EX-1.02 2 a14-12425_1ex1d02.htm EX-1.02

Exhibit 1.02

 

Exhibit 1.02 to Form SD

 

Sanmina Corporation

 

Conflict Minerals Report

 

For The Year Ended December 31, 2013

 

I.                                        Background of this Report

 

This report (the “Conflict Minerals Report”) for the year ended December 31, 2013 is made pursuant to Rule 13p-1 under the Securities Exchange Act of 1934 (the “Rule”), in accordance with instructions mandated by the Securities and Exchange Commission (the “SEC”). The SEC adopted the Rule in 2012 to implement reporting and disclosure requirements related to conflict minerals as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Rule imposes certain due diligence and reporting obligations on SEC registrants whose manufactured products contain certain minerals which are necessary to the functionality or production of their products (“Registrants”). The minerals covered by the Rule are cassiterite, columbite-tantalite, gold, wolframite, and their derivatives, which are limited to tin, tantalum, tungsten, and gold (collectively referred to herein as “Conflict Minerals”). The Rule identifies certain countries from which Conflict Minerals are sourced as “Covered Countries.”  Covered Countries consist of the Democratic Republic of the Congo (the “DRC”) and countries adjoining the DRC.  The requirements of the Rule apply to Registrants regardless of the geographic origin of the Conflict Minerals and whether or not they fund armed conflict in a Covered Country.

 

The Rule requires Registrants to conduct in good faith a “reasonable country of origin inquiry,” or “RCOI,” with respect to Conflict Minerals. The purpose of the RCOI is to determine whether any of the Registrant’s Conflict Minerals originated in a Covered Country or are from recycled or scrap sources.

 

If, based on its RCOI, a Registrant knows that any of its Conflict Minerals originated in a Covered Country and are not from recycled or scrap sources, or has reason to believe that its Conflict Minerals may have originated in a Covered Country and has reason to believe that its Conflict Minerals may not be from recycled or scrap sources, the Registrant must exercise due diligence on the source and chain of custody of its Conflict Minerals, in accordance with a nationally or internationally recognized due diligence framework, if such a framework is available for the particular Conflict Mineral.  The Rule describes further actions a Registrant must take based on the results of its due diligence on the source and chain of custody of its Conflict Minerals, including obtaining an audit report of its Conflict Minerals Report prepared by an independent private sector auditor unless an exception to the independent private sector audit applies.

 



 

This report has been prepared by Sanmina Corporation (“Sanmina,” the “Company,” “we,” “us,” or “our”). Information included in this report covers Sanmina and all of its consolidated  subsidiaries.

 

II.                                   Company Background and Supply Chain

 

Sanmina Corporation is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. We provide these comprehensive offerings primarily to original equipment manufacturers, or OEMs, in the following industries: communications networks, computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, clean technology (CleanTech) and automotive.

 

Sanmina has adopted a Conflict Minerals Policy, which is available on our website at http://www.sanmina.com/company-profile/conflict-minerals-policy/index.php.

 

III.                              Determination of the Existence of Conflict Minerals in the Products Manufactured

 

Our supply chain is complex, with the components and materials used in our customers’ products being sourced through multiple tiers of suppliers. We utilize a commodity coding system to classify the material we purchase.  We used our commodity codes as a way to identify types of products which may contain Conflict Minerals.

 

Based on our knowledge of our suppliers, we surveyed and performed the RCOI on a subset of our supplier group. The purpose of the RCOI was to determine whether or not the source of such Conflict Minerals was one of the Covered Countries or whether such Conflict Minerals came from recycled or scrap sources. We used the Conflict Minerals Reporting Template (the “Template”) developed by the Electronic Industry Citizenship Coalition (the “EICC”)(1) and vetted smelter names we were made aware of through completed Templates returned by our suppliers.

 

Approximately half of the suppliers we surveyed returned completed Templates to us. We reviewed each completed Template and followed up with suppliers who

 


(1)  The Template was developed to facilitate disclosure and communication of information regarding smelters that provide material to a company’s supply chain. It includes questions regarding a supplier’s Conflict Minerals policy, engagement with its direct suppliers, a listing of the supplier uses and the origin of Conflict Minerals included in their products.

 

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provided incomplete or inconsistent responses. Our RCOI process included an escalation procedure pursuant to which we contacted suppliers who did not return the Template to us within the requested time period.

 

A small number of suppliers who returned Templates to us indicated that they did or potentially did source Conflict Minerals from the Covered Countries. Most of our suppliers, however, completed the Template at the company level, meaning that they completed the Template based on components and materials used in all of the products sold by them, not just the products purchased by Sanmina. As a result, Sanmina was not able to determine with reasonable certainty whether any of the products purchased by Sanmina from such suppliers actually contain Conflict Materials sourced from the Covered Countries.

 

Based on responses to the Template, and follow-up inquiries of our suppliers, and the fact that we have no reason to believe that all of our Conflict Minerals came from recycled or scrap sources or were located outside the supply chain prior to January 31, 2013, we have reason to believe that Conflict Minerals contained in our products may have originated in the Covered Countries and did not come from recycled or scrap sources. As a result, and as required by the Rule, we undertook due diligence on the surveyed supplier group with respect to the source and chain of custody of the Conflicts Minerals we obtained from these suppliers, in good faith and in conformity with the Organisation for Economic Co-operation and Development (“OECD”) Due Diligence Guidelines for Responsible Supply Chains of Minerals from High Risk Areas (the “OECD Guidance”) in all material respects. We believe the OECD Guidance constitutes an internationally recognized framework for Conflict Minerals due diligence, as required by the Rule.

 

IV.                               Performance of Due Diligence on the Source and Chain of Custody

 

As mentioned above, our due diligence process consisted of the distribution of the Template to relevant suppliers, review of the Templates returned to us and follow-up with the suppliers who failed to return the Template or who provided incomplete or inconsistent information in the Template.  This process resulted in the disclosure to us by many of our suppliers of the names of the smelters or parties they believed to be smelters of Conflict Minerals utilized by such suppliers. However, not all suppliers surveyed provided responses and many of those that did provide responses did not provide smelter names or did not limit their responses to the components purchased by us. Nonetheless, we conducted further due diligence on the smelter names we were provided in order to attempt to determine whether the sourcing of Conflict Minerals from these smelters or suspected smelters benefitted armed groups in the Covered Countries. This diligence consisted of (1) determining whether such smelter names were included on the EICC/GeSI Conflict Free Smelter List (the “Conflict Free Smelter List”)(2) and (2) providing these names to an independent due diligence firm

 


(2)  The Conflict Free Smelter List is generally understood to contain the names of smelters from whom procurement of Conflict Minerals does not benefit armed groups in the Covered Countries. However, we do not express an opinion as to whether or not the sourcing of Conflict Minerals from these smelters actually benefits armed groups in the Covered Countries.

 

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we retained to provide us with further information about the smelters identified to us through our due diligence process.  Our due diligence firm performed procedures intended to assess the risk that purchases made from such smelters benefitted armed groups in the Covered Countries.

 

V. Additional Information Required by Form SD

 

The following information is provided in accordance with the instructions to Form SD.

 

A.            Steps to be Taken to Mitigate Risk that Necessary Conflict Minerals Benefit Armed Groups

 

We intend to take the following steps to improve the due diligence we conduct to mitigate the risk that Conflict Minerals contained in the products we manufacture for our customers benefit armed groups in the Covered Countries:

 

1. We will advance contract language in agreements between Sanmina and our suppliers that would require suppliers to provide us with accurate information about the source of Conflict Minerals contained in their products.

 

2. We will seek to improve our suppliers’ understanding of the Rule and to improve their response rate to our queries and the quality of their responses.

 

3. We will bring to the attention of our customers the discovery of information that leads us to conclude that the sourcing of components or materials for our engagement with them benefits armed groups in the Covered Countries and, should the customer so determine, cooperate with the customer to change the supplier.

 

4.         As a member of the EICC, we will monitor the work of the EICC’s e-Sustainability Initiative’s (EICC-GeSI) Conflict Free Sourcing Initiative to obtain better visibility into the sourcing and practices of smelters, to support the refinement and expansion of the Conflict Free Smelter List and to improve our Conflict Minerals due diligence process generally.

 

5.                We will continue to refine our due diligence process in accordance the OECD Guidance and supplements.

 

B.            Facilities Used to Process Necessary Conflict Minerals, If Known, For Sanmina Products

 

Below is a list of facilities that we believe, based upon our due diligence, were used to process the Conflict Minerals contained in our products.

 

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Metal

 

Smelter or Refiner Facility Name

Gold

 

Dowa*

Gold

 

Kojima Chemicals Co. Ltd*

Gold

 

Materion*

Gold

 

Mitsui Mining and Smelting Co., Ltd.*

Gold

 

OMSA*

Gold

 

United Precious Metal Refining, Inc.*

Gold

 

AngloGold Ashanti Mineração Ltda*

Gold

 

Argor-Heraeus SA*

Gold

 

Asahi Pretec Corporation*

Gold

 

Chimet SpA*

Gold

 

Heraeus Ltd Hong Kong*

Gold

 

Heraeus Precious Metals GmbH & Co. KG*

Gold

 

Ishifuku Metal Industry Co., Ltd.*

Gold

 

Istanbul Gold Refinery*

Gold

 

Johnson Matthey Inc*

Gold

 

Johnson Matthey Limited*

Gold

 

JX Nippon Mining & Metals Co., Ltd*

Gold

 

LS-Nikko Copper Inc*

Gold

 

Matsuda Sangyo Co. Ltd*

Gold

 

Mitsubishi Materials Corporation*

Gold

 

Nihon Material Co. LTD*

Gold

 

Ohio Precious Metals LLC.*

Gold

 

PAMP SA*

Gold

 

Rand Refinery (Pty) Ltd*

Gold

 

Royal Canadian Mint*

Gold

 

SEMPSA Joyeria Plateria SA*

Gold

 

Solar Applied Materials Technology Corp.*

Gold

 

Sumitomo Metal Mining Co. Ltd.*

Gold

 

Tanaka Kikinzoku Kogyo K.K.*

Gold

 

Tokuriki Honten Co. Ltd*

Gold

 

Umicore SA Business Unit Precious Metals Refining*

Gold

 

Valcambi SA*

Gold

 

Western Australian Mint trading as The Perth Mint*

Gold

 

Allgemeine Gold- und Silberscheideanstalt A.G.*

Gold

 

Metalor Technologies (Hong Kong) Ltd*

Gold

 

Metalor Technologies SA*

Gold

 

Metalor USA Refining Corporation*

Gold

 

Almalyk Mining and Metallurgical Complex (AMMC)

Gold

 

Atasay Kuyumculuk Sanayi Ve Ticaret A.S.

 

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Gold

 

Aurubis AG

Gold

 

Bangko Sentral ng Pilipinas (Central Bank of the Philippines)

Gold

 

Boliden AB

Gold

 

Cendres & Métaux SA

Gold

 

Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited

Gold

 

Japan Mint

Gold

 

Jiangxi Copper Company Limited

Gold

 

JSC Ekaterinburg Non-Ferrous Metal Processing Plant

Gold

 

JSC Uralectromed

Gold

 

Kazzinc Ltd

Gold

 

Kyrgyzaltyn JSC

Gold

 

L’ azurde Company For Jewelry

Gold

 

Met-Mex Peñoles, S.A.

Gold

 

Moscow Special Alloys Processing Plant

Gold

 

Navoi Mining and Metallurgical Combinat

Gold

 

OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)

Gold

 

OJSC Kolyma Refinery

Gold

 

Prioksky Plant of Non-Ferrous Metals

Gold

 

PT Aneka Tambang (Persero) Tbk

Gold

 

PX Précinox SA

Gold

 

Schone Edelmetaal

Gold

 

Shandong Zhaojin Gold & Silver Refinery Co. Ltd

Gold

 

SOE Shyolkovsky Factory of Secondary Precious Metals

Gold

 

The Great Wall Gold and Silver Refinery of China

Gold

 

The Refinery of Shandong Gold Mining Co. Ltd

Gold

 

Umicore Brasil Ltda

Gold

 

Zhongyuan Gold Smelter of Zhongjin Gold Corporation

Gold

 

Zijin Mining Group Co. Ltd

Gold

 

Aida Chemical Industries Co. Ltd.

Gold

 

Asaka Riken Co Ltd

Gold

 

Caridad

Gold

 

Chugai Mining

Gold

 

Codelco

Gold

 

Daejin Indus Co. Ltd

Gold

 

DaeryongENC

Gold

 

Do Sung Corporation

Gold

 

FSE Novosibirsk Refinery

Gold

 

Heimerle + Meule GmbH

Gold

 

Hwasung CJ Co. Ltd

 

6



 

Gold

 

Korea Metal Co. Ltd

Gold

 

Pan Pacific Copper Co. LTD

Gold

 

Sabin Metal Corp.

Gold

 

SAMWON METALS Corp.

Gold

 

Suzhou Xingrui Noble

Gold

 

Torecom

Gold

 

Xstrata Canada Corporation

Gold

 

Yokohama Metal Co Ltd

Gold

 

China Daye Non-Ferrous Metals Mining Limited

Gold

 

China Nonferrous Metal Mining (Group) Co., Ltd.

Gold

 

Guangdong Jinding Gold Ltd.

Gold

 

Guangdong Mingfa Precious Metals Co., Ltd.

Gold

 

Precious Metal Sales

Gold

 

The Hutti Gold Mines Company Limited

Gold

 

Yantai Zhaojin Kanfort Precious Metals Co., Ltd.

Gold

 

Zhejiang Guangyuan precious metals smelter

Tantalum

 

Conghua Tantalum and Niobium Smeltry*

Tantalum

 

Duoluoshan*

Tantalum

 

Exotech Inc.*

Tantalum

 

F&X*

Tantalum

 

Global Advanced Metals*

Tantalum

 

H.C. Starck GmbH*

Tantalum

 

Hi-Temp*

Tantalum

 

JiuJiang Tambre Co. Ltd.*

Tantalum

 

Kemet Blue Powder*

Tantalum

 

Mitsui Mining & Smelting*

Tantalum

 

Ningxia Orient Tantalum Industry Co., Ltd.*

Tantalum

 

Plansee*

Tantalum

 

RFH*

Tantalum

 

Solikamsk Metal Works*

Tantalum

 

Taki Chemicals*

Tantalum

 

Tantalite Resources*

Tantalum

 

Telex*

Tantalum

 

Ulba*

Tantalum

 

Zhuzhou Cemented Carbide Group Co Ltd*

Tantalum

 

China Minmetals Nonferrous Metals Co Ltd

Tantalum

 

Gannon & Scott

Tantalum

 

JiuJiang JinXin Nonferrous Metals Co. Ltd.

Tantalum

 

Metal Do Co., Ltd.

Tin

 

Cookson*

Tin

 

Geiju Non-Ferrous Metal Processing Co. Ltd.*

 

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Tin

 

Malaysia Smelting Corporation (MSC)*

Tin

 

Mineração Taboca S.A.*

Tin

 

Minsur*

Tin

 

PT Bukit Timah*

Tin

 

Thaisarco*

Tin

 

White Solder Metalurgia*

Tin

 

Yunnan Tin Company Limited*

Tin

 

Chongyi Zhangyuan Tungsten Co Ltd

Tin

 

CNMC (Guangxi) PGMA Co. Ltd.

Tin

 

Cooper Santa

Tin

 

CV Duta Putra Bangka

Tin

 

CV JusTindo

Tin

 

CV Makmur Jaya

Tin

 

CV Nurjanah

Tin

 

CV Prima Timah Utama

Tin

 

CV Serumpun Sebalai

Tin

 

CV United Smelting

Tin

 

EM Vinto

Tin

 

Fenix Metals

Tin

 

Gejiu Zi-Li

Tin

 

Gold Bell Group

Tin

 

Huichang Jinshunda Tin Co. Ltd

Tin

 

Jiangxi Nanshan

Tin

 

Kai Unita Trade Limited Liability Company

Tin

 

Linwu Xianggui Smelter Co

Tin

 

Liuzhou China Tin

Tin

 

Metallo Chimique

Tin

 

Minmetals Ganzhou Tin Co. Ltd.

Tin

 

PT Alam Lestari Kencana

Tin

 

PT Artha Cipta Langgeng

Tin

 

PT Babel Inti Perkasa

Tin

 

PT Babel Surya Alam Lestari

Tin

 

PT Bangka Kudai Tin

Tin

 

PT Bangka Putra Karya

Tin

 

PT Bangka Timah Utama Sejahtera

Tin

 

PT Belitung Industri Sejahtera

Tin

 

PT BilliTin Makmur Lestari

Tin

 

PT DS Jaya Abadi

Tin

 

PT Eunindo Usaha Mandiri

Tin

 

PT Fang Di MulTindo

Tin

 

PT HP Metals Indonesia

 

8



 

Tin

 

PT Koba Tin

Tin

 

PT Mitra Stania Prima

Tin

 

PT Refined Banka Tin

Tin

 

PT Sariwiguna Binasentosa

Tin

 

PT Stanindo Inti Perkasa

Tin

 

PT Sumber Jaya Indah

Tin

 

PT Tambang Timah

Tin

 

PT Timah

Tin

 

PT Timah Nusantara

Tin

 

PT Tinindo Inter Nusa

Tin

 

PT Yinchendo Mining Industry

Tin

 

Yunnan Chengfeng

Tin

 

Nathan Trotter & Co., Inc.

Tin

 

5N Plus inc.

Tin

 

Companhia Siderúrgica Nacional

Tin

 

CSC Pure Technologies

Tin

 

DAECHANG Co., Ltd.

Tin

 

Jiangxi Nanshan

Tin

 

Metallic Resources, Inc.

Tin

 

ZHUZHOU SMELTER CO. LTD

Tungsten

 

Fujian Jinxin Tungsten Co., Ltd.

Tungsten

 

Global Tungsten & Powders Corp

Tungsten

 

HC Starck GmbH

Tungsten

 

Kennametal Inc.

Tungsten

 

Tejing (Vietnam) Tungsten Co Ltd

Tungsten

 

Wolfram Bergbau und Hütten AG

Tungsten

 

Wolfram Company CJSC

Tungsten

 

Xiamen Tungsten Co Ltd

Tungsten

 

A.L.M.T. Corp.

Tungsten

 

ATI Tungsten Materials

Tungsten

 

Chaozhou Xianglu Tungsten Industry Co Ltd

Tungsten

 

Dayu Weiliang Tungsten Co., Ltd.

Tungsten

 

Ganzhou Grand Sea W & Mo Group Co Ltd

Tungsten

 

Hunan Chenzhou Mining Group Co

Tungsten

 

Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd.

Tungsten

 

Japan New Metals Co Ltd

Tungsten

 

Jiangxi Rare Earth & Rare Metals Tungsten Group Corp

Tungsten

 

Jiangxi Tungsten Industry Group Co Ltd

Tungsten

 

Zhuzhou Cement Carbide

Tungsten

 

Altantic Metals & Alloys, LLC

Tungsten

 

China Minmetals Nonferrous Metals Co Ltd

 

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Tungsten

 

Midwest Tungsten Service

Tungsten

 

Xiamen Tungsten Co Ltd

 

Countries of Origin of the Conflict Minerals processed by these facilities are believed to include

 

Brazil, Burundi, China, Democratic Republic of the Congo, Malaysia, Nigeria, Rwanda, Peru, Chile, Zambia, Canada, Australia, Argentina, Japan, United States, Germany, Russia, Kazakhstan, Tajikistan and Kyrgyzstan

 


* Smelter name included on the Conflict Free Smelter List.

 

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C.            Country of Origin of Necessary Conflict Minerals Contained in Sanmina Products, If Known

 

See subsection B above for a list of countries from which we believe the Conflict Minerals contained in our products were sourced.

 

D.            Efforts to Determine Mine or Location of Origin

 

Other than the information provided in subsection B above concerning the country of origin of the Conflict Minerals contained in our products, we were not able to determine the mine or location of origin of the Conflict Minerals used in our products and believed to be sourced from the Covered Countries. We believe that our continued participation in the EICC, and continuing to seek information from suppliers through our due diligence procedures, represents the most reasonable and appropriate measures we can currently take to determine the mines or locations of origin of the Conflict Minerals in our supply chain.

 

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