EX-1.01 2 a15-12985_1ex1d01.htm EX-1.01

EXHIBIT 1.01

 

Conflict Minerals Report of Mellanox Technologies, Ltd.

For the Year Ended December 31, 2014

Pursuant to Rule 13p-1 under the Securities Exchange Act of 1934

 

This report for the year ended December 31, 2014 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934, as amended (the “Rule”). The Rule was adopted by the Securities and Exchange Commission (the “SEC”) to implement reporting and disclosure requirements related to Conflict Minerals as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”). The Rule imposes certain reporting obligations on SEC registrants whose manufactured products contain Conflict Minerals which are necessary to the functionality or production of their products. “Conflict Minerals” are defined as cassiterite, columbite-tantalite (coltan), gold, wolframite, and their derivatives, which are limited to tin, tantalum, tungsten, and gold (“3TG”). These requirements apply to registrants whatever the geographic origin of the Conflict Minerals and whether or not they fund armed conflict.

 

This Report has not been subject to an independent private sector audit as allowed under Rule 13p-1, which provides a phase-in period for the first two years following November 13, 2012.

 

1.              Company Overview

 

This report has been prepared by management of Mellanox Technologies, Ltd. When used in this report, “Mellanox,” the “Company,” “we,” “our” or “us” refers to Mellanox Technologies, Ltd. and its consolidated subsidiaries unless the context requires otherwise. Our business headquarters are in Sunnyvale, California, and our engineering and manufacturing headquarters are in Yokneam, Israel.

 

Mellanox is a fabless semiconductor company that designs, manufactures and sells high-performance interconnect products and solutions primarily based on the InfiniBand and Ethernet standards. Its products facilitate efficient data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration.

 

2.              Products Overview

 

The Company’s products, all of which may contain Conflict Minerals, include integrated circuits (“ICs”), adapter cards, switch systems, cables, modules and accessories as an integral part of a total end-to-end networking solution focused on computing, storage and communication applications used in multiple markets, including high-performance computing, Web 2.0, storage, financial services, enterprise data center and cloud computing.

 

3.              Supply Chain Overview

 

While the Company designs and markets its products and conducts test development in-house, it does not manufacture, assemble, package and production test its products, and it relies on third-party subcontractors to perform these services. Materials used in manufacturing at these subcontractors may be purchased directly by the subcontractor or the Company.

 

The products that the Company manufactures are highly complex, typically containing thousands of parts from many direct suppliers. The Company has relationships with a large global network of suppliers and there are generally multiple tiers between the 3TG mines and the Company’s direct suppliers. Therefore, the Company must rely on its direct suppliers to work with their upstream suppliers in order to provide the Company with accurate information about the origin of 3TG in the components it purchases.

 

4.              Reasonable Country of Origin Inquiry (RCOI) and RCOI conclusion:

 

The Company conducted an analysis of its products and found that the use of Conflict Minerals is necessary to the functionality or production of the products manufactured and contracted to manufacture by the Company. Accordingly, the Company conducted a Reasonable Country of Origin Inquiry (“RCOI”) to determine whether any of the necessary Conflict Minerals originated in the Democratic Republic of the Congo or an adjoining country, (collectively, the “Covered Countries”).

 



 

Description of the RCOI procedure

 

The Company sent letters to its direct suppliers to explain the Rule and to refer suppliers to online training materials and instructions. The Company solicited information from its suppliers using the Conflict Minerals Reporting Template (“CMRT”), an industry-standard template for Conflict Minerals reporting designed by the Conflict-Free Sourcing Initiative (CFSI), and received responses from a partial population of its suppliers. The Company reviewed these responses and followed up with respondents on responses that appeared inconsistent, incomplete, or inaccurate, and it sent reminders to suppliers who did not respond to its requests for information.

 

As of May 29, 2015, the Company did not have sufficient information from its suppliers or other sources to determine the country or countries of origin of the Conflict Minerals used in its products or the facilities used to process those Conflict Minerals. The Company therefore conducted the due diligence activities described in this Conflict Minerals Report.

 

5.              Due diligence

 

I.                 Due diligence framework

 

In accordance with the Rule, the Company undertook certain due diligence activities regarding the Conflict Minerals that are necessary to the functionality or production of the Company’s products. The Company designed these due diligence measures to be in conformity, in all material respects, with the internationally recognized due diligence framework as set forth in the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD, 2013) and related supplements for 3TG.

 

II.             Due diligence measures undertaken

 

The Company engaged those suppliers who provide a significant portion of its components and whose products it believes are likely to contain Conflict Minerals. The Company employed several methods to assess whether the necessary Conflict Minerals in its products originated from the Covered Countries, including:

 

a.              Establish Company management systems.

 

·                  Maintained a Conflict Minerals Policy, available at http://www.mellanox.com/page/quality. The reference to this and other websites in this Conflict Minerals Report does not constitute incorporation by reference of the information contained at or available through such websites.

·                  Created an internal Conflict Minerals process document which describes the procedure of the due diligence and the roles and responsibilities required to comply with the Conflict Minerals rules.

·                  Implemented a Conflict Minerals compliance management system.

·                  Incorporated Conflict Minerals compliance procedure in purchasing and inventory systems.

·                  Structured internal management and cross functional teams to support supply chain due diligence.

·                  Strengthened the Company’s engagement with its suppliers by incorporating a supply chain policy into agreements with suppliers.

·                  Communicated the Company’s due diligence efforts to its customers and suppliers through an annual communication to each supplier. Information regarding the Company’s due diligence efforts is provided to customers upon request.

·                  The Company communicated to its relevant employees the Company’s Conflict Minerals Policy and the importance of maintaining a conflict free supply chain.

·                  Provided contact details in our Conflict Minerals Policy, which serve as a mechanism through which we may receive grievances.

 

b.              Identify and assess risks in the supply chain.

 

The Company identified risks in the supply chain based on its suppliers’ characteristics (such as whether a supplier is a public reporting company, a supplier’s geographical location, etc.) and the dependency of the Company on the suppliers’ products (based on criteria such as volume of spend during 2014, ease of replacement of the supplier, etc.).  The Company accordingly segmented suppliers into high, medium and low levels of risk, allowing the Company to focus its validation efforts according to the supplier level of risk.

 



 

c.               Design and implement a strategy to respond to identified risks.

 

With the assistance of a third party contractor, GreenSoft Technology, Inc., the Company implemented its risk management plan as part of the supplier survey process. The process included:

 

·                  Supply-chain surveys with direct (Tier 1) suppliers and/or manufacturers using the CFSI CMRT to identify the smelters and refiners who contribute refined Conflict Minerals to its products.

·                  Comparison of the smelters and refiners identified by direct suppliers via the supply-chain survey against the list of smelter facilities which have received a “conflict free” compliance designation (such as CFSI Conflict Free Smelter (CFS) program) and noting smelters/ refiners that have not received a conflict-free designation based on the CFSI / CFSP or other independent third party validation program.

·                  Engagement of its internal engineering staff to identify a subset of components with known 3TG content and validate these determinations with supplier survey responses.

·                  Managing communications with suppliers and the validation of supplier survey responses based on level of risk.

·                  Requesting that suppliers whose responses were identified as incomplete, inconsistent or inaccurate provide additional information.

·                  Work with a third-party contractor to collect, validate, review and correct info on all CMRTs received by the Company.

 

d.              Carry out independent third-party audit of smelter/refiner due diligence practices.

 

The Company is a downstream consumer of necessary Conflict Minerals and is many steps removed from smelters and refiners who provide minerals and ores. Therefore, the Company’s direct or upstream suppliers are in a better position to identify smelters and refiners within the supply chain. As a result, the Company’s due diligence efforts rely on cross-industry initiatives to validate smelters.

 

e.               Report annually on supply chain due diligence.

 

The Company reports its supply chain due diligence policies and practices on its website regarding additional information on mineral supply chain due diligence. In addition to filing this Conflict Minerals Report with the Securities and Exchange Commission, the Company has provided this conflict minerals report describing the company’s due diligence efforts on its website at http://ir.mellanox.com/sec.cfm.

 

6.              Results of Assessment

 

Despite some of the Company’s suppliers indicating that such suppliers source from the Covered Countries, these suppliers indicated that they were unable to accurately report which specific facilities or countries were part of the supply chain of the components that were sold to Mellanox in the year 2014.  Due to this lack of information, the Company is unable to determine or describe with certainty the facilities used to process the necessary Conflict Minerals or their country of origin. However, we have received certain information from our suppliers regarding the facilities that they believe have processed the Conflict Minerals in our Covered Products and the country of origin of those Conflict Minerals.  In addition, as the information comes from direct and secondary suppliers and independent third party audit programs, the Company cannot provide absolute assurance regarding the source and chain of custody of the Conflict Minerals.

 

As reported by our suppliers in the CMRTs, the tables below report the facilities identified to be used to process Conflict Minerals that are necessary to the functionality or production of the Covered Products. The smelters listed in the below tables are listed on either the CFSI, the US Department of Commerce, Intel Corporation and Apple, Inc. lists of smelters who are deemed to be conflict free or are approved smelters by either Intel Corporation or Apple, Inc.

 

Table 1: Facilities Processing Conflict Mineral - Gold

Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed or Intel CMRT listed

 

Aida Chemical Industries Co. Ltd.

 

Allgemeine Gold-und Silberscheideanstalt A.G.

 

Almalyk Mining and Metallurgical Complex (AMMC)

AngloGold Ashanti Córrego do Sítio Minerção

 

Argor-Heraeus SA

 

Asahi Pretec Corporation

Asaka Riken Co Ltd

 

ASARCO LLC

 

LtdAtasay Kuyumculuk Sanayi Ve Ticaret A.S.

Aurubis AG

 

Bauer Walser AG

 

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

 



 

Boliden AB

 

C. Hafner GmbH + Co. KG

 

Caridad

CCR Refinery — Glencore Canada Corporation

 

Cendres + Métaux SA

 

Chimet S.p.A.

China National Gold Group Corporation

 

Chugai Mining

 

Codelco Daye Non-Ferrous Metals Mining Ltd.

Colt Refining

 

Daejin Indus Co. Ltd

 

DaeryongENC

Do Sung Corporation

 

Doduco

 

Dowa

Eco-System Recycling Co., Ltd.

 

FSE Novosibirsk Refinery

 

Gansu Seemine Material Hi-Tech Co Ltd

Guangdong Jinding Gold Limited

 

Hangzhou Fuchunjiang Smelting Co., Ltd.

 

Heimerle + Meule GmbH

Heraeus Ltd. Hong Kong

 

Heraeus Ltd. Hong Kong

 

Heraeus Precious Metals GmbH & Co. KG

Heraeus Precious Metals North America (HPMN)

 

Hunan Chenzhou Mining Group Co., Ltd.

 

Hwasung CJ Co. Ltd

Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited

 

Ishifuku Metal Industry Co., Ltd.

 

Istanbul Gold Refinery

Japan Mint

 

Jiangxi Copper Company Limited

 

Johnson Matthey Inc

Johnson Matthey Ltd t

 

JSC Ekaterinburg Non-Ferrous Metal Processing Plan

 

JSC Uralelectromed

JX Nippon Mining & Metals Co., Ltd.

 

Kazzinc Ltd

 

Kennecott Utah Copper LLC

Kojima Chemicals Co., Ltd

 

Korea Metal Co. Ltd

 

Kyrgyzaltyn JSC

L’ azurde Company For Jewelry

 

Lingbao Gold Company Limited

 

Lingbao Jinyuan Tonghui Refinery Co. Ltd.

LS-NIKKO Copper Inc.

 

Luoyang Zijin Yinhui Metal Smelt Co Ltd

 

Materion

Matsuda Sangyo Co., Ltd.

 

Metalor Technologies (Hong Kong) Ltd

 

Metalor Technologies (Singapore) Pte. Ltd.

Metalor Technologies SA

 

Metalor Technologies (Suzhou) Ltd.

 

Metalor USA Refining Corporation

Met-Mex Peñoles, S.A.

 

Mitsubishi Materials Corporation

 

Mitsui Mining and Smelting Co., Ltd.

Moscow Special Alloys Processing Plant

 

Nadir Metal Rafineri San. Ve Tic. A.Ş.

 

Navoi Mining and Metallurgical Combinat

Nihon Material Co. LTD

 

Ohio Precious Metals, LLC

 

Ohura Precious Metal Industry Co., Ltd

OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)

 

OJSC Kolyma Refinery

 

PAMP SA

Penglai Penggang Gold Industry Co Ltd

 

Prioksky Plant of Non-Ferrous Metals

 

PT Aneka Tambang (Persero) Tbk

PX Précinox SA

 

Rand Refinery (Pty) Ltd

 

Royal Canadian Mint

Sabin Metal Corp.

 

SAMWON METALS Corp.Schone Edelmetaal

 

Schone Edelmetaal

SEMPSA Joyería Platería SA

 

Shandong Zhaojin Gold & Silver Refinery Co. Ltd

 

So Accurate Group, Inc.

SOE Shyolkovsky Factory of Secondary Precious Metals

 

Solar Applied Materials Technology Corp.

 

Sumitomo Metal Mining Co., Ltd.

Tanaka Kikinzoku Kogyo K.K.

 

The Great Wall Gold and Silver Refinery of China

 

The Refinery of Shandong Gold Mining Co. Ltd

Tongling nonferrous Metals Group Co.,Ltd

 

Tokuriki Honten Co., Ltd

 

Torecom

Umicore Brasil Ltda

 

Umicore Precious Metals Thailand

 

Umicore SA Business Unit Precious Metals Refining

United Precious Metal Refining, Inc.

 

Valcambi SA

 

Western Australian Mint trading as The Perth Mint

YAMAMOTO PRECIOUS METAL CO., LTD.

 

Yokohama Metal Co Ltd

 

Yunnan Copper Industry Co Ltd

Zijin Mining Group Co. Ltd

 

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

 

 

 

Facilities Identified by our Suppliers that are not CFS listed, Department of Commerce listed or Intel CMRT listed

 

Asaka Riken Co Ltd

 

ASARCO LLC

 

Baiyin Nonferrous Group Co.,Ltd

Caridad

 

China National Gold Group Corporation

 

Chugai Mining

Codelco

 

Daye Non-Ferrous Metals Mining Ltd.

 

Dongguan Dongxu metal Surface Handle Co.,Ltd.

Dongguan Standard Electronic Material.Co.,Ltd

 

Dongguanshi Sutande Dianzi Cailiao Youxiangongsi

 

Ferro Corporation

Gansu Seemine Material Hi-Tech Co Ltd

 

Heesung Catalysts Corp.

 

Heraeus Precious Metals North America (HPMN)

Hon Shen Co., Ltd.

 

Honorable Hardware Craft Product Limited Company

 

Hunan Chenzhou Mining Group Co., Ltd.

Jin Dong Heng

 

Johnson Matthey HongKong Ltd.

 

Kangqiang Electronics Co., Ltd

Kunshan Jinli chemical industry reagents co.,Ltd.

 

LG-Nikko Copper Inc.

 

Luoyang Zijin Yinhui Metal Smelt Co Ltd

Metalor Technologies (Suzhou) Ltd.

 

MK Electron co., Ltd.

 

Morigin Company

 



 

N.E.Chemcat Corporation

 

Nadir Metal Rafineri San. Ve Tic. A.

 

Pan Pacific Copper Co. LTD

Penglai Penggang Gold Industry Co Ltd

 

PT Tambang Timah

 

Remondis Argentia B.V.

Sabin Metal Corp.

 

Samduck Precious Metals

 

SANMENXIA HENGSHENG SCIENCE AND TECHNOLOGY R&D CO.,LTD

ScotiaMocatta, The Bank of Nova Scotia

 

Shandong Guoda Gold Co., LTD.

 

Shandong Zhaojin Gold & Silver Refinery Co., Ltd

Shang Hai Gold Exchange

 

Sindlhauser Materials GmbH

 

Suzhou Xinrui Noble metal material co. Ltd

Taizhou Delta Electronics Co., Ltd.

 

Technic, Inc.

 

The Great Wall Gold and Silver Refinery of China

THE HUTTI GOLD MINES CO.LTD

 

Tiancheng Chemical

 

Tongling nonferrous Metals Group Co.,Ltd

Umicore Precious Metal Refining

 

Valcambi SA Corp.

 

Williams/ Williams Brewster

Xstrata Canada Corporation

 

Yantai country Safeina high-tech environmental Refining Ltd.

 

Yantai Zhaojin Kanfort Precious Metals Incorporated Company

YANTAI ZHAOJIN KANFORT PRECIOUS METALS INCORPORATED COMPANY. 煙台招金勵福貴金屬股份有限公司

 

Yokohama Metal Co Ltd

 

Zhongshan Public Security Bureau, Guangdong Province, China

 

Table 2: Facilities Processing Conflict Mineral - Tantalum

Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed or Intel CMRT listed

 

Changsha South Tantalum Niobium Co., Ltd.

 

Conghua Tantalum and Niobium Smeltry

 

Duoluoshan

Exotech Inc.

 

F&X Electro-Materials Ltd.

 

Gannon & Scott

Global Advanced Metals Aizu

 

Global Advanced Metals Boyertown

 

Guangdong Zhiyuan New Material Co., Ltd.

Guizhou Zhenhua Xinyun Technology Ltd., Kaili branch

 

H.C. Starck Co., Ltd.

 

H.C. Starck GmbH Goslar

H.C. Starck GmbH Laufenburg

 

H.C. Starck Hermsdorf GmbH

 

H.C. Starck Inc.

H.C. Starck Ltd.

 

H.C. Starck Smelting GmbH & Co.KG

 

Hengyang King Xing Lifeng New Materials Co., Ltd.

Hi-Temp

 

JiuJiang JinXin Nonferrous Metals Co., Ltd.

 

Jiujiang Tanbre Co., Ltd.

KEMET Blue Metals

 

KEMET Blue Powder

 

King-Tan Tantalum Industry Ltd

LSM Brasil S.A.

 

Metallurgical Products India (Pvt.) Ltd.

 

Mineração Taboca S.A.

Mitsui Mining & Smelting

 

Molycorp Silmet A.S.

 

Ningxia Orient Tantalum Industry Co., Ltd.

Plansee SE Liezen

 

Plansee SE Reutte

 

QuantumClean

RFH Tantalum Smeltry Co., Ltd

 

Shanghai Jiangxi Metals Co. Ltd

 

Solikamsk Magnesium Works OAO

Tantalite Resources

 

Taki Chemicals

 

Telex

Ulba

 

Yichun Jin Yang Rare Metal Co., Ltd

 

Zhuzhou Cement Carbide

 

Facilities Identified by our Suppliers that are not CFS listed, Department of Commerce listed or Intel CMRT listed

 

ANHUI HERRMAN IMPEX CO., LTD

 

Gannon & Scott

 

H.C. Starck

Talley Metals

 

Tantalite Resources

 

 

 

Table 3: Facilities Processing Conflict Mineral - Tin

Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed, Intel CMRT listed or Apple listed

 

Alpha

 

China Rare Metal Materials Company

 

China Tin Group Co., Ltd.

CNMC (Guangxi) PGMA Co. Ltd.

 

Cooper Santa

 

CV Duta Putra Bangka

CV Gita Pesona

 

CV JusTindo

 

CV Makmur Jaya

CV Nurjanah

 

CV Serumpun Sebalai

 

CV United Smelting

Dowa

 

EM Vinto

 

Estanho de Rondônia S.A.

Fenix Metals

 

FSE Novosibirsk Refinery

 

Gejiu Kai Meng Industry and Trade LLC

Gejiu Non-Ferrous Metal Processing Co. Ltd.

 

Gejiu Zi-Li

 

Heraeus Precious Metals GmbH & Co. KG

Huichang Jinshunda Tin Co. Ltd

 

Jean GOLDSCHMIDT INTERNATIONAL S.A.

 

Jiangxi Nanshan LTDA

Linwu Xianggui Smelter Co

 

Magnu’s Minerais Metais e Ligas

 

Malaysia Smelting Corporation (MSC)

 



 

Melt Metais e Ligas S/A

 

Metallo Chimique

 

Minmetals Ganzhou Tin Co. Ltd.

Mineração Taboca S.A. Minsur

 

Minsur

 

Mitsubishi Materials Corporation

Novosibirsk Integrated Tin Works

 

O.M. Manufacturing (Thailand) Co., Ltd.

 

O.M. Manufacturing Philippines, Inc.

OMSA

 

Poongsan

 

PT Alam Lestari Kencana

PT Artha Cipta Langgeng

 

PT ATD Makmur Mandiri Jaya

 

PT Babel Inti Perkasa

PT Babel Surya Alam Lestari

 

PT Bangka Kudai Tin

 

PT Bangka Putra Karya

PT Bangka Timah Utama Sejahtera

 

PT Bangka Tin Industry

 

PT Belitung Industri Sejahtera

PT BilliTin Makmur Lestari

 

PT Bukit Timah

 

PT DS Jaya Abadi

PT Eunindo Usaha Mandiri

 

PT Fang Di MulTindo

 

PT HP Metals Indonesia

PT Inti Stania Prima

 

PT Karimun Mining

 

PT Koba Tin

PT Mitra Stania Prima

 

PT Panca Mega Persada

 

PT Pelat Timah Nusantara Tbk

PT Prima Timah Utama

 

PT REFINED BANGKA TIN Binasentosa

 

PT Sariwiguna

PT Seirama Tin investment

 

PT Stanindo Inti Perkasa

 

PT Sumber Jaya Indah

PT Supra Sukses Trinusa

 

PT Tambang Timah

 

PT Timah (Persero), Tbk

PT Tinindo Inter Nusa

 

PT Tommy Utama

 

PT Yinchendo Mining Industry

Rahman Hydrulic Tin Sdn Bhd

 

Rui Da Hung

 

SENJU METAL INDUSTRY CO.,LTD.

Soft Metais, Ltda.

 

Thaisarco

 

White Solder Metalurgia e Mineração Ltda.

Yunnan Chengfeng Non-ferrous Metals Co.,Ltd.

 

Yunnan Tin Company, Ltd.

 

 

 

Facilities Identified by our Suppliers that are not CFS listed, Department of Commerce listed or Intel CMRT listed

 

5N Plus

 

Alpha Metals Korea Ltd.

 

American Iron and Metal

Aoki Loboratories Ltd.

 

Butterworth Smelter

 

CFC Cooperativa dos Fundidores de Cassiterita da Amazonia Ltda.

China Tin Group Co., Ltd.

 

Chofu Works

 

CNMC (Guangxi) PGMA Co. Ltd.

Cookson Group

 

Cooper Santa

 

CV Duta Putra Bangka

CV JusTindo

 

CV Makmur Jaya

 

CV Nurjanah

CV Serumpun Sebalai

 

Dr-ing. Max SchloetterGMBH & Co Ltd KG

 

Feinhütte Halsbrücke GmbH

FSE Novosibirsk Refinery

 

Furukawa Electric

 

GEJIU GOLD SMELTER MINERALS CO.,LTD

GEJIU YUNXIN COLORED ELECTROLYTIC CO.,LTD

 

Gejiu Zi-Li

 

Gold Bell Group

GuangDong Jiatian Stannum Products Co., Ltd

 

Heesung Metal Ltd.

 

Heimerle + Meule GmbH

Heraeus Oriental Hitec Co., Ltd.

 

Heraeus Precious Metals GmbH & Co. KG

 

Heraeus Precious Metals GmbH & Co. KG

Hitachi Cable, Ltd.

 

Huizhou Taiwan Electronic Component Limited Company

 

IBF IND Brasileira de Ferrolligas Ltda

Imperial Zinc

 

Jean GOLDSCHMIDT INTERNATIONAL S.A.

 

Jiangxi Nanshan

LIAN JING

 

LS-NIKKO Copper Inc.

 

MCP Metal Specialties, Inc.

Metahub Industries Sdn. Bhd.

 

Metallic Resources Inc

 

Minmetals Ganzhou Tin Co. Ltd.

Nathan Trotter & Co., Inc.

 

Nghe Tinh Non-Ferrous Metals Joint Stock Company

 

Nihon Kagaku Sangyo Co., Ltd.

PHONON MEIWA INC.

 

Poongsan

 

PT Alam Lestari Kencana

PT Artha Cipta Langgeng

 

PT Babel Surya Alam Lestari

 

PT Bangka Kudai Tin

PT Bangka Timah Utama Sejahtera

 

PT BilliTin Makmur Lestari

 

PT Fang Di MulTindo

PT HP Metals Indonesia

 

PT Indra Eramulti Logam Industri

 

PT Koba Tin

PT Pelat Timah Nusantara Tbk

 

PT Sumber Jaya Indah

 

PT Timah (Persero), Tbk

PT Yinchendo Mining Industry

 

PT. CITRALOGAM ALPHASEJAHTERA

 

Rahman Hydrulic Tin Sdn Bhd

Rohm & Hass

 

Samhwa Non-Ferrous Metal. Inc Co.,Ltd.

 

SENJU METAL INDUSTRY CO.,LTD.

SENJU METAL INDUSTRY CO.,LTD.

 

ShangHai YueQiang Metal Products Co., LTD

 

Shenmao Technology Inc.

Singapore LME Tin

 

Standard Sp z o.o.

 

Taicang City Nancang Metal Material Co.,Ltd

 



 

Tanaka Kikinzoku Kogyo K.K.

 

TCC Steel

 

TONGDING METALLIC MATERIAL CO.LTD

Traxys

 

UNI BROS METAL PTE LTD

 

Univertical International (Suzhou) Co., Ltd

Well-Lin Enterprise Co., Ltd.

 

Westfalenzinn

 

Wilhelm Westmetall

Yunnan Chengfeng Non-ferrous Metals Co.,Ltd.

 

Yunnan Chengo Electric Smelting Plant

 

YunNan GeJiu Jin Ye Mineral Co.,Ltd

YunNan Gejiu Yunxin Electrolyze Limited

 

ZHEJIANG HUANGYAN XINQIAN ELECTRICAL EQUIPMENT FITTINGS FACTORY

 

Zhen bo shi ye Co., LTD

 

Table 4: Facilities Processing Conflict Mineral - Tungsten

Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed or Intel CMRT listed

 

A.L.M.T. Corp.

 

Chenzhou Diamond Tungsten Products Co., Ltd.

 

Chongyi Zhangyuan Tungsten Co., Ltd.

Dayu Weiliang Tungsten Co., Ltd.

 

Fujian Jinxin Tungsten Co., Ltd.

 

Ganzhou Huaxing Tungsten Products Co., Ltd.

Fujian Jinxin Tungsten Co., Ltd.

 

Ganzhou Non-ferrous Metals Smelting Co., Ltd.

 

Ganzhou Seadragon W & Mo Co., Ltd.

Global Tungsten & Powders Corp.

 

Guangdong Xianglu Tungsten Co., Ltd.

 

Japan New Metals Co., Ltd.

H.C. Starck Smelting GmbH & Co.KG

 

Hunan Chunchang Nonferrous Metals Co., Ltd.

 

Hunan Chenzhou Mining Group Co., Ltd.

Japan New Metals Co., Ltd.

 

Jiangxi Gan Bei Tungsten Co., Ltd.

 

Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.

Jiangxi Richsea New Materials Co., Ltd.

 

Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.

 

Jiangxi Xinsheng Tungsten Industry Co., Ltd.

Jiangxi Yaosheng Tungsten Co., Ltd.

 

Kennametal Fallon

 

Kennametal Huntsville

Malipo Haiyu Tungsten Co., Ltd.

 

North American Tungsten

 

TaeguTec

Tejing (Vietnam) Tungsten Co., Ltd.

 

Vietnam Youngsun Tungsten Industry Co., Ltd

 

Voss Metals Company, Inc

Wolfram Bergbau und Hütten AG

 

Wolfram Company CJSC

 

Xiamen Honglu Tungsten Molybdenum Co., Ltd.

Xinhai Rendan Shaoguan Tungsten Co., Ltd.

 

Xiamen Tungsten (H.C.) Co., Ltd.

 

Xiamen Tungsten Co., Ltd.

 

Facilities Identified by our Suppliers that are not CFS listed

 

Chengdu Hongbo Industrial co, Ltd

 

China Minmetals Nonferrous Metals Co Ltd (Nanchang Cemented Carbide Limited Liability Company)

 

Ganzhou Hongfei Tungsten & Molybdenum Materials Co., Ltd.

Ganxian Shirui New Material Co., Ltd.

 

Hitachi, Ltd.

 

Hi-Temp

Jiangwu H.C. Starck Tungsten Products Co., Ltd.

 

KYORITSU GOKIN CO.,LTD.

 

Nanchang Cemented Carbide Limited Liability Company

Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC

 

Plansee

 

Xiamen Golden Egret Special Alloy Co. Ltd.

 

As part of our due diligence process, for those suppliers whose products were not found to be DRC conflict free, we took additional steps in an effort to determine the mine or location of origin which included the follow-up procedures and a CMRT and the Company is continuing its efforts to obtain CMRTs from the remaining suppliers.

 

7.              Continuous improvement efforts to mitigate risk

 

The Company intends to undertake the following next steps to improve the due diligence process and mitigate the risk of it utilizing Conflict Minerals:

 

·                  Continue to conduct and report annually on supply chain due diligence for the applicable Conflict Minerals.

·                  Design and implement training programs for higher-risk suppliers to increase supplier response rates.

·                  Work with industry groups to increase awareness in the Company’s supplier networks of the Conflict Mineral data requirements and best practices.

·                  Seek to enact new terms and conditions in supplier contracts that stipulate responses to Conflict Mineral-related inquires and encourage conflict-free supply chains.

·                  Share benchmarking information with the Company’s supplier networks to stimulate improved performance.

·                  Request higher-risk suppliers to offer smelters to participate in obtaining a conflict free designation from an industry program such as CSFI Conflict-Free Smelter Program.

 



 

·                  Validate supplier responses using information collected via independent conflict free smelter validation programs such as CSFI Conflict-Free Smelter Program.

 

8.              Additional Risk Factors

 

The statements above are based on the RCOI process and due diligence performed in good faith by the Company. These statements are based on the infrastructure and information available at the time the RCOI process and due diligence process were performed.  A number of factors could introduce errors or otherwise affect our analysis and the disclosure provided herein.

 

These factors include, but are not limited to, gaps in product or product content information, gaps in supplier data, gaps in smelter data, errors or omissions by or of suppliers, errors or omissions by smelters, gaps in supplier education and knowledge, lack of timeliness of data, public information not discovered during a reasonable search, errors in public data, language barriers and translation, supplier and smelter unfamiliarity with the protocol, oversights or errors in conflict free smelter audits, materials sourced from the Covered Countries being declared secondary materials, certification programs that are not equally advanced for all industry segments and metals, and smuggling of Conflict Minerals to countries outside of the Covered Countries.

 

9.              Forward Looking Statements

 

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations concerning matters that are not historical facts. Words such as “estimates,” “projects,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “may,” “will,” “could,” “should,” “would,” “targeted” and similar words and expressions are intended to identify forward-looking statements. These include statements based on current expectations, estimates, forecasts and projections about the economies and markets in which we operate and our beliefs and assumptions regarding these economies and markets, as well as our actions with respect to compliance with the Rule. These forward-looking statements should be considered in light of various important factors, including the following: changes to regulations and requirements for assessing and reporting Conflict Minerals; litigation related to regulations and requirements for Conflict Minerals; and adverse publicity regarding the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on current expectation and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors under the heading “Risk Factors” in our report on Form 10-K for the year ended December 31, 2014, as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Our actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law.