Commitment to a Better, Safer, More Connected Tomorrow
As a leading global supplier of passive electronic components, KEMET uses nearly half of the 118 elements in the periodic table, with more to come. We are the world’s largest user of element 73, tantalum. Given the intensive nature of resource extraction and our global footprint, we understand the importance of promoting the sustainability of not only our direct operations, but also our supply chain. We were one of the first companies to claim the “conflict-free” distinction, as acknowledged by the U.S. Securities and Exchange Commission (SEC), and we created the Partnership for Social and Economic Sustainability in a small tantalum mining village called Kisengo in the Katanga Province in southeastern Democratic Republic of Congo. Together with the local miners, KEMET helped to establish a foundation that provided funding for improvements to the infrastructure of the village, to build a hospital that has served over 30,000 patients, and to build a school that has 1,500 students. Funding was provided for roads, bridges, and solar-powered street lighting. Additionally, wells were drilled in the village to provide fresh drinking water, which is a major concern in that region.
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Supply Chain Policy
As part of our commitment to corporate social responsibility, it is our goal to source conflict minerals (tin, tantalum, tungsten, and gold) in a manner which will not directly or indirectly finance or benefit armed groups in the Democratic Republic of Congo and its adjoining countries, or in any region determined to be a conflict affected and high risk area (CAHRA) as defined in the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict Affected and High Risk Areas (OECD Guidance), which includes any entities therein. KEMET will immediately discontinue doing business with any supplier found to be purchasing materials which directly or indirectly finance or benefit armed groups in these regions. As part of our management systems, KEMET has adopted the OECD Guidance and will implement, where appropriate, the five step framework for risk-based due diligence in the mineral supply chain including Annex II found in the OECD Guidance. All KEMET’s smelting and refining operations have been validated to be compliant under the independent third-party audit process found in the Responsible Minerals Initiative’s (RMI) Responsible Minerals Assurance Program (RMAP). KEMET will rely on this independent, third-party audit process to supplement our internal due diligence of all conflict mineral suppliers. KEMET complies with section 1502 “Conflict Minerals” of the Dodd-Frank Wall Street Reform and Consumer Protection Act including all reporting requirements.
In support of our Supply Chain Policy, KEMET expects all suppliers of conflict minerals to:
- Comply with the Responsible Business Alliance Code of Conduct
- Adopt a supply chain policy aligned with our policy
- Source only conflict minerals from smelters who have been validated as compliant with the RMAP by an independent third party
- Provide conflict minerals supply chain due diligence information via the RMI Conflict Minerals Reporting Template (CMRT)
This policy is communicated to all suppliers through either purchase agreements or purchase order terms and conditions.
Conflict-Free Tantalum Sourcing Initiative
As the world’s largest user of tantalum, KEMET took an early leadership position in the industry on the issue of obtaining certified conflict-free minerals. The KEMET Partnership for Social and Economic Sustainability program is the industry’s most comprehensive social sustainability and economic program focused on meeting the short- and long-term needs of all stakeholders in the KEMET tantalum supply chain. This program includes a conflict-free and vertically integrated tantalum supply chain.
About Dodd-Frank Conflict Minerals Provision 1502
The Democratic Republic of Congo has one of the world's richest deposits of minerals such as tin, tantalum, tungsten, and gold. Unfortunately, decades of war and corruption have lead to widespread poverty, starvation, gender-based violence, and sexual exploitation. To bring social responsibility to American companies that extract minerals from the area, the United States enacted laws to ensure that corporate dollars were not going into the hands of warlords and those that seek to perpetuate the conflict. The Dodd-Frank Wall Street Reform and Consumer Protection Act was introduced into the U.S. House of Representatives by Congressman Barney Frank (MA-4) and in the U.S. Senate by Senator Christopher Dodd (CT). The bill was passed in the 111th Congress and signed into law by the president on July 21, 2011. This legislation calls upon U.S. companies to ensure that the products they manufacture do not contain minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or adjoining countries. In coordination with the Securities and Exchange Commission, the Department of Commerce, and the Department of State, the United States federal government will work with American businesses to help rebuild communities in the Congo through sustainable development in the region.
Conflict Minerals Contacts
Contacts for Tantalum Ore and Risk in Tantalum Supply Chain
William L. Shannon, C.P.M.
Vice President Tantalum Material Sourcing & Vertical Integration
Global Sourcing and Compliance
Contacts for Conflict Minerals Reporting Data
Senior Corporate Compliance Analyst
Senior Director, Compliance and Sustainability