Leonard Scholl Industries, Inc. Statement on Conflict Minerals

It is the policy of Leonard Scholl Industries, Inc. to avoid conflict minerals that directly or indirectly finance or benefit armed groups in unstable parts of the world.

The most commonly mined conflict minerals (known as 3TGs minerals) are cassiterite (for tin), wolframite (for tungsten), coltan (for tantalum), and gold ore. These are extracted from the Democratic Republic of the Congo (DRC) and adjacent countries and passed through a variety of intermediaries.

Many products that we rely on as a metal parts manufacturer are crafted with raw materials that sometimes contain metals the 3TGs. These minerals are prevalent in many commercial products, from electronic devices to jewelry.

Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires publicly traded companies to look into the origin of these conflict minerals in their supply chains and to report to the Securities and Exchange Commission.

Those not in compliance risk Section 18 liability. Other than legal complications that will arise from non-compliance, those issuers will likely face increasing pressure from non-government organizations, human rights activists, consumers, and other groups to provide proof of conflict-free sourcing.

As part of our commitment to compliance and to promoting ethical and responsible business practices in our relationships, Leonard Scholl Industries, Inc. avoids using raw materials that contain conflict minerals from the countries in question.

We expect our partnerships and suppliers to share this same regard for human rights, and actively seek out conflict-free sources, while urging their sub-suppliers to track 3TG throughout the supply chain and back to its source.

As a part of this commitment to promote the advancement of fundamental human rights, Leonard Scholl Industries, Inc.:

  • Complies with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 by performing due diligence, and urges suppliers to stick to the same standard.
  • Expects suppliers to cooperate with the Act by providing statements of due diligence to affirm that 3TG minerals in their supply-chain are not from the DRC or adjacent countries.
  • Discontinues relationships with suppliers who may be supporting the conflict.
  • Commits to full-disclosure with regard to this policy by handing in conflict mineral reports, or CMRT, to customers as asked.