Proactively Addressing Regulatory Risk Across Your Mineral Supply Chain
Cobalt, mica, copper, graphite (natural), lithium, and nickel, otherwise called extended minerals, are used to manufacture many products, including electronics, automotive parts, and cosmetics. Unfortunately, extended minerals are abundant in high-risk, conflict-affected areas, which means they are associated with armed conflict and human rights abuses.
Despite the high demand for these minerals in global supply chains, there are no regulations enforcing responsible sourcing practices for extended minerals. However, many ESG-focused companies have implemented their own responsible sourcing policies for their suppliers and voluntarily report on extended minerals in their supply chains with various tools and technology.
Reporting on extended minerals in your supply chain presents a unique set of challenges, from identifying relevant suppliers to ensuring consistent data collection and regulatory compliance. Leveraging the Extended Minerals Reporting Template (EMRT) can streamline the process by providing a standardized framework for gathering and validating information about the use of minerals beyond the original conflict minerals scope.
Source Intelligence’s Minerals Reporting and Due Diligence solution offers comprehensive support throughout this process, helping companies efficiently manage supplier outreach, data validation, and risk assessment while maintaining alignment with global reporting expectations.
Understanding Extended Minerals
What are extended minerals?
Extended minerals are used to manufacture everyday products, such as electronics, paint, and automotive parts. Unfortunately, these minerals are often mined in high-risk regions, perpetuating armed conflict and human rights abuses. A lack of responsible sourcing regulations targeting extended minerals makes ethical sourcing difficult.
Cobalt
The European Union (EU) and the United States (U.S.) classify cobalt as a Critical Raw Material. Cobalt is an important mineral for technological development due to its natural qualities, like resilience to heat and hardness. It is predominantly used in electronic devices (like smartphones and laptops) and batteries. Most significantly, cobalt is crucial in manufacturing lithium-ion batteries (rechargeable batteries), which are growing in demand as the need for energy storage and zero-emissions increases, and critical to the future of sustainable energy sources.
Mica
Mica is a group of 37 minerals similar in physical structure and chemical makeup. Identified as sheet silicates, micas are structured in thin, distinguishable layers that are flexible, light, and soft. They are known for their heat resistance and electrical conductivity and are mined in sheets or flakes. Ground mica is used as a filler or extender in wallboard joint compounds, paint, drilling “muds,” plastic, automotive parts, cosmetic products, cement, and asphalt. Sheet mica is used in the electronic and electrical industries. Usefulness in insulation and heat resistance drives high demand for mica, especially when used in electronics.
Copper
Copper is a highly conductive metal, making it indispensable in a wide array of electrical applications, including wiring systems, electric motors, and industrial equipment such as heat exchangers. In the construction industry, copper is commonly used for roofing, plumbing, and other architectural elements due to its durability and resistance to corrosion. Beyond its metallic form, copper is frequently combined with other elements to create alloys used in coinage and armament components, such as gun metals. In the realm of chemistry and agriculture, copper compounds like copper sulfate serve practical purposes as fungicides, algicides, and diagnostic agents in sugar detection tests.
Graphite (Natural)
Natural graphite is an essential industrial mineral known for its exceptional thermal stability and electrical conductivity. These characteristics make it particularly valuable in the steel manufacturing process, where it is used in refractory materials that line the interiors of blast furnaces, ladles, and crucibles. Its ability to withstand extreme temperatures and chemical exposure makes graphite crucial for maintaining the integrity and efficiency of high-temperature industrial operations.
Lithium
Lithium is a lightweight, reactive metal that plays a pivotal role in modern technology. It is most prominently used in lithium-ion rechargeable batteries, which power an extensive range of devices—from smartphones and laptops to electric vehicles. In addition to energy storage, lithium contributes to the production of ceramics and glass, enhancing both thermal resistance and structural strength. Its versatility extends further into specialty applications, including lubricants, pharmaceutical formulations, and food additives, where it serves functional and stabilizing roles.
Nickel
Nickel is a multifunctional metal widely utilized across industrial and consumer sectors. It is a fundamental ingredient in the production of stainless steel and advanced alloys, where it imparts enhanced strength, resistance to corrosion, and high-temperature stability. Nickel also plays a key role in battery technologies, particularly in those used for electric vehicles. Its additional uses range from coinage and jewelry to everyday items such as cookware and personal care products. Trace amounts of nickel are naturally present in various food sources as well.
Why is extended mineral mining a problem?
Extended mineral mining is problematic due to the natural abundance of these minerals in conflict-affected and high-risk areas (CAHRAS). CAHRAS are vulnerable to exploitation by armed groups and are at high risk of community degradation. People in these areas often fall victim to forced labor and child labor under hazardous working conditions. In extreme cases, entire communities are forced into modern slavery with no way out of poverty, except into the mines. The growing demand for technology in several industries continues to drive demand for extended minerals.
Cobalt mining
Cobalt mining creates significant problems in the Democratic Republic of Congo. Holding more than 50% of the world's cobalt reserves, the DRC is the leading cobalt producer worldwide, but the cobalt mining industry has harmed its landscape and communities. Cobalt is dangerous for humans to touch and inhale, resulting in inhumane working conditions. Most people mining cobalt in the DRC have no alternative options for work, often imposed upon by armed groups aiming to make a profit. These individuals, often young children, are forced to work in toxic pits, suffering horrible injuries or death due to cave-ins. Areas near mines are also plagued by poor air quality and water contamination, which affects local communities.
Mica mining
Mica mining is heavily associated with child labor, especially in India and Madagascar. These countries are the largest producers of mica worldwide and are linked to illegal mining using children. Communities near mica mines in India, specifically Bihar and Jharkhand, often suffer from extreme poverty, weak governance, and food insecurity. Due to the lack of regulations in these areas, the exploitation of children and adults is common. In Madagascar, children make up half of the workers building mica mines and extracting the minerals.
Take Control of Your Extended Minerals Supply Chain
You've just learned about the key extended minerals—cobalt, mica, copper, graphite, lithium, and nickel—and the challenges linked to their mining. Next, the e-book explores how to implement responsible sourcing practices and use tools like the Extended Minerals Reporting Template (EMRT). It also shows how Source Intelligence’s Minerals Reporting and Due Diligence solution helps streamline data collection and reduce risks across your supply chain.
Read the full e-book to learn how to manage your extended minerals sourcing more responsibly.