SYS-CON MEDIA Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Glenn Rossman, Cynthia Dunlop

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Motorola Solutions and AVX Expand Solutions for Hope in Democratic Republic of the Congo

Motorola Solutions, Inc. (NYSE: MSI) and AVX Corporation (NYSE: AVX) today announced expansion of Solutions for Hope to the Province of North Kivu, the conflict-prone area of the Democratic Republic of the Congo (DRC). The innovative Solutions for Hope platform allows tantalum from the DRC to be used in Motorola Solutions and AVX products without the involvement of illegal armed groups, or “conflict free.” Tantalum is a material used to manufacture certain capacitors that enable electronic products and is derived from the mineral coltan, which is in rich supply in the DRC.

KEY FACTS

  • Solutions for Hope was launched in July 2011 in the DRC’s Katanga province. For the first time in the region, it created a “closed-pipe” supply model that has proven effective. The model uses a defined set of suppliers covering the mines, smelters, capacitor manufacturers (AVX) and end users (Motorola Solutions).
  • As a result, Solutions for Hope not only validates that “conflict minerals” do not enter the supply chain but also creates economic benefits for artisanal miners and their families. Thus, it supports the policies of the United States and the European Union because it avoids imposition of a de facto, country-wide embargo on the DRC that would impoverish non-conflict areas.
  • The same closed-pipe model will engage a mine (Mwangachuchu Hizi International [MHI]) and smelters (F&X and Global Advanced Metals) to initiate a flow of tantalum within a conflict-free framework in North Kivu that will help enable miners to work and support their families and generate transparent public revenue for the DRC.
  • New legislation requires U.S. companies to disclose the use of certain minerals, including tantalum, used in their products and to describe the process used to ensure that the purchase of these minerals does not fund the illegal armed groups operating in the DRC. Solutions for Hope is consistent with the requirements of this new legislation.
  • Solutions for Hope supports the development and implementation of several initiatives already under way in cooperation with the International Conference of the Great Lakes Region (ICGLR) and the government of the DRC to establish a conflict-free infrastructure in the DRC, such as:
    • The iTSCi Programme, which provides due diligence assessment on the upstream supply chain; baseline and continual evaluation of the circumstances around the mine; facilitation of stakeholder engagement; traceability of minerals produced and independent auditing
    • Certification of mines by German Federal Institute for Geosciences and Natural Resources (BGR) Certified Trading Chains
    • Validation and capacity building of conflict-free supply chains put in place by the government of the DRC with support from multiple donors, including the U.S. Agency for International Development (USAID) and the EU
    • Conflict-free smelter program by the Conflict-Free Sourcing Initiative
    • Due diligence guidance and implementation by the Organization for Economic Co-operation and Development (OECD) and the United Nations Group of Experts
    • Public-Private Alliance for Responsible Minerals Trade, which links global end users with upstream operators and governments to promote responsible sourcing
  • A multi-stakeholder group with representatives from AVX, Motorola Solutions, Global Advanced Metals, the Enough Project, the Public Private Alliance for Responsible Minerals Trade and the USAID implementing partner International Organization for Migration visited the MHI mine site and North Kivu provincial authorities in November 2013 to evaluate the feasibility of the project in the region.
  • An independent auditor has validated Solutions for Hope so it can be used by other companies that wish to demonstrate a responsible supply chain while continuing to use DRC-mined minerals.
  • North Kivu is a province bordering Lake Kivu in the eastern DRC. Its capital is Goma. The region is politically unstable and has been one of the flashpoints in military conflicts in the region since 1994.
  • Solutions for Hope demonstrates the commitment of AVX and Motorola Solutions to being in the vanguard of companies committed to humane, people-focused responses to the conflict-mineral problem.
  • Motorola Solutions and AVX will continue to work with stakeholders to evaluate the project so that lessons can be shared with other industries in other regions and Solutions for Hope can be expanded.

SUPPORTING QUOTES

Willing King, deputy general manager - tantalum, AVX Corporation

“AVX is dedicated to achieving the highest standards for conflict-free supply chains using innovative and reliable methods that preserve and protect human rights around the globe. AVX has been and will continue to be a corporate leader and partner to establish groundbreaking practices that set an example for other companies to reach the goal of a conflict-free supply chain without victimizing the innocent.”

Rich Valin, chief procurement officer, Motorola Solutions

“While the problem of conflict minerals cannot be solved by one company or a single industry, Solutions for Hope underscores Motorola Solutions’ commitment to responsible sourcing from the DRC. We have helped to create this supply line to demonstrate that the DRC can and should remain a viable source of conflict-free minerals. This tightly controlled supply line will validate conflict-free tantalum for these capacitors and support the conflict-free verification systems being implemented in the DRC.”

Sasha Lezhnev, senior policy analyst, Enough Project

“Building a conflict-free mine in the heart of eastern Congo is both a tremendous and courageous step in an area where deadly armed groups roamed just a year ago. Motorola Solutions, AVX, and MHI deserve serious praise for making this happen. We look forward to seeing concrete benefits for Congolese miners and communities from the project, as we have seen from other clean mines in the region.”

Diana Putman, USAID mission director for Democratic Republic of Congo

“The start-up of legitimate conflict-free mining in North Kivu is a significant milestone and supports USAID's long-term goal of establishing a more stable economic environment in eastern Congo that generates benefits for local populations and transparent revenue for the Congo’s government. These efforts demonstrate to the world that with the proper cooperation of governments, civil society and industry a truly conflict-free supply chain can be developed within some of the more historically troubled areas of the DRC. We applaud and support the efforts of companies that engage in conflict-free sourcing from the DRC.”

SUPPORTING RESOURCES

Website: AVX Corporation

Website: Motorola Solutions

Website: Motorola Solutions Sourcing of Metals

Website: Solutions for Hope

U.S. Legislation: Dodd-Frank Wall Street Reform and Consumer Protection Act

About Motorola Solutions

Motorola Solutions is a leading provider of mission-critical communication products and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.” To learn more, visit www.motorolasolutions.com. For ongoing news, please visit our media center or subscribe to our news feed.

About AVX

AVX Corporation is a leading international supplier of electronic passive components and interconnect solutions with 26 manufacturing and customer support facilities in 15 countries around the world. AVX offers a broad range of devices including capacitors, resistors, filters, timing and circuit protection devices and connectors. The company is publicly traded on the New York Stock Exchange (NYSE: AVX).

About Solutions for Hope

Solutions for Hope is a platform that supports companies, civil society organizations and governments working together to responsibly source minerals from regions experiencing conflict and where market access is limited by opaque supply chains. The program manages risk for participating companies and offers recognition for participation. The Solutions for Hope model is being explored for further expansion to gold and to other locations where increased transparency, traceability and supply chain due diligence is sought for tin, tantalum, tungsten and gold. The Solutions for Hope program is part of RESOLVE’s Solutions Network.

MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2014 Motorola Solutions, Inc. All rights reserved.

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