Branding Raw Material to Improve Human Rights: Intel’s Ban on Conflict Minerals

Thomas Osburg 

Many companies seek to take over more responsibility for their supply chain and their raw materials. Intel was one of the first companies investigating the origin of conflict minerals like tin, tantalum, gold or tungsten, which are used in many electronic products. Their path to ultimately offering conflict-free microprocessors took more than five years of consistent preparation and intensive reengineering of the business process. They identified smelters as a bottleneck in the supply chain and started cooperating closely with them to trace their minerals’ supply. By developing a bag-and-tag system the company is now able to ensure that their minerals are not sourced from illegal mines, which often finance illegal warlords, for example, in the eastern Democratic Republic of Congo. The cooperation with the smelters brings about higher demand and in consequence higher prices for the legally sourced minerals. Many small miners and their families in the region directly benefit from the higher earnings.