Focus on the Implications of Dodd-FrankInterview with William Millman of AVX

The newsletter of the Minor Metals Trade Association

October 2012www.mmta.co.uk

MESSAGE FROM THE MMTA EXECUTIVE
It has taken far longer than we everanticipated, but we are finally in a position to launch our long-awaited new
MMTA website.
Please take some time to explore it,
and give us feedback—we intend for it
to continue developing, with new content and features being added all thetime.
Some of the new features to take noteof are:Maria Cox, MMTA General Manager



DIARY DATES 39th Anniversary
Dinner, Intercontinental Hotel, Park
Lane, London,UK, 16th October
2012

The Resource Centre: a repository
for materials and links of relevance to the minor metals sector.
This area will be developed overthe coming months, and one of thefunctions of the Executive will beto ensure that members are kept
informed of developments in theacademic, scientific and politicalarenas relating to minor metals.



A members-only discussion group,
which will provide a private forum
for members to discuss topics ofinterest and submit their own
views on issues relating to minor
metals.

visit to Firth
Rixson, Sheffield,
UK, 14/15th
November 2012

Cornell Club, New
York, USA, 5th
December 2012
 MMTA Christmas



The ability to renew subscriptions
online, saving time and streamlining the process.

More information on the activitiesof the various MMTA committees.



A members-only area of the website, where information not available to the general public can befound. This area will be developed
over the coming months.

Free job advertising on the MMTA
website for MMTA members—saveLunch, Pewterers’
Hall, London, UK,
12th December
2012

2

The ability to book and pay forevents online, improving security
and streamlining the process formembers.

 Dinner and site

 New York Dinner,

An improved members’ directory,
offering more specific search functionality and advertising of member services, increasing visibility
in search engines and usability byvisitors to the MMTA website. As
with the previous website, members can add their logos to theirdirectory page, and can linkthrough to their own company
websites.

on recruitment costs.

Areas coming soon will be information on sampling and assaying
procedures, finalisation of the
MMTA contract template, and athorough review of the metal
norms, all of which will be uploaded to the new website once complete.

The Main Committee has been considering the most effective way of making
members aware of issues of both interest and importance, affecting the markets and applications, as well as theregulatory context of the minor metals
industry. With improved lines of communication—the expanded Crucible
and the new website, for example—theopportunity exists to develop a more
dynamic approach to providing members with information. Looking ahead,the Executive, along with interested
members, will take on an increasingrole in this area.
Another recent development is the endof the Trade & Lobby Committee,brought about by the lack of common
MMTA lobbying position. The Main
Committee wishes to thank Charles
Swindon (RJH Trading), Nick Trillwood (Delta Products) and Michael
Ihlenfeld (FW Hempel) for their hard
work and commitment.
Finally, we would like to ensure that as
many MMTA members as possible arereceiving the Crucible and hearing
about our events, both social and educational, so if you have colleagues who
do not currently receive our communications, please let us know.
Maria Cox, General Manager,
MMTA

MMTA’S 2013
INTERNATIONALMINOR METALSCONFERENCELETTER FROM NORTH AMERICA
Dear Fellow Members
It’s still warm here in New York, and one of the few signs that autumn will soon be here isthat the days are already noticeably drawing in. The sun has yet to rise when I now get up
in the mornings!

Organised by Metal Events Ltd

However, the slow wheels of the law roll inexorably on, and the morning of Thursday,
August 23rd was a dark one for some, in particular for those either still content to receive
certain minerals, whether raw, processed, or in manufactured component form, originally sourced from African conflict zones, or dis-contented, especially from the point of viewof cost, about certifying whence these minerals originally came. The previous day, in tightvotes, the SEC adopted two controversial provisions, sections 1502 and 1504, of the DoddFrank Wall Street Reform and Consumer Protection Act (more commonly know just as
Dodd-Frank) enacted in July 2010. Of the minerals covered, members of the MMTA will
be most concerned with the effect of the law on the trade of tantalite and wolframite.
Whilst section 1504, dealing with the transparency of resource extraction deals, may be of
only passing interest to MMTA members, this will, perhaps, not be the case with section
1502. In this section of the act, dealing with so-called “conflict minerals” originating in
the Democratic Republic of the Congo (DRC), and neighbouring countries, Congress istrying to do its bit to counter violence in that part of Africa.
Now that the SEC has, although tardily, actually adopted its rule (all 356 pages of it) relating to section 1502, it is, I believe, worth members noting several specific aspects both ofit and the section. (Don’t worry, I have no intention of dissecting either or, indeed, commenting on either’s merits.)
First, although the act (page 844) describes conflict minerals as “columbite-tantalite(coltan), cassiterite, gold, wolframite, or their derivatives”, the SEC rule (page 352) limits the derivatives, now, solely to “tantalum, tin, and tungsten.” Niobium (or columbium
as it is often called here) is excluded as a derivative. However, it is essential to note that
the US Secretary of State can include not only other derivatives, but also “[a]ny othermineral or its derivatives” (Ibid) determined as “financing conflict in the Democratic
Republic of the Congo or an adjoining country.”
And this brings us onto the second noteworthy aspect. The section covers conflict minerals originating not only the DRC, both also all “adjoining” countries with which it shares“an internationally recognized border”. These countries are: Angola, Burundi, Central
African Republic, the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda,
and Zambia. This swathe of countries covers a significant proportion of Africa’s landmass.
Finally, quite apart from both the geographical, and (potential) materials, sweep of thesection, there is also the temporal aspect: the act and rule are open ended. Framed in thepresent tense, the rule is, necessarily, forward looking and would appear to cover otherpossible future conflicts of a similar nature to the current situation in the DRC – even if in
another, adjoining, country.
On a completely different front, I always think it is worth keeping an eye on what the US
Department of Defence (DoD) is interested in – publicly – when it comes to minor metals. One way of doing this is to look at what it is seeking, through its various arms, by way
of proposals. At the end of July, in particular, its sponsorship of seven topics in
the Critical Materials Technology Focus Area caught my attention. The topics were:

Advanced Separation Technologies for Extraction of Rare Earth Elements (REE)Novel Primary Processing of Scarce Element Ores

Novel Electrolytic Extraction Processes for Scarce Elements



Efficient, Environmentally-Compatible Recovery Technologies for Rhenium and Other Strategic Critical Materials



Theory-Driven Protocols for Replacing Elemental Composition of Strategic Materials

Sustainable Alloy Design: Rare Earth Materials ChallengeHigh Strength and Toughness Tungsten Carbide (WC) with non-Cobalt (Co) Matrices

Should you want further details of what the Assistant Secretary of Defence (Research &Engineering) is after, you can find the relevant document in the DoD’s Small Business
Innovation Research resource center. Both it and the site are well worth having a look at.
With best wishes from New York to MMTA members everywhere.

Mandarin Oriental
Hotel, Washington DC
April 24th—26th 2013
Book before 31st
October 2012 to takeadvantage of the
MMTA members’
early-bird rate of£650.00
This is a saving of £200 perperson on the non-members’
rate and 40% off the full fee.


Find out the latest information from the leading
experts and industry
movers and shakers

Networking opportunities—over 250 expectedagain next year

Value for money—special
rates for MMTA members mean this event isalways fantastic value for
money



If you are going to attend
one minor metals eventin 2013, then make sure itis this one.

Tom Butcher, Hard Assets Investor© 2012 Tom Butcher

3

MINOR METALS INSIDER
Could the Libor scam havelessons for the discovery ofminor metals prices?

Trevor Tarring competing inthe 2008 Frazer Nash Race at
Cadwell Park. Photo: Mark
Ballard

A lot of commentators on the Libor manipulation scandal havebeen telling us it is "the index
most people haven't heard about".
More fools them! It has acquireda place in financial markets every
bit as influential as Metal Bulletin
prices are to Minor Metals orfor minor metals, ores, alloys andscrap, we also gave the effective
world free market prices for aluminium and nickel (which, incidentally, was still classed as a minor metal when the MMTA wasformed in 1973). As with LME
prices for older metals, the volume of price-taking business indexed on those quotations gavethem considerable authority. But
unlike the LME prices derived
from open outcry trading acrossFollowing on from last edition’s Minor Metals Insider, we have two differing views - from Trevor Tarring and Guy Darby (right) - on the benefits orotherwise of a price discovery system for the minor metals trade.
INSIDE THIS ISSUE

Message from Exec ............. 2
Diary Dates .......................... 2
Letter from the US ............. 3
Opinion.................................. 4
Member Letter .................... 5
AVX Interview ..................... 6
Business Travel .................... 10
Avon Metals ......................... 11
Insurance Update ................ 11
Mufulira Report ................... 12
REACH at 5 Years .............. 13
Day in the Life...................... 14
Course Review .................... 14
Pewter ................................... 15
Member Benefits ................. 16
Scrap ....................................... 16

LME prices are to base metals.
But the good thing about Liborbeing put under the spotlight isthat at least a lot more people
have had a chance to peer into theengine room of how values of animportant index are discovered.
Libor is not a price, but those of
us in the physical commodities
world can see that the way it isformed puts it squarely in the domain of price discovery. And people in metal markets have a lot ofexperience of price discovery,
both as participants in the pricemaking side and as price-takers.
So it is quite permissible for us
lesser mortals who only know
about physical commodities tocomment on the strengths andweaknesses of the Libor formation process.
Back in the sixties and seventies,
when I was in the front line of
Metal Bulletin's price discovery
activity, we not only gave prices

4

the ring, MB prices then would be
hard to justify by reference to themethod of discovering them, depending as it did on an assessment of input information that
could rarely be verified with thenecessary speed.
Back in 1997 in my book
"Corner", which covered metal
market manipulations over thepreceding century, I tried to summarise why trade newspaperdiscovered price indications actually work, despite the unconvincing nature of any explanation you
can give of the methodology. Thiswas in the context of tungsten ore,
which in the thirty years after theend of WWII was notoriously themost volatile metal market, so theone whose price discovery was
the most contentious:"It is often argued that the trade
is under no obligation to tell thejournal about its recent trades or indeed anything at all...

MINOR METALS INSIDER—CONT’D“But this overlooks the fact thatthe process has been going on in
many of the markets covered forthe eighty-odd years the journal
has been in existence. A large
body of principles and practicehas evolved to make the process
consistently reliable. 'The proofof the pudding is in the eating'and the fact is that in a year
many millions of dollars' worthof these metals, ores, and alloys
change hands every day based
on 'the price as published in
Metal Bulletin',".

chemicals, which are equallycentral to the commercial life of
their respective industries.

Some elements of the methodology for forming Metal Bulletin
quotations have changed sincethose days. What has notchanged is the conviction of
those making those quotations
that they are in charge of the process and have a responsibility to
get the right answer. Maybe thatis what has been structurally
missing from Libor, where the'discoverer' is a trade association,
My answer to this dilemma was not an independent jourto set a high barrier for our get- nal. Looking back, it suggests
ting the prices ‘right’ - at leastthat the MMTA members’ votemost of the time - by saying that in 2010 to cease discussion of awhat we aimed to produce wasOpen Price Discovery System"God's price". By this I meant a (OPDS), which was to be impleprice that would be discovered
mented in conjunction with theby an omniscient being with ac- LME, was a good decision. A
cess to the details of every single trade association has many funcdeal done in the reporting period. tions, but one that appears to set
This reflected the belief I shared prices becomes not an associawith my fellow journalists thattion but a cartel. The MMTA did
what we had to offer the trade
well to keep the distinction that,was our commitment to and be- while its individual components
lief in the objectivity of the price are individually concerned with
we were producing. Of course,
trade and profit, when its various
today there is a small band ofentities come together as an assoother toilers in the same tradeciation it is for the wider benefit
newspaper vineyard, includingof its community in a non-profitAmerican Metal Market, Metal
making way. A Libor-type scamPrices, Metal Pages and Platts. could not come to the MMTA
Beyond metals, other trade news- because the price discovery syspapers are producing price indi- tem remains entirely removed
cations for oil, fuels, softs andfrom its direct control.

Trevor Tarring, Former Chairman and Editor of The London
Metal Bulletin
If you wish to comment or provide an alternative point of view, pleasecontact maria@mmta.co.uk.

LETTERS TO THE CRUCIBLE

Dear sirs,
I write in response to Krisvan den Broeck’s article
regarding price discovery,
which appeared in the July
edition of the Crucible.
Kris may not have been aware that
the MMTA invested a considerable
amount of time in collaborating with
the LME, in order to find a workable
alternative price discovery system tothe journalistic format that currently
dominates the minor metal industry.
The result of that collaboration wasan MMTA/LME online price discovery
system, the aim of which was to provide an effective, representative pricing by collating bids and offers ofmetal prices to create a weekly quotation set by market participants. The
proposed mechanism would haveallowed contributors to submit bid/offer prices based on MMTA standard specs for prompt delivery on an
in warehouse Rotterdam basis. Prices
would be collated once a week and a“quotations committee” made up of
MMTA and LME personnel would
review and publish prices accordingly.
This system was presented to themembership and members duly voted
against a continuation of discussions
with the LME. Either they felt thesystem was flawed or that the current less transparent journalistic
price discovery system was preferable.
In my view the system which was
evolved was about as good as you
could get without having the metal
traded on an exchange in fact, again
in my opinion, both cobalt and molybdenum pricing would have worked
better using this system than being
launched on the LME!
If Kris, or indeed anyone else who is
not familiar with this system, would
like to know more, I am sure the
Executive would be happy to forward
the system framework that was madeavailable to members in 2009.

Yours sincerely
Guy Darby
Darton Commodities
MMTA Chairman 2009-2012

5

MMTA INTERVIEW: WILLIAM MILLMAN OF AVX
ON DODD-FRANK AND TANTALUM
Picking up on our Letter from America, and following his fascinatingpresentation at the MMTA’s International Minor Metals Conference earlier
in the year, I recently interviewed William (Bill) Millman, Technical andQuality Director of the AVX Tantalum Division, to find out more about tantalum developments, particularly in light of the US Dodd-Frank Act. Bill has
been involved in all aspects of the tantalum capacitor industry for over 37
years including research, development, engineering, materials, process andnew product development, as well as serving 3 terms as President of theTantalum-Niobium International Study Center (T.I.C.).

“ What trade exists is now more likely to be smuggled ...”The Impact of Dodd-FrankSOME IMAGES FROMTHE SOLUTIONS FOR
HOPE PROJECT

view of the artisanal operations andwater pit/tank for the artisanal mine
operations. July 2011

MMTA members will be particularly interested in understanding more about
the impact of the Dodd-Frank law, which is radically changing the trade flows
of tantalite to market, and I enquire whether its high-minded aim, e.g. to prevent the involvement of militias in artisanal mining, is changing, or willchange, the environment for communities on the ground in a positive way, given that compliance is clearly expensive and bureaucratic.
Bill responds that “according to the latest report from the UN Panel of Expertson the conflict region, sales of the affected minerals (3T's and Gold) have fallen
to less than 30% of their previous level. The report goes onto say that what trade
exists is now more likely to be smuggled, with more of a focus on higher added
value minerals such as gold, which is easier to hide and carry out of the region. So the impact is clear, but the unintended consequences are also clear additional hardship and social dislocation for the area and surrounding regions”. He feels that the act alone will not resolve what is a long standing, complex and seemingly intractable issue, but pro-active engagement to help provide
a legitimate outlet for truly conflict-free minerals will help.
My second question is to ask whether one of the effects of Dodd-Frank will be
to increase the viability of mines in non-conflict zones and, if so, why Australian production – which is clearly non-conflict – has reduced in this period?
Bill answers that “the cost of hard rock mining, such as in the case of Australia,
is quite different from a largely artisanal based one. Hard rock requires a great
deal of long term investment and subsequently requires a long term view
throughout the supply chain. This is not typical for the electronics materials industry and is not limited to that of tantalum. So it has been publically stated thatat the present world market prices the owners of the Australian mine do not seeview of water pit/tank pump as part of
MMR's efforts to enhance and mechanise
the mine. July 20116

a viable option. However, the price of Ta2O5 has been at a high level that historically has never been reached before in a sustained fashion - so it will eventually encourage new mining ventures, expansions of existing lower cost minesand semi-industrialisation of present artisanal ones - but all of this will takeconsiderable time”.
He believes that this will occur worldwide and that there will be a 'premium' on'conflict-free' locations, limited as industry grows more accommodative of'closed-pipe' models for delivery of conflict-free minerals from the greater region.

INTERVIEW….. CONT’D FROM PAGE 6
What About Scrap?

THE MMTA XMAS LUNCHPEWTERERS’ HALL,LONDON, 12TH DEC 2012

I think MMTA members, supplying Tantalum metal into the super alloy industry would be interested to hear Bill’s advice with regards to compliancewith Dodd-Frank. Given that they have not previously had to consider
where raw material behind their scrap may have originated from, I wonder
to what extent they need to know now?
He advises that “if they are genuinely purely sourcing from scrap, then the
act’s regulations are accommodating. However, given the general tightness inthe market, the generators of that scrap are now moving to a closed-loop arrangement, whereby the scrap stays in-house, so such sources are likely to dryup”.
Bill states that “the electronics industry, as represented by the EICC
(Electronic Industry Citizenship Coalition)/GeSI (Global e-Sustainability Initiative), and industry bodies such as ITRI (Industrial Technology Research
Initiative) and the TIC (Tantalum-Niobium International Study Centre), took
the issue of conflict minerals very seriously even before the act was signed, so
have developed tools and mechanisms to be in compliance with the reportingneeds, having deeply engaged with the United Nations, OECD (Organisation
for Economic Co-operation & Development) and the stakeholders in andaround the region of the Great Lakes through the ICGLR (International Conference on the Great Lakes Region)”.
Dodd-Frank ComplianceBill suggests that MMTA members seeking advice on how they should comply
with Dodd-Frank should take note of the following:“There has been dialogue now between other industry bodies, including automotive and aerospace, with the EICC/GeSI bodies to try and ensure alignment as regards such initiatives as the use of validated conflict-free smelters(CFS), in-region sourcing and reporting templates.” Reassuringly, he saysthat “much of the work is already done and is now just being fine tuned, so“ The electronics industry … took the issue of conflictminerals very seriously even before the Act was signed”
the language of the OECD Due Diligence Guidance, as cited by the Act as areasonable source of enquiry, and that of the Act are compatible. The Act itself allows for a phase-in period, dependant upon the size of the company, butmuch of the heavy lifting has already been carried out by the electronics sector, so I would encourage everyone to follow these initiatives, templates andtools”.
The Role of AVX
I am interested to learn more about AVX’s role in these developments, as weunderstand that the company has been a leader in complying with DoddFrank, involving local communities in shareholdings in designated audited
mines, and ensuring traceability of ore via tagging and bagging fromsource. While this has been onerous, has it also been an opportunity for AVX
to show market leadership and corporate social responsibility and, in thismanner, to ensure that leading brand customers, such as Intel and others,
can be comfortable that no link between a consumer product and sufferingin the Congo exists or can be implied?

The MMTA’s Christmas lunch
will this year be taking place on
Wednesday 12th December at a
new venue: Pewterers’ Hall,
headquarters of one of London’shistoric livery companies.
It is the perfect way to end theyear and catch up withcolleagues in the minor metals
industry, or even use it as yourown company Christmas
celebration.
The MMTA will be welcoming
members and associates to theLivery Room, which is adorned
with a wide range of pewter
artefacts, including an impressive
pewter chandelier . Guests will
enjoy a drinks reception,
followed by a 3-course lunch
including wine and port.
For more information on thisannual event, please contact the
Executive. Full details and bookings will be available from early
October.
This year’s lunch is kindly sponsored by Crowe Clark Whitehill.

7

SOME IMAGES FROMTHE SOLUTIONS FOR

HOPE PROJECT

View of the mining operation at the Mai
Baridi mine. July 2011

INTERVIEW...CONTINUED FROM PAGE 7
Bill responds that, “as part of its ongoing commitment to a conflict-free supply
chain, AVX has been at the forefront of industry’s efforts in developing standards
for the supply of tantalum from the mine to the ultimate customer, and is an active participant in the EICC (Electronic Industry Citizenship Coalition) and GeSI,
the Global e-Sustainability Initiative Conflict-Free Smelter program, as well as the
TIC (Tantalum-Niobium International Study Centre) to avoid the use of tantalum
ore which directly or indirectly finances or benefits armed groups in the Democratic Republic of the Congo (DRC) or adjoining countries, and fully supports the
position of the Electronic Components, Assemblies and Materials Association(ECA) toward the same result”.
AVX has gone further, and “since December 1st, 2011, has exclusively sourced thetantalum powder and wire used to manufacture its tantalum capacitors fromsmelters whose compliance with the EICC and the GeSI Conflict-Free Smelter
program has been verified. Now, the exclusive use of EICC/GeSI-validated smelters and compliance with the OECD Due Diligence guidance is expected to be thecornerstone of pending SEC regulations concerning the Dodd-Frank legislation”.
Bill points out that by “employing only EICC/GeSI independently validated, conflict-free smelters, in addition to our own supply chain assessment activities” AVX
has been able to “assure our customers of our compliance with the OECD due dili-

The President of the Congo Artisanal
Mining Cooperative (CDMC) demonstrating the tracking and logging process
at the Mai Baridi mine. July 2011

“ Verifiable conflict-free tantalum ore can bemined and shipped in a manner that is reliable,
sustainable and expandable.”gence guidelines, as well as with the provisions detailed in the Dodd-Frank law”.
He also expects that “the conflict-free tantalum policies that we already have inplace will make us compliant with SEC regulations”. He notes that although“several other manufacturers are making efforts to attain validated compliancewith these provisions, at present, AVX is the only company that meets these exacting standards”.
Solutions for Hope

Workers at the Mai Baridi mine demonstrating the analytical process used at
the mine to establish baseline ore concentration. July 2011

Bill explains the background to the Solutions for Hope (SfH) project. “AVX has
been very heavily involved in the issue of conflict tantalum stretching back to2000 when tantalum last took a huge price spike and was implicated in possible
funding of armed groups in the DRC”.
“When the electronics industry started to get seriously involved 3 years ago
through their industry bodies, EICC and GeSI, we were a natural candidate to assist in having a wide range of stakeholders better understand the dynamics of the
supply chain, players, processes, end uses and market drivers”.

SAESCAM agent weighing and logging
minerals at the Kisengo mine. July 20118

“So we become deeply engaged with the issue through collaborative work with the
EICC/GeSI Extractives Work Group on Conflict Minerals, which then lead to numerous international meetings with the UN, OECD, ICGLR and NGO's to try anddevelop tools, protocols, procedures and mechanisms to eliminate conflict minerals from our supply chains”.
“From our discussions it was clear that while the tools were in place it neededsomeone to exercise them - so AVX become the banker of last resort and financed
the purchasing of ore from the DRC through what we developed as a 'closed pipe'
model of delivery to verify if it were possible to deliver validated conflict free materials to the world market”.

INTERVIEW...CONTINUED FROM PAGE 8

MMTA’S 39TH
ANNIVERSARY DINNERTUESDAY 16TH OCTOBER“At that time we had a single customer agree to take the resulting product Motorola Solutions, quickly followed by Intel, HP, RIM, Nokia, Bosch and others.
Up until then we had a pilot supply chain, but were taking a high reputational andfinancial risk - nevertheless we considered it vital that we engaged with the region,
rather than just walking away and allowing an unintentional, de-facto embargo todestroy the very little income that the indigenous peoples had, creating widespread
hardship for those whose livelihood depends on the mines”.
“The year-long programme has demonstrated that verifiable conflict-free tantalum
ore can be mined and shipped in a manner that is reliable, sustainable and expandable. This allows a third-party verified “closed-pipe” supply route in the DRC
using EICC/GeSI validated conflict-free smelters to become a trusted source of
conflict-free minerals to the tantalum industry. The SfH programme has gonefrom strength to strength and is now being replicated elsewhere and with minerals
other than tantalum”.
Bill explains that “the closed-pipe supply chain will enable AVX to have full traceability of its usage of DRC and other Central African material, and the supporting
chain of custody information to confirm the material is verified as conflict-free, toenable customers to meet the requirements of the Dodd-Frank legislation and the
SEC disclosure requirements”. As a result of this, he says, “AVX will begin to incorporate independently audited, fully traceable, and verified conflict-free ITRI Tin
Supply Chain Initiative (iTSCi) ‘Bag and Tag’ tantalum material, sourced throughAVX-approved, closed-pipe supply routes in the DRC and adjoining Central African countries, into its general SMD tantalum capacitor products beginning January 1st, 2013”. Clearly, this not only makes sense in terms of the humanitarian
perspective, but also in business terms.
“This is a further step in AVX’s continuing effort to keep conflict minerals out of
the supply chain without adversely affecting miners and their families in nonconflict areas and to ensure our customers can comply with the requirements of
the Dodd-Frank legislation. It ensures that AVX remains at the forefront of thetantalum capacitor industry’s efforts to secure responsibly sourced materials thatmeet our customers’ requirements, the principles of the Dodd-Frank legislationand the OECD due diligence guidance on responsible sourcing of minerals fromconflict affected areas with weak governance”.
If anyone would like to learn more about AVX’s activity and policies in this area,
please refer to the links below for more information:
AVX is fully aware of the provisions of § 1502 relating to conflict minerals of the Dodd-Frank bill andis closely tracking the SEC’s implementing regulations. AVX usage of the other materials, such as tin,tungsten and gold, listed in the new legislation is very limited. AVX is working with its suppliers toensure that no other conflict materials are in any of its products. Nonetheless, AVX is committed tomeet or exceed all obligations with respect to those minerals as well.

This year’s MMTA
Anniversary Dinner
will be taking place at
the Intercontinental
Hotel, Park Lane,
London.
Well over 200 people havealready booked for thisevent, so if you would like toattend, please contact the
Executive as soon as possible.
This year’s event will include
a drinks reception, kindly
sponsored by Roskill Information Services.

This year’s main dinner andraffle in support of the Cary
Mufulira Community
Partnership Trust are kindly
sponsored by C Steinweg .

For full details of the AVX Conflict-Free Materials policy please visit AVX On-Line
at: http://www.avx.com/ or http://www.avx.com/docs/corporate/
AVXConflictMinerals.pdf
For additional details about the Solutions for Hope Project, please visit http://solutions-network.org/site-solutionsforhope/ or contact Bill Millman at AVX byphone at +44 (0) 1803 697211 or via email at conflict.free@eur.avx.com.

The drinks reception anddinner will be followed by alive band and dancing for
those who wish to continue
the evening.

By Maria Cox, General Manager

9

SITE VISIT TO FIRTHRIXSON, GLOSSOP, UK

KEY CONSIDERATIONS WHEN TRAVELLINGABROAD FOR BUSINESSNOVEMBER 15TH 2012

Join the MMTA on this exciting
visit to one of the major consumers of minor metals.
Firth Rixson is a world-leading
provider of Seamless Rolled
Rings, Closed Die Forgings,
Open Die Forgings, Extruded
Forgings and Specialty Metals to
primarily the Aerospace market, as well as a spectrum of
related markets.
Supplying to over 40 countries
worldwide, mainly to AeroEngine and Aero-Derivative
Programmes as well as to Landing Gear Components, OffHighway Trucks, Gas Turbines,
Oil Rigs, Armoured Vehicles,
Commercial Trucks and forCast Stick and Wrought Ingot
and Billet customer demand.
The programme for this fascinating site visit will involve an
introduction to the facilities at
Glossop, a factory tour followed by lunch, which will bekindly provided by Firth Rixson,
then a presentation and Q & A
on the work of the company.
For those based in the area or
arriving the evening before,
there will be an informal dinner
at Browns in Sheffield on 14th
November.
For more information or to
make a booking, please contact
the Executive.

Please note, this is a membersonly event, and numbers arestrictly limited.

10

Crime, floods, earthquakes, medical emergencies and transport delays - travelling,whether for business or pleasure, is notwithout risk and already stressful situations
can be made worse by unfamiliar environments, cultures, language barriers and weak
infrastructures.
While most trips pass without incident, employers have a legal duty of care to take all reasonable steps to ensure the safety
and welfare of their employees. This extends to ensuring staff are appropriately
advised and briefed prior to embarking on overseas trips.
Companies are often guilty of overlooking basic precautions to safeguard employees; careful assessment and consideration are required to reduce employee
vulnerability and potential for corporate liability.
The first thing to do is identify and assess the risks associated with the country
and specific travel locations:

What is the current political and social climate?

Is it safe to travel to the country or areas within it?



Is travel essential or can business be conducted without travelling, for example by video conferencing (this may also fit with company environmental
policy)?



What safety and security issues are there - will local security support be required?

“ Companies are often guilty of overlooking basic
precautions to safeguard employees...”Will local laws and customs impact on travel or business activities?

What is the level of general crime and corruption?

What are the health risks - will vaccines or medication be required?



Does the employee need personal security awareness training?

Information is available from many sources on the internet; however it is important that companies do not base their decisions on out-of-date or unreliable
sources. Experience is required to ensure appropriate, proportionate advice isgiven prior to travel.
Before you travel:
Register the trip with your government – examples include the Foreign &Commonwealth Office LOCATE service (www.fco.gov.uk); the US Smart
Traveller Enrolment Program (STEP) (https://step.state.gov/step) and the
Swiss ITINERIS system (www.itineris.eda.admin.ch).



Make use of country hosts, they are an invaluable source of information;
where possible arrange local travel through them.



Acquaint yourself with where you will be travelling – get a map, use Google
Earth and Maps where available.

KEY CONSIDERATIONS WHEN TRAVELLINGABROAD FOR BUSINESS CONT’DCheck your passport expiry date - do you need a visa or work permit?

Copy your passport details page and store it online; leave copies with akey work contact and family members.

Provide your itinerary to the key contact – details should be treated on a“need to know” basis.



Make sure your travel/health insurance is up-to-date and covers the destination country, business travel, loss or theft of cash/valuables andmedical evacuation.



Check whether local customs or extreme weather may affect your travele.g. festivals, public holidays, hurricane season

Confirm you have the numbers to cancel credit cards/travellers’ cheques.



Write essential contact numbers down; keep them separate from yourwallet or purse. You may lose your mobile phone, so do not rely on storing them on the device.

Confirm your mobile phone and voicemail will work where you are going- an additional number to dial in to the voicemail service or a local SIM
card may be required.

Angus Darroch-Warren, CSyP, Linx International Ltd
Angus Darroch-Warren is a Chartered Security Professional with Linx International Ltd, an MMTA member providing security advice and risk management support
to a number of corporate clients.

NEW INSURANCETASK FORCE
Following his addition to
the Main Committee, Rob
Bolton, of Aon Risk
Solutions, will be chairing
our new Insurance Task
Force.
The purpose of the task
force, says Rob, is to“maintain goodcommunications andincrease awarenessbetween the minor metals
and credit insurance
industry, to ensure there
is no dislocation of credit
insurance provision in thecurrent turbulent
environment”.

Who else in your organisation would benefit from receiving the
Crucible and hearing about MMTA events and courses?
Please contact Emma or Maria with details.
CONGRATULATIONS TO AVON METALSOn 21st April 2012, Avon Metals wasproud to be honoured with a 3rd prestigious Queen’s Award, in Her Majesty’s Diamond Jubilee Year.
The award was conferred in recognition of the company’s outstanding
performance in the International
Trade category, demonstrating sustainable growth and profitability
through increased trading worldwide.
Notable areas of expansion include
the United States, Middle East andEastern Europe.
The company has previously won 2
Queen’s Awards in 2009 (Sustainable

Development) and 2007
(International Trade).
Chairman Walter Reid, CEO Steven
Munnoch and all the Directors andStaff of Avon Metals thanked theirbusiness partners around the world
for their continued business and support.
Avon Metals is a specialty alloy makerand metals trader. Minor metals handled include Tantalum, Tungsten, Niobium, Molybdenum, Rhenium, Titanium, Magnesium and Silicon,amongst others.

11

NEW SCHOOL BUILDINGS IN MUFULIRAMMTA’s industry link with Mufu- from sulphur emissions from the nearlira is a catalyst for MCM to build by smelter.
classrooms for the community.
This was the school that Rachel Swindon and Millie Patterson, children of
MMTA members, worked at duringth
On March 27 2012, visitors from thetheir gap year visits.
UK staying at our base in Mufulira
accompanied MCM on a visit to two of Some facts speak for themselves:the poorest schools close to the smelSchool: Muleya Winter Basic Schoolter complex, and one of the poorest
hospitals. Following the visit, MCM
Children: 1668
agreed to help and support projects inOrphans: 371
the community.
Teachers: 38
As proof of their intent MCM agreed,and has now almost completed, thebuilding of new classrooms at Muleya
Winter Basic School, which suffers

Location: Within 500 metres from
the Mine & Smelter Complex of
Mopani in Mufulira“We are trying to plant more orange trees, but we still face the challenge ofacidity of the soil. But at least bananas are doing fine. As for the building, it
is really going on well. As of now they are doing the plastering and roofing.
Probably by Friday they will be through with the whole project. They are really doing a good job. The mines are very keen and usually visit the school
almost everyday to check on the progress.” Judith Shumba, Teacher
Our thanks go out to Mr EmmanuelMutati, Chairman of MCM, and hiscolleagues who accompanied our UKgroup and made this work possible.

Ongoing work on thebuilding of new classrooms at Muleya WinterBasic School

It was during our visit that Mr Solesole, Head Teacher, presented plans
for much needed new classroom
blocks and it is amazing to think thatwhat was no more than a slab on the
ground is now ready to be inaugurated as functioning classrooms.

Zug and MCM in Mufulira are affecting change for the better, and I would
encourage all MMTA members to
support the continuing work by donations, personal interest and, even better, visits.

MMTA members, or young adults,
wishing to join the next groups goingto Mufulira in Feb 2013 or July/
August 2013 should contact either me(lipmann@lipmann.co.uk) or Dr
Laura Tilling
The MMTAs links and continuing dia(ltilling@waysidecc.freeserve.co.uk)
logue with both Glencore Intl AG in

We will once again be holding our raffle in support of the
Cary Mufulira Community Partnership Trust at the MMTA’s
Anniversary Dinner on Tuesday 16th October at theInterContinental Hotel, Park Lane, London.
The raffle is kindly sponsored by C Steinweg.
12

REACH IS 5 YEARS OLD
In 2007 REACH heralded a revolution in industry by reversing the burden of proof andrequiring manufacturers and importers to prove their substances are harmless. Despite generating a significant amount of activity, it remains to be seen whether REACH
will be more of an evolution rather than a revolution.
Main Deadlines Under REACH
The deadlines not only apply to registrants, but also to Downstream Users who have to
notify their uses to their suppliers.
Deadline
Substances
concerned

30 Nov. 2010
≥ 1,000 Tonnes per year
CMR* ≥ 1 Tonne
R50/53** ≥ 100 Tonnes*Carcinogen, Mutagen, Reprotoxic**Very toxic to aquatic organisms

31 May 2013

31 May 2018

100-1,000 Tonnes per year

1-100 Tonnes per year

uses to be guaranteed, but also placing an increased burden on
importers into the EU.

Extended Safety Data Sheets (eSDS), with their complex elaboration of exposure scenarios for substances, are causing somedifficulties to downstream users: it is not enough that they reOver the past five years more than 27,600 dossiers have been
ceive a multitude of scenarios from their suppliers, many ofsubmitted to ECHA (European Chemicals Agency) and 5,500
whom are taking the approach of ‘if in doubt, send everything’;
substances have been registered. 14 substances are currently
subject to authorization (Annex XIV of REACH) and 84 are on they have to verify that their own specific uses of substances
conform to the numerous exposure scenarios they receive.
the Candidate List. Before the next deadline on 31 May 2013,
eSDS can be extensive – all the more if they apply to a mixture
more than 2,600 additional substances are expected for regis– and companies, if not Europe, will have to find a way to comtration, and ECHA expects to evaluate 90 substances between
municate information in a readable and suitable format, so as2012 and 2014.
to avoid information obesity. Ignoring this point would defeat
There is still a long way to go, however. Some important data
the attempt to protect workers’ health and at the same time
published by ECHA at the beginning of June 2012 must be add- destroy the very basis of REACH.
ed to this list: more than 40 % of the substances classified as
Article management is also causing more and more difficulties
carcinogenic, mutagenic and toxic for reproduction (CMRs)
have neither been registered under REACH nor notified under to companies, as they now have to communicate on the composition and safe usage of any Substances of Very High Concern
CLP.
(SVHC) which are present above specific concentrations. The
2012 and Future Deadlines Concern More and More
importance of this provision, which was almost unnoticed at
SMEs and Downstream Users
the beginning, cannot be emphasised enough. The compositionof articles has never been the primary focus of producers, andAlthough the 2010 deadline mainly concerned large groups(manufacture and/or import of substances above 1,000 tonnes/ information on their safe handling again poses the question of
how to formulate recommendations and provide access toyear), the following deadlines will increasingly bring SMEs all
them.
along the supply chain within the scope of REACH.
REACH in a Few Figures

Lastly, the coming years will be marked by the submission of
authorisation dossiers to ECHA. These dossiers will determine
if a substance classified in Annex XIV of REACH is authorised
to stay on the market, and if so, for which uses and what period
Consequently REACH is beginning to affect an increasing num- of time, subject to the implementation of a substitution strateber of SMEs, who are often vulnerable, facing extremely congy. Indeed, the authorisation period is renewable only once.
straining and often costly obligations. Their opinion of the reg- The complexity of the authorisation dossier will mean thatulation is often far from positive, finding it difficult to see thethose impacted must think of REACH in terms of implementing
short-term advantages of its implementation, particularly with global strategies within the company to anticipate market andregard to competitiveness.
regulatory evolution. There is also a discussion to be had on thesubject of restriction of substances, and this process, as well as
Not only does it appear to be essential for companies to think of
its future implications, is as yet unknown.
REACH in terms of their wider strategies for product compliance management and occupational health, but also innovation As it may be difficult to derive competitiveness and innovationand competitiveness. There is however an increasing concern
gains directly from the implementation of REACH, it appears
that future research, and therefore innovation, may be thwarted that questions on how to best and most reliably communicate
by the removal of some substances and that efforts required for information on substances, mixtures and articles could trigger
ensuring one’s compliance to REACH will divert companies
business for many, especially for first movers. Though industry
from investing time and resources in these missions.
must not lack ambition, it must be borne in mind that a lesser
disadvantage is also a competitive advantage. What the last 5
An Evolution Rather Than a Revolution?
years have shown is that perhaps REACH is not only a ‘ban andinnovate’ regulation: it is also fundamentally today’s most
REACH is evolving with time, although some would say not
evolved quality system. The fact that emphasis was never put on
quickly enough, and the market and some of its provisions arethis point, but solely on innovation, while not giving companies
becoming increasingly significant. The growing importance ofthe means to achieve such innovation, may explain why REACH
Safety Data Sheets (SDS), the main vehicle for all information
generated by the REACH registration process, is becoming evi- has not yet lived up to expectations.
dent, allowing the control of risks inherent in the substance’s
The tonnage bands that require registration are decreasing:100 - 1,000 tonnes/year for the 31 May 2013 deadline and 1 100 tonnes/year for the 2018 one.

Pierrick Drapeau, Ecomundo

13

MMTA LEGAL ASPECTS
OF CONTRACTING
How robust are the contracts
that your company enters into?
At what point does a contract
exist between 2 parties? What
are the implied terms of a contract under English law? Whatis the jurisdiction of your contract? What is the governing
law of the contract? What isthe difference between thetwo? Does your company’s
standard terms and conditions
apply to all your contracts?
What are your options for recourse when a contract is not
performed?
If you have a lack of clarity
about the answers to any ofthese questions, I thoroughly
recommend you take a morning out of work to attend the
MMTA’s next Legal Aspects ofContracting Seminar run by
Donald Lambert of Pennington’s Solicitors.
On the 13th September, Pennington’s ran this seminar for
the first time for MMTA members. Participants ranged fromtrainee traders to senior experienced traders, and based on
the feedback received, everyone found the content both
stimulating and informative. A
potentially dry subject was livened up with examples of cases
illustrating the many points oflaw raised during the seminar.
When was the last time youread your company’s standard
terms & conditions? Most of us
left the seminar knowing that it
had been far too long ago.
Look out for the next course,which the MMTA plans to run
again in early 2013.

James Peer, Maritime
House Ltd14NOT AN AVERAGE DAY IN THE LIFE OF DEBORAH
STOTT, FIRTH RIXSONDeborah Stott, Firth Rixson & member ofthe MMTA Main Committee

Six years ago a friend of mine, Paul
Slattery of FC Stone, set up the Charity Ordinary2extraordinary(www.o2e.org). O2e’s Mission Statement is: To make a difference to thelives of seriously and terminally ill
children, whilst encouraging andsupporting all ages to embrace sport
and adventure, get out of their comfort zones and live life to the full.
I have been involved with the charity
from the start, doing an annual fundraising event and, boy, have I done
all of the above! I have taken part inall sorts of events from swimming
the English Channel to competing in
an ultra-marathon across the Gobi
Desert in Mongolia. Each year I
have pushed myself a little further
and this year I will be trekking
through dense jungle track of the
Ujung Kulon National Park within
the province of Banten, Western Java, again to raise money for O2e. As
I self-fund all of my trips, every penny I raise goes to the charity.
What has stood out most for me during these events is the support andmotivation you get from friends andcompetitors alike. My toughest challenge (to date!), in the Gobi Desert,
was definitely one of the most difficult things I have ever attempted in
my entire life. I did not complete theevent in 2009 due to severe blisters,
however, I returned in 2010 ,as I was
absolutely determined to go backand finish it. The event is a 140 milerace carrying everything you need forthe week on your back in temperatures up to 52°C (that’s hot I can tellyou!). The weekend before departing for Mongolia, I did the 3 Peaks
and fell and sprained my ankle. This
did not deter me, and I still went
ahead and completed the event, albeit with a rapidly decreasing senseof humour. The NLP work we haddone at Firth Rixson on positive
thinking made all the difference, andI doubt I would have finished had it
not been for that and the unstinting
support of the competitors and organisers of the event.
It’s amazing what we can achievewith the right mental attitude,whether that is at work or in our personal lives. We only have one life, solive it!
In 2012 O2e are supporting: - Get Kids Going – Helping to
get disabled children into sport(some of the athletes at London 2012
Paralympics got into sport via theGet Kids Going academy)EACH - supports families andcares for children and young people
with life-threatening conditions

 Sparkle – helping children withcomplex disabilities by providing apurpose built centre to provide treatment, care, information, leisure facilities and consultations all under
one roof
Riverside School – Riverside is a
special school providing a wide
range of opportunities for learningfor children with severe and profound learning difficulties and autism.
If you would like to support my 2012charity challenge you can donate via
http://www.justgiving.com/
DeborahStottJava

Deborah Stott, Firth Rixson

WHAT DO CHRISTMAS, ANTIMONY AND BISMUTH
HAVE IN COMMON?
The answer is pewter. Ahead of this year’s MMTA
Christmas lunch, this year being held at the Pewterers’ Hall in London, we wanted to find out more
about a metal that has links to 2 minor metals.
Pewter has long been part of our history; it is essentially tin, but to be worked it has to be mixed
with other metals.
The first charter, granted by King Edward IV in
Cold enamelled pewter cufflinks by Gordon
1473, empowered the Company to regulate theRobertson (Winner of Pewter Live 2012)
trade throughout the kingdom, unlike the powers
granted to the majority of other companies, whose
jurisdiction was limited to the City and its environs. It carried out this function up
to the end of the 18th century.

MINOR METALSIN NEW YORKDINNERThe Cornell Club,New York
December 5th2012

It could seize and destroy pewter below a certain standard, and also impose finesand other penalties on its members for failing to uphold the Craft. From 1503, an
Act of Parliament required Members of the Company to register their‘Touchmarks’, which were ‘to be recorded on Tablets of Pewter’ and kept at theHall of the Company. The use of a Maker’s Touchmark served not only to safeguard
the Craftsman, but also to enable the public to have confidence in the quality of the
product.
The alloy used today in pieces which display the quality touchmarks of the Association of British Pewter
Craftsmen is in the range: tin 91-5% minimum, antimony 8% maximum, copper 2.5% maximum and bismuth 0-5% maximum, as determined by the European Standard for pewter. Modern pewter contains no
lead.
Phoenicians traded for Cornish tin more than 2000
years ago, and pewter articles were made in Roman
Royal lidded porringer 1697 decorated
Britain. Use of pewter peaked in the 17th century
with the busts of Queen Anne and Prince when, from birth to death, people were surrounded
George.
by pewter: items for eating and drinking, bleeding
bowls, bedpans, and snuffboxes; taverns used mugs
and measures; churches used flagons, chalices, patens and baptismal bowls. This pre-eminence ended
with the introduction of porcelain and pottery during
the 18th century. Even so, pewter continued to be
used for decorative purposes. Artists and craftsmen
during the Arts & Crafts Period and the Art Nouveau
Period used pewter and achieved superb results. For
centuries pewter has had an enduring appeal. Today,
it is valued by designers and craftsmen alike for its
beauty and versatility.

Back by popular demand!
Drinks and extensive
networking opportunities
will be followed by dinner,
all at the exclusive Cornell
Club in the heart ofManhattan.
Our special guest speaker
will be discussing topics
critical to the minor
metals markets.
The New York Dinner iskindly sponsored by

Pewter may be fashioned in many ways: by casting in moulds of bell metal, steel orsand, using gravity method, by centrifugal casting, using rubber or silicone moulds,
by spinning, on a lathe, by pressing, rolling or hand forming. The surface may bepolished or darkened, engraved, etched or hammered. It may also be painted,
enameled or decorated. If the artifact is unsatisfactory, the metal can be melted
down (at about 250C) and reused without loss of quality.
Tin, the major constituent of pewter, is produced from tin ore, the major source of
supply being the Far East and South America. Tin is completely non-toxic, melts at
a relatively low temperature (232C), has very good fluidity when molten, has good
formability, and readily forms alloys with other metals. It is a relatively soft metal
and it is for this reason that it is alloyed with other constituents before being usedin the form of pewter.

American Flux & Metal
For more information, orto register, contact the
Executive

The Pewterers' Company has a fine representative collection of British pewter including many pieces of historical importance and items of quality contemporary
pewterware; a representative sample is on display around the hall.

15

MEMBER BENEFITSMembers only early-bird discount ontickets for the MMTA’s International
Minor Metals Conference, offering
substantial savings on the fullconference fee
Significant member discount on all
MMTA event tickets, including theprestigious Anniversary dinner
Access to free meeting/training room
space in central London
Free advertising in members’
directories on the MMTA website,with improved search function, as wellas other MMTA marketing publications
25% discount on Gold level
membership of REACHReady
A range of educational & social events
offering extensive networking
opportunities
A dedicated Mediation & Arbitration
service for MMTA members
A network of MMTA-approved warehouses, each independently inspected
and having Indemnity Insurance tocover unexplained losses
A members only discussion group andarea of the website for improved
information sharing
Regular updates on the activities &
accomplishments of the Association
Use of the MMTA logo & ‘Member of
MMTA’Free job advertising on the MMTA
website, saving on recruitment costs
and directly accessing the target
audience
Trade Regulations
Awareness raising on a wide range ofissues of importance to the minor
metals sector“SO WHAT EXACTLY IS A MINOR METAL?....”
Perceptions of the person on the street:
How do you explain the metals we trade to
the average person walking down thestreet? Being part of the MMTA requires
our answer to start “I trade in the metals
that most people have never heardof”. After reeling off the more well known
metals: “Aluminum, copper, steel, … gold,
platinum, and silver” … “I don’t trade anyof those”, people try and throw out the
only other metals they know: “Titanium?”
Most people think titanium is very expensive … some even know tungsten.
When describing metals like tantalum,
indium, molybdenum, rhenium; how
could any of us reasonably expect the average person to know that ourmetals make their world spin? How could they know that the iPhone they
are using to call us has a capacitor made with tantalum, or a screen coated with indium tin oxide, or that ‘silver’ look is actually a specially sputtered layer of high oxygen chromium? I’m sure many people reading this

“ I trade in the metals that most people have neverheard of.”article didn’t even know niobium is used to block out specific light wavelengths in the new compact florescent light bulbs. Does the average person have any idea that the 100 kg of APR you just traded could one day beinside the engine of the jet they are flying on their next trip?
Scrap, to the average person, is perceived as shredding old cars and melting soda cans; everyday items that everyone can understand. But minor
metals scrap deserves just as much attention in the everyday world. Using the iPhone example above, the scrap generated from making tantalum capacitors is commonly converted into tantalum oxide used in making carbide tooling for the automotive industry. The spent indium tinoxide (ITO) is refined to make new ITO, used in making the solar cells
powering our homes. Spent Cr sputter targets are crushed back into powder and used to make high temperature electrical contacts to operate
heavy machinery.
What is most amazing is that according to the US Geological Survey, in
2010, 65% of the apparent supply of metals used in the USA comes fromrecycling!
David Gussack, Exotech

The MMTA promotes essential
elements that add quality,
safety and enjoyment to ourlives.

Minor Metals Trade Association (MMTA)
326A City Road
Angel Gate (Unit 26)
LondonEC1V 2PT

YOUR LOGO HERE

The MMTA is the world's leading
minor metals industry organisation.

Telephone: +44 (0)207 833 0237/+44 (0)207 713 7099
Fax: +44 (0)207 183 9933
Email: executive@mmta.co.uk