14th April 2011

A bill, proposed and passed by committee in California’s State Senate on Tuesday is a big first step in making California a conflict-minerals-free state. The bill, introduced by Senator Ellen Corbett, would prohibit the state government from contracting with companies that fail to comply with federal regulations on natural resources from places like Democratic Republic of Congo (DRC) – so called conflict minerals because their revenue is widely accepted to fund and fuel conflict. The bill still needs to be passed by the full Senate assembly.

Conflict minerals, or "blood minerals", refer to minerals that are mined in amidst armed conflict and human rights abuses. Revenue made through selling "blood minerals" helps continue the violence in the region. DRC is rich in several such minerals and armed groups earn hundreds of millions of dollars per year by trading four main minerals: the ores that produce tin, tantalum, tungsten, and gold. These minerals end up in mobile phones, portable music players, and computers.

"Over five million people have died and hundreds of thousands of women and children have been sexually assaulted," Corbett said. "Illegal militias are largely financed through the sale of minerals that are illegally extracted from the Congolese mines and are smuggled into neighboring countries."

Conflict gold transaction in U.S. dollars in eastern Congo - source: Flickr, EnoughProject

The U.S. last year, passed the Dodd-Frank financial reform act, requiring publicly traded companies to disclose whether they use minerals from the Congo and the steps they are taking to make sure the minerals are not funding mass atrocities. Already, some companies like Apple and Intel have responded to this by boycotting suppliers in conflict regions.

But the federal legislation merely relies on market forces and consumer demand to curb the use of conflict minerals. There is no direct necessity to stop using the minerals. This new state-level bill would prohibit California dealing with any company that had conflict minerals in its supply chain and would guarantee commercial clout behind the Frank-Dodd legislation.

Senate Bill 861 is supported by the California Consumer Federation and 28 investors who manage over $25 billion worth of assets.

"[That] is a clear signal that consumers and investors care about the human cost of the product that they use," Corbett said. "Through this legislation California can do a lot to improve the lot of the people in the Congo."

Click here for full details of the Senate Bill 861 and here for the voting record