The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed in to law on July 21, 2010, contains Section 1502 which refers to the use of Conflict Minerals in the Democratic Republic of the Congo (DRC). In short, this section is being referred to as the Conflict Minerals Law.
While the U.S. government estimates that the cost to industry to implement the Conflict Minerals Law is approximately $16.5 million, a recent study by the IPC puts this cost at a staggering $279 million for the first year of implementation. IPC’s calculated cost per company includes a due-diligence cost of $65,000 plus costs for tracking software, additional staff, training, and expenses for legal services and third-party audits. This brings the median total per company to $170,000 in the first year, and IPC estimates that ongoing industry costs to be $165 million per year.