* Industry groups demand responsible sourcing
* Traceability programmes lagging, couple of years needed
* Miners fear a de facto embargo
By Jonny Hogg
KINSHASA, April 1 (Reuters) - New industry rules aimed at stamping out the use of conflict minerals from areas such as the Democratic Republic of Congo came into force on Friday, but some in the industry say they could do more harm than good.
The rules will mean companies such as Apple <AAPL.O>, HP <HPQ.N> and Research in Motion <RIM.TO> will no longer use hi-tech minerals such as coltan and tantalum from conflict areas unless exporters can prove their stock has not funded fighting.
The industry standard was initiated by Washington-based Electronic Industry Citizenship Coalition (EICC) and Brussels-based Global eSustainability Initiative (GeSI).
Leading companies in the hi-tech sector including Microsoft <MSFT.O>, Dell <DELL.O>, Apple, HP and Intel <INTC.O> are members of the EICC, which aims to set the industry standard code of conduct on issues such as labour, environment and ethical issues on the supply chain.
"The whole goal is towards responsible sourcing and not to fuel conflict," EICC spokeswoman Wendy Dittmer told Reuters.
Dittmer said the rules cover similar ground to the U.S. Dodd-Frank Wall Street reform law. The Securities and Exchange Commission is writing regulation to implement the law. [ID:nN15228409] [ID:nN07101733]
Congo, which has been ravaged by conflict, supplies around 5 percent of the world's tin and is among four central African countries that produce 12.5-14 percent of the world's tantalum, used by the hi-tech industry.
Some in the industry have questioned the timing of the EICC reforms, which also apply to neighbouring countries including Rwanda and Burundi, saying enough had not been done to allow sellers to prove their minerals are "conflict free".
ARTISANAL MINERS AT RISK
The aim is to trace minerals using a tagging system to ensure they come from conflict-free mines.
Plans to put traceability programmes in place, however, have been hampered by a lack of funding and a six-month mining ban introduced by the Congolese government, which was lifted on March 10, said Karen Hayes of PACT, a non-profit organisation charged with implementing them.
Hayes said mineral tagging had been launched in Northern Katanga - near Congo's massive copper reserves - but would take time to establish, whilst in the troubled eastern provinces of Maniema and north and south Kivu, nothing was in place yet.
Hayes said a couple of years were needed to implement the regulations, adding that PACT was calling for a monitored implementation phase rather than an immediate moratorium that risks pushing 400,000 artisanal miners into the hands of smuggling netwroks, who can find alternative buyers.
"Everyone recognises it's time to clean up the supply chain, but if (these new regulations) just land on people, it could drive out significant stakeholders and re-enforce the mafia."
Dittmer told Reuters the EICC is aware of these concerns but that no extension was planned and that some pressure groups had argued delaying the reforms would reduce the pressure on Congo's mining sector to reform.
"Many of those calling for more time have dithered on the development of traceability efforts," said David Sullivan of U.S.-based campaign group Enough.
"It is galling that traders who have benefited enormously from conflict minerals are using the plight of impoverished and exploited miners to evade their due diligence responsibilities," he told Reuters by email.
Timothy Masumbuko, the provincial mines minister in South Kivu, said the Congolese government was ready for the new regulations but added the government was waiting for its partners to push through improvements.
However, John Kanyoni, the head of the mineral exporters association in North Kivu, said the reforms are a de facto embargo and that many artisanal miners had already downed tools in despair.
He said the Congolese mining industry remained committed to improvements but would look for alternative markets.
"We've been pushed into a corner by American companies. To call for full traceability when everyone knows we haven't had a chance to implement it is just a way to put thousands and thousands of Africans out of their jobs," he added.
(Editing by Bate Felix and Jane Baird)
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