation.

Overall, Intel says it also remains committed to the DRC as a destination for its metals as the company’s corporate public relations manager for Europe, the Middle East and Africa Diana Kaaserer explained.

“We could have made a decision to say that we’re not sourcing in the Congo at all.

“But we said we do not want to be Congo-free, we want to be conflict-free,” Kaaserer told ITWeb Africa.

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