EXHIBIT 1.01
Conflict Minerals Report of Mellanox Technologies, Ltd.
For the Year Ended December 31, 2014
Pursuant to Rule 13p-1 under the Securities Exchange Act of 1934
This report for the year ended December 31, 2014 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934, as amended (the “Rule”). The Rule was adopted by the Securities and Exchange Commission (the “SEC”) to implement reporting and disclosure requirements related to Conflict Minerals as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”). The Rule imposes certain reporting obligations on SEC registrants whose manufactured products contain Conflict Minerals which are necessary to the functionality or production of their products. “Conflict Minerals” are defined as cassiterite, columbite-tantalite (coltan), gold, wolframite, and their derivatives, which are limited to tin, tantalum, tungsten, and gold (“3TG”). These requirements apply to registrants whatever the geographic origin of the Conflict Minerals and whether or not they fund armed conflict.
This Report has not been subject to an independent private sector audit as allowed under Rule 13p-1, which provides a phase-in period for the first two years following November 13, 2012.
1. Company Overview
This report has been prepared by management of Mellanox Technologies, Ltd. When used in this report, “Mellanox,” the “Company,” “we,” “our” or “us” refers to Mellanox Technologies, Ltd. and its consolidated subsidiaries unless the context requires otherwise. Our business headquarters are in Sunnyvale, California, and our engineering and manufacturing headquarters are in Yokneam, Israel.
Mellanox is a fabless semiconductor company that designs, manufactures and sells high-performance interconnect products and solutions primarily based on the InfiniBand and Ethernet standards. Its products facilitate efficient data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. It operates its business globally and offers products to customers at various levels of integration.
2. Products Overview
The Company’s products, all of which may contain Conflict Minerals, include integrated circuits (“ICs”), adapter cards, switch systems, cables, modules and accessories as an integral part of a total end-to-end networking solution focused on computing, storage and communication applications used in multiple markets, including high-performance computing, Web 2.0, storage, financial services, enterprise data center and cloud computing.
3. Supply Chain Overview
While the Company designs and markets its products and conducts test development in-house, it does not manufacture, assemble, package and production test its products, and it relies on third-party subcontractors to perform these services. Materials used in manufacturing at these subcontractors may be purchased directly by the subcontractor or the Company.
The products that the Company manufactures are highly complex, typically containing thousands of parts from many direct suppliers. The Company has relationships with a large global network of suppliers and there are generally multiple tiers between the 3TG mines and the Company’s direct suppliers. Therefore, the Company must rely on its direct suppliers to work with their upstream suppliers in order to provide the Company with accurate information about the origin of 3TG in the components it purchases.
4. Reasonable Country of Origin Inquiry (RCOI) and RCOI conclusion:
The Company conducted an analysis of its products and found that the use of Conflict Minerals is necessary to the functionality or production of the products manufactured and contracted to manufacture by the Company. Accordingly, the Company conducted a Reasonable Country of Origin Inquiry (“RCOI”) to determine whether any of the necessary Conflict Minerals originated in the Democratic Republic of the Congo or an adjoining country, (collectively, the “Covered Countries”).
Description of the RCOI procedure
The Company sent letters to its direct suppliers to explain the Rule and to refer suppliers to online training materials and instructions. The Company solicited information from its suppliers using the Conflict Minerals Reporting Template (“CMRT”), an industry-standard template for Conflict Minerals reporting designed by the Conflict-Free Sourcing Initiative (CFSI), and received responses from a partial population of its suppliers. The Company reviewed these responses and followed up with respondents on responses that appeared inconsistent, incomplete, or inaccurate, and it sent reminders to suppliers who did not respond to its requests for information.
As of May 29, 2015, the Company did not have sufficient information from its suppliers or other sources to determine the country or countries of origin of the Conflict Minerals used in its products or the facilities used to process those Conflict Minerals. The Company therefore conducted the due diligence activities described in this Conflict Minerals Report.
5. Due diligence
I. Due diligence framework
In accordance with the Rule, the Company undertook certain due diligence activities regarding the Conflict Minerals that are necessary to the functionality or production of the Company’s products. The Company designed these due diligence measures to be in conformity, in all material respects, with the internationally recognized due diligence framework as set forth in the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD, 2013) and related supplements for 3TG.
II. Due diligence measures undertaken
The Company engaged those suppliers who provide a significant portion of its components and whose products it believes are likely to contain Conflict Minerals. The Company employed several methods to assess whether the necessary Conflict Minerals in its products originated from the Covered Countries, including:
a. Establish Company management systems.
· Maintained a Conflict Minerals Policy, available at http://www.mellanox.com/page/quality. The reference to this and other websites in this Conflict Minerals Report does not constitute incorporation by reference of the information contained at or available through such websites.
· Created an internal Conflict Minerals process document which describes the procedure of the due diligence and the roles and responsibilities required to comply with the Conflict Minerals rules.
· Implemented a Conflict Minerals compliance management system.
· Incorporated Conflict Minerals compliance procedure in purchasing and inventory systems.
· Structured internal management and cross functional teams to support supply chain due diligence.
· Strengthened the Company’s engagement with its suppliers by incorporating a supply chain policy into agreements with suppliers.
· Communicated the Company’s due diligence efforts to its customers and suppliers through an annual communication to each supplier. Information regarding the Company’s due diligence efforts is provided to customers upon request.
· The Company communicated to its relevant employees the Company’s Conflict Minerals Policy and the importance of maintaining a conflict free supply chain.
· Provided contact details in our Conflict Minerals Policy, which serve as a mechanism through which we may receive grievances.
b. Identify and assess risks in the supply chain.
The Company identified risks in the supply chain based on its suppliers’ characteristics (such as whether a supplier is a public reporting company, a supplier’s geographical location, etc.) and the dependency of the Company on the suppliers’ products (based on criteria such as volume of spend during 2014, ease of replacement of the supplier, etc.). The Company accordingly segmented suppliers into high, medium and low levels of risk, allowing the Company to focus its validation efforts according to the supplier level of risk.
c. Design and implement a strategy to respond to identified risks.
With the assistance of a third party contractor, GreenSoft Technology, Inc., the Company implemented its risk management plan as part of the supplier survey process. The process included:
· Supply-chain surveys with direct (Tier 1) suppliers and/or manufacturers using the CFSI CMRT to identify the smelters and refiners who contribute refined Conflict Minerals to its products.
· Comparison of the smelters and refiners identified by direct suppliers via the supply-chain survey against the list of smelter facilities which have received a “conflict free” compliance designation (such as CFSI Conflict Free Smelter (CFS) program) and noting smelters/ refiners that have not received a conflict-free designation based on the CFSI / CFSP or other independent third party validation program.
· Engagement of its internal engineering staff to identify a subset of components with known 3TG content and validate these determinations with supplier survey responses.
· Managing communications with suppliers and the validation of supplier survey responses based on level of risk.
· Requesting that suppliers whose responses were identified as incomplete, inconsistent or inaccurate provide additional information.
· Work with a third-party contractor to collect, validate, review and correct info on all CMRTs received by the Company.
d. Carry out independent third-party audit of smelter/refiner due diligence practices.
The Company is a downstream consumer of necessary Conflict Minerals and is many steps removed from smelters and refiners who provide minerals and ores. Therefore, the Company’s direct or upstream suppliers are in a better position to identify smelters and refiners within the supply chain. As a result, the Company’s due diligence efforts rely on cross-industry initiatives to validate smelters.
e. Report annually on supply chain due diligence.
The Company reports its supply chain due diligence policies and practices on its website regarding additional information on mineral supply chain due diligence. In addition to filing this Conflict Minerals Report with the Securities and Exchange Commission, the Company has provided this conflict minerals report describing the company’s due diligence efforts on its website at http://ir.mellanox.com/sec.cfm.
6. Results of Assessment
Despite some of the Company’s suppliers indicating that such suppliers source from the Covered Countries, these suppliers indicated that they were unable to accurately report which specific facilities or countries were part of the supply chain of the components that were sold to Mellanox in the year 2014. Due to this lack of information, the Company is unable to determine or describe with certainty the facilities used to process the necessary Conflict Minerals or their country of origin. However, we have received certain information from our suppliers regarding the facilities that they believe have processed the Conflict Minerals in our Covered Products and the country of origin of those Conflict Minerals. In addition, as the information comes from direct and secondary suppliers and independent third party audit programs, the Company cannot provide absolute assurance regarding the source and chain of custody of the Conflict Minerals.
As reported by our suppliers in the CMRTs, the tables below report the facilities identified to be used to process Conflict Minerals that are necessary to the functionality or production of the Covered Products. The smelters listed in the below tables are listed on either the CFSI, the US Department of Commerce, Intel Corporation and Apple, Inc. lists of smelters who are deemed to be conflict free or are approved smelters by either Intel Corporation or Apple, Inc.
Table 1: Facilities Processing Conflict Mineral - Gold
Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed or Intel CMRT listed
Aida Chemical Industries Co. Ltd. |
| Allgemeine Gold-und Silberscheideanstalt A.G. |
| Almalyk Mining and Metallurgical Complex (AMMC) |
AngloGold Ashanti Córrego do Sítio Minerção |
| Argor-Heraeus SA |
| Asahi Pretec Corporation |
Asaka Riken Co Ltd |
| ASARCO LLC |
| LtdAtasay Kuyumculuk Sanayi Ve Ticaret A.S. |
Aurubis AG |
| Bauer Walser AG |
| Bangko Sentral ng Pilipinas (Central Bank of the Philippines) |
Boliden AB |
| C. Hafner GmbH + Co. KG |
| Caridad |
CCR Refinery — Glencore Canada Corporation |
| Cendres + Métaux SA |
| Chimet S.p.A. |
China National Gold Group Corporation |
| Chugai Mining |
| Codelco Daye Non-Ferrous Metals Mining Ltd. |
Colt Refining |
| Daejin Indus Co. Ltd |
| DaeryongENC |
Do Sung Corporation |
| Doduco |
| Dowa |
Eco-System Recycling Co., Ltd. |
| FSE Novosibirsk Refinery |
| Gansu Seemine Material Hi-Tech Co Ltd |
Guangdong Jinding Gold Limited |
| Hangzhou Fuchunjiang Smelting Co., Ltd. |
| Heimerle + Meule GmbH |
Heraeus Ltd. Hong Kong |
| Heraeus Ltd. Hong Kong |
| Heraeus Precious Metals GmbH & Co. KG |
Heraeus Precious Metals North America (HPMN) |
| Hunan Chenzhou Mining Group Co., Ltd. |
| Hwasung CJ Co. Ltd |
Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited |
| Ishifuku Metal Industry Co., Ltd. |
| Istanbul Gold Refinery |
Japan Mint |
| Jiangxi Copper Company Limited |
| Johnson Matthey Inc |
Johnson Matthey Ltd t |
| JSC Ekaterinburg Non-Ferrous Metal Processing Plan |
| JSC Uralelectromed |
JX Nippon Mining & Metals Co., Ltd. |
| Kazzinc Ltd |
| Kennecott Utah Copper LLC |
Kojima Chemicals Co., Ltd |
| Korea Metal Co. Ltd |
| Kyrgyzaltyn JSC |
L’ azurde Company For Jewelry |
| Lingbao Gold Company Limited |
| Lingbao Jinyuan Tonghui Refinery Co. Ltd. |
LS-NIKKO Copper Inc. |
| Luoyang Zijin Yinhui Metal Smelt Co Ltd |
| Materion |
Matsuda Sangyo Co., Ltd. |
| Metalor Technologies (Hong Kong) Ltd |
| Metalor Technologies (Singapore) Pte. Ltd. |
Metalor Technologies SA |
| Metalor Technologies (Suzhou) Ltd. |
| Metalor USA Refining Corporation |
Met-Mex Peñoles, S.A. |
| Mitsubishi Materials Corporation |
| Mitsui Mining and Smelting Co., Ltd. |
Moscow Special Alloys Processing Plant |
| Nadir Metal Rafineri San. Ve Tic. A.Ş. |
| Navoi Mining and Metallurgical Combinat |
Nihon Material Co. LTD |
| Ohio Precious Metals, LLC |
| Ohura Precious Metal Industry Co., Ltd |
OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet) |
| OJSC Kolyma Refinery |
| PAMP SA |
Penglai Penggang Gold Industry Co Ltd |
| Prioksky Plant of Non-Ferrous Metals |
| PT Aneka Tambang (Persero) Tbk |
PX Précinox SA |
| Rand Refinery (Pty) Ltd |
| Royal Canadian Mint |
Sabin Metal Corp. |
| SAMWON METALS Corp.Schone Edelmetaal |
| Schone Edelmetaal |
SEMPSA Joyería Platería SA |
| Shandong Zhaojin Gold & Silver Refinery Co. Ltd |
| So Accurate Group, Inc. |
SOE Shyolkovsky Factory of Secondary Precious Metals |
| Solar Applied Materials Technology Corp. |
| Sumitomo Metal Mining Co., Ltd. |
Tanaka Kikinzoku Kogyo K.K. |
| The Great Wall Gold and Silver Refinery of China |
| The Refinery of Shandong Gold Mining Co. Ltd |
Tongling nonferrous Metals Group Co.,Ltd |
| Tokuriki Honten Co., Ltd |
| Torecom |
Umicore Brasil Ltda |
| Umicore Precious Metals Thailand |
| Umicore SA Business Unit Precious Metals Refining |
United Precious Metal Refining, Inc. |
| Valcambi SA |
| Western Australian Mint trading as The Perth Mint |
YAMAMOTO PRECIOUS METAL CO., LTD. |
| Yokohama Metal Co Ltd |
| Yunnan Copper Industry Co Ltd |
Zijin Mining Group Co. Ltd |
| Zhongyuan Gold Smelter of Zhongjin Gold Corporation |
|
|
Facilities Identified by our Suppliers that are not CFS listed, Department of Commerce listed or Intel CMRT listed
Asaka Riken Co Ltd |
| ASARCO LLC |
| Baiyin Nonferrous Group Co.,Ltd |
Caridad |
| China National Gold Group Corporation |
| Chugai Mining |
Codelco |
| Daye Non-Ferrous Metals Mining Ltd. |
| Dongguan Dongxu metal Surface Handle Co.,Ltd. |
Dongguan Standard Electronic Material.Co.,Ltd |
| Dongguanshi Sutande Dianzi Cailiao Youxiangongsi |
| Ferro Corporation |
Gansu Seemine Material Hi-Tech Co Ltd |
| Heesung Catalysts Corp. |
| Heraeus Precious Metals North America (HPMN) |
Hon Shen Co., Ltd. |
| Honorable Hardware Craft Product Limited Company |
| Hunan Chenzhou Mining Group Co., Ltd. |
Jin Dong Heng |
| Johnson Matthey HongKong Ltd. |
| Kangqiang Electronics Co., Ltd |
Kunshan Jinli chemical industry reagents co.,Ltd. |
| LG-Nikko Copper Inc. |
| Luoyang Zijin Yinhui Metal Smelt Co Ltd |
Metalor Technologies (Suzhou) Ltd. |
| MK Electron co., Ltd. |
| Morigin Company |
N.E.Chemcat Corporation |
| Nadir Metal Rafineri San. Ve Tic. A. |
| Pan Pacific Copper Co. LTD |
Penglai Penggang Gold Industry Co Ltd |
| PT Tambang Timah |
| Remondis Argentia B.V. |
Sabin Metal Corp. |
| Samduck Precious Metals |
| SANMENXIA HENGSHENG SCIENCE AND TECHNOLOGY R&D CO.,LTD |
ScotiaMocatta, The Bank of Nova Scotia |
| Shandong Guoda Gold Co., LTD. |
| Shandong Zhaojin Gold & Silver Refinery Co., Ltd |
Shang Hai Gold Exchange |
| Sindlhauser Materials GmbH |
| Suzhou Xinrui Noble metal material co. Ltd |
Taizhou Delta Electronics Co., Ltd. |
| Technic, Inc. |
| The Great Wall Gold and Silver Refinery of China |
THE HUTTI GOLD MINES CO.LTD |
| Tiancheng Chemical |
| Tongling nonferrous Metals Group Co.,Ltd |
Umicore Precious Metal Refining |
| Valcambi SA Corp. |
| Williams/ Williams Brewster |
Xstrata Canada Corporation |
| Yantai country Safeina high-tech environmental Refining Ltd. |
| Yantai Zhaojin Kanfort Precious Metals Incorporated Company |
YANTAI ZHAOJIN KANFORT PRECIOUS METALS INCORPORATED COMPANY. 煙台招金勵福貴金屬股份有限公司 |
| Yokohama Metal Co Ltd |
| Zhongshan Public Security Bureau, Guangdong Province, China |
Table 2: Facilities Processing Conflict Mineral - Tantalum
Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed or Intel CMRT listed
Changsha South Tantalum Niobium Co., Ltd. |
| Conghua Tantalum and Niobium Smeltry |
| Duoluoshan |
Exotech Inc. |
| F&X Electro-Materials Ltd. |
| Gannon & Scott |
Global Advanced Metals Aizu |
| Global Advanced Metals Boyertown |
| Guangdong Zhiyuan New Material Co., Ltd. |
Guizhou Zhenhua Xinyun Technology Ltd., Kaili branch |
| H.C. Starck Co., Ltd. |
| H.C. Starck GmbH Goslar |
H.C. Starck GmbH Laufenburg |
| H.C. Starck Hermsdorf GmbH |
| H.C. Starck Inc. |
H.C. Starck Ltd. |
| H.C. Starck Smelting GmbH & Co.KG |
| Hengyang King Xing Lifeng New Materials Co., Ltd. |
Hi-Temp |
| JiuJiang JinXin Nonferrous Metals Co., Ltd. |
| Jiujiang Tanbre Co., Ltd. |
KEMET Blue Metals |
| KEMET Blue Powder |
| King-Tan Tantalum Industry Ltd |
LSM Brasil S.A. |
| Metallurgical Products India (Pvt.) Ltd. |
| Mineração Taboca S.A. |
Mitsui Mining & Smelting |
| Molycorp Silmet A.S. |
| Ningxia Orient Tantalum Industry Co., Ltd. |
Plansee SE Liezen |
| Plansee SE Reutte |
| QuantumClean |
RFH Tantalum Smeltry Co., Ltd |
| Shanghai Jiangxi Metals Co. Ltd |
| Solikamsk Magnesium Works OAO |
Tantalite Resources |
| Taki Chemicals |
| Telex |
Ulba |
| Yichun Jin Yang Rare Metal Co., Ltd |
| Zhuzhou Cement Carbide |
Facilities Identified by our Suppliers that are not CFS listed, Department of Commerce listed or Intel CMRT listed
ANHUI HERRMAN IMPEX CO., LTD |
| Gannon & Scott |
| H.C. Starck |
Talley Metals |
| Tantalite Resources |
|
|
Table 3: Facilities Processing Conflict Mineral - Tin
Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed, Intel CMRT listed or Apple listed
Alpha |
| China Rare Metal Materials Company |
| China Tin Group Co., Ltd. |
CNMC (Guangxi) PGMA Co. Ltd. |
| Cooper Santa |
| CV Duta Putra Bangka |
CV Gita Pesona |
| CV JusTindo |
| CV Makmur Jaya |
CV Nurjanah |
| CV Serumpun Sebalai |
| CV United Smelting |
Dowa |
| EM Vinto |
| Estanho de Rondônia S.A. |
Fenix Metals |
| FSE Novosibirsk Refinery |
| Gejiu Kai Meng Industry and Trade LLC |
Gejiu Non-Ferrous Metal Processing Co. Ltd. |
| Gejiu Zi-Li |
| Heraeus Precious Metals GmbH & Co. KG |
Huichang Jinshunda Tin Co. Ltd |
| Jean GOLDSCHMIDT INTERNATIONAL S.A. |
| Jiangxi Nanshan LTDA |
Linwu Xianggui Smelter Co |
| Magnu’s Minerais Metais e Ligas |
| Malaysia Smelting Corporation (MSC) |
Melt Metais e Ligas S/A |
| Metallo Chimique |
| Minmetals Ganzhou Tin Co. Ltd. |
Mineração Taboca S.A. Minsur |
| Minsur |
| Mitsubishi Materials Corporation |
Novosibirsk Integrated Tin Works |
| O.M. Manufacturing (Thailand) Co., Ltd. |
| O.M. Manufacturing Philippines, Inc. |
OMSA |
| Poongsan |
| PT Alam Lestari Kencana |
PT Artha Cipta Langgeng |
| PT ATD Makmur Mandiri Jaya |
| PT Babel Inti Perkasa |
PT Babel Surya Alam Lestari |
| PT Bangka Kudai Tin |
| PT Bangka Putra Karya |
PT Bangka Timah Utama Sejahtera |
| PT Bangka Tin Industry |
| PT Belitung Industri Sejahtera |
PT BilliTin Makmur Lestari |
| PT Bukit Timah |
| PT DS Jaya Abadi |
PT Eunindo Usaha Mandiri |
| PT Fang Di MulTindo |
| PT HP Metals Indonesia |
PT Inti Stania Prima |
| PT Karimun Mining |
| PT Koba Tin |
PT Mitra Stania Prima |
| PT Panca Mega Persada |
| PT Pelat Timah Nusantara Tbk |
PT Prima Timah Utama |
| PT REFINED BANGKA TIN Binasentosa |
| PT Sariwiguna |
PT Seirama Tin investment |
| PT Stanindo Inti Perkasa |
| PT Sumber Jaya Indah |
PT Supra Sukses Trinusa |
| PT Tambang Timah |
| PT Timah (Persero), Tbk |
PT Tinindo Inter Nusa |
| PT Tommy Utama |
| PT Yinchendo Mining Industry |
Rahman Hydrulic Tin Sdn Bhd |
| Rui Da Hung |
| SENJU METAL INDUSTRY CO.,LTD. |
Soft Metais, Ltda. |
| Thaisarco |
| White Solder Metalurgia e Mineração Ltda. |
Yunnan Chengfeng Non-ferrous Metals Co.,Ltd. |
| Yunnan Tin Company, Ltd. |
|
|
Facilities Identified by our Suppliers that are not CFS listed, Department of Commerce listed or Intel CMRT listed
5N Plus |
| Alpha Metals Korea Ltd. |
| American Iron and Metal |
Aoki Loboratories Ltd. |
| Butterworth Smelter |
| CFC Cooperativa dos Fundidores de Cassiterita da Amazonia Ltda. |
China Tin Group Co., Ltd. |
| Chofu Works |
| CNMC (Guangxi) PGMA Co. Ltd. |
Cookson Group |
| Cooper Santa |
| CV Duta Putra Bangka |
CV JusTindo |
| CV Makmur Jaya |
| CV Nurjanah |
CV Serumpun Sebalai |
| Dr-ing. Max SchloetterGMBH & Co Ltd KG |
| Feinhütte Halsbrücke GmbH |
FSE Novosibirsk Refinery |
| Furukawa Electric |
| GEJIU GOLD SMELTER MINERALS CO.,LTD |
GEJIU YUNXIN COLORED ELECTROLYTIC CO.,LTD |
| Gejiu Zi-Li |
| Gold Bell Group |
GuangDong Jiatian Stannum Products Co., Ltd |
| Heesung Metal Ltd. |
| Heimerle + Meule GmbH |
Heraeus Oriental Hitec Co., Ltd. |
| Heraeus Precious Metals GmbH & Co. KG |
| Heraeus Precious Metals GmbH & Co. KG |
Hitachi Cable, Ltd. |
| Huizhou Taiwan Electronic Component Limited Company |
| IBF IND Brasileira de Ferrolligas Ltda |
Imperial Zinc |
| Jean GOLDSCHMIDT INTERNATIONAL S.A. |
| Jiangxi Nanshan |
LIAN JING |
| LS-NIKKO Copper Inc. |
| MCP Metal Specialties, Inc. |
Metahub Industries Sdn. Bhd. |
| Metallic Resources Inc |
| Minmetals Ganzhou Tin Co. Ltd. |
Nathan Trotter & Co., Inc. |
| Nghe Tinh Non-Ferrous Metals Joint Stock Company |
| Nihon Kagaku Sangyo Co., Ltd. |
PHONON MEIWA INC. |
| Poongsan |
| PT Alam Lestari Kencana |
PT Artha Cipta Langgeng |
| PT Babel Surya Alam Lestari |
| PT Bangka Kudai Tin |
PT Bangka Timah Utama Sejahtera |
| PT BilliTin Makmur Lestari |
| PT Fang Di MulTindo |
PT HP Metals Indonesia |
| PT Indra Eramulti Logam Industri |
| PT Koba Tin |
PT Pelat Timah Nusantara Tbk |
| PT Sumber Jaya Indah |
| PT Timah (Persero), Tbk |
PT Yinchendo Mining Industry |
| PT. CITRALOGAM ALPHASEJAHTERA |
| Rahman Hydrulic Tin Sdn Bhd |
Rohm & Hass |
| Samhwa Non-Ferrous Metal. Inc Co.,Ltd. |
| SENJU METAL INDUSTRY CO.,LTD. |
SENJU METAL INDUSTRY CO.,LTD. |
| ShangHai YueQiang Metal Products Co., LTD |
| Shenmao Technology Inc. |
Singapore LME Tin |
| Standard Sp z o.o. |
| Taicang City Nancang Metal Material Co.,Ltd |
Tanaka Kikinzoku Kogyo K.K. |
| TCC Steel |
| TONGDING METALLIC MATERIAL CO.LTD |
Traxys |
| UNI BROS METAL PTE LTD |
| Univertical International (Suzhou) Co., Ltd |
Well-Lin Enterprise Co., Ltd. |
| Westfalenzinn |
| Wilhelm Westmetall |
Yunnan Chengfeng Non-ferrous Metals Co.,Ltd. |
| Yunnan Chengo Electric Smelting Plant |
| YunNan GeJiu Jin Ye Mineral Co.,Ltd |
YunNan Gejiu Yunxin Electrolyze Limited |
| ZHEJIANG HUANGYAN XINQIAN ELECTRICAL EQUIPMENT FITTINGS FACTORY |
| Zhen bo shi ye Co., LTD |
Table 4: Facilities Processing Conflict Mineral - Tungsten
Facilities Identified by our Suppliers that are CFS listed, Department of Commerce listed or Intel CMRT listed
A.L.M.T. Corp. |
| Chenzhou Diamond Tungsten Products Co., Ltd. |
| Chongyi Zhangyuan Tungsten Co., Ltd. |
Dayu Weiliang Tungsten Co., Ltd. |
| Fujian Jinxin Tungsten Co., Ltd. |
| Ganzhou Huaxing Tungsten Products Co., Ltd. |
Fujian Jinxin Tungsten Co., Ltd. |
| Ganzhou Non-ferrous Metals Smelting Co., Ltd. |
| Ganzhou Seadragon W & Mo Co., Ltd. |
Global Tungsten & Powders Corp. |
| Guangdong Xianglu Tungsten Co., Ltd. |
| Japan New Metals Co., Ltd. |
H.C. Starck Smelting GmbH & Co.KG |
| Hunan Chunchang Nonferrous Metals Co., Ltd. |
| Hunan Chenzhou Mining Group Co., Ltd. |
Japan New Metals Co., Ltd. |
| Jiangxi Gan Bei Tungsten Co., Ltd. |
| Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd. |
Jiangxi Richsea New Materials Co., Ltd. |
| Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd. |
| Jiangxi Xinsheng Tungsten Industry Co., Ltd. |
Jiangxi Yaosheng Tungsten Co., Ltd. |
| Kennametal Fallon |
| Kennametal Huntsville |
Malipo Haiyu Tungsten Co., Ltd. |
| North American Tungsten |
| TaeguTec |
Tejing (Vietnam) Tungsten Co., Ltd. |
| Vietnam Youngsun Tungsten Industry Co., Ltd |
| Voss Metals Company, Inc |
Wolfram Bergbau und Hütten AG |
| Wolfram Company CJSC |
| Xiamen Honglu Tungsten Molybdenum Co., Ltd. |
Xinhai Rendan Shaoguan Tungsten Co., Ltd. |
| Xiamen Tungsten (H.C.) Co., Ltd. |
| Xiamen Tungsten Co., Ltd. |
Facilities Identified by our Suppliers that are not CFS listed
Chengdu Hongbo Industrial co, Ltd |
| China Minmetals Nonferrous Metals Co Ltd (Nanchang Cemented Carbide Limited Liability Company) |
| Ganzhou Hongfei Tungsten & Molybdenum Materials Co., Ltd. |
Ganxian Shirui New Material Co., Ltd. |
| Hitachi, Ltd. |
| Hi-Temp |
Jiangwu H.C. Starck Tungsten Products Co., Ltd. |
| KYORITSU GOKIN CO.,LTD. |
| Nanchang Cemented Carbide Limited Liability Company |
Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC |
| Plansee |
| Xiamen Golden Egret Special Alloy Co. Ltd. |
As part of our due diligence process, for those suppliers whose products were not found to be DRC conflict free, we took additional steps in an effort to determine the mine or location of origin which included the follow-up procedures and a CMRT and the Company is continuing its efforts to obtain CMRTs from the remaining suppliers.
7. Continuous improvement efforts to mitigate risk
The Company intends to undertake the following next steps to improve the due diligence process and mitigate the risk of it utilizing Conflict Minerals:
· Continue to conduct and report annually on supply chain due diligence for the applicable Conflict Minerals.
· Design and implement training programs for higher-risk suppliers to increase supplier response rates.
· Work with industry groups to increase awareness in the Company’s supplier networks of the Conflict Mineral data requirements and best practices.
· Seek to enact new terms and conditions in supplier contracts that stipulate responses to Conflict Mineral-related inquires and encourage conflict-free supply chains.
· Share benchmarking information with the Company’s supplier networks to stimulate improved performance.
· Request higher-risk suppliers to offer smelters to participate in obtaining a conflict free designation from an industry program such as CSFI Conflict-Free Smelter Program.
· Validate supplier responses using information collected via independent conflict free smelter validation programs such as CSFI Conflict-Free Smelter Program.
8. Additional Risk Factors
The statements above are based on the RCOI process and due diligence performed in good faith by the Company. These statements are based on the infrastructure and information available at the time the RCOI process and due diligence process were performed. A number of factors could introduce errors or otherwise affect our analysis and the disclosure provided herein.
These factors include, but are not limited to, gaps in product or product content information, gaps in supplier data, gaps in smelter data, errors or omissions by or of suppliers, errors or omissions by smelters, gaps in supplier education and knowledge, lack of timeliness of data, public information not discovered during a reasonable search, errors in public data, language barriers and translation, supplier and smelter unfamiliarity with the protocol, oversights or errors in conflict free smelter audits, materials sourced from the Covered Countries being declared secondary materials, certification programs that are not equally advanced for all industry segments and metals, and smuggling of Conflict Minerals to countries outside of the Covered Countries.
9. Forward Looking Statements
This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations concerning matters that are not historical facts. Words such as “estimates,” “projects,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “may,” “will,” “could,” “should,” “would,” “targeted” and similar words and expressions are intended to identify forward-looking statements. These include statements based on current expectations, estimates, forecasts and projections about the economies and markets in which we operate and our beliefs and assumptions regarding these economies and markets, as well as our actions with respect to compliance with the Rule. These forward-looking statements should be considered in light of various important factors, including the following: changes to regulations and requirements for assessing and reporting Conflict Minerals; litigation related to regulations and requirements for Conflict Minerals; and adverse publicity regarding the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on current expectation and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors under the heading “Risk Factors” in our report on Form 10-K for the year ended December 31, 2014, as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission. Our actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law.
