EX-1.01 2 ex_251874.htm EXHIBIT 1.01 ex_251874.htm

Exhibit 1.01

 

 

Conflict Minerals Report for the year ended December 31, 2020

 

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 e­mail 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.comDeclaration

 

 

 

 

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 2020.

 

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

Western Australian Mint (T/a The Perth Mint)

Aida Chemical Industries Co., Ltd.

Dowa

Al Etihad Gold Refinery DMCC

Alexy Metals

Allgemeine Gold-und Silberscheideanstalt A.G.

Almalyk Mining and Metallurgical Complex (AMMC)

Asahi Pretec Corp.

AngloGold Ashanti Corrego do Sitio Mineracao

Tongling Nonferrous Metals Group Co., Ltd.

Argor-Heraeus S.A.

Asahi Refining Canada Ltd.

Asahi Refining USA Inc.

Asaka Riken Co., Ltd.

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

AU Traders and Refiners

Augmont Enterprises Private Limited

Aurubis AG

Bangalore Refinery

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

Boliden AB

C. Hafner GmbH + Co. KG

C.I Metales Procesados Industriales SAS

Caridad

CCR Refinery - Glencore Canada Corporation

Cendres + Metaux S.A.

 

 

 

CGR Metalloys Pvt Ltd.

Yunnan Copper Industry Co., Ltd.

Chimet S.p.A.

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

Shandong Gold Smelting Co., Ltd.

Chugai Mining

Daye Non-Ferrous Metals Mining Ltd.

Degussa Sonne / Mond Goldhandel GmbH

Dijllah Gold Refinery FZC

DSC (Do Sung Corporation)

DODUCO Contacts and Refining GmbH

TSK Pretech

Eco-System Recycling Co., Ltd. East Plant

Eco-System Recycling Co., Ltd. North Plant

Eco-System Recycling Co., Ltd. West Plant

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

Emerald Jewel Industry India Limited (Unit 1)

Emerald Jewel Industry India Limited (Unit 2)

Emerald Jewel Industry India Limited (Unit 3)

Emerald Jewel Industry India Limited (Unit 4)

Emirates Gold DMCC

Moscow Special Alloys Processing Plant

Fidelity Printers and Refiners Ltd.

JSC Novosibirsk Refinery

Fujairah Gold FZC

Gold Refinery of Zijin Mining Group Co., Ltd.

GCC Gujrat Gold Centre Pvt. Ltd.

Geib Refining Corporation

Gold Coast Refinery

Great Wall Precious Metals Co., Ltd. of CBPM

Guangdong Jinding Gold Limited

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

Hangzhou Fuchunjiang Smelting Co., Ltd.

LT Metal Ltd.

Heimerle + Meule GmbH

Heraeus Germany GmbH Co. KG

Heraeus Metals Hong Kong Ltd.

Hunan Chenzhou Mining Co., Ltd.

Hunan Guiyang yinxing Nonferrous Smelting Co., Ltd.

HwaSeong CJ CO., LTD.

Industrial Refining Company

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

International Precious Metal Refiners

Ishifuku Metal Industry Co., Ltd.

Istanbul Gold Refinery

Italpreziosi

JALAN & Company

Japan Mint

 

 

 

Jiangxi Copper Co., Ltd.

JSC Uralelectromed

JX Nippon Mining & Metals Co., Ltd.

K.A. Rasmussen

Kaloti Precious Metals

Kazakhmys Smelting LLC

Kazzinc

Kennecott Utah Copper LLC

KGHM Polska Miedz Spolka Akcyjna

Kojima Chemicals Co., Ltd.

Korea Zinc Co., Ltd.

Kundan Care Products 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.

MD Overseas

Sumitomo Metal Mining Co., Ltd.

Metal Concentrators SA (Pty) Ltd.

Metalurgica Met-Mex Penoles S.A. De C.V.

Metallix Refining Inc.

Umicore S.A. Business Unit Precious Metals Refining

Metalor Technologies S.A.

Metalor Technologies (Hong Kong) Ltd.

Metalor Technologies (Singapore) Pte., Ltd.

Metalor Technologies (Suzhou) Ltd.

Metalor USA Refining Corporation

Mitsubishi Materials Corporation

Mitsui Mining and Smelting Co., Ltd.

MMTC-PAMP India Pvt., Ltd.

Modeltech Sdn Bhd

Morris and Watson

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

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.

Sancus ZFS (L’Orfebre, SA)

SAXONIA Edelmetalle GmbH

Sellem Industries Ltd.

SEMPSA Joyeria Plateria S.A.

Shandong Humon Smelting Co., Ltd.

Shandong Tiancheng Biological Gold Industrial Co., Ltd.

Shandong Zhaojin Gold & Silver Refinery Co., Ltd.

Shenzhen Zhonghenglong Real Industry Co., Ltd.

Shirpur Gold Refinery Ltd.

Tanaka Kikinzoku Kogyo K.K.

SOE Shyolkovsky Factory of Secondary Precious Metals

Sichuan Tianze Precious Metals Co., Ltd.

Singway Technology Co., Ltd.

Solar Applied Materials Technology Corp.

Sovereign Metals

State Research Institute Center for Physical Sciences and Technology

Sudan Gold Refinery

SungEel HiMetal Co., Ltd.

Super Dragon Technology Co., Ltd.

T.C.A S.p.A

Tokuriki Honten Co., Ltd.

TOO Tau-Ken-Altyn

Torecom

Umicore Precious Metals Thailand

United Precious Metal Refining, Inc.

Valcambi S.A.

WIELAND Edelmetalle GmbH

Yamakin Co., Ltd.

Yokohama Metal Co., Ltd.

 

 

 

Tantalum Smelters/Refiners

 

AMG Brasil

Asaka Riken Co., Ltd.

Changsha South Tantalum Niobium Co., Ltd.

D Block Metals, LLC

Exotech Inc.

F&X Electro-Materials Ltd.

FIR Metals & Resource Ltd.

Global Advanced Metals Aizu

Global Advanced Metals Boyertown

XIMEI RESOURCES (GUANGDONG) LIMITED

TANIOBIS Co., Ltd.

H.C. Starck Hermsdorf GmbH

H.C. Starck Inc.

TANIOBIS Japan Co., Ltd.

TANIOBIS Smelting GmbH & Co. KG

TANIOBIS GmbH

Hengyang King Xing Lifeng New Materials Co., Ltd.

Jiangxi Dinghai Tantalum & Niobium Co., Ltd.

Jiangxi Tuohong New Raw Material

JiuJiang JinXin Nonferrous Metals Co., Ltd.

Jiujiang Tanbre Co., Ltd.

Jiujiang Zhongao Tantalum & Niobium Co., Ltd.

KEMET de Mexico

Meta Materials

Metallurgical Products India Pvt., Ltd.

Mineracao Taboca S.A.

Mitsui Mining and Smelting Co., Ltd.

NPM Silmet AS

Ningxia Orient Tantalum Industry Co., Ltd.

QuantumClean

Resind Industria e Comercio Ltda.

Yanling Jincheng Tantalum & Niobium Co., Ltd.

Solikamsk Magnesium Works OAO

Taki Chemical Co., Ltd.

Telex Metals

Ulba Metallurgical Plant JSC

XinXing HaoRong Electronic Material Co., Ltd.

 

 

Tin Smelters/Refiners

 

Alpha

An Vinh Joint Stock Mineral Processing Company

PT Bukit Timah

PT Refined Bangka Tin

Yunnan Chengfeng Non-ferrous Metals Co., Ltd.

Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.

 

 

 

Chifeng Dajingzi Tin Industry Co., Ltd.

China Tin Group Co., Ltd.

Yunnan Tin Company Limited

CRM Fundicao De Metais E Comercio De Equipamentos Eletronicos Do Brasil Ltda

CRM Synergies

CV Ayi Jaya

PT Aries Kencana Sejahtera

PT Rajehan Ariq

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

Minsur

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 Zili Mining And Metallurgy Co., Ltd.

Guangdong Hanhe Non-Ferrous Metal Co., Ltd.

HuiChang Hill Tin Industry Co., Ltd.

PT Timah Tbk Mentok

Jiangxi New Nanshan Technology Ltd.

PT Timah Tbk Kundur

Luna Smelter, Ltd.

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.

VQB Mineral and Trading Group JSC

Mitsubishi Materials Corporation

Modeltech Sdn Bhd

Nghe Tinh Non-Ferrous Metals Joint Stock Company

Novosibirsk Processing Plant Ltd.

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

O.M. Manufacturing Philippines, Inc.

Operaciones Metalurgicas S.A.

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 Serumpun

PT Cipta Persada Mulia

PT Lautan Harmonis Sejahtera

PT Menara Cipta Mulia

PT Mitra Stania Prima

PT Mitra Sukses Globalindo

PT Prima Timah Utama

PT Rajawali Rimba Perkasa

PT Stanindo Inti Perkasa

PT Sukses Inti Makmur

PT Timah Nusantara

PT Tinindo Inter Nusa

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 Mineracao Ltda.

Yunnan Yunfan Non-ferrous Metals Co., Ltd.

 

 

Tungsten Smelters/Refiners

 

A.L.M.T. Corp.

ACL Metais Eireli

Albasteel Industria e Comercio de Ligas Para Fundicao Ltd.

Artek LLC

Asia Tungsten Products Vietnam Ltd.

Kennametal Huntsville

Guangdong Xianglu Tungsten Co., Ltd.

Chenzhou Diamond Tungsten Products Co., Ltd.

China Molybdenum Tungsten Co., Ltd.

Ganzhou Huaxing Tungsten Products Co., Ltd.

Chongyi Zhangyuan Tungsten Co., Ltd.

CNMC (Guangxi) PGMA Co., Ltd.

Cronimet Brasil Ltda

Fujian Ganmin RareMetal Co., Ltd.

Ganzhou Haichuang Tungsten Co., Ltd.

Ganzhou Jiangwu Ferrotungsten Co., Ltd.

Ganzhou Seadragon W & Mo Co., Ltd.

GEM Co., Ltd.

Global Tungsten & Powders Corp.

TANIOBIS Smelting GmbH & Co. KG

H.C. Starck Tungsten GmbH

 

 

 

Hunan Chunchang Nonferrous Metals Co., Ltd.

Hunan Chenzhou Mining Co., Ltd.

Hydrometallurg, JSC

Japan New Metals Co., Ltd.

Jiangwu H.C. Starck Tungsten Products 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 High-Tech Materials

Moliren Ltd.

Niagara Refining LLC

NPP Tyazhmetprom LLC

Philippine Chuangxin Industrial Co., Inc.

Unecha Refractory metals plant

Wolfram Bergbau und Hutten AG

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

Xiamen Tungsten Co., Ltd.

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

 

 

Table 2: Aggregated Countries of Origin

 

ITALY

UNITED STATES OF AMERICA

UGANDA

AUSTRALIA

JAPAN

UNITED ARAB EMIRATES

GERMANY

UZBEKISTAN

BRAZIL

CHINA

SWITZERLAND

CANADA

TURKEY

SOUTH AFRICA

INDIA

PHILIPPINES

SWEDEN

COLOMBIA

MEXICO

KOREA, REPUBLIC OF

 

 

 

RUSSIAN FEDERATION

ZIMBABWE

GHANA

KAZAKHSTAN

POLAND

KYRGYZSTAN

SAUDI ARABIA

ANDORRA

BELGIUM

SINGAPORE

MALAYSIA

NEW ZEALAND

AUSTRIA

CHILE

INDONESIA

NETHERLANDS

FRANCE

CZECHIA

SPAIN

TAIWAN, PROVINCE OF CHINA

LITHUANIA

SUDAN

THAILAND

ESTONIA

NORTH MACEDONIA

VIET NAM

BOLIVIA (PLURINATIONAL STATE OF)

PERU

RWANDA

MYANMAR

Norway

Mauritania