U.S. Delays Disclosures by Extractive Industries

21 April 2011

A U.S. regulatory agency has announced a 4-8 month delay in its development of rules for corporate disclosures relating to “conflict minerals.”

Creation of the rules was mandated by Congress, and the Securities and Exchange Commission was told to issue a rule in April, but now is looking at an August to December time frame.

The agency is writing disclosure requirements on securities issuers that use so-called conflict minerals–including cassiterite, columbite-tantalite, gold, wolframite or their derivatives–from the Democratic Republic of Congo and neighboring countries. Enhanced disclosure requirements also were imposed on mining and extraction companies that make certain payments to governments.  As many as 6,000 companies could be affected.

The proposal was issued in December and many comments have been received. Some critics charge that such a rule would inhibit freedom of speech and others consider the rules too lax. 

Several supporters of the reform in Congress objected to the delay, fearful that it could inhibit parallel action in the European Union.

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Filed under: IFTI Watch

ABOUT IFTI WATCH

In this column, Washington, D.C.-based journalist Toby J. McIntosh reports on the latest developments in information disclosure in International Financial and Trade Institutions (IFTI).
Contact: freeinfo@gwu.edu or
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