EXHIBIT 1.01
VEECO INSTRUMENTS INC.
CONFLICT MINERALS REPORT
FOR YEAR ENDED DECEMBER 31, 2019
This Conflict Minerals Report (this “Report”) of Veeco Instruments Inc., including its subsidiaries (collectively, “Veeco” or “we” or “our”) has been prepared pursuant to Rule 13p-1 and Form SD promulgated under the Securities Exchange Act of 1934 for the reporting period January 1, 2019 through December 31, 2019 (the “Reporting Period”).
Rule 13p-1, through Form SD, requires the disclosure of certain information if a company manufactures or contracts to manufacture products for which certain “Conflict Minerals” (as defined below) are necessary to the functionality or production of such products. Form SD defines “Conflict Minerals” as: (i) columbite-tantalite (or coltan), cassiterite, gold and wolframite, or their derivatives, which are currently limited to metallic forms of tantalum, tin and tungsten; or (ii) any other mineral or its derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country (collectively, the “Covered Countries”). Veeco’s operations, including the operations of its consolidated subsidiaries, may at times manufacture, or contract to manufacture, products for which Conflict Minerals are necessary to the functionality or production of those products (collectively, its “products” and, individually, a “product”). As required by Form SD, Veeco has conducted a good faith reasonable country of origin inquiry regarding the Conflict Minerals included in its products during the Reporting Period, which are referred to in this Report as the “Covered Minerals,” to determine whether any of such Covered Minerals originated in the Covered Countries and/or whether any of such Covered Minerals may be from recycled or scrap sources. Where applicable, Veeco has conducted additional due diligence regarding the sources of the Covered Minerals. The results of Veeco’s reasonable country of origin inquiry regarding the Covered Minerals, as well as its additional due diligence regarding the sources of the Covered Minerals, are contained in this Report.
| I. | Reasonable Country of Origin Inquiry (“RCOI”) |
Prior to initiating our RCOI, we retained a regulatory compliance information management company to assist in structuring the process and administering data collection. Our inquiry began with a review of all of our suppliers. We focused our RCOI on the relevant suppliers that, due to the nature of their business, utilize Covered Minerals. We provided these suppliers with a questionnaire based on the Electronic Industry Citizenship Coalition-Global e-Sustainability Initiative Conflict Minerals Common Reporting Template (the “EICC-GeSI Template”). The EICC-GeSI Template is regarded as the most commonly accepted reporting tool for conflict minerals content and sourcing information worldwide and was developed by several of the world’s leading consumer electronics companies. The questionnaire asked the suppliers, among other things, to disclose the origin of any Covered Minerals used in their manufacturing processes and to identify the Covered Minerals processing facilities within their supply chain. We also asked them, if accurate, to represent that their Covered Minerals did not originate from a Covered Country. We reviewed questionnaires received for completeness and consistency of answers. Many of our suppliers’ responses were company level declarations and therefore it is possible that the information they provided includes smelters/refiners whose Covered Minerals are not utilized in our products. Certain surveyed suppliers reported that the Covered Minerals identified in their supply chain originated from recycled or scrap sources and thus did not require further due diligence.
Our RCOI process was reasonably designed and performed in good faith, but there are inherent limitations in the information provided to us by third parties, including the possibility of information being inaccurate, incomplete or falsified despite our efforts to validate and confirm the information.
| II. | Design of Due Diligence Framework |
Our due diligence approach was designed to generally align with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Third Edition (“OECD Guidance”). The OECD Guidance is an internationally-recognized due diligence framework consisting of a multi-step, risk-based process, certain aspects of which differ depending in part on the position of a company in the supply chain. Veeco is a “downstream” company, which refers to supply chain participants from the smelter to the retailer, in contrast to those “upstream,” that is, from the mine to the smelter. Key elements of Veeco’s due diligence approach are described below.
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| III. | Due Diligence Measures Undertaken |
Veeco’s due diligence measures performed include, but are not limited to, the following:
| · | Reporting to senior management on suppliers’ responses to our conflict minerals information requests, including updates on monitoring and tracking corrective action and risk mitigation efforts (where applicable); |
| · | Communicating our policy on Conflict Minerals to suppliers and our commitments and requirements expected of our suppliers, supported by email and phone dialogues. A copy of our policy is publicly available at https://www.veeco.com/resources/veeco-conflict-minerals-policy; |
| · | Using a third party service, comparing smelters and refiners identified by suppliers to (i) the Conflict Minerals Reporting Template (the “Template”) developed by the Responsible Minerals Initiative (formerly the Conflict-Free Sourcing Initiative, or “CFSI”) which lists validated conflict free and verified facilities and (ii) the US Department of Commerce list of all known conflict mineral processing facilities worldwide; |
| · | Conducting our own supplemental research on smelters and refiners identified by our suppliers; and |
| · | Developing a risk mitigation plan that allows for continued trade with a supplier during the supplier’s risk mitigation efforts. |
| IV. | Product Description |
The products subject to this Report are Veeco process equipment and services (including spare parts) primarily sold to make electronic devices including light emitting diodes, power electronics, wireless devices, hard disk drives and semiconductors and include Metal Organic Chemical Vapor Deposition equipment, Gas and Vapor Delivery Control equipment, Molecular Beam Epitaxy equipment, Precision Surface Processing equipment, Ion Beam Deposition equipment, Ion Beam Etch equipment, Precision Lapping and Slicing and Dicing equipment, Photolithography equipment, Laser Thermal Processing equipment, Atomic Layer Deposition equipment, and Inspection equipment.
| V. | Product Determination |
Based on the information obtained pursuant to the due diligence process (as described above), Veeco does not have sufficient information at this time to determine whether all of our products are conflict free. However, the suppliers who responded to our questionnaire gave no indication that the Covered Minerals they source directly or indirectly financed or benefitted armed groups in the Covered Countries. Due to the manner in which our suppliers disclosed country of origin information, we do not believe that all of the countries of origin named by our suppliers are actually in our supply chain.
| VI. | Smelter / Refiner and Country of Origin |
Based solely on information that was provided by our suppliers (as described above), some of which was on an entity level basis without specification as to the specific Covered Minerals Veeco purchased, and without independent verification, Veeco identified the following smelters/refiners used by Veeco suppliers that have (i) achieved Conflict Free designation by the CFSI (the “Conflict Free Designated Smelters and Refiners”) or (ii) an audit program recognized by CFSI or are actively in the process of obtaining the Conflict Free designation, or for which we independently obtained country of origin information (the “In Process Smelters and Refiners”):
Conflict Free Designated Smelters and Refiners
| 8853 S.p.A. | Gold |
| Advanced Chemical Company | Gold |
| Aida Chemical Industries Co., Ltd. | Gold |
| Al Etihad Gold Refinery DMCC | Gold |
| Allgemeine Gold-und Silberscheideanstalt A.G. | Gold |
| Almalyk Mining and Metallurgical Complex (AMMC) | Gold |
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| AngloGold Ashanti Corrego do Sitio Mineracao | Gold |
| Argor-Heraeus S.A. | Gold |
| Asahi Pretec Corp. | Gold |
| Asahi Refining Canada Ltd. | Gold |
| Asahi Refining USA Inc. | Gold |
| Asaka Riken Co., Ltd. | Gold |
| AU Traders and Refiners | Gold |
| Aurubis AG | Gold |
| Bangalore Refinery | Gold |
| Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | Gold |
| Boliden AB | Gold |
| C. Hafner GmbH + Co. KG | Gold |
| CCR Refinery - Glencore Canada Corporation | Gold |
| Cendres + Metaux S.A. | Gold |
| Chimet S.p.A. | Gold |
| Chugai Mining | Gold |
| DODUCO Contacts and Refining GmbH | Gold |
| Dowa | Gold |
| DS PRETECH Co., Ltd. | Gold |
| DSC (Do Sung Corporation) | Gold |
| Eco-System Recycling Co., Ltd. East Plant | Gold |
| Eco-System Recycling Co., Ltd. North Plant | Gold |
| Eco-System Recycling Co., Ltd. West Plant | Gold |
| Emirates Gold DMCC | Gold |
| Geib Refining Corporation | Gold |
| Gold Refinery of Zijin Mining Group Co., Ltd. | Gold |
| Heimerle + Meule GmbH | Gold |
| Heraeus Metals Hong Kong Ltd. | Gold |
| Heraeus Precious Metals GmbH & Co. KG | Gold |
| Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. | Gold |
| Ishifuku Metal Industry Co., Ltd. | Gold |
| Istanbul Gold Refinery | Gold |
| Italpreziosi | Gold |
| Japan Mint | Gold |
| Jiangxi Copper Co., Ltd. | Gold |
| JSC Uralelectromed | Gold |
| JX Nippon Mining & Metals Co., Ltd. | Gold |
| Kazzinc | Gold |
| Kennecott Utah Copper LLC | Gold |
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| KGHM Polska Miedz Spolka Akcyjna | Gold |
| Kojima Chemicals Co., Ltd. | Gold |
| Korea Zinc Co., Ltd. | Gold |
| Kyrgyzaltyn JSC | Gold |
| L'Orfebre S.A. | Gold |
| LS-NIKKO Copper Inc. | Gold |
| LT Metal Ltd. | Gold |
| Marsam Metals | Gold |
| Materion | Gold |
| Matsuda Sangyo Co., Ltd. | Gold |
| Metalor Technologies (Hong Kong) Ltd. | Gold |
| Metalor Technologies (Singapore) Pte., Ltd. | Gold |
| Metalor Technologies (Suzhou) Ltd. | Gold |
| Metalor Technologies S.A. | Gold |
| Metalor USA Refining Corporation | Gold |
| Metalurgica Met-Mex Penoles S.A. De C.V. | Gold |
| Mitsubishi Materials Corporation | Gold |
| Mitsui Mining and Smelting Co., Ltd. | Gold |
| MMTC-PAMP India Pvt., Ltd. | Gold |
| Moscow Special Alloys Processing Plant | Gold |
| Nadir Metal Rafineri San. Ve Tic. A.S. | Gold |
| Nihon Material Co., Ltd. | Gold |
| Ogussa Osterreichische Gold- und Silber-Scheideanstalt GmbH | Gold |
| Ohura Precious Metal Industry Co., Ltd. | Gold |
| OJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet) | Gold |
| OJSC Novosibirsk Refinery | Gold |
| PAMP S.A. | Gold |
| Planta Recuperadora de Metales SpA | Gold |
| Prioksky Plant of Non-Ferrous Metals | Gold |
| PT Aneka Tambang (Persero) Tbk | Gold |
| PX Precinox S.A. | Gold |
| Rand Refinery (Pty) Ltd. | Gold |
| REMONDIS PMR B.V. | Gold |
| Royal Canadian Mint | Gold |
| SAAMP | Gold |
| Safimet S.p.A | Gold |
| Samduck Precious Metals | Gold |
| SAXONIA Edelmetalle GmbH | Gold |
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| SEMPSA Joyeria Plateria S.A. | Gold |
| Shandong Zhaojin Gold & Silver Refinery Co., Ltd. | Gold |
| Sichuan Tianze Precious Metals Co., Ltd. | Gold |
| Singway Technology Co., Ltd. | Gold |
| SOE Shyolkovsky Factory of Secondary Precious Metals | Gold |
| Solar Applied Materials Technology Corp. | Gold |
| Sumitomo Metal Mining Co., Ltd. | Gold |
| SungEel HiMetal Co., Ltd. | Gold |
| T.C.A S.p.A | Gold |
| Tanaka Kikinzoku Kogyo K.K. | Gold |
| The Refinery of Shandong Gold Mining Co., Ltd. | Gold |
| Tokuriki Honten Co., Ltd. | Gold |
| TOO Tau-Ken-Altyn | Gold |
| Torecom | Gold |
| Umicore Brasil Ltda. | Gold |
| Umicore Precious Metals Thailand | Gold |
| Umicore S.A. Business Unit Precious Metals Refining | Gold |
| United Precious Metal Refining, Inc. | Gold |
| Valcambi S.A. | Gold |
| Western Australian Mint (T/a The Perth Mint) | Gold |
| WIELAND Edelmetalle GmbH | Gold |
| Yamakin Co., Ltd. | Gold |
| Yokohama Metal Co., Ltd. | Gold |
| Zhongyuan Gold Smelter of Zhongjin Gold Corporation | Gold |
| Asaka Riken Co., Ltd. | Tantalum |
| Changsha South Tantalum Niobium Co., Ltd. | Tantalum |
| CP Metals Inc. | Tantalum |
| D Block Metals, LLC | Tantalum |
| Exotech Inc. | Tantalum |
| F&X Electro-Materials Ltd. | Tantalum |
| FIR Metals & Resource Ltd. | Tantalum |
| Global Advanced Metals Aizu | Tantalum |
| Global Advanced Metals Boyertown | Tantalum |
| Guangdong Zhiyuan New Material Co., Ltd. | Tantalum |
| H.C. Starck Co., Ltd. | Tantalum |
| H.C. Starck Hermsdorf GmbH | Tantalum |
| H.C. Starck Inc. | Tantalum |
| H.C. Starck Ltd. | Tantalum |
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| H.C. Starck Smelting GmbH & Co. KG | Tantalum |
| H.C. Starck Tantalum and Niobium GmbH | Tantalum |
| Hengyang King Xing Lifeng New Materials Co., Ltd. | Tantalum |
| Jiangxi Dinghai Tantalum & Niobium Co., Ltd. | Tantalum |
| Jiangxi Tuohong New Raw Material | Tantalum |
| JiuJiang JinXin Nonferrous Metals Co., Ltd. | Tantalum |
| Jiujiang Tanbre Co., Ltd. | Tantalum |
| Jiujiang Zhongao Tantalum & Niobium Co., Ltd. | Tantalum |
| KEMET Blue Metals | Tantalum |
| LSM Brasil S.A. | Tantalum |
| Metallurgical Products India Pvt., Ltd. | Tantalum |
| Mineracao Taboca S.A. | Tantalum |
| Mitsui Mining and Smelting Co., Ltd. | Tantalum |
| Ningxia Orient Tantalum Industry Co., Ltd. | Tantalum |
| NPM Silmet AS | Tantalum |
| PRG Dooel | Tantalum |
| QuantumClean | Tantalum |
| Resind Industria e Comercio Ltda. | Tantalum |
| Solikamsk Magnesium Works OAO | Tantalum |
| Taki Chemical Co., Ltd. | Tantalum |
| Telex Metals | Tantalum |
| Ulba Metallurgical Plant JSC | Tantalum |
| XinXing HaoRong Electronic Material Co., Ltd. | Tantalum |
| Yanling Jincheng Tantalum & Niobium Co., Ltd. | Tantalum |
| Alpha | Tin |
| Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. | Tin |
| Chifeng Dajingzi Tin Industry Co., Ltd. | Tin |
| China Tin Group Co., Ltd. | Tin |
| Dowa | Tin |
| EM Vinto | Tin |
| Fenix Metals | Tin |
| Gejiu Kai Meng Industry and Trade LLC | Tin |
| Gejiu Non-Ferrous Metal Processing Co., Ltd. | Tin |
| Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. | Tin |
| Gejiu Zili Mining And Metallurgy Co., Ltd. | Tin |
| Guangdong Hanhe Non-Ferrous Metal Co., Ltd. | Tin |
| Guanyang Guida Nonferrous Metal Smelting Plant | Tin |
| HuiChang Hill Tin Industry Co., Ltd. | Tin |
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| Huichang Jinshunda Tin Co., Ltd. | Tin |
| Jiangxi New Nanshan Technology Ltd. | Tin |
| Luna Smelter, Ltd. | Tin |
| Ma'anshan Weitai Tin Co., Ltd. | Tin |
| Magnu's Minerais Metais e Ligas Ltda. | Tin |
| Malaysia Smelting Corporation (MSC) | Tin |
| Melt Metais e Ligas S.A. | Tin |
| Metallic Resources, Inc. | Tin |
| Metallo Belgium N.V. | Tin |
| Metallo Spain S.L.U. | Tin |
| Mineracao Taboca S.A. | Tin |
| Minsur | Tin |
| Mitsubishi Materials Corporation | Tin |
| O.M. Manufacturing (Thailand) Co., Ltd. | Tin |
| O.M. Manufacturing Philippines, Inc. | Tin |
| Operaciones Metalurgicas S.A. | Tin |
| PT Artha Cipta Langgeng | Tin |
| PT ATD Makmur Mandiri Jaya | Tin |
| PT Menara Cipta Mulia | Tin |
| PT Mitra Stania Prima | Tin |
| PT Refined Bangka Tin | Tin |
| PT Timah Tbk Kundur | Tin |
| PT Timah Tbk Mentok | Tin |
| Resind Industria e Comercio Ltda. | Tin |
| Rui Da Hung | Tin |
| Soft Metais Ltda. | Tin |
| Thai Nguyen Mining and Metallurgy Co., Ltd. | Tin |
| Thaisarco | Tin |
| Tin Technology & Refining | Tin |
| White Solder Metalurgia e Mineracao Ltda. | Tin |
| Yunnan Chengfeng Non-ferrous Metals Co., Ltd. | Tin |
| Yunnan Tin Company Limited | Tin |
| Yunnan Yunfan Non-ferrous Metals Co., Ltd. | Tin |
| A.L.M.T. Corp. | Tungsten |
| ACL Metais Eireli | Tungsten |
| Asia Tungsten Products Vietnam Ltd. | Tungsten |
| Chenzhou Diamond Tungsten Products Co., Ltd. | Tungsten |
| Chongyi Zhangyuan Tungsten Co., Ltd. | Tungsten |
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| Fujian Ganmin RareMetal Co., Ltd. | Tungsten |
| Fujian Jinxin Tungsten Co., Ltd. | Tungsten |
| Ganzhou Haichuang Tungsten Co., Ltd. | Tungsten |
| Ganzhou Huaxing Tungsten Products Co., Ltd. | Tungsten |
| Ganzhou Jiangwu Ferrotungsten Co., Ltd. | Tungsten |
| Ganzhou Seadragon W & Mo Co., Ltd. | Tungsten |
| Global Tungsten & Powders Corp. | Tungsten |
| Guangdong Xianglu Tungsten Co., Ltd. | Tungsten |
| H.C. Starck Smelting GmbH & Co. KG | Tungsten |
| H.C. Starck Tungsten GmbH | Tungsten |
| Hunan Chenzhou Mining Co., Ltd. | Tungsten |
| Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji | Tungsten |
| Hunan Chunchang Nonferrous Metals Co., Ltd. | Tungsten |
| Hunan Litian Tungsten Industry Co., Ltd. | Tungsten |
| Hydrometallurg, JSC | Tungsten |
| Japan New Metals Co., Ltd. | Tungsten |
| Jiangwu H.C. Starck Tungsten Products Co., Ltd. | Tungsten |
| Jiangxi Gan Bei Tungsten Co., Ltd. | Tungsten |
| Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. | Tungsten |
| Jiangxi Xinsheng Tungsten Industry Co., Ltd. | Tungsten |
| Jiangxi Yaosheng Tungsten Co., Ltd. | Tungsten |
| Kennametal Fallon | Tungsten |
| Kennametal Huntsville | Tungsten |
| KGETS Co., Ltd. | Tungsten |
| Lianyou Metals Co., Ltd. | Tungsten |
| Malipo Haiyu Tungsten Co., Ltd. | Tungsten |
| Masan Tungsten Chemical LLC (MTC) | Tungsten |
| Moliren Ltd. | Tungsten |
| Niagara Refining LLC | Tungsten |
| Philippine Chuangxin Industrial Co., Inc. | Tungsten |
| Tejing (Vietnam) Tungsten Co., Ltd. | Tungsten |
| Unecha Refractory metals plant | Tungsten |
| Wolfram Bergbau und Hutten AG | Tungsten |
| Woltech Korea Co., Ltd. | Tungsten |
| Xiamen Tungsten (H.C.) Co., Ltd. | Tungsten |
| Xiamen Tungsten Co., Ltd. | Tungsten |
| Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. | Tungsten |
| Xinhai Rendan Shaoguan Tungsten Co., Ltd. | Tungsten |
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In Process Smelters and Refiners
| SAFINA A.S. | Gold |
| Precious Minerals and Smelting Limited | Tin |
| Albasteel Industria e Comercio de Ligas Para Fundicao Ltd. | Tungsten |
| CP Metals Inc. | Tungsten |
| Jiangxi Xianglu Tungsten Co., Ltd. | Tungsten |
| JSC "Kirovgrad Hard Alloys Plant" | Tungsten |
| NPP Tyazhmetprom LLC | Tungsten |
Based solely on information that was provided by our suppliers (as described above), some of which was on an entity level basis without specification as to the specific Covered Minerals Veeco purchased, and without independent verification, Veeco believes that the countries of origin of the Covered Minerals for the above listed facilities include:
Afghanistan, Albania, Angola, Argentina, Armenia, Australia, Austria, Belarus, Belgium, Bermuda, Bolivia, Brazil, Bulgaria, Burundi, Cambodia, Canada, Central African Republic, Chile, China, Colombia, Czech Republic, Djibouti, Dominican Republic, DRC or an adjoining country (Covered Countries), Ecuador, Egypt, England, Estonia, Ethiopia, Finland, France, Germany, Ghana, Guinea, Guyana, Hungary, India, Indonesia, Ireland, Israel, Italy, Ivory Coast, Japan, Kazakhstan, Kenya, Kyrgyzstan, Laos, Liberia, Lithuania, Luxembourg, Madagascar, Malaysia, Mali, Mauritania, Mexico, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Netherlands, New Zealand, Niger, Nigeria, Papua New Guinea, Peru, Philippines, Poland, Portugal, Republic Of Korea, Russia, Rwanda, Saudi Arabia, Sierra Leone, Singapore, Slovakia, Slovenia, South Africa, Spain, Sudan, Suriname, Sweden, Switzerland, Tanzania, Thailand, Turkey, Uganda, United Arab Emirates, United Kingdom, USA, Uzbekistan, Vietnam, Zambia and Zimbabwe
Certain smelters were identified as high risk due to potential sourcing from the Covered Countries. However, because many of our suppliers provided company-level responses to Veeco’s conflict minerals information requests, it is uncertain as to whether these facilities are in our supply chain. We are continuing to work with our suppliers to determine the status of the facilities relative to Veeco products. Should these smelters be present in our supply chain, Veeco will reemphasize our conflict minerals policy to the relevant suppliers and encourage them to either find alternate sources or request that the smelters be audited.
As Veeco’s engagement with the supply chain for its products evolves, the lists above may change to reflect improvements in the quality of information provided to Veeco.
| VII. | Independent Private Sector Audit |
Not required for calendar year 2019.
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