Conflict minerals' refer to four minerals (tin, tantalum, tungsten, and gold) mined in the Democratic Republic of Congo and the neighboring nations, including Sudan, Rwanda, Burundi, Uganda, Congo, Zambia, Angola, Tanzania, and 10 nations from the Central African Republic. These territories are currently controlled by militant groups of insurgents and conquering armies that mine and distribtne minerals to secure funds. This practice continues to cause disputes and often results in casualties, human rights violations, and labor exploitation.In July 2010, the U.S. Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act which lay the foundation for legal restrictions on conflict minerals. Every company, listed in the U.S securities market, must fairly disclose and annually report the use of conflict minerals to the Securities and Exchange Commission(SEC) by May 31st. Some Korean companies with obligation are also influenced by this Act, as a supplier to the U.S firms.
LG Chem supports the prohibition of conflict minerals to prevent environmental pollution, casualties, human rights violations, and labor exploitation. LG Chem is also making an effort to comply with the regulation in support of the prohibition. We conduct surveys on our suppliers to collect and manage information on the components of conflict minerals and the data is monitored through an IT system from the procurement stage. The use of conflict minerals is essentially prohibited in principle as stated under LG Chem's Eco-SCM guideline distribtned to our suppliers.