The new Dodd-Frank Act includes disclosure requirements for the natural resources industry, and for certain minerals from Africa. Public companies will have to report how much they pay governments for access to oil, gas and minerals, under a provision in the Act. Both U.S. companies and foreign companies registered with the Securities and Exchange Commission ("SEC") will be covered by the provision. The reporting will be done on a country-by-country basis. In addition, there are new disclosure requirements for minerals that may be helping to fund armed groups in parts of Africa.

Section 1504 of the Dodd-Frank Act amends the 1934 Act to require the SEC to issue rules to require resource extraction companies to include in their annual reports payments made to foreign or the U.S. government for commercial development of oil, natural gas or minerals. Payments reportable under the new law include taxes, royalties, fees, licenses, production entitlements, bonuses and other material benefits, as determined by the SEC. Senator Richard Lugar (R-IN) has noted that many resource-rich countries are poor. He has observed that transparency is a vital tool in countries with many resources but rife with corruption.

In another resource reporting area, Section 1502 addresses minerals from the Democratic Republic of Congo ("DRC"). This section amends the 1934 Act to require persons manufacturing products containing certain minerals to disclose annually whether they originated in the DRC or a neighboring country. These minerals are columbite-tantalite (coltan), cassiterite, gold and wolframite, or their derivatives, as well as any other mineral or derivative determined by the U.S. Secretary of State as helping to finance conflict in the DRC or an adjoining country ("Conflict Minerals").

If the Conflict Minerals were from one of these countries, the company must report to the SEC on the description of the products manufactured with the minerals and the measures taken to exercise due diligence on the source and chain of custody. These measures must include an independent private sector audit of the report, done in accordance with the standards of the Comptroller General of the U.S. The Dodd-Frank Act also requires the Secretary of State, in consultation with the U.S. Agency for International Development, to provide Congress with a strategy to address the illicit mineral trade in the region, including a map showing mineral-rich zones, trade routes and areas under control of armed groups.

This provision was narrowly written to address only the DRC. The U.S. President can waive the requirements on the basis of national security, with the waiver itself lasting two years. In addition, the President can terminate the disclosure requirements after five years on the determination that no armed groups continue to be directly involved and are benefitting from commercial Conflict Mineral activities.

According to the Revenue Watch Institute, 29 of the 32 largest international oil companies are registered with the SEC, as are eight of the 10 largest mining companies. Revenue Watch added that all oil, gas and mining companies that operate in the U.S. make comparable disclosures to the U.S. Interior Department every month. Some companies already disclose all payments to foreign governments made as a normal part of doing business. The companies include U.S.-based Newmont Mining, Canada’s Talisman Energy and Norway’s Statoil. Revenue Watch also noted that companies already have to maintain records for U.S. tax purposes and under the Foreign Corrupt Practices Act.