|Money from mineral exports is directly|
funding DRC militia groups
There are also huge flaws in the currently proposed legislation. Whilst the DRC is synonymous with government troops and rebels involved in mass slayings and rape, some companies will be able to disassociate themselves with the minerals and legislation as they do not directly make/mine the product. This will let many big brands off the hook as they merely stick a label on a product and sell it, rather than mining it themselves and facing the legislation.
Legitimate US companies in Africa could be harshly affected by this. The SEC estimates that the overall cost of this legislation could escalate to as much as $4 billion. Many companies may cease to do business in Congolese minerals. The biggest question remaining is how will this new legislation affect businesses and the conflict itself, once it is put into place?
Source: New Regulations Seek To Expose Congo Conflict Minerals (Reliability: High)
Comment: Businesses in the US could suffer dramatically if this legislation is put in place. With the SEC estimating losses at $4 billion and the U.S. Chamber for Commerce putting that figure between $8 and $16 billion, this is a huge move that may punish businesses without necessarily fixing the bigger issue of militia and DRC conflict.