Apple
APPLE INC (Form: SD, Received: 03/07/2018 17:32:40)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM SD

Specialized Disclosure Report

 

 

 

LOGO

Apple Inc.

(Exact name of registrant as specified in its charter)

 

 

 

California   001-36743   94-2404110

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

One Apple Park Way

Cupertino, California 95014

(Address of principal executive offices) (Zip Code)

Katherine Adams

Senior Vice President,

General Counsel

(408) 996-1010

(Name and telephone number, including area code, of the

person to contact in connection with this report.)

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:

 

Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2017.

 

 

 


Section 1 – Conflict Minerals Disclosure

Items 1.01 and 1.02 Conflict Minerals Disclosure and Report, Exhibit

Conflict Minerals Disclosure

A copy of Apple Inc.’s (“Apple’s”) Conflict Minerals Report for the reporting period January 1, 2017 to December 31, 2017 is provided as Exhibit 1.01 hereto and is publicly available at investor.apple.com/sec.cfm. * Apple’s determination and related disclosures relating to materials that may come from recycled and scrap sources are included in Apple’s Conflict Minerals Report and incorporated by reference herein.

Section 2 – Exhibits

Item 2.01 Exhibits

Exhibit 1.01 – Conflict Minerals Report for the reporting period January 1, 2017 to December 31, 2017.

* * * * *

 

*  

The reference to Apple’s website is provided for convenience only, and its contents are not incorporated by reference into this Form SD and the Conflict Minerals Report nor deemed filed with the U.S. Securities and Exchange Commission.

 

2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.

Apple Inc.

 

By:

 

/s/ Katherine Adams

   

Date: March 7, 2018

 

Katherine Adams

   
 

Senior Vice President,

   
 

General Counsel

   

 

3

Exhibit 1.01

CONFLICT MINERALS REPORT

Summary of Apple’s Commitment

Apple is deeply committed to upholding human rights and using minerals in its products that do not directly or indirectly finance armed conflict or benefit armed groups. Apple works to safeguard the well-being of people involved in its supply chain and to protect the place where these materials are found. As of December 31, 2017—for the third straight year—100 percent of identified smelters and refiners * in Apple’s supply chain for all applicable products manufactured during calendar year 2017 participated in an independent third-party conflict minerals audit (“Third Party Audit”) program for gold, columbite-tantalite (coltan), cassiterite, wolframite, tantalum, tin, and tungsten (collectively, “conflict minerals”). In 2017, Apple directed its suppliers to remove from its supply chain 10 smelters and refiners not willing to participate in, or complete, a Third Party Audit within given timelines.

Reaching and maintaining 100 percent participation is significant because Apple believes Third Party Audits are the foundation of a strong due diligence program. However, to help end abuses caused by conflict and to protect human rights, further measures beyond Third Party Audits are needed. Apple believes human rights considerations are fundamental. Apple works hard to go beyond basic requirements in order to meet and exceed internationally accepted due diligence standards. The company also takes additional steps to help protect people in its supply chain, with the ultimate goal of improving conditions on the ground in the Democratic Republic of the Congo (“DRC”) and adjoining countries.

Apple’s commitment goes beyond basic requirements in a number of ways. First, while Apple requires its suppliers to ensure that conflict minerals smelters and refiners in its supply chain participate in Third Party Audit programs, it also maintains a strict Supplier Code of Conduct and Supplier Responsibility Standards that pertain to Apple’s partners at all levels. Second, Apple now instructs its suppliers to engage with smelters and refiners in its supply chain to assess and identify a broader range of risks beyond conflict risk. Third, by supporting the expansion of a whistleblowing mechanism, Apple supports initiatives that foster independent, local voices that can raise issues and report abuses at the mine-site level and throughout the supply chain, which Apple believes ultimately will help improve conditions for people living in the DRC and beyond. Finally, Apple annually reviews reported supply chain incidents and public allegations of abuse, potentially linked to certain smelters and refiners in the supply chain, and uses that information to help improve conflict minerals traceability schemes and Third Party Audit programs.

 

*   250 in total as of December 31, 2017.

 

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As the African Great Lakes Region faces ongoing challenges to achieve lasting change, Apple believes that all stakeholders—governments, non-governmental organizations, industries, and local communities—should enhance their efforts to implement comprehensive due diligence programs and work together to measure impact and

improve the situation on the ground.

 

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Introduction

Apple’s conflict minerals program includes due diligence on the source and chain of custody of conflict minerals in its supply chain (see Annex I). It has been designed to conform in all material respects to the Organisation for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Third Edition (2016), and the related supplements (“Due Diligence Guidance”) and its five-step framework.

OECD Step 1: Strong Company Management Systems

Aligned with Step 1 of the Due Diligence Guidance, Apple has robust internal management systems overseeing Apple’s human rights, conflict minerals, and responsible sourcing program. Apple’s responsible minerals sourcing policies and procedures are coordinated by the Supplier Responsibility (“SR”) team within Apple’s World Wide Operations group. The SR team works across a number of Apple business teams and functions, including, but not limited to, Apple’s legal, finance, and procurement groups. The SR team also regularly consults with Apple’s senior management to review progress and set ongoing strategy for its due diligence program.

Apple’s Supplier Code of Conduct and Supplier Responsibility Standards outline Apple’s extensive requirements on the responsible sourcing of conflict minerals. In particular, the standards set out expectations for conflict minerals due diligence and related sourcing matters. These documents are publicly available on Apple’s website. In this way, Apple implements its requirement that smelters and refiners in its supply chain comply with Apple’s strict standards, including that smelters and refiners are required to participate in Third Party Audit programs. To ensure that Apple’s suppliers understand Apple’s conflict minerals sourcing policy, Apple directly communicates its policies and standards to suppliers with, in certain cases, accompanying training.

Apple performs the due diligence measures summarized in Annex I to identify smelters and refiners in Apple’s conflict minerals supply chain and to determine the chain of custody of conflict minerals included in Apple’s products.

Apple also maintains a grievance mechanism through a dedicated conflict minerals email address. Through this email address, suppliers can report directly to Apple concerns or grievances in connection with conflict minerals mining, processing, and trading, which are then reviewed with the participation of relevant Apple business teams.

 

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Apple believes its use of detailed policies, robust implementation systems, and direct engagement with its supplier base has enabled it to achieve a 100 percent Third Party Audit participation rate of identified smelters and refiners in its supply chain since 2015.

Apple believes that Third Party Audits are the backbone of effective due diligence systems, but participation alone is not sufficient. To achieve meaningful outcomes in the supply chain, more must be done beyond Third Party Audits to protect human rights on the ground and measure impacts.

 

LOGO

Going Beyond: Working Together for Progress

Collective Action

Apple is working to make industry-wide progress, beyond its own supply chain. As part of this commitment, in 2017, Apple maintained its participation in the European Partnership for Responsible Minerals; served on the Governance Committee of the Public-Private Alliance for Responsible Minerals Trade; participated in the Responsible Artisanal Gold Solutions Forum and supported its Artisanal- and Small-Scale Mining Toolkit; and chaired the Steering Committee of the Responsible Minerals Initiative (“RMI”), formerly known as the Conflict-Free Sourcing Initiative.

 

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As part of its commitment to industry-wide progress, Apple also benchmarked the scope and requirements of dozens of third-party sustainability standards, including upstream protocols for mineral processors and mining companies. Apple analyzed which frameworks meet its responsible sourcing requirements and published this information in its Supplier Responsibility Standards. By publicly listing acceptable upstream standards that meet Apple’s responsible sourcing expectations for 2017, Apple believes it has clearly communicated its policy and expectations to mining companies and smelters and refiners further up the supply chain.

As a direct result of its benchmarking effort, Apple believes its standards directly contributed to strengthening industry standards in the mining industry. The Mining Association of Canada announced the addition of child and forced labor requirements to its sustainability standard,  Toward Sustainable Mining, based on Apple’s work.

Empowering People

Apple has continued its efforts to empower independent voices in the supply chain and at the mine-site level. In 2017, Apple continued supporting the whistleblowing mechanism of the International Tin Association’s (formerly known as ITRI Limited) International Tin Supply Chain Initiative (“ITSCI”). Apple provided financial assistance for the expansion of its availability to five new provinces in the DRC. ITSCI assists companies in the responsible sourcing of conflict minerals from high-risk areas and monitors the mine sites participating in ITSCI’s traceability and due diligence program. ITSCI’s whistleblowing mechanism allows people to place anonymous calls in local languages to voice concerns related to mineral extraction, trade, handling, and the export of minerals so allegations of misconduct are surfaced and addressed.

Separately, Apple worked with a Third Party Audit program to overhaul and enhance its grievance and complaints mechanism in an attempt to make it more immediately impactful. Apple also provided financial assistance to the Fund for Global Human Rights, a human rights organization that supports local activists in the DRC working on a range of issues, including economic and social rights of mining communities, inclusive economic growth, judicial advocacy, and health, safety, and fair compensation for mining communities .

OECD Step 2: Identification and Assessment of Risk in the Supply Chain

Consistent with Step 2 of the Due Diligence Guidance, Apple has worked on multiple levels in the supply chain to identify and assess risks. Apple collects and processes data provided by suppliers through their completion of the industry-wide standard Conflict Minerals Reporting Template (“CMRT”) to map Apple’s supply chain to the smelter and refiner level. Apple has also made available through Apple’s SupplierCare portal, in English, Mandarin, and certain other languages, online training and education for new and current suppliers in its supply chain. The training and education focuses primarily on Apple’s due diligence expectations, practices, and requirements for conflict minerals reporting. In addition, to the extent that Apple determines a supplier has material gaps in management systems, in data management, or in smelter reporting, the supplier may be offered tailored support by Apple to address the shortfalls.

 

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Further, Apple engaged a third party to conduct a number of in-person audits of suppliers to verify the accuracy of reported CMRT data and to test that corrective actions have been taken with respect to audit findings. In general, based on audits conducted in 2016 and 2017, Apple believes that suppliers have shown improvements in their due diligence practices.

Going Beyond: Expanding Risk Assessment

Apple has sought to enhance its due diligence program, in part, by seeking out information beyond that obtained through Third Party Audit participation. In 2016, Apple first began to comprehensively request identified conflict minerals smelters and refiners in Apple’s supply chain to complete Apple’s Risk Readiness Assessment (“RRA”) survey. The RRA helps assess risk readiness beyond just those associated with conflict and incorporates additional social, environmental, and human rights categories. In particular, the RRA includes assessment categories related to how smelters and refiners treat artisanal and small-scale mining formalization. 1 The RRA also assesses how smelters and refiners address certain community health and safety issues. In 2017, Apple demanded that its suppliers engage with smelters and refiners in its supply chain to complete the RRA and, as a result, 80 percent of identified smelters and refiners provided responses. The chart below illustrates the breakdown of responses Apple received by conflict mineral category, which demonstrates the highest response rate from tin smelters and the lowest response rate from gold refiners.

 

LOGO

 

 

1  

Formalization in this context means the formal establishment and recognition, through policies and commitments by relevant stakeholders, of an artisanal and small-scale mining sector.

 

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Based on its belief in the overall usefulness of the RRA, and with the support of various non-governmental organizations (“NGOs”), Apple took steps in 2017 to make the tool available more broadly to stakeholders. Apple provided the RRA to the Responsible Business Alliance (“RBA”), formerly known as the Electronic Industry Citizenship Coalition, so that other supply chain actors can collectively benefit from its use. RBA has reported to Apple that, as of December 31, 2017, 60 downstream companies and 151 upstream smelters and refiners have utilized the RRA.

OECD Step 3: Strategy to Respond to Identified Risks

In alignment with Step 3 of the Due Diligence Guidance, Apple has designed and implemented systems in its due diligence program to respond to identified risks, either at the Apple level or, in certain instances, by working with or through third-party stakeholders. Apple closely monitors completion of Third Party Audits and re-audits by the smelters and refiners in its supply chain. In the instances where there are delays on the part of the smelters and refiners in implementing corrective action plans developed by Third Party Audits, Apple leverages its downstream position to conduct applicable smelter or refiner outreach. It also reiterates in such instances to relevant smelters and refiners the importance of timely completion and closure of the corrective action plans with respect to such audits. Apple also actively engages and partners with the key Third Party Audit programs—in particular, RMI; the London Bullion Market Association (“LBMA”); the Responsible Jewellery Council (“RJC”); and ITSCI, the traceability program—to address identified risks. In 2017, Apple worked with RMI, LBMA, and RJC in connection with certain smelter, refiner, or mine-level allegations to seek verification of the allegations, to the extent reasonably possible, and advance appropriate corrective action, where necessary.

Apple also took steps in 2017 to strengthen industry due diligence systems. The RMI, LBMA, and RJC each went through scheduled revisions of their auditing standards during 2017 and Apple engaged with each body through the process. Apple used the opportunity to advocate for enhancements to the due diligence requirements and data collection processes related to smelters and refiners and their associated supply chains. In addition, Apple continued to engage gold industry stakeholders in 2017, including banking and jewelry industry groups, to encourage stronger leadership on responsible sourcing by major gold users.

 

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Going Beyond: Strengthening Reporting Systems

Review of ITSCI Incidents

Apple believes that transparency and public reporting promote a better understanding of the success and challenges of industry-wide due diligence efforts and enable more systemic engagement by other stakeholders in the supply chain, such as NGOs. As a result of advocacy by Apple, in 2017, ITSCI published a summary of incidents, from 2011–2016, of abuse potentially associated with mine sites in the DRC supplying certain tin, tantalum, and tungsten smelters. Such publication included incident categorization, resolution rates, and outcomes. In 2017, Apple continued its work with ITSCI and monitored over 1,240 incidents generated through the ITSCI reporting system relating to incidents of abuse potentially associated with mine sites in the DRC and adjoining countries.

Closing Out Reported 2016 Incidents

In 2016, Apple reviewed over 1,300 incidents and allegations reported by ITSCI, local NGOs, and others, relating to incidents potentially associated with mine sites supplying smelters and refiners in the international supply chain, including in the electronics industry supply chain. As reported in Apple’s Conflict Minerals Report for 2016, 15 of these incidents (13 reported through ITSCI and two raised with the LBMA), potentially linked to smelters and refiners reported in Apple’s supply chain, had occurred in which individuals, identified as members or potential members of organizations within the meaning of “armed groups,” as defined in Item 1.01(d)(2) of Form SD (“armed groups”). In particular, the police in the DRC, the DRC national army, and the Mai Mai group, an armed group in the DRC, were alleged to be involved.

In 2017, Apple received assurances from ITSCI that the 13 incidents reported by ITSCI had been closed, in accordance with ITSCI criteria, after ITSCI’s follow-up. Of the 13, seven incidents were resolved through corrective actions, including sanctions of alleged perpetrators, redress by local authorities, and security and due diligence improvements near mine sites. Four incidents were closed due to lack of sufficient evidence, and the remaining two ITSCI incidents were closed due to insufficient engagement from local authorities. With respect to the two allegations raised with the LBMA, which related to an LBMA-audited gold refiner, the LBMA followed up with the refiner directly and subsequently verified the refiner’s response during the refiner’s scheduled LBMA “Responsible Gold Guidance” audit. That audit determined that the facts on which the original allegations were made could not be substantiated. Apple was unable to determine whether specific minerals were included in Apple’s products in any of the 15 incidents—13 incidents reported by ITSCI and the two incidents raised with the LBMA.

 

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Analysis of 2017 ITSCI Incidents

In 2017, Apple monitored over 1,240 ITSCI incidents to identify those potentially linked to smelters reported in Apple’s supply chain, where individuals identified as members or potential members of armed groups were alleged to be involved. Apple identified seven potential incidents involving the police in the DRC, the DRC national army, and the DRC national intelligence agency in connection with a variety of alleged illicit activities. Based on information received to date, these alleged illicit activities ranged from bribery, illegal arrests, and illegal taxation at mining sites and checkpoints or road barriers, to corruption and other criminal activity, potentially for personal gain. Apple has not, to date, been able to determine whether the reported incidents were connected to specific conflict minerals included in Apple’s products. The challenges with tracking specific mineral quantities through the supply chain continue to prevent the traceability of any specific mineral shipment through the entire manufacturing process.

To date, of the seven identified incidents potentially involving armed groups, three have been closed and four remain open, as they occurred near the end of 2017, and investigations and corrective actions are still in process. In two of the closed incidents, the alleged perpetrators have been removed and checkpoints where illegal taxation was purportedly taking place were confirmed to be no longer in use or removed. In addition, in one of these incidents the alleged perpetrator has been sanctioned or received some level of official redress by the local authorities. The remaining third incident was closed due to insufficient and conflicting evidence.

Working with ITSCI, Apple’s 2016 Conflict Minerals Report included for the first time an analysis of outcomes of all ITSCI incidents monitored and closed in 2016. The analysis provided a snapshot of the corrective actions taken to address relevant incidents. Apple believes this brought further transparency to ITSCI’s operations and a deeper understanding of remediation and mitigation measures.

The breakdown of outcomes of monitored and closed ITSCI incidents for 2017 was similar to 2016 incidents. In 2017, of all monitored and closed incidents:

 

   

43% were addressed through due diligence improvements. This category broadly covers a range of potential improvements, from administrative corrections to changes in company sourcing practices. Apple believes that such steps demonstrate the continuous improvement occurring along the supply chain.

   

18% were addressed through improvements in governance and security, which included arrests and prosecution of perpetrators as well as other actions taken by local authorities, such as steps to reduce corruption.

   

15% were closed as unresolved incidents due to ineffective implementation of corrective actions or a lack of agreement between involved stakeholders.

   

10% were closed as unsubstantiated incidents due to lack of sufficient evidence to support the particular allegation.

 

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7% were addressed through awareness raising, including formal training and stakeholder dialogue in the communities.

   

5% were addressed through human rights or health and safety risk mitigation, including repayment to miners or families for damages.

   

2% were closed following the applicable mines, companies, or minerals being suspended or seized, which Apple believes demonstrates the extent to which responsible sourcing requirements impact businesses.

 

LOGO

Public Allegations

In addition to monitoring the 2017 incidents reported by ITSCI, Apple reviewed other public allegations potentially linked to smelters. By reviewing allegations, Apple aims to bridge the reported findings from civil society and other independent voices with industry due diligence mechanisms so that verified abuses on the ground can be addressed and remedied.

Apple believes that addressing incidents and allegations potentially affecting only Apple’s supply chain will not lead to progress on the ground. Accordingly, Apple has taken steps to mobilize a broader group of stakeholders to be informed of and take action on other public allegations. In 2016, Apple developed a process to more systematically identify, categorize, and follow up on relevant allegations. In 2017, Apple worked with key stakeholders to develop a multi-stakeholder grievance platform to foster greater transparency and consistency in how public allegations are identified, reported, and addressed and to drive toward addressing potential abuses on the ground. Apple also worked directly with the RMI, LBMA, and RJC to innovate an OECD-based process for investigating and resolving public allegations. In addition, Apple worked with the United Nations International Organization for Migration to develop a set of public guidelines for industry actors on how to address confirmed allegations in the upstream supply chain.

 

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Though collective measures do not substitute for a company’s own supply chain due diligence, Apple believes these processes will ultimately strengthen Third Party Audit programs and traceability programs that Apple and others in the industry rely on to responsibly source conflict minerals. Apple continues to advocate for Third Party Audit programs to review and address public allegations with the overall goal of improving the reporting, auditing, and traceability aspects of their programs.

OECD Step 4: Independent Third Party Audit of Supply Chain Due Diligence

Apple believes Third Party Audits remain the foundation of robust due diligence systems. In particular, Apple believes that Third Party Audits play a significant role in providing assurances that smelters and refiners have appropriate due diligence systems in place and help ensure that operations and sourcing practices do not support conflict in the DRC and adjoining countries. To date, through advocacy and influence, Apple has driven a steady increase in smelters and refiners participating in Third Party Audits. In 2015, Apple first reached its goal of a 100 percent rate of participation in Third Party Audit programs by identified smelters and refiners in its supply chain, and again achieved a 100 percent rate of participation in 2016 and 2017.

Apple believes that continued pressure on the smelters and refiners removed from Apple’s supply chain in previous years for not participating in a Third Party Audit has led to some smelters and refiners undergoing audits in 2017. As a result, two have received approval to re-enter Apple’s supply chain following their completion of a Third Party Audit in 2017.

If smelters or refiners are unable or unwilling to meet Apple’s high standards, Apple will take necessary actions to cause the termination of the applicable business relationships with such smelters or refiners. In 2017, Apple directed its suppliers to remove from Apple’s supply chain 10 smelters and refiners not willing to participate in, or complete, a Third Party Audit within given timelines.

Going Beyond: Considering Impact

Third Party Audits are currently not designed to capture or assess the extent to which conditions for people living in the affected countries are improving. As part of its commitment to safeguard the well-being of people involved in its supply chain, Apple took steps in 2017 to integrate human rights impact measurements into its due diligence program. Apple sought out available data to evaluate the impact of certification and traceability programs on human rights of people living near mine sites.

 

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In particular, Apple worked with International Peace Information Service (“IPIS”), an independent research institute, to integrate the IPIS data into Apple’s efforts to begin measuring the impact of Third Party Audits and traceability schemes on human rights improvements of people living near mine sites. Data was collected from tin, tantalum, and tungsten mine sites both officially recognized by the DRC government, which includes mine sites participating in the ITSCI traceability program (“validated mine sites”), and not officially recognized by the DRC government (“non-validated mine sites”). As a result of reviewing the data, Apple observed lower interference by actors allegedly perpetuating human rights violations at validated mine sites versus non-validated mine sites. However, more data is needed to track progress on human rights impacts on the ground, which Apple will continue to integrate into its due diligence efforts.

OECD Step 5: Report on Supply Chain Due Diligence

In alignment with Step 5 of the Due Diligence Guidance, Apple reports annually on its due diligence requirements through, among other means, its annual Conflict Minerals Report filed with the Securities and Exchange Commission. Apple also publishes on its website various other public reports that include information about Apple’s due diligence practices beyond conflict minerals.

Going Beyond: Promoting Transparency

Apple is committed to transparency. Apple’s Supplier Code of Conduct and Supplier Responsibility Standards are published and updated annually to reflect emerging risks and stricter requirements than those required in previous years for suppliers and the smelters and refiners from which they source. In addition to publishing all identified conflict minerals smelters and refiners, Apple also publishes on its website an annual list of identified smelters and refiners of cobalt. Apple also makes audit and RRA completion statuses publicly available. Apple further requires suppliers to ensure that applicable smelters and refiners post relevant information and verification or audit status on their websites and, where applicable, be listed on a recognized third-party website. Suppliers are also required to inform Apple immediately of certain high risks associated with conflict minerals, as outlined in Apple’s Supplier Responsibility Standards, through a dedicated Apple email address.

Apple annually publishes on its website the list of its 200 largest suppliers, including component providers and others. In 2017, this represented at least 98 percent of procurement expenditures for materials, manufacturing, and assembly of Apple products worldwide.

 

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Conclusion: Risk Mitigation and Future Due Diligence Measures

Apple will continue to responsibly source conflict minerals throughout its supply chain and press for continuous improvements in industry-wide due diligence approaches and human rights–focused practices to make a positive impact on the lives of people living in the DRC and adjoining countries. Going forward, Apple intends to continue to push beyond the status quo by:

 

   

Continuing to collaborate with relevant stakeholders to improve on how incidents and allegations are tracked and addressed on a transparent, industry-wide basis.

   

Working with industry and NGOs to measure impacts of due diligence programs on conditions in the affected countries.

   

Collaborating with industry groups and NGOs to continue improving traceability of conflict minerals beyond smelters and refiners to the mine level.

   

Increasing use of the RRA by continuing to press for the completion of an RRA by smelters and refiners with the understanding that failure to do so may be a basis for removal.

Determination

Based on the information provided by Apple’s suppliers and its own due diligence efforts through December 31, 2017 (see Annex I), Apple believes the facilities that may have been used to process conflict minerals in Apple’s products include the smelters and refiners listed in Annex II. Through the smelter and refiner identification and validation process, Apple has identified a total of 309 smelters and refiners as potential sources of conflict minerals that, initially, were believed to have been in its supply chain at some point during 2017. Of the 309 smelters and refiners:

 

   

250 smelters and refiners were determined to be in Apple’s conflict minerals supply chain as of December 31, 2017;

   

8 smelters and refiners were subsequently found to be inoperative during 2017; and

   

51 smelters and refiners were removed and no longer reported in Apple’s supply chain as of December 31, 2017.

Of the 51 removed smelters and refiners:

 

   

35 were removed from Apple’s supply chain in 2016 and initially, erroneously or unintentionally reported again in 2017 by suppliers due to reasons such as changes in a supplier’s supply chain or product line; and changes in a supplier’s declaration of scope in the supplier’s CMRT. Apple took action to ensure that the 35 smelters and refiners did not re-enter or remain in Apple’s supply chain.

   

16 were newly removed in 2017 at Apple’s request or by suppliers on their own initiative.

 

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Of these 16 newly removed smelters and refiners:

 

   

10 had been previously participating but subsequently stopped participating in a Third Party Audit program or were not willing to participate in, or complete, a Third Party Audit within given timelines; and

   

6 were removed by suppliers on their own initiative.

Apple’s reasonable country of origin inquiry is based on Third Party Audit information and, to the extent that country of origin information has not been audited, additional information collected by others. To the extent reasonably possible, Apple has documented the country of origin of identified smelters and refiners based on information received through the RMI’s Third Party Audit program—formerly known as the Conflict-Free Smelter Program, now known as the Responsible Minerals Assurance Process (“RMAP”)—the LBMA, a survey of smelters, and/or third-party reviews of publicly available information. However, some country of origin information has not been audited by a third party because, among other reasons, applicable smelters and refiners have gone out of operation before completing a Third Party Audit; smelters and refiners have not gone through a Third Party Audit; or the particular Third Party Audit program either did not provide, or has not yet required reporting of, country of origin information from all smelters and refiners. Therefore, Apple does not have sufficient information to conclusively determine the countries of origin of the conflict minerals in all of its products; however, based on the information provided by Apple’s suppliers, smelters and refiners, as well as from the RMI, the LBMA, and other sources, Apple believes that the conflict minerals contained in its products originate from the countries listed in Annex III, as well as from recycled and scrap sources.

Of all 250 of the smelters and refiners of conflict minerals determined to be in Apple’s supply chain as of December 31, 2017, Apple found no reasonable basis for concluding that any such smelter or refiner sourced conflict minerals that directly or indirectly finance or benefit armed groups.

Of the 41 smelters and refiners known to be sourcing from the DRC or an adjoining country, 40 participated or continued to participate in a Third Party Audit in 2017 involving the review of the traceability of the smelter’s or refiner’s conflict minerals, in addition to a validation of its due diligence systems and country of origin information. The remaining smelter, although it participated in a Third Party Audit in 2016, was removed during 2017 by suppliers on their own initiative from Apple’s supply chain. Apple was informed that the smelter had a change in circumstances and it subsequently determined not to continue to participate in the Third Party Audit program. The foregoing does not include smelters and refiners indirectly sourcing from the DRC or adjoining countries by acquiring conflict minerals from these 41 smelters and refiners.

 

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About This Report

The report has been prepared pursuant to Rule 13p-1 under the Securities Exchange Act of 1934, as amended, for the reporting period from January 1 to December 31, 2017.

This report relates to the process undertaken for Apple products that were manufactured, or contracted to be manufactured, during 2017 and that contain conflict minerals.

These products are Apple’s iPhone ® , iPad ® , Mac ® , iPod ® , Apple TV ® , Apple Watch ® , AirPods ® , HomePod , Beats ® products, displays, and Apple accessories. Third-party products that Apple retails but that it does not manufacture or contract to manufacture are outside of the scope of this report. The smelters and refiners identified in this report include smelters and refiners producing service or spare parts contract manufactured in 2017 for use in connection with the subsequent service of previously sold products, including products serviced in subsequent years using those parts. This report does not include smelters of tantalum, tin, and tungsten and refiners of gold where such conflict minerals are included in end-of-life service parts for products that Apple no longer manufactures or contracts to manufacture.

This report’s use of the terms “smelters” and “refiners” refers to the facilities (i.e., a smelter or refiner) processing primary conflict minerals to retail purity. Apple suppliers have in some cases reported smelters and refiners that Apple believes are not operational or may have been misidentified as smelters and refiners. As a result, Apple continues to conduct independent research on smelters and refiners and to work with suppliers throughout its supply chain to revalidate, improve, and refine their reported information, taking into account supply chain fluctuations and other changes in status or scope and relationships over time. “Identified” smelters and refiners are those that (i) have been reported in supplier surveys, (ii) Apple believes are currently operational, were operational at some point during the applicable year or, while inoperative, were capable of re-engagement with minimal delay or effort, and (iii) otherwise meet the definition of a smelter or refiner, provided that Apple may determine to treat a third party as an identified smelter or refiner notwithstanding a reclassification of such third party or a change in its status. As part of its reasonable country of origin inquiry, Apple concluded that several processing facilities are using only recycled material. Facilities that process only secondary materials (i.e., scrap or recycled material) are excluded from the scope of this report, except where the entity has undergone a Third Party Audit and is otherwise identified in Annex II.

 

Apple Inc. | 2017 Conflict Minerals Report | 15


Participating smelters and refiners are those that have agreed to participate in, or have been found compliant with, the RMAP or cross-recognized independent third-party conflict minerals audit programs confirming their conflict minerals sourcing practices. Such programs may also include audits of traceability requirements, conformity with Due Diligence Guidance, management systems, and/or risk assessments. Cross-recognized independent third-party conflict minerals audit programs include the LBMA’s Responsible Gold Program and the RJC’s Chain-of-Custody Certification. Throughout this report, the audits by these programs are included in references to “Third Party Audit” programs.

This report includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “expects,” “plans,” “intends,” “will,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance. Apple assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law. Subsequent events may affect Apple’s future determinations under Rule 13p-1.

 

Apple Inc. | 2017 Conflict Minerals Report | 16


ANNEX I: Due Diligence Guidance

Apple designed its due diligence measures to conform in all material respects to the OECD Due Diligence Guidance. Apple seeks to meet and exceed internationally accepted due diligence measures on the traceability of conflict minerals in its supply chain.

2017 Due Diligence Measures Performed:

 

  1.

Apple directly communicated to suppliers in its supply chain Apple’s policy for the supply chain of conflict minerals originating from the DRC and adjoining countries.

 

  2.

Apple continued to conduct outreach to smelters and refiners not yet participating in a Third Party Audit program, and participating smelters and refiners appearing to delay the completion of their Third Party Audits, to request their timely participation and completion of an audit in order to meet this requirement. As a result of this process, Apple identified 10 smelters and refiners that did not meet this requirement and directed its suppliers to remove these smelters and refiners from their supply chain.

 

  3.

Apple compared information provided by the RMI against other recognized Third Party Audit programs as part of its due diligence process.

 

  4.

Apple engaged with suppliers throughout its supply chain to identify and assess conflict minerals–related risks, including taking the following specific actions:

 

  a)

Requiring its suppliers utilizing conflict minerals to submit a CMRT in order for Apple to maintain the mapping of its supply chain to the smelter and refiner level.

 

  b)

Requesting its conflict minerals smelters and refiners to complete and deliver an RRA survey in order to report not only on conflict minerals–related risk but also on a broader set of risks.

 

  c)

Engaging a third party to perform audits on certain suppliers to verify the accuracy of their conflict minerals–related reporting and to identify any material gaps in associated management systems.

 

  5.

Apple encouraged improved monitoring and transparent tracking of incidents and allegations to determine whether reported smelters and refiners, identified as potentially sourcing conflict minerals from the DRC or adjoining countries, may be associated with armed groups.

 

  a)

Apple reviewed publicly available information such as investigative reports from NGOs and international organizations that have conducted investigations on individuals and companies associated with armed groups.

 

Apple Inc. | 2017 Conflict Minerals Report | 17


  b)

Apple continued its financial and non-financial support for the development of an incident review process with ITSCI in 2017. Apple monitored and analyzed ITSCI reports of incidents occurring in 2017 to identify which reports related to potential armed group interference in applicable mineral supply chains; whether these incidents had been followed up and addressed; and whether the incidents could be linked to smelters in Apple’s tin, tantalum, or tungsten supply chains.

 

  c)

Apple followed up on identified allegations from NGO reports in the gold supply chain to determine what, if any, corrective actions had occurred.

 

  d)

Apple worked with key stakeholders to develop a multi-stakeholder grievance platform to foster greater transparency and consistency in how public allegations are identified, reported, and addressed and to drive toward addressing potential abuses on the ground.

 

  6.

Through primarily advocacy and influence:

 

  a)

Apple caused an increase in the number of smelters and refiners participating in a Third Party Audit program.

 

  b)

Apple continued its support of a whistleblowing mechanism, which allowed for the expansion of the availability of the whistleblowing mechanism to five new provinces in the DRC.

 

  c)

Apple took steps to make its RRA available more broadly to stakeholders, one result of which was that it was reported that, as of December  31, 2017, 60 downstream companies and 151 upstream smelters and refiners have utilized the RRA.

 

Apple Inc. | 2017 Conflict Minerals Report | 18


ANNEX II: Smelter and Refiner Lists+

List 1: Smelters and refiners reported in Apple’s supply chain as of December 31, 2017.

Smelters and refiners that completed a Third Party Audit will be approved for Apple’s supply chain; otherwise, such smelters and refiners will be removed from Apple’s supply chain.

 


#
   Conflict
Mineral
  
Facility Name of Smelter or Refiner
  

Country

Location of

Smelter or Refiner

       

1

   Gold    Advanced Chemical Co.*    United States
       

2

   Gold    Aida Chemical Industries Co., Ltd.*    Japan
       

3

   Gold    Al Etihad Gold LLC    United Arab Emirates
       

4

   Gold    Allgemeine Gold-und Silberscheideanstalt AG*    Germany
       

5

   Gold    Almalyk Mining and Metallurgical Complex    Uzbekistan
       

6

   Gold    AngloGold Ashanti Córrego do Sítio Mineraçäo    Brazil
       

7

   Gold    Argor-Heraeus S.A.    Switzerland
       

8

   Gold    Asahi Pretec Corp.*    Japan
       

9

   Gold    Asahi Refining Canada Ltd.    Canada
       

10

   Gold    Asahi Refining USA Inc.    United States
       

11

   Gold    Asaka Riken Co., Ltd.*    Japan
       

12

   Gold    AU Traders and Refiners    South Africa
       

13

   Gold    Aurubis AG    Germany
       

14

   Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)***    Philippines
       

15

   Gold    Boliden AB    Sweden
       

16

   Gold    C. Hafner GmbH + Co. KG*    Germany
       

17

   Gold    CCR Refinery – Glencore Canada Corp.    Canada
       

18

   Gold    Chimet S.p.A.    Italy
       

19

   Gold    Daejin Indus Co., Ltd.*    Republic of Korea
       

20

   Gold    Daye Non-Ferrous Metals Mining Ltd.    China
       

21

   Gold    DODUCO Contacts and Refining GmbH*    Germany
       

22

   Gold    Dowa    Japan
       

23

   Gold    DSC (Do Sung Corp.)    Republic of Korea
       

24

   Gold    Eco-System Recycling Co., Ltd.*    Japan
       

25

   Gold    Emirates Gold DMCC    United Arab Emirates
       

26

   Gold    Geib Refining Corp.*    United States
       

27

   Gold    Gold Refinery of Zijin Mining Group Co., Ltd.    China
       

28

   Gold    Great Wall Precious Metals Co., Ltd. of CBPM    China
       

29

   Gold    HeeSung Metal Ltd.*    Republic of Korea

 

Apple Inc. | 2017 Conflict Minerals Report | 19


       

30

   Gold    Heimerle + Meule GmbH*    Germany
       

31

   Gold    Heraeus Metals Hong Kong Ltd.    Hong Kong
       

32

   Gold    Heraeus Precious Metals GmbH & Co. KG    Germany
       

33

   Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    China
       

34

  

Gold

  

Ishifuku Metal Industry Co., Ltd.*

  

Japan

       

35

  

Gold

  

Istanbul Gold Refinery

  

Turkey

       

36

  

Gold

  

Italpreziosi

  

Italy

       

37

  

Gold

  

Japan Mint*

  

Japan

       

38

  

Gold

  

Jiangxi Copper Co., Ltd.

  

China

       

39

  

Gold

  

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

  

Russia

       

40

  

Gold

  

JSC UralElectromed

  

Russia

       

41

  

Gold

  

JX Nippon Mining & Metals Co., Ltd.

  

Japan

       

42

  

Gold

  

Kazzinc

  

Kazakhstan

       

43

  

Gold

  

Kennecott Utah Copper LLC

  

United States

       

44

  

Gold

  

Kojima Chemicals Co., Ltd.*

  

Japan

       

45

  

Gold

  

Korea Zinc Co., Ltd.

  

Republic of Korea

       

46

  

Gold

  

Kyrgyzaltyn JSC

  

Kyrgyzstan

       

47

  

Gold

  

LS-NIKKO Copper Inc.

  

Republic of Korea

       

48

  

Gold

  

Materion

  

United States

       

49

  

Gold

  

Matsuda Sangyo Co., Ltd.*

  

Japan

       

50

  

Gold

  

Metalor Technologies (Hong Kong) Ltd.

  

Hong Kong

       

51

  

Gold

  

Metalor Technologies (Singapore) Pte., Ltd.

  

Singapore

       

52

  

Gold

  

Metalor Technologies (Suzhou) Ltd.

  

China

       

53

  

Gold

  

Metalor Technologies S.A.

  

Switzerland

       

54

  

Gold

  

Metalor USA Refining Corp.

  

United States

       

55

  

Gold

  

Metalúrgica Met-Mex Peñoles S.A. de C.V.

  

Mexico

       

56

  

Gold

  

Mitsubishi Materials Corp.

  

Japan

       

57

  

Gold

  

Mitsui Mining and Smelting Co., Ltd.

  

Japan

       

58

  

Gold

  

MMTC-PAMP India Pvt., Ltd.

  

India

       

59

  

Gold

  

Moscow Special Alloys Processing Plant

  

Russia

       

60

  

Gold

  

Nadir Metal Rafineri San. Ve Tic A.Ş.

  

Turkey

       

61

  

Gold

  

Navoi Mining and Metallurgical Combinat

  

Uzbekistan

 

Apple Inc. | 2017 Conflict Minerals Report | 20


       

62

  

Gold

  

Nihon Material Co., Ltd.*

  

Japan

       

63

  

Gold

  

Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH*

  

Austria

       

64

  

Gold

  

Ohura Precious Metal Industry Co., Ltd.

  

Japan

       

65

  

Gold

  

OJSC The Gulidov Krasnoyarsk Non-Ferrous Metals Plant (OJSC Krastsvetmet)

  

Russia

       

66

  

Gold

  

OJSC Novosibirsk Refinery

  

Russia

       

67

  

Gold

  

PAMP S.A.

  

Switzerland

       

68

  

Gold

  

Prioksky Plant of Non-Ferrous Metals

  

Russia

       

69

  

Gold

  

PT Aneka Tambang (Persero) Tbk

  

Indonesia

       

70

  

Gold

  

PX Précinox S.A.

  

Switzerland

       

71

  

Gold

  

Rand Refinery (Pty) Ltd.

  

South Africa

       

72

  

Gold

  

Republic Metals Corp.

  

United States

       

73

  

Gold

  

Royal Canadian Mint

  

Canada

       

74

  

Gold

  

SAAMP

  

France

       

75

  

Gold

  

Samduck Precious Metals*

  

Republic of Korea

       

76

  

Gold

  

SAXONIA Edelmetalle GmbH*

  

Germany

       

77

  

Gold

  

Schone Edelmetaal B.V.*

  

Netherlands

       

78

  

Gold

  

SEMPSA Joyería Platería S.A.

  

Spain

       

79

  

Gold

  

Shandong Zhaojin Gold & Silver Refinery Co., Ltd.

  

China

       

80

  

Gold

  

Sichuan Tianze Precious Metals Co., Ltd.

  

China

       

81

  

Gold

  

Singway Technology Co., Ltd.*

  

Taiwan

       

82

  

Gold

  

SOE Shyolkovsky Factory of Secondary Precious Metals

  

Russia

       

83

  

Gold

  

Solar Applied Materials Technology Corp.*

  

Taiwan

       

84

  

Gold

  

Sumitomo Metal Mining Co., Ltd.

  

Japan

       

85

  

Gold

  

SungEel HiMetal Co., Ltd.*

  

Republic of Korea

       

86

  

Gold

  

T.C.A. S.p.A.*

  

Italy

       

87

  

Gold

  

Tanaka Kikinzoku Kogyo K.K.

  

Japan

       

88

  

Gold

  

The Refinery of Shandong Gold Mining Co., Ltd.

  

China

       

89

  

Gold

  

Tokuriki Honten Co., Ltd.

  

Japan

       

90

  

Gold

  

Torecom*

  

Republic of Korea

       

91

  

Gold

  

Umicore Brasil Ltda.

  

Brazil

       

92

  

Gold

  

Umicore Precious Metals Thailand*

  

Thailand

       

93

  

Gold

  

Umicore S.A. Business Unit Precious Metals Refining

  

Belgium

       

94

  

Gold

  

United Precious Metal Refining Inc.*

  

United States

 

Apple Inc. | 2017 Conflict Minerals Report | 21


       

95

  

Gold

  

Valcambi S.A.

  

Switzerland

       

96

  

Gold

  

Western Australian Mint trading as The Perth Mint

  

Australia

       

97

  

Gold

  

Wieland Edelmetalle GmbH*

  

Germany

       

98

  

Gold

  

Yamakin Co., Ltd.*

  

Japan

       

99

  

Gold

  

Yokohama Metal Co., Ltd.*

  

Japan

       

100

  

Gold

  

Zhongyuan Gold Smelter of Zhongjin Gold Corp.

  

China

       

101

  

Tantalum

  

Changsha South Tantalum Niobium Co., Ltd.*

  

China

       

102

  

Tantalum

  

D Block Metals LLC*

  

United States

       

103

  

Tantalum

  

Exotech Inc.*

  

United States

       

104

  

Tantalum

  

F&X Electro-Materials Ltd.

  

China

       

105

  

Tantalum

  

FIR Metals & Resource Ltd.

  

China

       

106

  

Tantalum

  

Global Advanced Metals Aizu

  

Japan

       

107

  

Tantalum

  

Global Advanced Metals Boyertown

  

United States

       

108

  

Tantalum

  

Guangdong Rising Rare Metals-EO Materials Ltd.

  

China

       

109

  

Tantalum

  

Guangdong Zhiyuan New Material Co., Ltd.

  

China

       

110

  

Tantalum

  

H.C. Starck Co., Ltd.

  

Thailand

       

111

  

Tantalum

  

H.C. Starck Hermsdorf GmbH

  

Germany

       

112

  

Tantalum

  

H.C. Starck Inc.

  

United States

       

113

  

Tantalum

  

H.C. Starck Ltd.

  

Japan

       

114

  

Tantalum

  

H.C. Starck Smelting GmbH & Co. KG

  

Germany

       

115

  

Tantalum

  

H.C. Starck Tantalum and Niobium GmbH

  

Germany

       

116

  

Tantalum

  

Hengyang King Xing Lifeng New Materials Co., Ltd.

  

China

       

117

  

Tantalum

  

Jiangxi Dinghai Tantalum & Niobium Co., Ltd.

  

China

       

118

  

Tantalum

  

Jiangxi Tuohong New Raw Material

  

China

       

119

  

Tantalum

  

JiuJiang JinXin Nonferrous Metals Co., Ltd.

  

China

       

120

  

Tantalum

  

Jiujiang Tanbre Co., Ltd.

  

China

       

121

  

Tantalum

  

Jiujiang Zhongao Tantalum & Niobium Co., Ltd.

  

China

       

122

  

Tantalum

  

Kemet Blue Metals

  

Mexico

       

123

  

Tantalum

  

Kemet Blue Powder

  

United States

       

124

  

Tantalum

  

King-Tan Tantalum Industry Ltd.**

  

China

       

125

  

Tantalum

  

LSM Brasil S.A.

  

Brazil

       

126

  

Tantalum

  

Metallurgical Products India Pvt., Ltd.

  

India

       

127

  

Tantalum

  

Mineração Taboca S.A.

  

Brazil

 

Apple Inc. | 2017 Conflict Minerals Report | 22


       

128

  

Tantalum

  

Mitsui Mining and Smelting Co., Ltd.

  

Japan

       

129

  

Tantalum

  

Ningxia Orient Tantalum Industry Co., Ltd.

  

China

       

130

  

Tantalum

  

NPM Silmet A.S.

  

Estonia

       

131

  

Tantalum

  

Power Resources Ltd.

  

Macedonia

       

132

  

Tantalum

  

QuantumClean*

  

United States

       

133

  

Tantalum

  

Resind Indústria e Comércio Ltda.*

  

Brazil

       

134

  

Tantalum

  

RFH Tantalum Smeltery Co., Ltd./Yanling Jincheng Tantalum & Niobium Co., Ltd.*

  

China

       

135

  

Tantalum

  

Solikamsk Magnesium Works OAO

  

Russia

       

136

  

Tantalum

  

Taki Chemical Co., Ltd.

  

Japan

       

137

  

Tantalum

  

Telex Metals

  

United States

       

138

  

Tantalum

  

Ulba Metallurgical Plant JSC

  

Kazakhstan

       

139

  

Tantalum

  

XinXing Haorong Electronic Material Co., Ltd.

  

China

       

140

  

Tantalum

  

Yichun Jin Yang Rare Metal Co., Ltd.

  

China

       

141

  

Tin

  

Alpha*

  

United States

       

142

  

Tin

  

Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.

  

China

       

143

  

Tin

  

China Tin Group Co., Ltd.

  

China

       

144

  

Tin

  

CV Ayi Jaya

  

Indonesia

       

145

  

Tin

  

CV Dua Sekawan

  

Indonesia

       

146

  

Tin

  

CV Gita Pesona

  

Indonesia

       

147

  

Tin

  

CV Tiga Sekawan

  

Indonesia

       

148

  

Tin

  

CV United Smelting

  

Indonesia

       

149

  

Tin

  

CV Venus Inti Perkasa

  

Indonesia

       

150

  

Tin

  

Dowa

  

Japan

       

151

  

Tin

  

EM Vinto***

  

Bolivia

       

152

  

Tin

  

Fenix Metals*

  

Poland

       

153

  

Tin

  

Gejiu Fengming Metallurgy Chemical Plant

  

China

       

154

  

Tin

  

Gejiu Jinye Mineral Co.

  

China

       

155

  

Tin

  

Gejiu Kai Meng Industry and Trade LLC

  

China

       

156

  

Tin

  

Gejiu Non-Ferrous Metal Processing Co., Ltd.

  

China

       

157

  

Tin

  

Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.

  

China

       

158

  

Tin

  

Guangdong Hanhe Non-Ferrous Metal Co., Ltd.

  

China

       

159

  

Tin

  

Guanyang Guida Nonferrous Metal Smelting Plant

  

China

 

Apple Inc. | 2017 Conflict Minerals Report | 23


       

160

  

Tin

  

Huichang Jinshunda Tin Co., Ltd.

  

China

       

161

  

Tin

  

Jiangxi Ketai Advanced Material Co., Ltd.

  

China

       

162

  

Tin

  

Magnu’s Minerais Metais e Ligas Ltda.

  

Brazil

       

163

  

Tin

  

Malaysia Smelting Corp. (MSC)

  

Malaysia

       

164

  

Tin

  

Melt Metais e Ligas S.A.

  

Brazil

       

165

  

Tin

  

Metallic Resources Inc.*

  

United States

       

166

  

Tin

  

Metallo Belgium N.V.*

  

Belgium

       

167

  

Tin

  

Metallo Spain S.L.U.*

  

Spain

       

168

  

Tin

  

Mineração Taboca S.A.

  

Brazil

       

169

  

Tin

  

Minsur

  

Peru

       

170

  

Tin

  

Mitsubishi Materials Corp.*

  

Japan

       

171

  

Tin

  

O.M. Manufacturing (Thailand) Co., Ltd.*

  

Thailand

       

172

  

Tin

  

O.M. Manufacturing Philippines Inc.*

  

Philippines

       

173

  

Tin

  

Operaciones Metalurgical S.A.

  

Bolivia

       

174

  

Tin

  

PT Aries Kencana Sejahtera

  

Indonesia

       

175

  

Tin

  

PT Artha Cipta Langgeng

  

Indonesia

       

176

  

Tin

  

PT ATD Makmur Mandiri Jaya

  

Indonesia

       

177

  

Tin

  

PT Babel Inti Perkasa

  

Indonesia

       

178

  

Tin

  

PT Bangka Prima Tin

  

Indonesia

       

179

  

Tin

  

PT Bangka Tin Industry

  

Indonesia

       

180

  

Tin

  

PT Belitung Industri Sejahtera

  

Indonesia

       

181

  

Tin

  

PT Bukit Timah

  

Indonesia

       

182

  

Tin

  

PT DS Jaya Abadi

  

Indonesia

       

183

  

Tin

  

PT Eunindo Usaha Mandiri

  

Indonesia

       

184

  

Tin

  

PT Inti Stania Prima

  

Indonesia

       

185

  

Tin

  

PT Karimun Mining

  

Indonesia

       

186

  

Tin

  

PT Kijang Jaya Mandiri

  

Indonesia

       

187

  

Tin

  

PT Lautan Harmonis Sejahtera

  

Indonesia

       

188

  

Tin

  

PT Menara Cipta Mulia

  

Indonesia

       

189

  

Tin

  

PT Mitra Stania Prima

  

Indonesia

       

190

  

Tin

  

PT O.M. Indonesia **

  

Indonesia

       

191

  

Tin

  

PT Panca Mega Persada

  

Indonesia

 

Apple Inc. | 2017 Conflict Minerals Report | 24


       

192

  

Tin

  

PT Premium Tin Indonesia

  

Indonesia

       

193

  

Tin

  

PT Prima Timah Utama

  

Indonesia

       

194

  

Tin

  

PT Refined Bangka Tin

  

Indonesia

       

195

  

Tin

  

PT Sariwiguna Binasentosa

  

Indonesia

       

196

  

Tin

  

PT Stanindo Inti Perkasa

  

Indonesia

       

197

  

Tin

  

PT Sukses Inti Makmur

  

Indonesia

       

198

  

Tin

  

PT Sumber Jaya Indah

  

Indonesia

       

199

  

Tin

  

PT Timah (Persero) Tbk Kundur

  

Indonesia

       

200

  

Tin

  

PT Timah (Persero) Tbk Mentok

  

Indonesia

       

201

  

Tin

  

PT Tinindo Inter Nusa

  

Indonesia

       

202

  

Tin

  

PT Tommy Utama

  

Indonesia

       

203

  

Tin

  

Resind Indústria e Comércio Ltda.*

  

Brazil

       

204

  

Tin

  

Rui Da Hung

  

Taiwan

       

205

  

Tin

  

Soft Metais Ltda.

  

Brazil

       

206

  

Tin

  

Thaisarco

  

Thailand

       

207

  

Tin

  

White Solder Metalurgia e Mineração Ltda.

  

Brazil

       

208

  

Tin

  

Yunnan Chengfeng Non-ferrous Metals Co., Ltd.

  

China

       

209

  

Tin

  

Yunnan Tin Co., Ltd.

  

China

       

210

  

Tungsten

  

A.L.M.T. Tungsten Corp.

  

Japan

       

211

  

Tungsten

  

ACL Metais Eireli

  

Brazil

       

212

  

Tungsten

  

Asia Tungsten Products Vietnam Ltd.

  

Vietnam

       

213

  

Tungsten

  

Chenzhou Diamond Tungsten Products Co., Ltd.

  

China

       

214

  

Tungsten

  

Chongyi Zhangyuan Tungsten Co., Ltd.

  

China

       

215

  

Tungsten

  

FuJian JinXin Tungsten Co., Ltd.

  

China

       

216

  

Tungsten

  

Ganzhou Huaxing Tungsten Products Co., Ltd.

  

China

       

217

  

Tungsten

  

Ganzhou Jiangwu Ferrotungsten Co., Ltd.

  

China

       

218

  

Tungsten

  

Ganzhou Seadragon W & Mo Co., Ltd.

  

China

       

219

  

Tungsten

  

Global Tungsten & Powders Corp.

  

United States

       

220

  

Tungsten

  

Guangdong Xianglu Tungsten Co., Ltd.

  

China

       

221

  

Tungsten

  

H.C. Starck Smelting GmbH & Co. KG

  

Germany

       

222

  

Tungsten

  

H.C. Starck Tungsten GmbH

  

Germany

       

223

  

Tungsten

  

Hunan Chenzhou Mining Co., Ltd.

  

China

       

224

  

Tungsten

  

Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji

  

China

 

Apple Inc. | 2017 Conflict Minerals Report | 25


       

225

  

Tungsten

  

Hunan Chunchang Nonferrous Metals Co., Ltd.

  

China

       

226

  

Tungsten

  

Hydrometallurg JSC

  

Russia

       

227

  

Tungsten

  

Japan New Metals Co., Ltd.

  

Japan

       

228

  

Tungsten

  

Jiangwu H.C. Starck Tungsten Products Co., Ltd.

  

China

       

229

  

Tungsten

  

Jiangxi Gan Bei Tungsten Co., Ltd.

  

China

       

230

  

Tungsten

  

Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.

  

China

       

231

  

Tungsten

  

Jiangxi Xinsheng Tungsten Industry Co., Ltd.

  

China

       

232

  

Tungsten

  

Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd.

  

China

       

233

  

Tungsten

  

Jiangxi Yaosheng Tungsten Co., Ltd.

  

China

       

234

  

Tungsten

  

Kennametal Fallon

  

United States

       

235

  

Tungsten

  

Kennametal Huntsville

  

United States

       

236

  

Tungsten

  

Malipo Haiyu Tungsten Co., Ltd.

  

China

       

237

  

Tungsten

  

Moliren Ltd.

  

Russia

       

238

  

Tungsten

  

Niagara Refining LLC

  

United States

       

239

  

Tungsten

  

Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC

  

Vietnam

       

240

  

Tungsten

  

Philippine Chuangxin Industrial Co., Inc.

  

Philippines

       

241

  

Tungsten

  

South-East Nonferrous Metal Co., Ltd. of Hengyang City

  

China

       

242

  

Tungsten

  

Tejing (Vietnam) Tungsten Co., Ltd.

  

Vietnam

       

243

  

Tungsten

  

Unecha Refractory Metals Plant

  

Russia

       

244

  

Tungsten

  

Vietnam Youngsun Tungsten Industry Co., Ltd.

  

Vietnam

       

245

  

Tungsten

  

Wolfram Bergbau und Hütten AG

  

Austria

       

246

  

Tungsten

  

Woltech Korea Co., Ltd.

  

Republic of Korea

       

247

  

Tungsten

  

Xiamen Tungsten (H.C.) Co., Ltd.

  

China

       

248

  

Tungsten

  

Xiamen Tungsten Co., Ltd.

  

China

       

249

  

Tungsten

  

Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.

  

China

       

250

  

Tungsten

  

Xinhai Rendan Shaoguan Tungsten Co., Ltd.

  

China

 

+ Certain terms used in this Annex are defined in the report.

 

Apple Inc. | 2017 Conflict Minerals Report | 26


List 2: Smelters and refiners identified in Apple’s supply chain during 2017, but subsequently determined to be inoperative or removed prior to December 31, 2017.

Some smelters and refiners that are no longer reported in Apple’s supply chain may currently be participating in a Third Party Audit.

 


#
   Conflict
Mineral
  
Facility Name of Smelter or Refiner
  

Country

Location of

Smelter or Refiner

       

1

   Gold    Abington Reldan Metals LLC    United States
       

2

   Gold    Atasay Kuyumculuk Sanayi Ve Ticaret A.S.    Turkey
       

3

   Gold    Bangalore Refinery    India
       

4

   Gold    Caridad    Mexico
       

5

   Gold    Cendres + Métaux S.A.**    Switzerland
       

6

   Gold    Degussa Sonne / Mond Goldhandel GmbH    Germany
       

7

   Gold    Elemetal Refining LLC    United States
       

8

   Gold    GCC Gujrat Gold Centre Pvt., Ltd.    India
       

9

   Gold    Guangdong Jinding Gold Ltd.    China
       

10

   Gold    Guoda Safina High-Tech Environmental Refinery Co., Ltd.    China
       

11

   Gold    Hangzhou Fuchunjiang Smelting Co., Ltd.    China
       

12

   Gold    Hunan Chenzhou Mining Co., Ltd.    China
       

13

   Gold    HwaSeong CJ CO., LTD.    Republic of Korea
       

14

   Gold    Kazakhmys Smelting LLC    Kazakhstan
       

15

   Gold    KGHM Polska Miedź Spółka Akcyjna    Poland
       

16

   Gold    Kyshtym Copper-Electrolytic Plant ZAO    Russia
       

17

   Gold    L’azurde Company For Jewelry    Saudi Arabia
       

18

   Gold    L’Orfebre S.A.    Andorra
       

19

   Gold    Lingbao Gold Co., Ltd.    China
       

20

   Gold    Lingbao Jinyuan Tonghui Refinery Co., Ltd.    China
       

21

   Gold    Luoyang Zijin Yinhui Gold Refinery Co., Ltd.    China
       

22

   Gold    Modeltech Sdn Bhd    Malaysia
       

23

   Gold    Morris and Watson    New Zealand
       

24

   Gold    Morris and Watson Gold Coast    Australia
       

25

   Gold    Penglai Penggang Gold Industry Co., Ltd.    China
       

26

   Gold    Refinery of Seemine Gold Co., Ltd.    China
       

27

   Gold    Remondis Argentia B.V.    Netherlands
       

28

   Gold    Sabin Metal Corp.    United States
       

29

   Gold    Safimet S.p.A    Italy
       

30

   Gold    SAFINA A.S.    Czech Republic
       

31

   Gold    Sai Refinery    India

 

Apple Inc. | 2017 Conflict Minerals Report | 27


       

32

   Gold    Samwon Metals Corp.    Republic of Korea
       

33

   Gold    Shandong Tiancheng Biological Gold Industrial Co., Ltd.    China
       

34

   Gold    Tongling Nonferrous Metals Group Co., Ltd.    China
       

35

   Gold    TOO Tau-Ken-Altyn    Kazakhstan
       

36

   Gold    Yunnan Copper Industry Co., Ltd.    China
       

37

   Tantalum    Duoluoshan    China
       

38

   Tantalum    Hi-Temp Specialty Metals Inc.    United States
       

39

   Tin    An Vinh Joint Stock Mineral Processing Co.    Vietnam
       

40

   Tin    CNMC (Guangxi) PGMA Co., Ltd.    China
       

41

   Tin    Cooperativa Metalurgica de Rondônia Ltda.    Brazil
       

42

   Tin    Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Co.**    Vietnam
       

43

   Tin    Estanho de Rondônia S.A.    Brazil
       

44

   Tin    Gejiu Zili Mining And Metallurgy Co., Ltd.    China
       

45

   Tin    HuiChang Hill Tin Industry Co., Ltd. **    China
       

46

   Tin    Jiangxi New Nanshan Technology Ltd.**    China
       

47

   Tin    Modeltech Sdn Bhd    Malaysia
       

48

   Tin    Nghe Tinh Non-Ferrous Metals Joint Stock Co.    Vietnam
       

49

   Tin    PT Cipta Persada Mulia    Indonesia
       

50

   Tin    PT Tirus Putra Mandiri    Indonesia
       

51

   Tin    PT Wahana Perkit Jaya    Indonesia
       

52

   Tin    Super Ligas    Brazil
       

53

   Tin    Tuyen Quang Non-Ferrous Metals Joint Stock Co.    Vietnam
       

54

   Tungsten    Dayu Jincheng Tungsten Industry Co., Ltd.    China
       

55

   Tungsten    Dayu Weiliang Tungsten Co., Ltd.    China
       

56

   Tungsten    Ganzhou Haichuang Tungsten Co., Ltd.    China
       

57

   Tungsten    Ganzhou Yatai Tungsten Co., Ltd.    China
       

58

   Tungsten    Jiangxi Dayu Longxintai Tungsten Co., Ltd.    China
       

59

   Tungsten    Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.    China

* The smelter/refiner is believed to process conflict minerals solely from recycled or scrap sources. It is listed alongside smelters and refiners in this Annex to highlight its efforts to complete a Third Party Audit. Other smelters and refiners determined to be processing conflict minerals solely from recycled or scrap sources reported to be in Apple’s supply chain, which have not undergone a Third Party Audit or which are not seeking to participate in a Third Party Audit, are not listed.

** The smelter/refiner has changed its compliance or operational status since December 31, 2017.

*** The smelter/refiner is in the process of being removed.

 

Apple Inc. | 2017 Conflict Minerals Report | 28


Note: VQB Mineral and Trading Group JSC and Zhouzhou Cemented Carbide Group, Co., Ltd., which in prior periods were classified as smelters, were re-categorized in calendar year 2017 and, accordingly, are not included herein.

Note: Smelter and refiner facility names originate from information provided by the LBMA and/or the RMAP.

 

Apple Inc. | 2017 Conflict Minerals Report | 29


ANNEX III: Countries of Origin of Conflict Minerals

 

Argentina

Armenia

Australia

Austria

Azerbaijan

Benin

Bolivia

Bosnia Herzegovina

Botswana

Brazil

Bulgaria

Burkina Faso

Burundi*

Cambodia

Canada

Chile

China

Colombia

Côte D’Ivoire

Czech Republic

Democratic Republic of the Congo*

Denmark

Dominican Republic

Ecuador

Egypt

Eritrea

Ethiopia

Fiji

Finland

France

French Guiana

Gabon

Georgia

Germany

Ghana

Greece

Guatemala

Guinea

Guyana

Honduras

India

Indonesia

Ireland

Japan

Kazakhstan

Kenya

Kyrgyzstan

Laos

Liberia

Madagascar

Malaysia

Mali

Mauritania

Mexico

Mongolia

Morocco

Mozambique

Myanmar

Namibia

New Caledonia

New Zealand

Nicaragua

Niger

Nigeria

Norway

Panama

Papua New Guinea

Peru

Philippines

Poland

Portugal

Republic of Korea

Romania

Russia

Rwanda*

Saudi Arabia

Senegal

Serbia

Sierra Leone

Slovakia

Solomon Islands

South Africa

Spain

Suriname

Sweden

Switzerland

Taiwan

Tajikistan

Tanzania*

Thailand

Togo

Turkey

Uganda*

United Kingdom

United States

Uruguay

Uzbekistan

Venezuela

Vietnam

Zambia*

Zimbabwe

    

    

    

    

    

    

    

    

    

    

    

    

 

 

* The DRC or adjoining countries

 

Apple Inc. | 2017 Conflict Minerals Report | 30