Conflict Minerals: The EU Regulation in Germany

Conflict minerals in Germany: the short answer

The EU Conflict Minerals Regulation, Regulation (EU) 2017/821, requires Union importers of tin, tantalum and tungsten, their ores, and gold (often called 3TG) to carry out supply chain due diligence in line with the OECD Due Diligence Guidance where their annual imports exceed the volume thresholds in Annex I. The obligations have applied since 1 January 2021. They cover a management system, risk management, an independent third-party audit and disclosure. In Germany, the competent authority is the Federal Institute for Geosciences and Natural Resources (Bundesanstalt für Geowissenschaften und Rohstoffe, BGR) under the Mineral Raw Materials Due Diligence Act (Mineralische-Rohstoffe-Sorgfaltspflichten-Gesetz, MinRohSorgG).

The regime is narrow in scope but strict for those within it. Downstream manufacturers using products that contain 3TG are not directly covered, but they face customer, investor and LkSG-related expectations to know where their conflict minerals come from. This article explains who is covered, what the obligations involve in practice, how the BGR enforces them and how the regime fits with broader supply chain and raw materials laws.

Who is covered

The Conflict Minerals Regulation applies to Union importers, meaning natural or legal persons declaring minerals or metals within its scope for release for free circulation in the EU, or on whose behalf such a declaration is made. Coverage depends on the customs code and annual volume. Annex I lists the minerals and metals by Combined Nomenclature code and sets annual volume thresholds per importer.

Part B of Annex I lists metals, for example tin, tungsten and tantalum products, with their own thresholds. Recycled metals and stocks created before certain dates are subject to special rules. Importers below the thresholds are not obliged to comply, but customers may still require due diligence information, and volumes should be reviewed every year because a single large shipment can bring an importer into scope.

The four obligations for importers of conflict minerals

Management system (Article 4)

Importers must adopt and communicate a supply chain policy consistent with the model policy in Annex II of the OECD Due Diligence Guidance, assign senior management responsibility, establish a system of controls and transparency over the supply chain, including chain of custody or traceability information, and operate a grievance mechanism as an early-warning system. For minerals, they must document the mine of origin, quantities and dates of extraction, and taxes, fees and royalties paid. For metals, they must document the smelters and refiners in the supply chain.

Risk management (Article 5)

Importers must identify and assess the risk of adverse impacts in their supply chain based on their management system information and against the standards of their policy, and implement a strategy to respond to identified risks, including continuing trade while pursuing measurable risk mitigation efforts, temporarily suspending trade or disengaging from a supplier.

Third-party audit (Article 6)

Importers must have their supply chain due diligence practices audited by an independent third party covering the management system, risk management and disclosure. Importers of metals are exempt from the audit if they provide substantive evidence, including third-party audit reports, that all smelters and refiners in their supply chain comply with the Regulation; this is deemed fulfilled where they source exclusively from smelters and refiners listed by the Commission under Article 9 (Article 6(2)). Importers can also rely on supply chain due diligence schemes recognised by the Commission under Article 8.

Disclosure (Article 7)

Importers must make audit reports or evidence of conformity with a recognised scheme available to the competent authority, provide due diligence information to their immediate downstream purchasers, and publicly report annually, as widely as possible including on the internet, on their supply chain due diligence policies and practices.

Enforcement in Germany

Under § 2 of the MinRohSorgG, the BGR is the competent authority under Article 10 of the Regulation. It carries out risk-based ex-post checks on Union importers (Article 11 of the Regulation), which include examining the implementation of due diligence obligations, documentation and records, and on-the-spot inspections. The BGR receives import data from customs authorities to identify importers in scope (§ 4 MinRohSorgG).

Under § 3 MinRohSorgG, the BGR can order measures to establish, remedy or prevent breaches, including requiring the submission of documents. If it finds an infringement, it issues a notice of remedial action to the importer (Article 16(3) of the Regulation). The German regime does not provide for administrative fines for substantive breaches; instead, the BGR can enforce its orders by coercive payments of up to EUR 50,000 (§ 9 MinRohSorgG). Importers must provide information and grant access to business premises during checks (§§ 6 and 7 MinRohSorgG).

In practice, a BGR check usually starts with a written request for the supply chain policy, the risk assessment, the latest audit report and the annual public report, followed where necessary by questions on specific suppliers or smelters. Importers should keep these documents in a form that can be produced within a few weeks and should be able to explain how risks identified in the previous year were addressed. A consistent narrative across the policy, the risk register, the audit report and the public report is the best defence against follow-up questions and remedial notices.

The Regulation requires Member States to report annually to the Commission, and the Commission reviews its functioning every three years. Legislative discussions at EU level have considered whether to align the conflict minerals regime with broader due diligence legislation.

Conflict-affected and high-risk areas

The Regulation does not contain a closed list of countries. Instead, it defines conflict-affected and high-risk areas as areas in a state of armed conflict or fragile post-conflict, as well as areas with weak or non-existent governance and security, such as failed states, and widespread and systematic violations of international law, including human rights abuses. The Commission has published non-binding guidelines and an indicative, non-exhaustive list of such areas, prepared with external expertise and updated regularly. Importers cannot rely solely on that list: an area not listed may still be conflict-affected, and importers must use their own risk assessment.

The OECD Due Diligence Guidance, to which the Regulation refers throughout, sets out a five-step framework: establish strong management systems, identify and assess risks in the supply chain, design and implement a strategy to respond to identified risks, carry out an independent third-party audit at identified points in the supply chain, and report annually on supply chain due diligence. Annex II of the Guidance contains the model supply chain policy that importers must reflect. Importers whose processes follow the Guidance closely will find it easier to demonstrate compliance in BGR checks.

Recycled materials and existing stocks

Where an importer can reasonably conclude that metals are derived only from recycled or scrap sources, the Regulation provides lighter requirements, focused on documenting that conclusion. Recycled material must be genuinely recycled; the reprocessing of mined material to disguise its origin does not qualify. Importers should document sources of scrap and the basis for their conclusion carefully, as these claims are a known area of scrutiny.

What it means for downstream companies

Manufacturers of electronics, automotive parts, machinery, jewellery and other products containing 3TG are not Union importers if they buy components or finished products rather than the minerals or metals listed in Annex I. They are therefore not directly subject to the Regulation. However, conflict minerals remain relevant to them for several reasons:

• Customer requirements. Many customers, especially in automotive and electronics, require conflict minerals declarations using industry templates.
• LkSG and CSDDD. Human rights risks in mineral supply chains, such as forced labour, child labour and armed conflict financing, are relevant to the risk analysis under the LkSG and the future CSDDD.
• US rules. Companies with US listings or US customers may be affected by US conflict minerals disclosure requirements.
• Sustainability reporting and financing. Investors and banks ask about responsible sourcing of raw materials, particularly in the context of the energy transition.

Conflict minerals and broader raw materials policy

The EU's Critical Raw Materials Act (Regulation (EU) 2024/1252) and the Battery Regulation (EU) 2023/1542, which contains its own due diligence obligations for certain raw materials in batteries, extend responsible sourcing requirements beyond 3TG. Companies dealing in cobalt, lithium, nickel and natural graphite for batteries face separate obligations. A coherent raw materials compliance programme should therefore cover conflict minerals, battery due diligence and the LkSG in one framework, while respecting the different legal triggers.

Illustration: a hypothetical German precious metals trader imports 300 kg of unrefined gold per year from several countries. It exceeds the 100 kg threshold and is a Union importer. It must have a supply chain policy, document mines of origin and payments, assess risks in conflict-affected and high-risk areas, have its due diligence audited by an independent third party, make the audit report available to the BGR and publish an annual report. If the BGR identifies gaps during an ex-post check, it will issue a notice of remedial action and may enforce compliance with coercive payments.

Compliance checklist

1. Classify imports by CN code and calculate annual volumes per importing entity.
2. Adopt a supply chain policy consistent with the OECD model policy and communicate it to suppliers.
3. Establish traceability or chain-of-custody systems, including smelter and refiner identification.
4. Run a documented risk assessment and response strategy for conflict-affected and high-risk areas.
5. Commission an independent third-party audit or use a recognised scheme.
6. Publish the annual due diligence report and provide information to downstream purchasers.
7. Prepare for BGR checks, including document production within short deadlines.

How TRW & Co helps with conflict minerals

We advise importers and downstream companies on conflict minerals due diligence. We assess whether entities are Union importers above the thresholds, design supply chain policies and management systems, prepare for third-party audits and BGR checks, draft supplier contracts and respond to notices of remedial action. We also integrate conflict minerals compliance with LkSG, CSDDD and battery due diligence. Our work connects with our supply chain due diligence practice and our manufacturing and Mittelstand sector team. See also Battery Regulation obligations and the EU Forced Labour Regulation. To review your raw materials compliance, contact us.