Ref: Inquiries on - Conflict Metals or Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010: Section 1502 - Conflict Minerals.
Eastern Alloys has reviewed the SEC's final ruling regarding conflict minerals and have determined that the rule does not apply to the zinc alloys we manufacture. Conflict minerals (also referred to as “3TG”) are described as Gold (Au), Tantalum (Ta), Tungsten (W) and Tin (Sn) that are sourced from the Democratic Republic of Congo or adjoining countries from mines controlled by non-governmental military groups.
According to the final rule of 17 CFR PARTS 240 and 249b, these minerals must be "Necessary to the functionality" and "Necessary to the Production" of the products made. None of the conflict minerals in question are (a) "intentionally added", (b) "necessary to the product's generally expected function, use, or purpose", (c) "incorporated for purposes of ornamentation, decoration or embellishment", or (d) in any way necessary to the production of zinc alloys produced by Eastern Alloys.
As quoted directly from the final ruling:
An issuer would have only been subject to the Conflict Minerals Statutory Provision if it was a reporting issuer for which conflict minerals were “necessary to the functionality or production of a product manufactured” (Exchange Act Section 13(p)(2).) or contracted to be manufactured by such person. If an issuer did not meet that definition, the issuer was not required to take any action, make any disclosures, or submit any reports.
In Eastern Alloys’ zinc alloy products, conflict minerals would be considered either deleterious to mechanical and physical properties (i.e. tin), difficult to process (i.e. tantalum & tungsten) or uneconomical (gold), and therefore not intentionally added or used in any way in any Eastern Alloys product (ILZRO Project ZM-246). Eastern Alloys also does not purchase conflict materials for any reason from any global source.
Furthermore, according to the final rule, Eastern Alloys is not required to take any action on this matter, which includes reporting requirements of our suppliers.