EX-1.01 2 ex_187466.htm EXHIBIT 1.01 ex_187466.htm

 

Exhibit 1.01

 

 

 

Conflict Minerals Report for the year ended December 31, 2019

 

Nortech Systems, Inc. is a full-service electronics manufacturing (EMS) provider of wire and cable assemblies, printed circuit boards assemblies and higher-level complete box build assemblies for a wide range of industries. Metallic forms of tin, tantalum, tungsten, and gold ("Conflict Minerals") are present in some of the products, components, and materials we purchase and are necessary to the functionality of many of the products we manufacture. We do not buy any ores directly, nor do we directly purchase these processed metals in their raw form.

 

Nortech’s corporate policy regarding Conflict Minerals and disclosure regarding whether any Conflict Minerals necessary to the functionality or production of a product originated in Covered Countries is made public on our website at: http://www.nortechsys.com/about-nortech/quality-regulatory-compliance/conflict-minerals-policy/

 

Design of Due Diligence Framework

 

 

Our due diligence procedures are in compliance with the Organization for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Third Edition) and its supplements.

 

Nortech's policy regarding Conflict Minerals was communicated to employees internally and to suppliers externally

via e-mail and posted to our website.

 

Our cross functional conflict minerals team was established to carry out the necessary due diligence and reporting requirements. The team currently includes the following roles:

 

 

 

Team Members:

Document Specialist

    Global Supplier Quality Manager
     
  Executive Sponsors:  President & CEO
    Chief Financial Officer

 

 

Due Diligence Measures Performed

 

Our RCOI (reasonable country of origin inquiry) and due diligence procedures include the following:

 

 

Due to the size of the Nortech's sourcing functions, we focused on our largest suppliers that provide components and materials directly incorporated into our final products, ranked by the amount the Company spends with each such supplier, and the suppliers that had the highest probability of supplying us with products or components containing Conflict Minerals (e.g. electronics).

 

 

We surveyed relevant suppliers representing over 90% of our total company supplier spend on components and materials directly incorporated into our final products.

 

 

Relevant suppliers were evaluated to identify whether the products, materials, or components supplied to Nortech contain Conflict Minerals.

 

 

 

 

Data was collected directly from suppliers using the Conflict Minerals Reporting Template developed by the Responsible Minerals Initiative (RMI) formerly known as CFSI.

 

 

Supplier declarations were reviewed for completeness, accuracy and conformance to Nortech requirements.

 

 

An escalation process was initiated with relevant suppliers who were nonresponsive after the initial contact was made, or whose initial response was incomplete, unclear or nonconforming.

 

 

Analysis of Supplier Survey Responses

 

 

We were unable to confirm through our RCOI that Conflict Minerals contained in our products did not originate from the Covered Countries or were from recycled/scrap materials. Therefore we conducted due diligence on the processing facilities identified by our suppliers and prepared this Conflict Minerals Report.

 

Conflict minerals information from some suppliers was presented to Nortech at a "company-level" rather than a Nortech product-specific response. As a result, it is likely that our lists of smelters, refiners and countries of origin (discussed below) include sources that are not in our supply chain.

 

 

Due Diligence Results

 

 

Suppliers that responded to our survey provided lists of smelters and refiners on which we conducted due diligence.

 

 

Our due diligence process included comparing the supplier-provided names of smelters/refiners against lists of audited and verified smelters and refiners from RMI. The lists of smelters and refiners are included as Table 1.

 

Certain suppliers identified Kaloti Precious Metals, Sudan Gold Refinery, Tony Goetz NV, Universal Precious Metals Refining Zambia, African Gold Refinery, and Fidelity Printers and Refiners as sources of gold in their supply chains. These refineries are not audited by the RMI and public information indicates the possibility that these are high-risk facilities. Because the conflict minerals information from these suppliers was presented to Nortech as "company-level" responses rather than Nortech product-specific responses, it is uncertain if these facilities are actually in our supply chain. As part of our due diligence process, Nortech implemented our risk mitigation plan for the subject suppliers, engaging them to conduct additional research on whether these facilities are, in reality, present in our supply chain. If we determine that material sourced from these facilities is present in Nortech's supply chain, we will work with our suppliers to explore alternatives.

 

Country of origin information was obtained where reasonably available to Nortech and is presented as Table 2.

 

CMRT Reporting to our customers.

 

 

Nortech issues a standard response using the RMI CMRT.

 

Third Party Audits of Processing Facilities

 

 

Nortech does not conduct audits of smelters or refiners. We support the Responsible Mineral Initiative's Conflict Free Smelter program through our corporate policy and procurement requirements by encouraging suppliers to source from audited facilities.

 

Annual Reporting

 

 

In accordance with the OECD Guidance and the Rule, this report is available on our website: www.nortechsys.com

 

 

 

Declaration

 

 

Based on our due diligence results, Nortech has determined that our products are 'DRC Conflict Undeterminable'.

 

Independent Private Sector Audit

 

 

Not required for reporting year 2019.

 

Limitations

 

Conflict Minerals sourcing and traceability information is limited at this time. Moreover , there are inherent limitations and risks in the information that is available. We are reliant on the information provided to us by our suppliers and industry initiatives such as the RMI. Our processes are intended to provide reasonable assurance - not absolute certainty- about the identification of processing facilities and the sources of their ores.

 

Table 1: Smelters/Refiners

 

 

Gold Smelters/Refiners

 

8853 S.p.A.

Abington Reldan Metals, LLC

Advanced Chemical Company

African Gold Refinery

Aida Chemical Industries Co., Ltd.

Al Etihad Gold Refinery DMCC

Allgemeine Gold-und Silberscheideanstalt A.G.

Almalyk Mining and Metallurgical Complex (AMMC)

AngloGold Ashanti Corrego do Sitio Mineracao

Argor-Heraeus S.A.

Asahi Pretec Corp.

Asaka Riken Co., Ltd.

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

AU Traders and Refiners

Aurubis AG

Bangalore Refinery

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

Boliden AB

C. Hafner GmbH + Co. KG

Caridad

CCR Refinery - Glencore Canada Corporation

Cendres + Metaux S.A.

CGR Metalloys Pvt Ltd.

Chimet S.p.A.

China's Shandong Gold Mining Co., Ltd

Chugai Mining

Daejin Indus Co., Ltd.

Daye Non-Ferrous Metals Mining Ltd.

Degussa Sonne / Mond Goldhandel GmbH

Dijllah Gold Refinery FZC

 

 

 

Do Sung Corporation

DODUCO Contacts and Refining GmbH

Dowa

DS PRETECH Co., Ltd.

Eco-System Recycling Co., Ltd.

Emirates Gold DMCC

Fidelity Printers and Refiners Ltd.

FSE Novosibirsk Refinery

Fujairah Gold FZC

GCC Gujrat Gold Centre Pvt. Ltd.

Geib Refining Corporation

Gold Refinery of Zijin Mining Group Co., Ltd.

Guangdong Jinding Gold Limited

Guoda Safina High-Tech Environmental Refinery Co., Ltd.

Hangzhou Fuchunjiang Smelting Co., Ltd.

HeeSung Metal Ltd.

Heimerle + Meule GmbH

Heraeus Metals Hong Kong Ltd.

Heraeus Precious Metals GmbH & Co. KG

Hunan Chenzhou Mining Co., Ltd.

Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd.

HwaSeong CJ CO., LTD.

Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.

International Precious Metal Refiners

Ishifuku Metal Industry Co., Ltd.

Istanbul Gold Refinery

Italpreziosi

Japan Mint

Jiangxi Copper Co., Ltd.

Johnson Matthey Inc.

Johnson Matthey Limited

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

JSC Uralelectromed

JX Nippon Mining & Metals Co., Ltd.

Kaloti Precious Metals

Kazakhmys Smelting LLC

Kazzinc

Kennecott Utah Copper LLC

KGHM Polska Miedz Spolka Akcyjna

Kojima Chemicals Co., Ltd.

Korea Zinc Co., Ltd.

Kyrgyzaltyn JSC

Kyshtym Copper-Electrolytic Plant ZAO

L'azurde Company For Jewelry

Lingbao Gold Co., Ltd.

Lingbao Jinyuan Tonghui Refinery Co., Ltd.

L'Orfebre S.A.

LS-NIKKO Copper Inc.

 

 

 

Luoyang Zijin Yinhui Gold Refinery Co., Ltd.

Marsam Metals

Materion

Matsuda Sangyo Co., Ltd.

Metalor Technologies (Hong Kong) Ltd.

Metalor Technologies (Singapore) Pte., Ltd.

Metalor Technologies (Suzhou) Ltd.

Metalor Technologies S.A.

Metalor USA Refining Corporation

Metalúrgica Met-Mex Peñoles S.A. De C.V.

Mitsubishi Materials Corporation

Mitsui Mining and Smelting Co., Ltd.

MMTC-PAMP India Pvt., Ltd.

Modeltech Sdn Bhd

Morris and Watson

Morris and Watson Gold Coast

Moscow Special Alloys Processing Plant

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

Navoi Mining and Metallurgical Combinat

NH Recytech Company

Nihon Material Co., Ltd.

Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH

Ohura Precious Metal Industry Co., Ltd.

OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet)

PAMP S.A.

Pease & Curren

Penglai Penggang Gold Industry Co., Ltd.

Planta Recuperadora de Metales SpA

Prioksky Plant of Non-Ferrous Metals

PT Aneka Tambang (Persero) Tbk

PX Precinox S.A.

QG Refining, LLC

Rand Refinery (Pty) Ltd.

Refinery of Seemine Gold Co., Ltd.

REMONDIS PMR B.V.

Royal Canadian Mint

SAAMP

Sabin Metal Corp.

Safimet S.p.A

SAFINA A.S.

Sai Refinery

Samduck Precious Metals

SAMWON METALS Corp.

SAXONIA Edelmetalle GmbH

SEMPSA Joyeria Plateria S.A.

Shandong Humon Smelting Co., Ltd.

Shandong Tiancheng Biological Gold Industrial Co., Ltd.

 

 

 

Shandong Zhaojin Gold & Silver Refinery Co., Ltd.

Sichuan Tianze Precious Metals Co., Ltd.

Singway Technology Co., Ltd.

SOE Shyolkovsky Factory of Secondary Precious Metals

Solar Applied Materials Technology Corp.

Sovereign Metals

State Research Institute Center for Physical Sciences and Technology

Sudan Gold Refinery

Sumitomo Metal Mining Co., Ltd.

SungEel HiMetal Co., Ltd.

T.C.A S.p.A

Tanaka Kikinzoku Kogyo K.K.

The Great Wall Gold and Silver Refinery of China

Tokuriki Honten Co., Ltd.

Tongling Nonferrous Metals Group Co., Ltd.

Tony Goetz NV

TOO Tau-Ken-Altyn

Torecom

Umicore Brasil Ltda.

Umicore Precious Metals Thailand

Umicore S.A. Business Unit Precious Metals Refining

United Precious Metal Refining, Inc.

Universal Precious Metals Refining Zambia

Valcambi S.A.

Western Australian Mint (T/a The Perth Mint)

WIELAND Edelmetalle GmbH

Yamakin Co., Ltd.

Yokohama Metal Co., Ltd.

Yunnan Copper Industry Co., Ltd.

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

 

 

Tantalum Smelters/Refiners

 

Asaka Riken Co., Ltd.

Changsha South Tantalum Niobium Co., Ltd.

CP Metals Inc.

D Block Metals, LLC

Exotech Inc.

F&X Electro-Materials Ltd.

FIR Metals & Resource Ltd.

Global Advanced Metals Aizu

Global Advanced Metals Boyertown

Guangdong Rising Rare Metals-EO Materials Ltd.

Guangdong Zhiyuan New Material Co., Ltd.

H.C. Starck Co., Ltd.

H.C. Starck Hermsdorf GmbH

H.C. Starck Inc.

 

 

 

H.C. Starck Ltd.

H.C. Starck Smelting GmbH & Co. KG

H.C. Starck Tantalum and Niobium GmbH

Hengyang King Xing Lifeng New Materials Co., Ltd.

Jiangxi Dinghai Tantalum & Niobium Co., Ltd.

Jiangxi Tuohong New Raw Material

Jiujiang Janny New Material Co., Ltd.

JiuJiang JinXin Nonferrous Metals Co., Ltd.

Jiujiang Tanbre Co., Ltd.

Jiujiang Zhongao Tantalum & Niobium Co., Ltd.

KEMET Blue Metals

Kemet Blue Powder

LSM Brasil S.A.

Metallurgical Products India Pvt., Ltd.

Mineracao Taboca S.A.

Mitsui Mining & Smelting

Ningxia Orient Tantalum Industry Co., Ltd.

NPM Silmet AS

Power Resources Ltd.

QuantumClean

Resind Industria e Comercio Ltda.

RFH

Solikamsk Metal Works

Taki Chemicals

Telex Metals

Ulba

XinXing HaoRong Electronic Material Co., Ltd.

 

 

Tin Smelters/Refiners

 

An Vinh Joint Stock Mineral Processing Company

Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.

Chifeng Dajingzi Tin Industry Co., Ltd.

China Tin Group Co., Ltd.

CNMC (Guangxi) PGMA Co., Ltd.

Cookson

CV Ayi Jaya

CV Dua Sekawan

CV Gita Pesona

CV Nurjanah

CV Serumpun Sebalai

CV Tiga Sekawan

CV United Smelting

CV Venus Inti Perkasa

Dongguan CiEXPO Environmental Engineering Co., Ltd.

Dowa

 

 

 

Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company

EM Vinto

Estanho de Rondonia S.A.

Fenix Metals

Gejiu City Fuxiang Industry and Trade Co., Ltd.”

Gejiu Fengming Metallurgy Chemical Plant

Gejiu Kai Meng Industry and Trade LLC

Gejiu Non-Ferrous Metal Processing Co., Ltd.

Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.

Gejiu Zi-Li

Guangdong Hanhe Non-Ferrous Metal Co., Ltd.

Guanyang Guida Nonferrous Metal Smelting Plant

HuiChang Hill Tin Industry Co., Ltd.

Huichang Jinshunda Tin Co., Ltd.

Jiangxi Nanshan

Ma'anshan Weitai Tin Co., Ltd.

Magnu's Minerais Metais e Ligas Ltda.

Malaysia Smelting Corporation (MSC)

Melt Metais e Ligas S.A.

Metallic Resources, Inc.

Metallo Belgium N.V.

Metallo Spain S.L.U.

Mineracao Taboca S.A.

Minsur

Mitsubishi Materials Corporation

Modeltech Sdn Bhd

Nghe Tinh Non-Ferrous Metals Joint Stock Company

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

O.M. Manufacturing Philippines, Inc.

OMSA

Pongpipat Company Limited

Precious Minerals and Smelting Limited

PT Artha Cipta Langgeng

PT ATD Makmur Mandiri Jaya

PT Babel Inti Perkasa

PT Babel Surya Alam Lestari

PT Bangka Prima Tin

PT Bangka Serumpun

PT Bangka Tin Industry

PT Belitung Industri Sejahtera

PT Bukit Timah

PT DS Jaya Abadi

PT Inti Stania Prima

PT Karimun Mining

PT Kijang Jaya Mandiri

PT Menara Cipta Mulia

PT Mitra Stania Prima

 

 

 

PT Panca Mega Persada

PT Prima Timah Utama

PT Rajawali Rimba Perkasa

PT Refined Bangka Tin

PT Sariwiguna Binasentosa

PT Stanindo Inti Perkasa

PT Sukses Inti Makmur

PT Sumber Jaya Indah

PT Tambang Timah

PT Timah (Persero) Tbk Mentok

PT Tinindo Inter Nusa

PT Tirus Putra Mandiri

PT Tommy Utama

Resind Industria e Comercio Ltda.

Rui Da Hung

Soft Metais Ltda.

Super Ligas

Thai Nguyen Mining and Metallurgy Co., Ltd.

Thaisarco

Tin Technology & Refining

Tuyen Quang Non-Ferrous Metals Joint Stock Company

White Solder Metalurgia e Mineração Ltda.

Yunnan Chengfeng

Yunnan Tin Company Limited

Yunnan Yunfan Non-ferrous Metals Co., Ltd.

 

 

Tungsten Smelters/Refiners

 

A.L.M.T. Corp.

ACL Metais Eireli

ATI Tungsten Materials

Chenzhou Diamond Tungsten Products Co., Ltd.

China Molybdenum Co., Ltd.

Chongyi Zhangyuan Tungsten Co., Ltd.

Fujian Ganmin RareMetal Co., Ltd.

Fujian Jinxin Tungsten Co., Ltd.

Ganzhou Haichuang Tungsten Co., Ltd.

Ganzhou Huaxing Tungsten Products Co., Ltd.

Ganzhou Jiangwu Ferrotungsten Co., Ltd.

Ganzhou Seadragon W & Mo Co., Ltd.

Global Tungsten & Powders Corp.

Guangdong Xianglu Tungsten Co., Ltd.

H.C. Starck Smelting GmbH & Co. KG

H.C. Starck Tungsten GmbH

Hunan Chenzhou Mining Co., Ltd.

Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji

Hunan Chunchang Nonferrous Metals Co., Ltd.

Hunan Litian Tungsten Industry Co., Ltd.

 

 

 

Hydrometallurg, JSC

Japan New Metals Co., Ltd.

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

Jiangxi Dayu Longxintai Tungsten Co., Ltd.

Jiangxi Gan Bei Tungsten Co., Ltd.

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

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

Jiangxi Xinsheng Tungsten Industry Co., Ltd.

Jiangxi Yaosheng Tungsten Co., Ltd.

JSC "Kirovgrad Hard Alloys Plant"

Kennametal Fallon

KGETS Co., Ltd.

Lianyou Metals Co., Ltd.

Malipo Haiyu Tungsten Co., Ltd.

Masan Tungsten Chemical LLC (MTC)

Moliren Ltd.

Niagara Refining LLC

Philippine Chuangxin Industrial Co., Inc.

South-East Nonferrous Metal Company Limited of Hengyang City

Tejing (Vietnam) Tungsten Co., Ltd.

Unecha Refractory metals plant

Wolfram Bergbau und Hütten AG

Woltech Korea Co., Ltd.

Xiamen Tungsten (H.C.) Co., Ltd.

Xiamen Tungsten Co., Ltd.

Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.

Xinhai Rendan Shaoguan Tungsten Co., Ltd.

 

 

Table 2: Aggregated Countries of Origin

 

ANDORRA

AUSTRALIA

AUSTRIA

BELGIUM

BOLIVIA (PLURINATIONAL STATE OF)

BRAZIL

CANADA

CHILE

CHINA

CZECHIA

ESTONIA

FRANCE

GERMANY

INDIA

INDONESIA

ITALY

JAPAN

KAZAKHSTAN

 

 

 

KOREA, REPUBLIC OF

KYRGYZSTAN

LITHUANIA

MACEDONIA, THE FORMER YUGOSLAV REPUBLIC OF

MALAYSIA

MEXICO

MYANMAR

NETHERLANDS

NEW ZEALAND

PERU

PHILIPPINES

POLAND

RUSSIAN FEDERATION

SAUDI ARABIA

SINGAPORE

SOUTH AFRICA

SPAIN

SUDAN

SWEDEN

SWITZERLAND

TAIWAN, PROVINCE OF CHINA

THAILAND

TURKEY

UGANDA

UNITED ARAB EMIRATES

UNITED STATES OF AMERICA

UZBEKISTAN

VIET NAM

ZAMBIA

ZIMBABWE