Conflict Minerals Report of Micropac Industries, Inc.
For the reporting period from January 1, 2014 to December 31, 2014
Introduction
This Conflict Minerals Report of Micropac Industries Inc. (“Micropac Industries” or the “Company”) has been prepared pursuant to Rule 13p-1 (“Rule 13p-1”) and Form SD promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period of January 1, 2014 to December 31, 2014.
Rule 13p-1 requires disclosure of certain information when a company manufactures or contracts to manufacture products for which the minerals specified in such Rule are necessary to the functionality or production of those products. The specified minerals are gold, columbite-tantalite (coltan), cassiterite and wolframite, including their derivatives, which are limited to tantalum, tin and tungsten (the “Conflict Minerals”). The “Covered Countries” for the purposes of Rule 13p-1 are the Democratic Republic of the Congo, the Republic of the Congo, the Central African Republic, South Sudan, Uganda, Rwanda, Burundi, Tanzania, Zambia and Angola.
Micropac Industries, Inc. provides power management and controls, sensors and displays, and optocoupler products, components and assemblies and offers a wide range of products sold to the industrial, medical, military, aerospace and space markets. The Company manufactures products for which Conflict Minerals are necessary to their functionality or production.
Description of the Company’s Products Covered by this CMR
The Company’s core technology is the packaging and interconnecting of multi-chip microelectronics modules. Other technologies include light emitting and light sensitive materials and products, including light emitting diodes and silicon phototransistors used in the Company’s optoelectronic components and assemblies.
The Company provides power management and controls, sensors and displays, and optocouplers products, components and assemblies and offers a wide range of products sold to the industrial, medical, military, aerospace and space markets.
The Company’s basic products and technologies include custom design hybrid microelectronic circuits, solid state relays and power controllers, custom optoelectronic assemblies and components, optocouplers, light-emitting diodes, hall-Effect devices, displays, power operational amplifiers, fiber optic components and assemblies, high temperature (200º C) products. Micropac’s products are primarily sold to original equipment manufacturers (OEM’s) who serve the following major markets:
· | Military/Aerospace – aircraft instrumentation, guidance and navigations systems, control circuitry, power supplies, laser positioning |
· | Space – control circuitry, power monitoring and sensing |
· | Industrial – power control equipment, robotics |
The Company’s Reasonable Country of Origin Inquiry and Due Diligence Process
Micropac supports the Dodd-Frank Act’s objective of preventing armed groups in the Covered Countries from benefitting from the sourcing of Conflict Minerals from that region. We are committed to responsible sourcing of materials for our products, including the sourcing of Conflict Minerals, and we expect that our suppliers are likewise committed to responsible sourcing. To that end, our suppliers are expected to take steps to determine if their products contain Conflict Minerals and if so, implement supply chain due diligence processes to identify sources of these minerals and support efforts to eradicate the use of Conflict Minerals which directly or indirectly finance or benefit armed groups in the Covered Countries. In addition, Micropac suppliers should undertake actions to flow down Micropac’s requirements and work with their suppliers to enable products that are DRC conflict free.
Micropac Industries is a downstream company in the supply chain and its due diligence practices were tailored accordingly. The Company used the CFSI practical guidance for downstream companies that identifies five due diligence steps.
Step 1: Establish Strong Company Management Systems
Step 2: Identify and Assess Risks in the Supply Chain
Step 3: Design and Implement a Strategy to Respond to Identified Risks
Step 4: Carry out Independent Third-Party Audit of Smelter/Refiner’s Due Diligence
Step 5: Report Annually on Supply Chain Due Diligence
Micropac Industries conducted a reasonable country of origin inquiry (RCOI) of the Company major suppliers of components or materials that may contain conflict minerals to determine if the Company has reason to believe that the conflict minerals may have originated in the DRC or an adjoining country (the covered country).
The RCOI consisted of supplier surveys, including the “EICC/GeSI Conflict Minerals Reporting Template and resources provided by the Conflict-Free Sourcing Initiative (“CFSI”), including the Conflict-Free Smelter Program (“CFSP”).
Due Diligence Results
Based on the information provided by the Company supply chain and the Company’s due diligence process, the Company identified 261 Smelters or Refineries (SORs) used to process Conflict Minerals in the Covered Products.
With respect to the 261 SORs identified by the Company’s suppliers, 155 were certified as conflict-free by the CFSP and listed on the Conflict-Free Smelter Program’s website as conflict-free certified. The Company suppliers generally provided facility information representing their entire product lines therefore the covered minerals the facilities reported may not be contained in our products. Several suppliers identified covered minerals as sourced from the DRC covered areas on the CFSI active list waiting to be certified, eight suppliers identified covered minerals as sourced from the DRC covered area but CFSP compliant, and 3 suppliers reported smelters as unknown.
The 261 SOR facilities that were identified pursuant to the due diligence process are set forth below.
SMELTER LIST | CERTIFICATION | METAL |
Advanced Chemical Company | Gold | |
AGR Mathey | Gold | |
Aida Chemical Industries Co., Ltd. | CFSP | Gold |
Allgemeine Gold-und Silberscheideanstalt A.G. | CFSP | Gold |
Almalyk Mining and Metallurgical Complex (AMMC) | Gold | |
AngloGold Ashanti Córrego do Sítio Mineraçäo | CFSP | Gold |
Argor-Heraeus SA | CFSP | Gold |
Asahi Pretec Corporation | CFSP | Gold |
Asaka Riken Co., Ltd. | Gold | |
Atasay Kuyumculuk Sanayi Ve Ticaret A.S. | CFSP | Gold |
Aurubis AG | CFSP | Gold |
Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | Gold | |
Bauer Walser AG | Gold | |
Boliden AB | CFSP | Gold |
C. Hafner GmbH + Co. KG | CFSP | Gold |
Caridad | Gold |
CCR Refinery – Glencore Canada Corporation | CFSP | Gold |
Cendres & Métaux SA | Gold | |
Chimet S.p.A. | CFSP | Gold |
China National Gold Group Corporation | Gold | |
Chugai Mining | Gold | |
Colt Refining | Gold | |
Daejin Indus Co. Ltd | Gold | |
DaeryongENC | Gold | |
Daye Non-Ferrous Metals Mining Ltd. | Gold | |
Do Sung Corporation | Gold | |
Doduco | Gold | |
Dowa | CFSP | Gold |
Eco-System Recycling Co., Ltd. | CFSP | Gold |
FSE Novosibirsk Refinery | Gold | |
Gansu Seemine Material Hi-Tech Co Ltd | Gold | |
Guangdong Jinding Gold Limited | Gold | |
Hangzhou Fuchunjiang Smelting Co., Ltd. | Gold | |
Heimerle + Meule GmbH | CFSP | Gold |
Heraeus Ltd. Hong Kong | CFSP | Gold |
Heraeus Precious Metals GmbH & Co. KG | CFSP | Gold |
Hunan Chenzhou Mining Group Co., Ltd. | Gold | |
Hwasung CJ Co. Ltd | Gold | |
Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited | Gold | |
Ishifuku Metal Industry Co., Ltd. | CFSP | Gold |
Istanbul Gold Refinery | CFSP | Gold |
Japan Mint | CFSP | Gold |
Jiangxi Copper Company Limited | Gold | |
Johnson Matthey Inc. | CFSP | Gold |
Johnson Matthey Limited | CFSP | Gold |
JSC Ekaterinburg Non-Ferrous Metal Processing Plant | CFSP | Gold |
JSC Uralelectromed | CFSP | Gold |
JX Nippon Mining & Metals Co., Ltd. | CFSP | Gold |
Kanfort Industrial (Yantai) | Gold | |
Kazzinc | CFSP | Gold |
Kennecott Utah Copper LLC | CFSP | Gold |
Kojima Chemicals Co., Ltd. | CFSP | Gold |
Korea Metal Co. Ltd | Gold | |
Kyrgyzaltyn JSC | Gold | |
L'azurde Company For Jewelry | CFSP | Gold |
Lingbao Jinyuan Tonghui Refinery Co. Ltd. | Gold | |
LS-NIKKO Copper Inc. | CFSP | Gold |
Luoyang Zijin Yinhui Metal Smelt Co Ltd | Gold | |
Materion | CFSP | Gold |
Matsuda Sangyo Co., Ltd. | CFSP | Gold |
Metalor Technologies (Hong Kong) Ltd. | CFSP | Gold |
Metalor Technologies (Singapore) Pte., Ltd. | CFSP | Gold |
Metalor Technologies SA | CFSP | Gold |
Metalor USA Refining Corporation | CFSP | Gold |
METALÚRGICA MET-MEX PEÑOLES, S.A. DE C.V | CFSP | Gold |
Mitsubishi Materials Corporation | CFSP | Gold |
Mitsui Mining and Smelting Co., Ltd. | CFSP | Gold |
Moscow Special Alloys Processing Plant | Gold | |
Navoi Mining and Metallurgical Combinat | Gold | |
Nihon Material Co., Ltd. | CFSP | Gold |
Ohio Precious Metals, LLC | CFSP | Gold |
Ohura Precious Metal Industry Co., Ltd. | CFSP | Gold |
OJSC Kolyma Refinery | Gold | |
OJSC Krastvetmet | CFSP | Gold |
PAMP SA | CFSP | Gold |
Penglai Penggang Gold Industry Co Ltd | Gold | |
Prioksky Plant of Non-Ferrous Metals | Gold | |
PT Aneka Tambang (Persero) Tbk | CFSP | Gold |
PT Timah (Persero) Tbk Mentok | CFSP | Gold |
PX Précinox SA | CFSP | Gold |
Rand Refinery (Pty) Ltd. | CFSP | Gold |
Royal Canadian Mint | CFSP | Gold |
Sabin Metal Corp. | Gold | |
SAMWON METALS Corp. | Gold | |
Schöne Edelmetaal B.V. | CFSP | Gold |
SEMPSA Joyería Platería SA | CFSP | Gold |
Shandong Zhaojin Gold & Silver Refinery Co., Ltd. | CFSP | Gold |
So Accurate Group, Inc. | Gold | |
SOE Shyolkovsky Factory of Secondary Precious Metals | Gold | |
Solar Applied Materials Technology Corp. | CFSP | Gold |
Sumitomo Metal Mining Co., Ltd. | CFSP | Gold |
Tanaka Kikinzoku Kogyo K.K. | CFSP | Gold |
The Great Wall Gold and Silver Refinery of China | Gold | |
The Refinery of Shandong Gold Mining Co., Ltd. | CFSP | Gold |
Tokuriki Honten Co., Ltd. | CFSP | Gold |
Tongling nonferrous Metals Group Co.,Ltd | Gold | |
Torecom | Gold | |
Umicore Brasil Ltda. | CFSP | Gold |
Umicore Precious Metals Thailand | CFSP | Gold |
Umicore SA Business Unit Precious Metals Refining | CFSP | Gold |
United Precious Metal Refining, Inc. | CFSP | Gold |
Valcambi SA | CFSP | Gold |
Western Australian Mint trading as The Perth Mint | CFSP | Gold |
Yamamoto Precious Metal Co., Ltd. | CFSP | Gold |
Yokohama Metal Co., Ltd. | Gold | |
Yunnan Copper Industry Co Ltd | Gold | |
Zhongyuan Gold Smelter of Zhongjin Gold Corporation | CFSP | Gold |
Zijin Mining Group Co., Ltd. Gold Refinery | CFSP | Gold |
Changsha South Tantalum Niobium Co., Ltd. | CFSP | Tantalum |
Conghua Tantalum and Niobium Smeltry | CFSP | Tantalum |
Duoluoshan | CFSP | Tantalum |
Exotech Inc. | CFSP | Tantalum |
F&X Electro-Materials Ltd. | CFSP | Tantalum |
Global Advanced Metals | Tantalum | |
Global Advanced Metals Aizu | CFSP | Tantalum |
Global Advanced Metals Boyertown | CFSP | Tantalum |
Guangdong Zhiyuan New Material Co., Ltd. | CFSP | Tantalum |
H.C. Starck Co., Ltd. | CFSP | Tantalum |
H.C. Starck GmbH Goslar | CFSP | Tantalum |
H.C. Starck GmbH Laufenburg | CFSP | Tantalum |
H.C. Starck Group | Tantalum | |
H.C. Starck Hermsdorf GmbH | CFSP | Tantalum |
H.C. Starck Inc. | CFSP | Tantalum |
H.C. Starck Ltd. | CFSP | Tantalum |
H.C. Starck Smelting GmbH & Co.KG | CFSP | Tantalum |
Hengyang King Xing Lifeng New Materials Co., Ltd. | CFSP | Tantalum |
Hi-Temp Specialty Metals, Inc | CFSP | Tantalum |
JiuJiang JinXin Nonferrous Metals Co., Ltd. | CFSP | Tantalum |
Jiujiang Tanbre Co., Ltd. | CFSP | Tantalum |
KEMET Blue Metals | CFSP | Tantalum |
Kemet Blue Powder | Tantalum | |
KEMET Blue Powder | CFSP | Tantalum |
King-Tan Tantalum Industry Ltd. | CFSP | Tantalum |
LSM Brasil S.A. | CFSP | Tantalum |
Metallurgical Products India Pvt., Ltd. | CFSP | Tantalum |
Mineração Taboca S.A. | CFSP | Tantalum |
Mitsui Mining & Smelting | CFSP | Tantalum |
Molycorp Silmet A.S. | CFSP | Tantalum |
Ningxia Orient Tantalum Industry Co., Ltd. | CFSP | Tantalum |
Plansee | Tantalum | |
Plansee SE Liezen | CFSP | Tantalum |
Plansee SE Reutte | CFSP | Tantalum |
QuantumClean | CFSP | Tantalum |
RFH Tantalum Smeltry Co., Ltd. | CFSP | Tantalum |
Shanghai Jiangxi Metals Co. Ltd | Tantalum |
Solikamsk Magnesium Works OAO | CFSP | Tantalum |
Taki Chemical | CFSP | Tantalum |
Tantalite Resources | Tantalum | |
Telex Metals | CFSP | Tantalum |
Ulba Metallurgical Plant JSC | CFSP | Tantalum |
Yichun Jin Yang Rare Metal Co., Ltd. | CFSP | Tantalum |
Zhuzhou Cemented Carbide | CFSP | Tantalum |
Alpha | CFSP | Tin |
China Tin Group Co., Ltd. | Tin | |
CNMC (Guangxi) PGMA Co. Ltd. | Tin | |
Cooperativa Metalurgica de Rondônia Ltda. | CFSP | Tin |
CV Duta Putra Bangka | Tin | |
CV Gita Pesona | Tin | |
CV Makmur Jaya | Tin | |
CV Serumpun Sebalai | Tin | |
CV United Smelting | CFSP | Tin |
EM Vinto | CFSP | Tin |
Estanho de Rondônia S.A. | Tin | |
Fenix Metals | Tin | |
FSE Novosibirsk Refinery | Tin | |
Gejiu Kai Meng Industry and Trade LLC | Tin | |
Gejiu Non-Ferrous Metal Processing Co., Ltd. | CFSP | Tin |
Gejiu Zi-Li | Tin | |
Huichang Jinshunda Tin Co. Ltd | Tin | |
Jiangxi Ketai Advanced Material Co., Ltd. | CFSP | Tin |
Jiangxi Nanshan | Tin | |
Linwu Xianggui Smelter Co | Tin | |
Liuzhou China Tin | Tin | |
Magnu's Minerais Metais e Ligas Ltda. | CFSP | Tin |
Malaysia Smelting Corporation (MSC) | CFSP | Tin |
Melt Metais e Ligas S/A | CFSP | Tin |
Metallo Chimique | Tin | |
Mineração Taboca S.A. | CFSP | Tin |
Minmetals Ganzhou Tin Co. Ltd. | Tin | |
Minsur | CFSP | Tin |
Mitsubishi Materials Corporation | CFSP | Tin |
Mitsubishi Materials Corporation | CFSP | Tin |
Novosibirsk Integrated Tin Works | Tin | |
O.M. Manufacturing (Thailand) Co., Ltd. | Tin | |
Operaciones Metalurgical S.A. | CFSP | Tin |
PT Alam Lestari Kencana | Tin | |
PT Aries Kencana Sejahtera | Tin | |
PT Artha Cipta Langgeng | CFSP | Tin |
PT ATD Makmur Mandiri Jaya | CFSP | Tin |
PT Babel Inti Perkasa | CFSP | Tin |
PT Babel Surya Alam Lestari | Tin | |
PT Bangka Kudai Tin | Tin | |
PT Bangka Putra Karya | CFSP | Tin |
PT Bangka Timah Utama Sejahtera | Tin | |
PT Bangka Tin Industry | CFSP | Tin |
PT Belitung Industri Sejahtera | CFSP | Tin |
PT BilliTin Makmur Lestari | Tin | |
PT Bukit Timah | CFSP | Tin |
PT DS Jaya Abadi | CFSP | Tin |
PT Eunindo Usaha Mandiri | CFSP | Tin |
PT Fang Di MulTindo | Tin | |
PT HP Metals Indonesia | Tin | |
PT Inti Stania Prima | CFSP | Tin |
PT Justindo | Tin | |
PT Karimun Mining | Tin | |
PT Koba Tin | Tin | |
PT Mitra Stania Prima | CFSP | Tin |
PT Panca Mega Persada | CFSP | Tin |
PT Pelat Timah Nusantara Tbk | Tin | |
PT Prima Timah Utama | CFSP | Tin |
PT Refined Bangka Tin | CFSP | Tin |
PT Sariwiguna Binasentosa | CFSP | Tin |
PT Seirama Tin investment | Tin | |
PT Stanindo Inti Perkasa | CFSP | Tin |
PT Sumber Jaya Indah | Tin | |
PT Timah (Persero) Tbk Mentok | CFSP | Tin |
PT Timah (Persero) Tbk Kundur | CFSP | Tin |
PT Tinindo Inter Nusa | CFSP | Tin |
PT Tommy Utama | Tin | |
PT Yinchendo Mining Industry | Tin | |
Rui Da Hung | Tin | |
Soft Metais Ltda. | CFSP | Tin |
Thaisarco | CFSP | Tin |
White Solder Metalurgia e Mineração Ltda. | CFSP | Tin |
Yunnan Chengfeng Non-ferrous Metals Co., Ltd. | Tin | |
Yunnan Tin Group (Holding) Company Limited | CFSP | Tin |
A.L.M.T. Corp. | Tungsten | |
Chenzhou Diamond Tungsten Products Co., Ltd. | CFSP | Tungsten |
Chongyi Zhangyuan Tungsten Co., Ltd.† | Tungsten | |
Dayu Weiliang Tungsten Co., Ltd. | Tungsten | |
Fujian Jinxin Tungsten Co., Ltd.† | CFSP | Tungsten |
Ganzhou Huaxing Tungsten Products Co., Ltd. | CFSP | Tungsten |
Ganzhou Jiangwu Ferrotungsten Co., Ltd. | CFSP | Tungsten |
Ganzhou Non-ferrous Metals Smelting Co., Ltd. | Tungsten | |
Global Tungsten & Powders Corp.† | CFSP | Tungsten |
Guangdong Xianglu Tungsten Co., Ltd.† | Tungsten | |
H.C. Starck GmbH | CFSP | Tungsten |
H.C. Starck Smelting GmbH & Co.KG | CFSP | Tungsten |
HC Starck | Tungsten | |
HC Starck GmbH | Tungsten | |
Hunan Chenzhou Mining Group Co., Ltd.† | Tungsten | |
Hunan Chunchang Nonferrous Metals Co., Ltd. | CFSP | Tungsten |
Japan New Metals Co., Ltd.† | CFSP | Tungsten |
Jiangxi Gan Bei Tungsten Co., Ltd. | CFSP | Tungsten |
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd. | Tungsten | |
Jiangxi Rare Metals Tungsten Holding Group Co., Ltd. | Tungsten | |
Jiangxi Rare Metals Tungsten Holding Group Co., Ltd. | Tungsten | |
Jiangxi Richsea New Materials Co., Ltd. | Tungsten | |
Jiangxi Yaosheng Tungsten Co., Ltd.† | Tungsten | |
Kennametal Inc. | Tungsten | |
Kennametal Inc. | Tungsten | |
Malipo Haiyu Tungsten Co., Ltd. | CFSP | Tungsten |
Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC | Tungsten | |
Tejing (Vietnam) Tungsten Co., Ltd. | Tungsten | |
Vietnam Youngsun Tungsten Industry Co., Ltd.† | CFSP | Tungsten |
Wolfram Bergbau und Hütten AG† | CFSP | Tungsten |
Wolfram Company CJSC | Tungsten | |
Xiamen Tungsten (H.C.) Co., Ltd. | CFSP | Tungsten |
Xiamen Tungsten Co., Ltd. | CFSP | Tungsten |
Xinhai Rendan Shaoguan Tungsten Co., Ltd.† | Tungsten | |
Zhuzhou Cemented Carbide Group Co Ltd | Tungsten |
The Company has reasonably determined that the countries of origin of its necessary Conflict Minerals include those set forth below.
METAL | Smelter Country | METAL | ||
UNITED STATES | Gold | JAPAN | Tantalum | |
AUSTRALIA | Gold | THAILAND | Tantalum | |
JAPAN | Gold | GERMANY | Tantalum | |
GERMANY | Gold | MEXICO | Tantalum | |
UZBEKISTAN | Gold | BRAZIL | Tantalum | |
BRAZIL | Gold | INDIA | Tantalum | |
SWITZERLAND | Gold | ESTONIA | Tantalum |
TURKEY | Gold | AUSTRIA | Tantalum | |
PHILIPPINES | Gold | RUSSIAN FEDERATION | Tantalum | |
SWEDEN | Gold | SOUTH AFRICA | Tantalum | |
MEXICO | Gold | KAZAKHSTAN | Tantalum | |
CANADA | Gold | UNITED STATES | Tin | |
ITALY | Gold | CHINA | Tin | |
CHINA | Gold | BRAZIL | Tin | |
CHILE | Gold | INDONESIA | Tin | |
KOREA, REPUBLIC OF | Gold | BOLIVIA | Tin | |
RUSSIAN FEDERATION | Gold | POLAND | Tin | |
SOUTH AFRICA | Gold | RUSSIAN FEDERATION | Tin | |
HONG KONG | Gold | MALAYSIA | Tin | |
KAZAKHSTAN | Gold | BELGIUM | Tin | |
KYRGYZSTAN | Gold | PERU | Tin | |
SAUDI ARABIA | Gold | JAPAN | Tin | |
SINGAPORE | Gold | THAILAND | Tin | |
INDONESIA | Gold | TAIWAN | Tin | |
NETHERLANDS | Gold | JAPAN | Tungsten | |
SPAIN | Gold | CHINA | Tungsten | |
TAIWAN | Gold | UNITED STATES | Tungsten | |
THAILAND | Gold | GERMANY | Tungsten | |
BELGIUM | Gold | VIET NAM | Tungsten | |
CHINA | Tantalum | AUSTRIA | Tungsten | |
UNITED STATES | Tantalum | RUSSIAN FEDERATION | Tungsten |
Micropac Industries intends to continue to work with our suppliers to improve the due diligence conducted to further determine whether Conflict Minerals in its Covered Products are sourced from the Covered Countries, or are from recycled or scrap sources, and to mitigate the risk that the necessary Conflict Minerals sourced from Covered Countries do not finance or benefit armed groups.