SEC Adopts Conflict Minerals Disclosure Rules

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On August 22, 2012, the SEC adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires issuers to conduct a good faith reasonable country of origin inquiry and publicly disclose their use of conflict minerals originating in the Democratic Republic of Congo (DRC) or an adjoining country (together with the DRC, Covered Countries). The rule in a new Section 13(p) of the Exchange Act and requires issuers to make the disclosure on a new Form SD. Under the rule, issuers filing reports with the SEC under the Exchange Act will be required to disclose the use of tantalum, tin, gold or tungsten if those minerals are "necessary to the functionality or production of a product" manufactured by or contracted to be manufactured by the issuer.