Exhibit 1.01
SEAGATE TECHNOLOGY PLC
CONFLICT MINERALS REPORT
FOR THE REPORTING PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2016
INTRODUCTION
This Conflict Minerals Report (“Report”) for Seagate Technology Public Limited Company (the “Company,” “Seagate,” “we,” “us,” or “our”) is provided in accordance withRule 13p-1 under the Securities Exchange Act of 1934 (the “Rule”) for the reporting period from January 1 to December 31, 2016 (the “Reporting Period”). This Report is being filed as Exhibit 1.01 to our Specialized Disclosure Report on Form SD and is also posted on our website at http://www.seagate.com/about/global-citizenship/. Information contained on, or accessible through, our website is not a part of this Report.
The Rule imposes certain reporting obligations on SEC registrants whose manufactured products contain tin, tantalum, tungsten, or gold (“3TG,” also defined by the rule as “conflict minerals”). The Democratic Republic of the Congo (“DRC”) and its adjoining countries have extensive reserves of 3TG, some of which are illegally sourced and traded by armed groups who are responsible for significant human rights violations. “Armed groups” mean an armed group that is identified as a perpetrator of serious human rights abuses in annual Country Reports on Human Rights Practices under sections 116(d) and 502B(b) of the Foreign Assistance Act of 1961 relating to the DRC or an adjoining country. The purpose of the Rule is to encourage companies whose products contain conflict minerals to endeavor to source from suppliers who do not directly or indirectly support such armed groups through their purchasing decisions. The Democratic Republic of the Congo and its adjoining countries, Angola, Burundi, Central African Republic, the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia, are sometimes referred to in this Report as the “Covered Countries.”
We are a leading provider of electronic data storage technology and solutions. Our principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, we produce a broad range of electronic data storage products including solid state drives (“SSD”) in its Enterprise market portfolio and solid state hybrid drives (“SSHD”). Our storage technology portfolio also includes storage subsystems and high performance computing solutions.
Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND-based flash memory. In addition to HDDs and SSDs, SSHDs combine the features of SSDs and HDDs in the same unit, containing a large hard disk drive and an SSD cache to improve performance of frequently accessed data.
We are subject to the Conflict Minerals Rule because certain products that we manufacture or contract to be manufactured contain Conflict Minerals that are necessary to the functionality or production of the products (“necessary conflict minerals”). Accordingly, we are required under the Rule to conduct a, reasonable country of origin inquiry (“RCOI”) designed to determine in good-faith whether any of the necessary conflict minerals in our products either originated in the Covered Countries or came from recycled or scrap materials. We do not directly source Conflict Minerals from mines, smelters or refiners.
Our focus on the responsible sourcing began well in advance of the adoption of the Rule. Seagate has been a member of the Electronic Industry Citizenship Coalition (“EICC”) since 2004 and our employees have worked closely with this organization to improve our global supply chain. The EICC is an industry collaboration with a focus on improving working conditions and environmental stewardship throughout the electronics supply chain. Through the EICC’s Conflict-Free Sourcing Initiative (the “CFSI”), we have worked and continue to work with other companies focusing on responsible Conflict Minerals sourcing.
We rely on our direct suppliers to provide information with respect to the origin of the 3TG contained in components and materials supplied to us. In all cases, the information relating to the 3TG contained in our products comes from lower tier suppliers and from information provided to us through our membership with EICC and the CFSI.
Contracts with our suppliers can be multi-year contracts. As we enter into new contracts, or as our contracts renew, we endeavor to add a conflict minerals clause requiring suppliers to provide 3TG sourcing and smelter information. We believe that it will still take a number of years to ensure that substantially all of our supplier contracts contain appropriate flow-down clauses. As described below, we are encouraging our suppliers to provide the 3TG sourcing information even before contracts are renewed.
As of this writing we are unable to determine the origin of the 3TG in our products that are necessary to the functionality or production of the products that we manufactured or contracted to manufacture during the Reporting Period. For that reason, we are required under the Rule to submit to the SEC a Conflict Minerals Report as an Exhibit to Form SD.
We believe the products that we manufactured or contracted to manufacture that are subject to the reporting obligations of the Rule contain 3TG of indeterminate origin because we have been unable to determine the origin of the 3TG they contain or to determine whether such minerals financed or benefitted armed groups in the Covered Countries.
PRODUCT DESCRIPTION
Our products are designed for mission critical and nearline applications in enterprise servers and storage systems; client compute applications, where our products are designed primarily for desktop and mobile computing; andclient non-compute applications, where our products are designed for a wide variety of end user devices such as portable external storage systems, personal data backup systems, surveillance systems, digital video recorders and gaming consoles.Seagate’s hardware products in the aggregate contain all four of the conflict minerals, which are necessary to the functionality or production of the products.
Seagate is a partially vertically integrated company: we make our own recording heads and media, which are then assembled into finished functional memory devices. However, Seagate does not directly procure any metals from smelters or refiners; we only purchase parts, components, materials, and subassemblies containing these metals. As such, Seagate occupies the supply chain position of downstream company as defined by the Organization for EconomicCo-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Second Edition (the “OECD Guidance”).
DUE DILIGENCE PROGRAM DESIGN
The OECD Guidance established a five-step framework for due diligence as a basis for responsible supply chain management of minerals from conflict-affected and high risk areas. We outline select elements of our due diligence program design below. However these are not all the elements of our due diligence program. To determine the source and chain of custody of 3TG necessary to the production of our products, we conducted due diligence on our supply chain, using measures developed to ascertain whether the minerals originated from the Covered Countries and, if so, whether the purchase of such minerals directly or indirectly benefitednon-governmental armed groups.
Due Diligence Design Framework
Our conflict minerals due diligence measures have been designed to conform to the OECD Guidance for 3TG for “downstream companies” (as defined in the OECD Guidance) in all material respects. Our due diligence measures addressed the following steps:
| 1. | Establishing strong Company management systems for 3TG supply chain due diligence; |
| a. | We have a team of senior staff who are members of working groups responsible for the management and continued implementation of our conflict minerals compliance strategy. This involvement includes corporate compliance, financial reporting, internal audit, investor relations and legal. |
| b. | Employees receive training on the EICC Code of Conduct Requirements. |
| c. | Select individuals receive training on our compliance program and due diligence procedures for addressing certain aspects of our due diligence program including review and validation of suppliers conflict minerals reporting template responses. |
| d. | We utilize external counsel and consultants to assist us with our compliance efforts. |
| e. | We have adopted a conflict minerals policy. The policy is communicated on our corporate website and communicated to suppliers and employees. |
| f. | We utilize the Conflict Minerals Reporting Template (the “CMRT”) developed by the CFSI to identify smelters and refiners in our supply chain. The CMRT requires that suppliers provide information concerning the usage and sourcing of conflict minerals in their materials, components, parts and products. |
| g. | Seagate is an active member of the EICC and CFSI. |
| h. | Certain purchase order terms and conditions specifically reference and require EICC Code of Conduct and conflict minerals compliance. |
| i. | A third party was commissioned to perform a website,e-mail and direct contact search of over 200 smelters declared by Seagate’s supply chain. This data was shared in consolidated form with the EICC CFSI smelter list. |
| 2. | Identifying and assessing 3TG risks in our supply chain; |
| a. | We request suppliers provide us with CMRTs on the materials, components, parts and products they sell to us. |
| b. | Supplier CMRTs are reviewed for completeness against our internally written standard operating procedures and controls. CMRTs that appear inaccurate or incomplete are rejected and the supplier is requested to perform additional due diligence to address identified issues. |
| c. | Smelters are critically reviewed for compliance to third party smelter certification guidelines and determined if they meet the compliant and active criteria as developed by the CFSI. |
| 3. | Designing and implementing strategies to respond to 3TG risks identified; |
| a. | We have procedures for monitoring and reporting on risk to designated senior management. |
| b. | Smelters that are determined to not be CFSI certified or actively pursuing third party certification are encouraged by our suppliers and our participation in CFSI to pursue third party certification. |
| 4. | Contributing to independent third party audits of the due diligence practices of 3TG smelters and refiners by participating in industry organizations; and |
| a. | We support independent third party audits through our CFSI membership. |
| b. | We assess information provided the CFSI and other certification bodies to determine if a smelter or refiner is compliant with applicable third-party conflict free certification. |
| 5. | Reporting on our 3TG supply chain due diligence activities. |
| a. | We file a Form SD and a Conflict Minerals Report with the Securities and Exchange Commission and make them publicly available on our website. |
Due Diligence Measures Performed
Our due diligence measures for 2016 included the following activities:
| • | We reviewed our Seagate Corporate Policy on Conflict Minerals (the “Policy”), posted it to our external website, and communicated it to Seagate’s direct suppliers. The Policy seeks to eliminate our use of 3TG that contribute to human rights abuses in the DRC and adjoining countries. |
| • | We updated our internal Corporate Standard Operating Procedure for Conflict Minerals Management (the “Standard Operating Procedure”) specifically designed to satisfy the OECD Guidance. |
| • | We developed and implemented a 2016 Seagate Conflict Minerals Management Plan (the “Management Plan”) in accordance with the Standard Operating Procedure. |
| • | We established an internal team to implement the Management Plan. That team has been involved in the following measures designed to support our compliance with the Rule and our Standard Operating Procedure: |
1. Establishing requirements in supplier contracts to define Seagate expectations of suppliers regarding sourcing of 3TG and reporting of information to Seagate.
2. Conducting a review to identify relevant direct (i.e., first tier) suppliers of products containing necessary 3TG (“3TG Direct Suppliers”).
3. Requesting that all 3TG direct suppliers provide information to us regarding their 3TG using the template developed by the EICC and the Globale-Sustainability Initiative, known as the CMRT to ascertain, for each of the 3TG, the smelter or refiner where it was processed, the smelter or refiner’s country of origin, the mine(s) of origin, and the location of the mine(s). Our instructions to 3TG Direct Suppliers requested them to make similar efforts to survey their supply chain using the CMRT and to report the facilities and location of mines of origin for the minerals.
4. Reviewing and attempting to validate the information provided by our 3TG Direct Suppliers by establishing a process that includes an assessment of the completeness and reasonableness of the information provided, then conductingfollow-up communications to address deficiencies.
5. Comparing the facilities identified by relevant 3TG Direct Suppliers via the supply chain survey against the list of facilities that the CFSI has validated as “conflict free.”
6. Supporting the CFSI through membership in the EICC, participation in the CFSI committee and othersub-committees, and requests of our 3TG Direct Suppliers to encourage the mineral processing facilities in their supply chains to participate in the CFSI.
7. Making periodic reports to Seagate senior management.
Reasonable Country of Origin Inquiry
As a member of the EICC participating in the CFSI, we used due diligence that the CFSI conducted on smelters and refiners together with the data our suppliers provided on their CMRTs. The CFSI trains auditors to audit the smelters and refiners. The smelters and refiners that are found to be CFSI compliant are those for which the CFSI auditor has verified that the smelter’s or refiner’s 3TG, if originating in the Covered Countries, came from conflict-free mines and trading.
Based on the RCOI, Seagate does not know or have reason to believe that its necessary conflict minerals originated or may have originated in the Covered Countries, except where CFSI validated smelters or refiners have revealed sources within the Covered Countries that are verified as conflict-free. However, a significant portion of the Seagate supply chain remains undefined with respect to the country of origin of its 3TG, as described below.
Seagate has identified sources in all categories of countries per CFSI definition: L1 (Argentina, Australia, Austria, Belgium, Bolivia, Brazil, Cambodia, Canada, Chile, China, Colombia, Cote D’Ivoire, Czech Republic, Djibouti, Ecuador, Egypt, Estonia, Ethiopia, France, Germany, Guyana, Hungary, India, Indonesia, Ireland, Israel, Japan, Kazakhstan, Laos, Luxembourg, Madagascar, Malaysia, Mongolia, Myanmar, Namibia, Netherlands, Nigeria, Peru, Portugal, Russia, Sierra Leone, Singapore, Slovakia, South Korea, Spain, Suriname, Switzerland, Taiwan, Thailand, United Kingdom, United States of America, Vietnam, and Zimbabwe), L2 (Kenya, Mozambique, and South Africa), L3 (Angola, Burundi, Central African Republic, Republic of Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia), DRC (Democratic Republic of Congo), and R/S (recycled or scrap feedstock). However, all our known DRC and L3 sources have been CFSI validated as conflict-free.
ANALYSIS OF SUPPLIER DATA
The following table depicts the status of our efforts to determine the smelters and refiners in our supply chain as of the end of 2016 for the 3TG used in our hardware products. As noted elsewhere, we separated the smelters and refiners in our supply chain into three categories: (1) CFSI validated conflict- free smelters or refiners; (2) CFSI recognized smelters or refiners that have not yet been validated as conflict-free; and (3) entities not yet CFSI recognized as actual smelters or refiners.
Smelter/Refiner Totals | 2013 | 2014 | 2015 | 2016 | ||||||||||||
2016 CFSI Conflict Free | 65 | 142 | 257 | 265 | ||||||||||||
Validated (Compliant, active, in communication) | 15 | % | 22 | % | 90 | % | 86 | % | ||||||||
CFSI Recognized, not | 97 | 109 | 30 | 42 | ||||||||||||
Conflict Free validated (outreach required) | 23 | % | 17 | % | 10 | % | 14 | % | ||||||||
CFSI Unrecognized (no CFSI CID) | 266 | 395 | — | — | ||||||||||||
| 62 | % | 61 | % | — | % | — | % | |||||||||
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Total | 428 | 646 | 287 | 307 | ||||||||||||
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These totals reflect the sum of all our divisions in the past four years. We made it a priority to eliminate smelters that were not recognized by CFSI or were in the process of becoming validated by CFSI.
For Seagate products, 100% of our 3TG suppliers provided CMRT data to us for 2016.
For Seagate Systems products (formerly Xyratex Ltd and Dot Hill Systems Corp.), due to the extensive nature of the inherited supply chain which is undergoing transition into more mainstream Seagate sources, we limited our investigation of that supply chain for 2015 to the top 99.5% of direct materials spending. 100% of those suppliers have provided us with their CMRT data.
For certain Solid State Drive products from our recently acquired Accelerated Solutions Division from LSI Corporation, where we inherited an extensive supply chain in 2014, we were also able to obtain data on 99.5% of the direct materials spending. 100% of those suppliers have provided us with their CMRT data.
DUE DILIGENCE DETERMINATION
We carried out the diligence process described above in order to ascertain the source and chain of custody of 3TG used in our supply chain. Based on the processes implemented and information gathered therefrom, we were unable to determine the origin of all of the 3TG used in our products, and therefore concluded that for the Reporting Period we were unable to determine whether the necessary 3TG in our products directly or indirectly financed or benefited armed groups in the DRC or any of its adjoining countries. However, we found no evidence that any of our 3TG Direct Suppliers derived 3TG from sources within the DRC or adjoining countries other than from CFSI validated sources.
The list of smelters and refiners in the Seagate supply chain changed in calendar 2016 and continues to change. The list of CFSI validated conflict-free sources has grown in 2016 and continues to grow. Additionally, the list of unrecognized smelter and refiner names given in supplier CMRTs is growing, although we believe that growth was a temporary outcome of acquiring several new product supply chains in 2016. Given the dynamic nature of the smelter/refiner lists appearing on our outbound CMRTs, we provide the following snapshot list of smelters and refiners known to be in our supply chain at some time during calendar 2016:
SMELTER TABLE
Metal | Smelter | Smelter ID | ||
| Tungsten | A.L.M.T. TUNGSTEN Corp. | CID000004 | ||
| Gold | Advanced Chemical Company | CID000015 | ||
| Gold | Aida Chemical Industries Co., Ltd. | CID000019 | ||
| Gold | AllgemeineGold-und Silberscheideanstalt A.G. | CID000035 | ||
| Gold | Almalyk Mining and Metallurgical Complex (AMMC) | CID000041 | ||
| Gold | AngloGold Ashanti Córrego do Sítio Mineração | CID000058 | ||
| Gold | Argor-Heraeus SA | CID000077 | ||
| Gold | Asahi Pretec Corporation | CID000082 | ||
| Gold | Asaka Riken Co., Ltd. | CID000090 | ||
| Gold | Atasay Kuyumculuk Sanayi Ve Ticaret A.S. | CID000103 | ||
| Tungsten | Kennametal Huntsville | CID000105 | ||
| Gold | Aurubis AG | CID000113 | ||
| Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | CID000128 | ||
| Gold | Boliden AB | CID000157 | ||
| Gold | C. Hafner GmbH + Co. KG | CID000176 | ||
| Gold | Caridad | CID000180 | ||
| Gold | CCR Refinery - Glencore Canada Corporation | CID000185 | ||
| Gold | Cendres + Métaux S.A. | CID000189 | ||
| Gold | Yunnan Copper Industry Co., Ltd. | CID000197 | ||
| Tantalum | Changsha South Tantalum Niobium Co., Ltd. | CID000211 | ||
| Tungsten | Guangdong Xianglu Tungsten Co., Ltd. | CID000218 | ||
| Tin | Chenzhou Yunxiang Mining and Metallurgy Co., Ltd. | CID000228 | ||
| Gold | Chimet S.p.A. | CID000233 | ||
| Tin | Jiangxi Ketai Advanced Material Co., Ltd. | CID000244 |
| Tungsten | Chongyi Zhangyuan Tungsten Co Ltd | CID000258 | ||
| Gold | Chugai Mining | CID000264 | ||
| Tin | CNMC (Guangxi) PGMA Co., Ltd. | CID000278 | ||
| Tantalum | Conghua Tantalum and Niobium Smeltry | CID000291 | ||
| Tin | Alpha | CID000292 | ||
| Tin | Cooperativa Metalurgica de Rondônia Ltda. | CID000295 | ||
| Tin | CV Gita Pesona | CID000306 | ||
| Tin | PT Justindo | CID000307 | ||
| Tin | PT Aries Kencana Sejahtera | CID000309 | ||
| Tin | CV Serumpun Sebalai | CID000313 | ||
| Tin | CV United Smelting | CID000315 | ||
| Gold | Daejin Indus Co., Ltd. | CID000328 | ||
| Gold | DayeNon-Ferrous Metals Mining Ltd. | CID000343 | ||
| Tungsten | Dayu Weiliang Tungsten Co., Ltd. | CID000345 | ||
| Gold | DSC (Do Sung Corporation) | CID000359 | ||
| Gold | DODUCO GmbH | CID000362 | ||
| Gold | Dowa | CID000401 | ||
| Tin | Dowa | CID000402 | ||
| Tantalum | Duoluoshan | CID000410 | ||
| Gold | Eco-System Recycling Co., Ltd. | CID000425 | ||
| Tin | EM Vinto | CID000438 | ||
| Tin | Estanho de Rondônia S.A. | CID000448 | ||
| Tantalum | Exotech Inc. | CID000456 | ||
| Tantalum | F&X Electro-Materials Limited. | CID000460 | ||
| Tin | Fenix Metals | CID000468 | ||
| Gold | OJSC Novosibirsk Refinery | CID000493 | ||
| Tungsten | Fujian Jinxin Tungsten Co., Ltd. | CID000499 | ||
| Gold | Gansu Seemine MaterialHi-Tech Co., Ltd. | CID000522 | ||
| Tin | GejiuNon-Ferrous Metal Processing Co., Ltd. | CID000538 | ||
| Tin | Gejiu Zili Mining And Metallurgy Co., Ltd. | CID000555 | ||
| Tungsten | Global Tungsten & Powders Corp. | CID000568 | ||
| Tantalum | Guangdong Zhiyuan New Material Co., Ltd. | CID000616 | ||
| Gold | Guoda Safina High-Tech Environmental Refinery Co., Ltd. | CID000651 | ||
| Gold | Hangzhou Fuchunjiang Smelting Co., Ltd. | CID000671 | ||
| Gold | Heimerle + Meule GmbH | CID000694 | ||
| Gold | Heraeus Ltd. Hong Kong | CID000707 | ||
| Gold | Heraeus Precious Metals GmbH & Co. KG | CID000711 | ||
| Tantalum | Hi-Temp Specialty Metals, Inc. | CID000731 | ||
| Tin | Huichang Jinshunda Tin Co., Ltd. | CID000760 | ||
| Tungsten | Hunan Chenzhou Mining Co., Ltd. | CID000766 | ||
| Gold | Hunan Chenzhou Mining Co., Ltd. | CID000767 | ||
| Tungsten | Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd. | CID000769 | ||
| Gold | Hwasung CJ Co., Ltd. | CID000778 | ||
| Gold | Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd. | CID000801 | ||
| Gold | Ishifuku Metal Industry Co., Ltd. | CID000807 | ||
| Gold | Istanbul Gold Refinery | CID000814 | ||
| Gold | Japan Mint | CID000823 | ||
| Tungsten | Japan New Metals Co., Ltd. | CID000825 | ||
| Gold | Jiangxi Copper Co., Ltd. | CID000855 | ||
| Tungsten | Ganzhou Huaxing Tungsten Products Co., Ltd. | CID000875 |
| Tantalum | JiuJiang JinXin Nonferrous Metals Co., Ltd. | CID000914 | ||
| Tantalum | Jiujiang Tanbre Co., Ltd. | CID000917 | ||
| Gold | Asahi Refining USA Inc. | CID000920 | ||
| Gold | Asahi Refining Canada Ltd. | CID000924 | ||
| Gold | JSC EkaterinburgNon-Ferrous Metal Processing Plant | CID000927 | ||
| Gold | JSC Uralelectromed | CID000929 | ||
| Gold | JX Nippon Mining & Metals Co., Ltd. | CID000937 | ||
| Tin | Gejiu Kai Meng Industry and Trade LLC | CID000942 | ||
| Gold | Kazakhmys Smelting LLC | CID000956 | ||
| Gold | Kazzinc | CID000957 | ||
| Tungsten | Kennametal Fallon | CID000966 | ||
| Gold | Kennecott Utah Copper LLC | CID000969 | ||
| Tantalum | King-Tan Tantalum Industry Ltd. | CID000973 | ||
| Gold | Kojima Chemicals Co., Ltd | CID000981 | ||
| Gold | Kyrgyzaltyn JSC | CID001029 | ||
| Gold | L’azurde Company For Jewelry | CID001032 | ||
| Gold | Lingbao Gold Co., Ltd. | CID001056 | ||
| Gold | Lingbao Jinyuan Tonghui Refinery Co., Ltd. | CID001058 | ||
| Tin | China Tin Group Co., Ltd. | CID001070 | ||
| Tantalum | LSM Brasil S.A. | CID001076 | ||
| Gold | LS-NIKKO Copper Inc. | CID001078 | ||
| Gold | Luoyang Zijin Yinhui Gold Refinery Co., Ltd. | CID001093 | ||
| Tin | Malaysia Smelting Corporation (MSC) | CID001105 | ||
| Gold | Materion | CID001113 | ||
| Gold | Matsuda Sangyo Co., Ltd. | CID001119 | ||
| Tin | Metallic Resources, Inc. | CID001142 | ||
| Gold | Metalor Technologies (Suzhou) Ltd. | CID001147 | ||
| Gold | Metalor Technologies (Hong Kong) Ltd. | CID001149 | ||
| Gold | Metalor Technologies (Singapore) Pte., Ltd. | CID001152 | ||
| Gold | Metalor Technologies S.A. | CID001153 | ||
| Gold | Metalor USA Refining Corporation | CID001157 | ||
| Gold | MetalúrgicaMet-Mex Peñoles S.A. De C.V. | CID001161 | ||
| Tantalum | Metallurgical Products India Pvt., Ltd. | CID001163 | ||
| Tin | Mineração Taboca S.A. | CID001173 | ||
| Tantalum | Mineração Taboca S.A. | CID001175 | ||
| Tin | Minsur | CID001182 | ||
| Gold | Mitsubishi Materials Corporation | CID001188 | ||
| Tin | Mitsubishi Materials Corporation | CID001191 | ||
| Tantalum | Mitsui Mining & Smelting | CID001192 | ||
| Gold | Mitsui Mining and Smelting Co., Ltd. | CID001193 | ||
| Tantalum | Molycorp Silmet A.S. | CID001200 | ||
| Gold | Moscow Special Alloys Processing Plant | CID001204 | ||
| Gold | Nadir Metal Rafineri San. Ve Tic. A.Ş. | CID001220 | ||
| Tin | Nankang Nanshan Tin Manufactory Co., Ltd. | CID001231 | ||
| Gold | Navoi Mining and Metallurgical Combinat | CID001236 | ||
| Gold | Nihon Material Co. LTD | CID001259 | ||
| Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. | CID001277 | ||
| Tin | O.M. Manufacturing (Thailand) Co., Ltd. | CID001314 | ||
| Gold | Elemetal Refining, LLC | CID001322 | ||
| Gold | Ohura Precious Metal Industry Co., Ltd. | CID001325 | ||
| Gold | OJSC “The Gulidov KrasnoyarskNon-Ferrous Metals Plant” (OJSC Krastsvetmet) | CID001326 |
| Tin | Operaciones Metalurgical S.A. | CID001337 | ||
| Gold | PAMP S.A. | CID001352 | ||
| Gold | Penglai Penggang Gold Industry Co., Ltd. | CID001362 | ||
| Gold | Prioksky Plant ofNon-Ferrous Metals | CID001386 | ||
| Gold | PT Aneka Tambang (Persero) Tbk | CID001397 | ||
| Tin | PT Artha Cipta Langgeng | CID001399 | ||
| Tin | PT Babel Inti Perkasa | CID001402 | ||
| Tin | PT Bangka Tin Industry | CID001419 | ||
| Tin | PT Belitung Industri Sejahtera | CID001421 | ||
| Tin | PT Bukit Timah | CID001428 | ||
| Tin | PT DS Jaya Abadi | CID001434 | ||
| Tin | PT Eunindo Usaha Mandiri | CID001438 | ||
| Tin | PT Karimun Mining | CID001448 | ||
| Tin | PT Mitra Stania Prima | CID001453 | ||
| Tin | PT Panca Mega Persada | CID001457 | ||
| Tin | PT Prima Timah Utama | CID001458 | ||
| Tin | PT Refined Bangka Tin | CID001460 | ||
| Tin | PT Sariwiguna Binasentosa | CID001463 | ||
| Tin | PT Stanindo Inti Perkasa | CID001468 | ||
| Tin | PT Sumber Jaya Indah | CID001471 | ||
| Tin | PT Timah (Persero) Tbk Kundur | CID001477 | ||
| Tin | PT Timah | CID001482 | ||
| Tin | PT Tinindo Inter Nusa | CID001490 | ||
| Tin | PT Tommy Utama | CID001493 | ||
| Gold | PX Précinox S.A. | CID001498 | ||
| Tantalum | QuantumClean | CID001508 | ||
| Gold | Rand Refinery (Pty) Ltd. | CID001512 | ||
| Tantalum | RFH Tantalum Smeltry Co., Ltd. | CID001522 | ||
| Gold | Royal Canadian Mint | CID001534 | ||
| Tin | Rui Da Hung | CID001539 | ||
| Gold | Sabin Metal Corp. | CID001546 | ||
| Gold | Samduck Precious Metals | CID001555 | ||
| Gold | SAMWON Metals Corp. | CID001562 | ||
| Gold | Schone Edelmetaal B.V. | CID001573 | ||
| Gold | SEMPSA Joyería Platería S.A. | CID001585 | ||
| Gold | Shandong Tiancheng Biological Gold Industrial Co., Ltd. | CID001619 | ||
| Gold | Shandong Zhaojin Gold & Silver Refinery Co. Ltd | CID001622 | ||
| Gold | Sichuan Tianze Precious Metals Co., Ltd. | CID001736 | ||
| Gold | So Accurate Group, Inc. | CID001754 | ||
| Gold | SOE Shyolkovsky Factory of Secondary Precious Metals | CID001756 | ||
| Tin | Soft Metais Ltda. | CID001758 | ||
| Gold | Solar Applied Materials Technology Corp. | CID001761 | ||
| Tantalum | Solikamsk Magnesium Works OAO | CID001769 | ||
| Gold | Sumitomo Metal Mining Co., Ltd. | CID001798 | ||
| Tantalum | Taki Chemical Co., Ltd. | CID001869 | ||
| Gold | Tanaka Kikinzoku Kogyo K.K. | CID001875 | ||
| Tungsten | Tejing (Vietnam) Tungsten Co., Ltd. | CID001889 | ||
| Tantalum | Telex Metals | CID001891 | ||
| Tin | Thaisarco | CID001898 | ||
| Tin | Gejiu Yunxin Nonferrous Electrolysis Co., Ltd. | CID001908 |
| Gold | Great Wall Precious Metals Co., Ltd. of CBPM | CID001909 | ||
| Gold | The Refinery of Shandong Gold Mining Co., Ltd. | CID001916 | ||
| Gold | Tokuriki Honten Co., Ltd | CID001938 | ||
| Gold | Tongling Nonferrous Metals Group Co., Ltd. | CID001947 | ||
| Gold | Torecom | CID001955 | ||
| Tantalum | Ulba Metallurgical Plant JSC | CID001969 | ||
| Gold | Umicore Brasil Ltda. | CID001977 | ||
| Gold | Umicore S.A. Business Unit Precious Metals Refining | CID001980 | ||
| Gold | United Precious Metal Refining, Inc. | CID001993 | ||
| Gold | Valcambi S.A. | CID002003 | ||
| Tungsten | Vietnam Youngsun Tungsten Industry Co., Ltd. | CID002011 | ||
| Tin | VQB Mineral and Trading Group JSC | CID002015 | ||
| Gold | Western Australian Mint trading as The Perth Mint | CID002030 | ||
| Tin | White Solder Metalurgia e Mineração Ltda. | CID002036 | ||
| Tungsten | Wolfram Bergbau und Hütten AG | CID002044 | ||
| Tungsten | Xiamen Tungsten Co., Ltd | CID002082 | ||
| Tungsten | Xinhai Rendan Shaoguan Tungsten Co., Ltd. | CID002095 | ||
| Gold | Yamamoto Precious Metal Co., Ltd. | CID002100 | ||
| Gold | Yokohama Metal Co., Ltd. | CID002129 | ||
| Tin | Yunnan ChengfengNon-ferrous Metals Co., Ltd. | CID002158 | ||
| Tin | Yunnan Tin Company Limited | CID002180 | ||
| Gold | Zhongyuan Gold Smelter of Zhongjin Gold Corporation | CID002224 | ||
| Tantalum | Zhuzhou Cemented Carbide | CID002232 | ||
| Gold | Zijin Mining Group Co., Ltd. Gold Refinery | CID002243 | ||
| Gold | Morris and Watson | CID002282 | ||
| Gold | SAFINA A.S. | CID002290 | ||
| Tantalum | Yichun Jin Yang Rare Metal Co., Ltd. | CID002307 | ||
| Gold | Guangdong Jinding Gold Limited | CID002312 | ||
| Tungsten | Jiangxi Minmetals Gao’anNon-ferrous Metals Co., Ltd. | CID002313 | ||
| Gold | Umicore Precious Metals Thailand | CID002314 | ||
| Tungsten | Ganzhou Jiangwu Ferrotungsten Co., Ltd. | CID002315 | ||
| Tungsten | Jiangxi Yaosheng Tungsten Co., Ltd. | CID002316 | ||
| Tungsten | Jiangxi Xinsheng Tungsten Industry Co., Ltd. | CID002317 | ||
| Tungsten | Jiangxi TongguNon-ferrous Metallurgical & Chemical Co., Ltd. | CID002318 | ||
| Tungsten | Malipo Haiyu Tungsten Co., Ltd. | CID002319 | ||
| Tungsten | Xiamen Tungsten (H.C.) Co., Ltd. | CID002320 | ||
| Tungsten | Jiangxi Gan Bei Tungsten Co., Ltd. | CID002321 | ||
| Tin | CV Venus Inti Perkasa | CID002455 | ||
| Gold | Geib Refining Corporation | CID002459 | ||
| Tin | Magnu’s Minerais Metais e Ligas Ltda. | CID002468 | ||
| Tin | PT Wahana Perkit Jaya | CID002479 | ||
| Tantalum | Hengyang King Xing Lifeng New Materials Co., Ltd. | CID002492 | ||
| Tungsten | Ganzhou Seadragon W & Mo Co., Ltd. | CID002494 | ||
| Tin | Melt Metais e Ligas S.A. | CID002500 | ||
| Tungsten | Asia Tungsten Products Vietnam Ltd. | CID002502 | ||
| Tin | PT ATD Makmur Mandiri Jaya | CID002503 | ||
| Tantalum | D Block Metals, LLC | CID002504 | ||
| Tantalum | FIR Metals & Resource Ltd. | CID002505 | ||
| Tantalum | Jiujiang Zhongao Tantalum & Niobium Co., Ltd. | CID002506 | ||
| Tin | Phoenix Metal Ltd. | CID002507 | ||
| Tantalum | XinXing HaoRong Electronic Material Co., Ltd. | CID002508 |
| Gold | MMTC-PAMP India Pvt., Ltd. | CID002509 | ||
| Gold | Republic Metals Corporation | CID002510 | ||
| Gold | KGHM Polska Miedź Spółka Akcyjna | CID002511 | ||
| Tantalum | Jiangxi Dinghai Tantalum & Niobium Co., Ltd. | CID002512 | ||
| Tungsten | Chenzhou Diamond Tungsten Products Co., Ltd. | CID002513 | ||
| Gold | Fidelity Printers and Refiners Ltd. | CID002515 | ||
| Gold | Singway Technology Co., Ltd. | CID002516 | ||
| Tin | O.M. Manufacturing Philippines, Inc. | CID002517 | ||
| Tin | PT Inti Stania Prima | CID002530 | ||
| Tungsten | Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd. | CID002535 | ||
| Tungsten | Ganzhou Yatai Tungsten Co., Ltd. | CID002536 | ||
| Tantalum | KEMET Blue Metals | CID002539 | ||
| Tungsten | H.C. Starck GmbH | CID002541 | ||
| Tungsten | H.C. Starck Smelting GmbH & Co.KG | CID002542 | ||
| Tungsten | Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC | CID002543 | ||
| Tantalum | H.C. Starck Co., Ltd. | CID002544 | ||
| Tantalum | H.C. Starck GmbH Goslar | CID002545 | ||
| Tantalum | H.C. Starck Hermsdorf GmbH | CID002547 | ||
| Tantalum | H.C. Starck Inc. | CID002548 | ||
| Tantalum | H.C. Starck Ltd. | CID002549 | ||
| Tantalum | H.C. Starck Smelting GmbH & Co. KG | CID002550 | ||
| Tungsten | Jiangwu H.C. Starck Tungsten Products Co., Ltd. | CID002551 | ||
| Tantalum | Global Advanced Metals Boyertown | CID002557 | ||
| Tantalum | Global Advanced Metals Aizu | CID002558 | ||
| Gold | Al Etihad Gold Refinery DMCC | CID002560 | ||
| Gold | Emirates Gold DMCC | CID002561 | ||
| Gold | Kaloti Precious Metals | CID002563 | ||
| Gold | Sudan Gold Refinery | CID002567 | ||
| Tantalum | KEMET Blue Powder | CID002568 | ||
| Tin | CV Ayi Jaya | CID002570 | ||
| Tantalum | Tranzact, Inc. | CID002571 | ||
| Tin | Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company | CID002572 | ||
| Tin | Nghe TinhNon-Ferrous Metals Joint Stock Company | CID002573 | ||
| Tin | Tuyen QuangNon-Ferrous Metals Joint Stock Company | CID002574 | ||
| Tungsten | Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji | CID002579 | ||
| Gold | T.C.A S.p.A | CID002580 | ||
| Gold | Remondis Argentia B.V. | CID002582 | ||
| Gold | Tony Goetz NV | CID002587 | ||
| Tungsten | Niagara Refining LLC | CID002589 | ||
| Tin | CV Dua Sekawan | CID002592 | ||
| Tin | CV Tiga Sekawan | CID002593 | ||
| Gold | Korea Zinc Co., Ltd. | CID002605 | ||
| Gold | TOOTau-Ken-Altyn | CID002615 | ||
| Tungsten | Jiangxi Dayu Longxintai Tungsten Co., Ltd. | CID002647 | ||
| Tungsten | Hydrometallurg, JSC | CID002649 | ||
| Tin | PT Cipta Persada Mulia | CID002696 | ||
| Tin | An Vinh Joint Stock Mineral Processing Company | CID002703 | ||
| Tin | Resind Indústria e Comércio Ltda. | CID002706 | ||
| Tantalum | Resind Indústria e Comércio Ltda. | CID002707 | ||
| Tungsten | Unecha Refractory metals plant | CID002724 |
| Tin | PT O.M. Indonesia | CID002757 | ||
| Gold | SAAMP | CID002761 | ||
| Tin | Metallo Chimique | CID002773 | ||
| Tin | Elmet S.L.U. | CID002774 | ||
| Tin | PT Bangka Prima Tin | CID002776 | ||
| Gold | SAXONIA Edelmetalle GmbH | CID002777 | ||
| Gold | WIELAND Edelmetalle GmbH | CID002778 | ||
| Gold | Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH | CID002779 | ||
| Tungsten | South-East Nonferrous Metal Company Limited of Hengyang City | CID002815 | ||
| Tin | PT Sukses Inti Makmur | CID002816 | ||
| Tin | An Thai Minerals Co., Ltd. | CID002825 | ||
| Tungsten | Philippine Chuangxin Industrial Co., Inc. | CID002827 | ||
| Tin | PT Kijang Jaya Mandiri | CID002829 | ||
| Tungsten | Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd. | CID002830 | ||
| Tungsten | ACL Metais Eireli | CID002833 | ||
| Tantalum | Jiangxi Tuohong New Raw Material | CID002842 | ||
| Tungsten | Woltech Korea Co., Ltd. | CID002843 | ||
| Tin | HuiChang Hill Tin Industry Co., Ltd. | CID002844 | ||
| Tungsten | Moliren Ltd | CID002845 | ||
| Tantalum | Power Resources Ltd. | CID002847 | ||
| Tin | Gejiu Fengming Metallurgy Chemical Plant | CID002848 | ||
| Tin | Guanyang Guida Nonferrous Metal Smelting Plant | CID002849 | ||
| Gold | AU Traders and Refiners | CID002850 | ||
| Gold | Gujarat Gold Centre | CID002852 | ||
| Gold | Sai Refinery | CID002853 | ||
| Gold | Universal Precious Metals Refining Zambia | CID002854 | ||
| Gold | Modeltech Sdn Bhd | CID002857 | ||
| Tin | Modeltech Sdn Bhd | CID002858 | ||
| Tin | Gejiu Jinye Mineral Company | CID002859 | ||
| Gold | Bangalore Refinery | CID002863 | ||
| Gold | Kyshtym Copper-Electrolytic Plant ZAO | CID002865 |
Our direct suppliers have named these smelters or refiners as their sources of tin, tungsten, tantalum and gold in the products we buy from them. We have subjected each incoming CMRT to systematic scrutiny often followed by additional supplier communication. This list of 3TG smelter/refiner sources in our supply chain is not exhaustive. Some suppliers still have only partial lists available. As noted, many have provided unrecognized names which we have not yet been able to resolve, so those names are not included here. Nor does the inclusion of any name on our list imply that its products necessarily comprise portions of our products. Inclusion only implies that the 3TG in all our products comes from these sources or from others yet to be determined.
FUTURE PLANS TO IMPROVE DUE DILIGENCE AND SUPPLIER RESPONSIVENESS
Seagate expects to pursue several initiatives to attain a conflict-free 3TG supply chain, including the following:
| • | Although the number of validated conflict-free 3TG smelters and refiners is climbing steadily, there are still not enough conflict-free validated sources to go around for all industries. As more smelters and refiners become validated, we all benefit. Nevertheless, we continue to seek supplier commitments to conflict-free 3TG, to request suppliers to have their smelters and refiners engage in the validation audit process, and then if necessary to convert to other preferred sources. |
| • | We are also working on developing software to accelerate and track progress, to make our information more complete, accurate, timely and specific using greater automation. |
| • | In 2017, we are in the process of refreshing all our direct supplier data using CMRT 4.0, with which we expect to enhance the quality of the information we obtain this year. We continue to work with the EICC and CFSI to improve processes that encourage responsible sourcing of 3TG in a manner that avoidsde factoboycott of legitimate minerals from Covered Countries. |
INDEPENDENT PRIVATE SECTOR AUDIT
We obtained an independent private sector audit of this Conflict Minerals Report by Elm Sustainability Partners LLC, which is set forth as Appendix A.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Conflict Minerals Report contains forward-looking statements, including, in particular, statements about our future plans to improve due diligence and supplier responsiveness and to seek supplier commitments in this regard. These forward-looking statements are based on information available to us as of the date of this Conflict Mineral Report and are based on management’s current views and assumptions. These forward-looking statements also involve a number of known and unknown risks, uncertainties, and other factors that could cause actual events to differ materially from our expectations. Such risks and uncertainties include the veracity of information directly or indirectly provided to us by others and expectations regarding future smelter and refiner participation in conflict-free verification regimens. Except as may be required by law, we undertake no obligation to update forward-looking statements to reflect future events or circumstances.
Appendix A
INDEPENDENT PRIVATE SECTOR AUDITOR’S REPORT
To the Board of Directors:
ELM SUSTAINABILITY PARTNERSLLC conducted an Independent Private Sector Audit (IPSA) of Seagate Technologies, Inc., (“the Company”) Conflict Minerals Report for the reporting period of January 1 to December 31, 2016. We examined evidence relating to the audit objectives set forth in 17 CFR Part 249b.400, Section 1, Item 1.01, which state that the auditor is to express an opinion or conclusion as to:
| • | whether the design of the Company’s due diligence framework as set forth in the section titledDue Diligence Program Design in the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is in conformity, in all material respects, with the criteria set forth in the Organisation of EconomicCo-Operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition 2016 (“OECD Due Diligence Guidance”), and |
| • | whether the Company’s description of the due diligence measures it performed, as set forth in the section titledDue Diligence Measures Performed in the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is consistent with the due diligence process that the Company undertook. |
Management is responsible for the design of the Company’s due diligence framework, the description of the Company’s due diligence measures set forth in the Conflict Minerals Report, and performance of the due diligence measures. Our responsibility is to express an opinion or conclusion in relation to the stated audit objectives. The mandated audit objectives and our examination did not include evaluating:
| • | The consistency of the due diligence measures that the Company performed with either the design of the Company’s due diligence framework or the OECD Due Diligence Guidance; |
| • | The completeness of the Company’s description of the due diligence measures performed; |
| • | The suitability of the design or operating effectiveness of the Company’s due diligence process; |
| • | Whether a third party can determine from the Conflict Minerals Report if the due diligence measures the Company performed are consistent with the OECD Due Diligence Guidance; |
| • | The Company’s reasonable country of origin inquiry (RCOI), including the suitability of the design of the RCOI, its operating effectiveness, or the results thereof; |
| • | The adequacy or completeness of the Company’s applicability determinations of parts, components, materials or products used, sold, manufactured by or for the Company; or |
| • | The Company’s conclusions about the source or chain of custody of its conflict minerals or the DRC Conflict Free status of parts, components, materials or products used, sold, manufactured by or for the Company. |
We do not express an opinion or offer any other form of conclusion or assurance on those or any other matters in any section of the Conflict Minerals Report other than the sections titledDue Diligence Program Designand Due Diligence Measures Performed.
Audit planning began March 21, 2017 andon-site activities were conducted April 11 – 12, 2017. No impairments or threats to our independence as an auditor were identified prior to, during or after this audit. As the basis for this audit, the Company provided the Conflict Minerals Report that was current on April 11, 2017. For the first audit objective, we reviewed the following audit evidence and compared it to the OECD Due Diligence Guidance: (a) detailed conflict minerals program documentation relating to each of the five steps, (b) evidence of program controls and execution, and (c) conducted interviews with individuals directly involved in executing the conflict minerals program; thereby providing reasonable assurance that the design of the due diligence framework described in the section titledDue Diligence Program Design of the Conflict Minerals Report is in conformity with, in all material respects, the OECD Due Diligence Guidance. For the second audit objective, we reviewed 100% of the records provided by the Company documenting that it undertook the due diligence measures described in the section titledDue Diligence Measures Performed of the Conflict Minerals Report. We also conducted interviews with individuals directly involved in performing those due diligence measures. The auditor and internal quality control reviewer are senior level Principals that hold certifications from the Board of Environmental Auditor Certifications, an independent accredited certification body that requires conformance to established ethics, independence requirements and annual continuing education. The audit team also included a technical subject matter expert widely recognized as one of the world’s leading experts on conflict minerals due diligence. The original auditors’ notes were evaluated by the internal quality control reviewer to confirm that the audit work performed and evidence obtained supports the findings or conclusions in this audit report. Additional information on our firm’s audit quality assurance practices is available on our website.
Management was provided an opportunity to review and offer comments on a draft of this report and had no comments to the draft report.
In our opinion,
| • | the design of the Company’s due diligence framework as set forth in the section titledDue Diligence Program Design in the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is in conformity, in all material respects, with the OECD Due Diligence Guidance, and |
| • | the Company’s description of the due diligence measures it performed as set forth in the section titledDue Diligence Measures Performed of the Conflict Minerals Report for the reporting period from January 1 to December 31, 2016, is consistent with the due diligence process that the Company undertook. |
We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings based on our audit objectives.
Marietta, Georgia
May 1, 2017