A leaked draft of a memorandum that US President Donald Trump is expected to sign in coming days will temporarily block a rule that prevents US companies from obtaining so-called "conflict minerals" which are obtained from war-torn African countries like the Democratic Republic of Congo.
Companies like Apple, Intel, HP and IBM use advanced chips that contain gold, tin, tungsten and tantalum, all of which can be mined at low prices in DRC.
The US rule, part of the Dodd Frank regulatory overhaul that was brought in with bipartisan support in 2010 after the global financial crisis, was put in place because obtaining these minerals from DRC would fund conflict and human rights abuses that are rife in that country.
A report in the Intercept said that the draft memorandum had come to light on the same day on which Trump held a meeting with Intel chief executive Brian Krzanich.
{loadposition sam08}At that meeting, Krzanich told Trump that Intel would be investing US$7 billion to set up a factory in Arizona which would create 3000 jobs when it started operations.
One of the conditions attached to the rule about "conflict minerals" is that it can be waived for two years by the president for purposes of national security.
The rule was meant to drain DRC militias of money by making tech firms review their supply chains to see if any contractor was obtaining these minerals from DRC sources.
When the rule was proposed, Intel and other technology companies lobbied against it. After it was passed, third-party business groups have been used to stymie it.
There was an attempt to block the rule through a lawsuit in the Federal Court in 2014 and one condition, that companies had to reveal on their websites any DRC conflict minerals used, was struck down.