Responsible Raw Materials Initiative

How does CFSI view recycled or grandfathered materials?

Recycled material:  Recycled materials defined by the OECD Guidance, and referenced by the US SEC are ‘reclaimed end-user or post-consumer products, or scrap processed metals created during product manufacturing including: excess, obsolete, defective, and scrap metal materials which contain refined or processed metals that are appropriate to recycle in the production of 3TG. As defined by the OECD Guidance, minerals partially processed, unprocessed, or a by-product from ore (i.e. slags) are not recycled materials. Under the SEC rule, recycled 3TG is deemed to be “DRC conflict free” and is equivalent to other sources of 3TG for SEC reporting purposes. If a reasonable inquiry confirms that material is derived from recyclable material, its use does not trigger an obligation to file a CMR.

Grandfathered 3TG:  Existing stocks of 3TG are exempt from application of the rule if they are “outside the supply chain” prior to January 31, 2013. 3TG is “outside the supply chain” if it “has been fully smelted/refined”, or is located outside of the DRC and adjoining countries (even if not yet fully refined), by the date specified. Thus stocks of existing 3TG held in exchanges, banks and vaults as well as manufacturers’ inventories are grandfathered as conflict-free. The CFSP adopts the same cut-off date expressed in the SEC Rule (January 31, 2013).