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Apple Supply Chain Includes 'Blood Minerals' From Congo: Lawyers

Published 23/05/2024, 16:52
© Reuters.  Apple Supply Chain Includes \'Blood Minerals\' From Congo: Lawyers
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Benzinga - by Stjepan Kalinic, Benzinga Staff Writer.

The Democratic Republic of Congo (DRC) alleges that Apple (NASDAQ:AAPL) is sourcing minerals from conflict areas in eastern Congo.

What Happened: The DRC’s international lawyers, Amsterdam & Partners, has been investigating allegations that minerals mined in Congo are smuggled through Rwanda, Uganda, and Burundi.

In an April notification to Apple CEO Tim Cook, the lawyers outlined concerns regarding this supply chain in the eastern DRC. They allege that armed groups are mining conflict minerals, including tin, tantalum, tungsten, and gold (collectively known as 3TG), and smuggling them through neighboring countries like Rwanda and Uganda.

These minerals may then be inadvertently incorporated into Apple products.

"It is more urgent than ever that Apple provide real answers to the very serious questions we have raised, as we evaluate our legal options," said Congo's lawyer Robert Amsterdam.

Benzinga has contacted Apple for comment on this report.

"The absence of a response is an implicit admission that the questions we asked Apple were relevant," added William Bourdon, another lawyer representing the country.

Why It Matters: The lawyers cite whistleblower testimonies from individuals previously employed within Apple’s DRC supply chain verification program. These whistleblowers allege termination after raising concerns about the presence of “blood minerals” within the supply chain.

In a report last year, Apple stated that 100% of identified smelters and refiners in the supply chain for all applicable Apple products manufactured in 2023 had participated in an independent third-party conflict minerals audit for tin, tantalum, tungsten (known as 3T minerals) and gold.

In 2021, U.S. official data showed that Rwanda provided 15% of the global tantalum supply despite the country producing only modest amounts from its mines.

Moreover, the U.S. bought more tantalum from Rwanda — 36% of its total imports, the highest among global producers—compared to only 7% from the DRC.

The eastern region of the Democratic Republic of Congo has been plagued by severe armed conflict between government forces and various rebel groups, including the M23 rebels. Much of the fighting revolves around controlling the mining and supplying the "3T" minerals — tin, tungsten, and tantalum — and gold. Coltan, the ore from which tantalum is mined, is critical in manufacturing smartphones and other electronics.

Despite Apple's continuous claims of commitment to ethical sourcing, Amsterdam & Partners points out that these are not based on verifiable evidence.

"Although Apple has affirmed that it verifies the origins of minerals it uses to manufacture its products, those claims do not appear to be based on concrete, verifiable evidence," their statement read.

The firm suggested that Apple’s claim of sourcing its material from Rwanda is dubious, given the limited production of 3T materials in that East African country.

Now Read: Nickel Crisis Fuels Unrest In New Caledonia, Pushes Prices Above $20,000 Per Ton

Benzinga Mining is the bridge between mining companies and retail investors. Reach out to licensing@benzinga.com to get started!

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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