SD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM SD

 

 

Specialized Disclosure Report

 

 

ALPHATEC HOLDINGS, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   000-52024   20-2463898

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

5818 El Camino Real

Carlsbad, California 92008

(Address of Principal Executive Offices)

 

 

Jeffrey G. Black

Executive Vice President and Chief Financial Officer

(760) 431-9286

(Name and telephone number, including area code, of the person to contact in connection with this report.)

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this applies:

 

Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2017.

 

 

 


Section 1 – Conflict Minerals Disclosure

 

Item 1.01 Conflict Minerals Disclosure and Report

This Form SD of Alphatec Holdings, Inc. (“Alphatec” or the “Company”) is filed pursuant to Rule 13p-1 promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period January 1, 2017 to December 31, 2017.

 

Item 1.02 Exhibit

As specified in Section 2, Item 2.01 of this Form SD, Alphatec is hereby filing its Conflict Minerals Report as Exhibit 1.01 to this report. The Conflict Minerals Report is also available on the “Investor Relations” page of the Company’s website, located at: http://www.atecspine.com.

Section 2 – Exhibits

 

Item 2.01

The following exhibit is filed as part of this Form SD.

 

Exhibit

    No.    

  

Description

1.01    Conflict Minerals Report of Alphatec Holdings, Inc. for the Year Ended December 31, 2017


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.

 

Date: May 22, 2018     ALPHATEC HOLDINGS, INC.
    By:  

/s/ Jeffrey Black

    Name:   Jeffrey Black
    Title:   Executive Vice President and Chief Financial Officer
EX-1.01

Exhibit 1.01

ALPHATEC HOLDINGS, INC.

Conflict Minerals Report

For the Year Ended December 31, 2017

 

1. Introduction

This Conflict Minerals Report (“Report”) of Alphatec Holdings, Inc. (“Alphatec,” the “Company,” “we,” “us” or “our”) has been prepared pursuant to Rule 13p-1 (the “Rule”) and Form SD promulgated under the Securities Exchange Act of 1934, as amended, for the reporting period from January 1, 2017 to December 31, 2017 (the “Reporting Period”). Numerous terms in this Report are defined in the Rule and Form SD and the reader is referred to those sources and to SEC Release No. 34-67716, issued by the Securities and Exchange Commission (“SEC”) on August 22, 2012, for such definitions.

The Rule requires us to disclose annually whether any products that we manufactured or contracted to manufacture during the Reporting Period contain certain, specified minerals which are necessary to the functionality or production of the products and whether those specified minerals, if found necessary, originated in the Democratic Republic of the Congo or any adjoining country (each a “Covered Country” and collectively, the “Covered Countries”). The specific minerals at issue are cassiterite, columbite-tantalite, gold, wolframite, and their derivatives, which are limited to tin, tantalum and tungsten (collectively, “Conflict Minerals”). If any of these Conflict Minerals originated in the Covered Countries, we are also required under the Rule to submit this Report, which describes the due diligence we performed in an effort to determine the source and chain of custody of those Conflict Minerals, among other things.

After conducting our reasonable country of origin inquiry (“RCOI”), briefly described below, we know or have reason to believe that some of our products manufactured or contracted for manufacture during the Reporting Period contain necessary Conflict Minerals that originated, or may have originated, in the Covered Countries and that they are not or may not be from recycled or scrap sources. Accordingly, we conducted due diligence on the source and chain of custody of those necessary Conflict Minerals that originated in the Covered Countries for the Reporting Period.

Certain statements in this Report contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include expectations concerning the Company’s future actions to engage suppliers, to identify to the extent possible the source of Conflict Minerals in its products and to take other actions regarding its product sourcing. The Company’s actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties including, but not limited to, decisions to make changes in the Company’s continual improvement efforts and delays or difficulties in engaging suppliers and identifying the source of Conflict Minerals contained in the Company’s products.

This Report has not been audited, nor is an independent private sector audit required for this Report under the Rule, the SEC partial stay of the Rule or existing SEC guidance and instruction.

 

2. Company Overview

We are a medical technology company focused on the design, development and promotion of products for the surgical treatment of spine disorders. Our mission is to improve patient lives through our relentless pursuit of superior outcomes. We have a broad product portfolio and pipeline that are designed to address the cervical, thoracolumbar and intervertebral regions of the spine and cover a variety of spinal disorders and surgical procedures. Our principal product offerings are focused on the U.S. market for fusion-based spinal disorder solutions. We believe that our products and systems are attractive to surgeons and patients due to innovative features and benefits that are designed to simplify surgical procedures for the surgeon and improve patient outcomes.


We are a Delaware corporation. We were incorporated in March 2005. Our principal executive office is located at 5818 El Camino Real, Carlsbad, California 92008 and our telephone number is (760) 431-9286. Our Internet address is www.atecspine.com.

 

3. Reasonable Country of Origin Inquiry

We determined after review that necessary Conflict Minerals were contained in certain of our products during the Reporting Period. This determination was made due to the anticipated presence of such minerals in parts obtained from suppliers, either contract manufacturers or original equipment manufacturers, or from utilization of conflict minerals in manufacturing processes employed by our suppliers. Because of this determination, we conducted a RCOI, which was designed to determine whether any of the necessary Conflict Minerals in our products originated or may have originated in a Covered Country or came from recycled or scrap sources.

For the Reporting Period, we used our sourcing and procurement data and internal inquiries to identify sixty-one (61) suppliers who supplied us necessary Conflict Minerals during the Reporting Period. We contacted each of these suppliers and asked them to provide information on (1) the Conflict Minerals contained in each of the products manufactured for us by that supplier and (2) the source of the Conflict Minerals, including smelter/refinery information and location of mines. Each supplier was asked to complete the Conflict Minerals Reporting Template (“CMRT”) developed by the Conflict-Free Sourcing Initiative (the “CFSI”).

We received CMRT responses from 61 of the suppliers who supplied us necessary Conflict Minerals during the Reporting Period. Based on those responses, we determined that Conflict Minerals present in certain of our products, as well as Conflict Minerals utilized in the production of certain of our product parts, may have originated in the Covered Countries and were not from scrap or recycled sources. Accordingly, in accordance with the Rule, we performed due diligence in an effort to determine the source and chain of custody of these necessary Conflict Minerals.

 

4. Due Diligence

We are several levels removed from the actual mining of Conflict Minerals. We do not make purchases of raw ore or unrefined Conflict Minerals, and we make no direct purchases of materials from third parties located in the Covered Countries. Because of our position in the supply chain, we designed our due diligence framework in conformity with, in all material respects, the criteria and five-step framework set forth in the Organization for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition, and related Supplements on Tin, Tantalum and Tungsten and on Gold (collectively, “OECD Guidance”), specifically as it relates to our position in the minerals supply chain as a “downstream” purchaser. In this regard, we must rely on our suppliers to provide information regarding the country of origin and chain of custody of the Conflict Minerals included in products covered by the Rule.

In conformity with the OECD Guidance, below is a description of the measures we performed for the Reporting Period to exercise due diligence on the source and chain of custody of the necessary Conflict Minerals contained in our products that we had reason to believe may have originated from the Covered Countries and may not have come from recycled or scrap sources.

OECD Step 1: Establish Strong Company Management Systems

 

    We are committed to compliance with Conflict Minerals legislation and have implemented appropriate due-diligence processes to meet our obligations. We continued to review and assess our Conflict Minerals processes to ensure that we conduct all of our operations and activities in compliance with applicable Conflict Minerals legislation.

 

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    We maintained a risk management plan that includes due diligence reviews of suppliers, smelters and refiners which we identified may be sourcing or processing Conflict Minerals from the Covered Countries and which may not be from recycled or scrap sources.

 

    We maintained an internal Conflict Minerals taskforce with cross functional team members and executives, to facilitate communication and supplier engagement, conduct due diligence compliance process and measurement, keep records and implement our risk management plan.

OECD Step 2: Identify and Assess Risk in the Supply Chain

 

    We compiled a list of all suppliers who provide components that are used in the manufacturing of all Alphatec products.

 

    We stratified the supplier list by the commodity type provided by each given supplier.

 

    We excluded from the supplier list commodity types for which there is no risk of the use of Conflict Minerals.

 

    We actively surveyed the remaining suppliers by submitting the CFSI CMRT and utilizing reasonable means to obtain self-declarations identifying the minerals used in the manufacture of products, the origin of any Conflict Minerals used, where applicable, included in the product(s) provided to Alphatec.

 

    Where necessary, we followed up with those direct suppliers contacted to obtain additional information and/or responses to supply chain survey template that we identified contained incomplete or potentially inaccurate information to seek additional clarifying information.

 

    We used the CMRT to review our direct suppliers’ due diligence activities, such as whether they had a Conflict Minerals policy, required their own suppliers to source from processing facilities validated by an independent audit firm, and implemented a review process that includes corrective action management.

 

    We used the CMRT to identify Conflict Minerals processing facilities if reported in our supply chain by direct suppliers.

 

    We determined if the processing facilities adhere to responsible sourcing practices by cross-checking with the list of Conflict Free Smelter Program (“CFSP”) compliant processing facilities.

 

    We obtained countries of origin (when available) for CFSP-compliant processing facilities by relying on information provided by our direct suppliers and other public data sources.

OECD Step 3: Design and Implement a Strategy to Respond to Risk

 

    We reported information on the source and chain of custody of Conflict Minerals in our supply chain to our Conflict Minerals working team and Conflicts Mineral taskforce on a regular basis.

 

    We maintained a Conflict Minerals risk management plan that sets forth direct supplier-risk management strategies ranging from continued procurement to disengagement.

 

    We provided formal and informal continuing education and training to members of our Conflict Minerals taskforce and our other employees who are involved with Conflict Minerals and suppliers.

OECD Step 4: Third-Party Audit of Smelter/Refiner’s Due Diligence Practices

 

    Because we do not source directly from processing facilities, we rely on the publicly-available results of the CFSP, London Bullion Market Association (“LBMA”) and Responsible Jewellery Council (“RJC”) third-party audits to validate the responsible sourcing practices of processing facilities in our supply chain.

 

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    The CFSI recognizes processing facilities as CFSP-compliant through validations conducted by the LBMA and RJC.

OECD Step 5: Report Annually on Supply Chain Due Diligence

 

    We file a Form SD and Conflict Minerals Report with the SEC on an annual basis. Our Form SD and Conflict Minerals Report are also available on our website.

 

5. Results of Good Faith RCOI and Due Diligence Process

Based on the information obtained pursuant to the good faith RCOI and due diligence processes described above, for the Reporting Period, we do not have sufficient information with respect to the Conflict Minerals to determine the country of origin of all of the Conflict Minerals we use to manufacture the our subject products and thus are unable to determine whether any of the Conflict Minerals originated in the Covered Countries and, if so, whether the Conflict Minerals were from recycled or scrap sources or financed conflict in the Covered Countries.

Our inability to reach specific and verifiable conclusions as to the products containing or utilizing Conflict Minerals, despite our efforts, primarily resulted from the following challenges or complicating factors.

 

    We are dependent on information received from our direct suppliers to conduct our good faith RCOI process.

 

    We have a varied supplier base with differing levels of resources and sophistication, and many of our suppliers are not themselves subject to the Rule.

 

    The information our suppliers provided was often incomplete and required significant follow-up. Nevertheless, each supplier response was evaluated and, where possible, validated to determine sufficiency, accuracy or completeness of its response. For each supplier response, we subsequently assessed whether the Conflict Minerals identified, or those Conflict Minerals that may not have been identified, were consistent with the nature and characteristics of the manufactured product or supplied part. For each supplier response that was insufficient, potentially inaccurate or incomplete, we contacted that supplier for follow up, sometimes contacting certain suppliers on multiple occasions. When a supplier EICC-GeSI response stated that Conflict Minerals were sourced from the Covered Countries and identified the smelter involved, we endeavored to verify whether the smelter referenced by the supplier was identified on the EICC-GeSI Conflict Free Smelter List. If a supplier stated that Conflict Minerals in its product were not sourced from the Covered Countries but did not substantiate that information, we proceeded to verify that supplier response. Typically, verification involved a more detailed review of the supplier’s smelter response and, where possible, discussion with the supplier. If a supplier’s response could not be validated through details provided with regard to the smelter and/or smelters involved, then the supplier response in question was determined to be uncertain or unknown relative to the question of sourcing of raw material and was reflected as such in the Company’s EICC-GeSI template summary.

 

    Suppliers provided responses at a company or divisional level, and not at a product level specific to the materials and components we use in the identified products.

 

    As a downstream purchaser of Conflict Minerals, our due diligence measures can provide only reasonable, not absolute, assurance regarding the source and chain of custody of the necessary Conflict Minerals. Our due diligence processes are based on the necessity of seeking data from our direct suppliers and those suppliers seeking similar information within their supply chains to identify the original sources of the necessary Conflict Minerals. Our ability to influence cooperation from certain suppliers was limited when our use of these suppliers was mandated by our customers or when we were multiple tiers away from the smelter in the supply chain.

 

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    We rely, to a large extent, on information collected and provided by independent third party audit programs. Such sources of information may yield inaccurate or incomplete information and may be subject to fraud.

 

    The unavailability of country of origin and chain of custody information from our suppliers on a continuous, real-time basis. Under the Dodd-Frank Act and the Rule, a product is “DRC conflict free” if it meets the required standard every day of the reporting year; conversely, a product would “not be found to be DRC conflict free” if it does not meet the required standard even one day of the reporting year. The supply chain of commodities such as Conflict Minerals is a multi-step process operating more or less on a daily basis, with ore being delivered to smelters and refiners, with smelters and refiners smelting or refining ores into metal containing derivatives such as ingots, with the derivatives being shipped, sold and stored in numerous market locations around the world and with distributors and purchasers holding varying amounts of the derivatives in inventory for use. Since we do not have direct contractual relationships with smelters and refiners, we rely on our direct suppliers to gather and provide specific information about the date when the ore is smelted into a derivative and later shipped, stored, sold and first entered the stream of commerce. We directly seek sourcing data on a periodic basis from our direct suppliers as well as certain smelters and refiners. We ask that the data cover the entire reporting year, and we seek to use contract provisions requiring the suppliers to promptly update us in the event that the sourcing data changes.

As a result, we have not been able to identify or verify all of the smelters from which our suppliers sourced the Conflict Minerals. For the Conflict Minerals which we were able to identify information about the smelter, we have noted that some of the smelters are currently on the conflict free smelters list published by the CFSI.

Set forth below is the list of known smelters we identified through our good faith RCOI and related due diligence:

 

Subject

Mineral

  

Smelter or Refiner Name

  

Location of Smelter/ Refiner

Tungsten    A.L.M.T. TUNGSTEN Corp.    JAPAN
Gold    Abington Reldan Metals, LLC    USA
Tungsten    ACL Metais Eireli    BRAZIL
Gold    Advanced Chemical Company    USA
Gold    Aida Chemical Industries Co., Ltd.    JAPAN
Gold    Al Etihad Gold Refinery DMCC    UAE
Gold    Allgemeine Gold-und Silberscheideanstalt A.G.    GERMANY
Gold    Almalyk Mining and Metallurgical Complex (AMMC)    UZBEKISTAN
Tin    Alpha    USA
Tin    An Thai Minerals Co., Ltd.    VIETNAM
Tin    An Vinh Joint Stock Mineral Processing Company    VIETNAM
Gold    AngloGold Ashanti Córrego do Sítio Mineração    BRAZIL
Gold    Argor-Heraeus S.A.    SWITZERLAND
Gold    Asahi Pretec Corp.    JAPAN
Gold    Asahi Refining Canada Ltd.    CANADA
Gold    Asahi Refining USA Inc.    USA
Gold    Asaka Riken Co., Ltd.    JAPAN

 

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Tungsten    Asia Tungsten Products Vietnam Ltd.    VIETNAM
Gold    Atasay Kuyumculuk Sanayi Ve Ticaret A.S.    TURKEY
Gold    AU Traders and Refiners    SOUTH AFRICA
Gold    Aurubis AG    GERMANY
Gold    Bangalore Refinery    INDIA
Gold    Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    PHILIPPINES
Gold    Boliden AB    SWEDEN
Gold    C. Hafner GmbH + Co. KG    GERMANY
Gold    Caridad    MEXICO
Gold    CCR Refinery - Glencore Canada Corporation    CANADA
Gold    Cendres + Métaux S.A.    SWITZERLAND
Tantalum    Changsha South Tantalum Niobium Co., Ltd.    CHINA
Tungsten    Chenzhou Diamond Tungsten Products Co., Ltd.    CHINA
Tin    Chenzhou Yunxiang Mining and Metallurgy Co., Ltd.    CHINA
Gold    Chimet S.p.A.    ITALY
Tin    China Tin Group Co., Ltd.    CHINA
Tungsten    Chongyi Zhangyuan Tungsten Co., Ltd.    CHINA
Gold    Chugai Mining    JAPAN
Tin    CNMC (Guangxi) PGMA Co., Ltd.    CHINA
Tantalum    Conghua Tantalum and Niobium Smeltry    CHINA
Tin    Cooperativa Metalurgica de Rondônia Ltda.    BRAZIL
Tin    CV Ayi Jaya    INDONESIA
Tin    CV Dua Sekawan    INDONESIA
Tin    CV Gita Pesona    INDONESIA
Tin    CV Serumpun Sebalai    INDONESIA
Tin    CV Tiga Sekawan    INDONESIA
Tin    CV United Smelting    INDONESIA
Tin    CV Venus Inti Perkasa    INDONESIA
Tantalum    D Block Metals, LLC    USA
Gold    Daejin Indus Co., Ltd.    SOUTH KOREA
Gold    Daye Non-Ferrous Metals Mining Ltd.    CHINA
Tungsten    Dayu Weiliang Tungsten Co., Ltd.    CHINA
Gold    Degussa Sonne / Mond Goldhandel GmbH    GERMANY
Gold    DODUCO GmbH    GERMANY
Gold    Dowa    JAPAN
Tin    Dowa    JAPAN
Gold    DSC (Do Sung Corporation)    SOUTH KOREA
Tantalum    Duoluoshan    CHINA
Gold    Eco-System Recycling Co., Ltd.    JAPAN
Tin    Electro-Mechanical Facility of the Cao Bang Minerals & Metallurgy Joint Stock Company    VIETNAM
Gold    Elemetal Refining, LLC    USA

 

Page 6 of 13


Tin    EM Vinto    BOLIVIA
Gold    Emirates Gold DMCC    UAE
Tin    Estanho de Rondônia S.A.    BRAZIL
Tantalum    Exotech Inc.    USA
Tantalum    F&X Electro-Materials Ltd.    CHINA
Tin    Fenix Metals    POLAND
Gold    Fidelity Printers and Refiners Ltd.    ZIMBABWE
Tantalum    FIR Metals & Resource Ltd.    CHINA
Tungsten    Fujian Jinxin Tungsten Co., Ltd.    CHINA
Tungsten    Ganzhou Huaxing Tungsten Products Co., Ltd.    CHINA
Tungsten    Ganzhou Jiangwu Ferrotungsten Co., Ltd.    CHINA
Tungsten    Ganzhou Seadragon W & Mo Co., Ltd.    CHINA
Tungsten    Ganzhou Yatai Tungsten Co., Ltd.    CHINA
Gold    Geib Refining Corporation    USA
Tin    Gejiu Fengming Metallurgy Chemical Plant    CHINA
Tin    Gejiu Jinye Mineral Company    CHINA
Tin    Gejiu Kai Meng Industry and Trade LLC    CHINA
Tin    Gejiu Non-Ferrous Metal Processing Co., Ltd.    CHINA
Tin    Gejiu Yunxin Nonferrous Electrolysis Co., Ltd.    CHINA
Tin    Gejiu Zili Mining And Metallurgy Co., Ltd.    CHINA
Tantalum    Global Advanced Metals Aizu    JAPAN
Tantalum    Global Advanced Metals Boyertown    USA
Tungsten    Global Tungsten & Powders Corp.    USA
Gold    Great Wall Precious Metals Co., Ltd. of CBPM    CHINA
Gold    Guangdong Jinding Gold Limited    CHINA
Tantalum    Guangdong Rising Rare Metals-EO Materials Ltd.    CHINA
Tungsten    Guangdong Xianglu Tungsten Co., Ltd.    CHINA
Tantalum    Guangdong Zhiyuan New Material Co., Ltd.    CHINA
Tin    Guanyang Guida Nonferrous Metal Smelting Plant    CHINA
Gold    Gujarat Gold Centre    INDIA
Gold    Guoda Safina High-Tech Environmental Refinery Co., Ltd.    CHINA
Tantalum    H.C. Starck Co., Ltd.    THAILAND
Tungsten    H.C. Starck GmbH    GERMANY
Tantalum    H.C. Starck Hermsdorf GmbH    GERMANY
Tantalum    H.C. Starck Inc.    USA
Tantalum    H.C. Starck Ltd.    JAPAN
Tantalum    H.C. Starck Smelting GmbH & Co. KG    GERMANY
Tungsten    H.C. Starck Smelting GmbH & Co. KG    GERMANY
Tantalum    H.C. Starck Tantalum and Niobium GmbH    GERMANY
Tungsten    H.C. Starck Tungsten GmbH    GERMANY
Gold    Hangzhou Fuchunjiang Smelting Co., Ltd.    CHINA
Gold    Heimerle + Meule GmbH    GERMANY

 

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Tantalum    Hengyang King Xing Lifeng New Materials Co., Ltd.    CHINA
Gold    Heraeus Metals Hong Kong Ltd.    CHINA
Gold    Heraeus Precious Metals GmbH & Co. KG    GERMANY
Tantalum    Hi-Temp Specialty Metals, Inc.    USA
Tin    HuiChang Hill Tin Industry Co., Ltd.    CHINA
Tin    Huichang Jinshunda Tin Co., Ltd.    CHINA
Gold    Hunan Chenzhou Mining Co., Ltd.    CHINA
Tungsten    Hunan Chenzhou Mining Co., Ltd.    CHINA
Tungsten    Hunan Chuangda Vanadium Tungsten Co., Ltd. Wuji    CHINA
Tungsten    Hunan Chunchang Nonferrous Metals Co., Ltd.    CHINA
Gold    Hwaseong CJ Co., Ltd.    SOUTH KOREA
Tungsten    Hydrometallurg, JSC    RUSSIAN FEDERATION
Gold    Inner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.    CHINA
Gold    Ishifuku Metal Industry Co., Ltd.    JAPAN
Gold    Istanbul Gold Refinery    TURKEY
Gold    Japan Mint    JAPAN
Tungsten    Japan New Metals Co., Ltd.    JAPAN
Tungsten    Jiangwu H.C. Starck Tungsten Products Co., Ltd.    CHINA
Gold    Jiangxi Copper Co., Ltd.    CHINA
Tungsten    Jiangxi Dayu Longxintai Tungsten Co., Ltd.    CHINA
Tantalum    Jiangxi Dinghai Tantalum & Niobium Co., Ltd.    CHINA
Tungsten    Jiangxi Gan Bei Tungsten Co., Ltd.    CHINA
Tin    Jiangxi Ketai Advanced Material Co., Ltd.    CHINA
Tungsten    Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.    CHINA
Tungsten    Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.    CHINA
Tantalum    Jiangxi Tuohong New Raw Material    CHINA
Tungsten    Jiangxi Xinsheng Tungsten Industry Co., Ltd.    CHINA
Tungsten    Jiangxi Xiushui Xianggan Nonferrous Metals Co., Ltd.    CHINA
Tungsten    Jiangxi Yaosheng Tungsten Co., Ltd.    CHINA
Tantalum    JiuJiang JinXin Nonferrous Metals Co., Ltd.    CHINA
Tantalum    Jiujiang Nonferrous Metals Smelting Company Limited    CHINA
Tantalum    Jiujiang Tanbre Co., Ltd.    CHINA
Tantalum    Jiujiang Zhongao Tantalum & Niobium Co., Ltd.    CHINA
Gold    JSC Ekaterinburg Non-Ferrous Metal Processing Plant    RUSSIAN FEDERATION
Gold    JSC Uralelectromed    RUSSIAN FEDERATION
Gold    JX Nippon Mining & Metals Co., Ltd.    JAPAN
Gold    Kaloti Precious Metals    UAE
Gold    Kazakhmys Smelting LLC    KAZAKHSTAN
Gold    Kazzinc    KAZAKHSTAN
Tantalum    KEMET Blue Metals    MEXICO
Tantalum    KEMET Blue Powder    USA

 

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Tungsten    Kennametal Fallon    USA
Tungsten    Kennametal Huntsville    USA
Gold    Kennecott Utah Copper LLC    USA
Gold    KGHM Polska Miedź Spółka Akcyjna    POLAND
Tantalum    King-Tan Tantalum Industry Ltd.    CHINA
Gold    Kojima Chemicals Co., Ltd.    JAPAN
Gold    Korea Zinc Co., Ltd.    SOUTH KOREA
Gold    Kyrgyzaltyn JSC    KYRGYZSTAN
Gold    L’azurde Company For Jewelry    SAUDI ARABIA
Gold    Lingbao Gold Co., Ltd.    CHINA
Gold    Lingbao Jinyuan Tonghui Refinery Co., Ltd.    CHINA
Tantalum    LSM Brasil S.A.    BRAZIL
Gold    LS-NIKKO Copper Inc.    SOUTH KOREA
Gold    Luoyang Zijin Yinhui Gold Refinery Co., Ltd.    CHINA
Tin    Magnu’s Minerais Metais e Ligas Ltda.    BRAZIL
Tin    Malaysia Smelting Corporation (MSC)    MALAYSIA
Tungsten    Malipo Haiyu Tungsten Co., Ltd.    CHINA
Gold    Materion    USA
Gold    Matsuda Sangyo Co., Ltd.    JAPAN
Tin    Melt Metais e Ligas S.A.    BRAZIL
Tin    Metallic Resources, Inc.    USA
Tin    Metallo Belgium N.V.    BELGIUM
Tin    Metallo-Chimique N.V.    BELGIUM
Tantalum    Metallurgical Products India Pvt., Ltd.    INDIA
Gold    Metalor Technologies (Hong Kong) Ltd.    CHINA
Gold    Metalor Technologies (Singapore) Pte., Ltd.    SINGAPORE
Gold    Metalor Technologies (Suzhou) Ltd.    CHINA
Gold    Metalor Technologies S.A.    SWITZERLAND
Gold    Metalor USA Refining Corporation    USA
Gold    Metalúrgica Met-Mex Peñoles S.A. De C.V.    MEXICO
Tantalum    Mineração Taboca S.A.    BRAZIL
Tin    Mineração Taboca S.A.    BRAZIL
Tin    Minsur    PERU
Gold    Mitsubishi Materials Corporation    JAPAN
Tin    Mitsubishi Materials Corporation    JAPAN
Tantalum    Mitsui Mining & Smelting    JAPAN
Gold    Mitsui Mining and Smelting Co., Ltd.    JAPAN
Tantalum    Mitsui Mining and Smelting Co., Ltd.    JAPAN
Gold    MMTC-PAMP India Pvt., Ltd.    INDIA
Gold    Modeltech Sdn Bhd    MALAYSIA
Tin    Modeltech Sdn Bhd    MALAYSIA
Tungsten    Moliren Ltd    RUSSIAN FEDERATION
Tantalum    Molycorp Silmet A.S.    ESTONIA

 

Page 9 of 13


Gold    Morris and Watson    NEW ZEALAND
Gold    Moscow Special Alloys Processing Plant    RUSSIAN FEDERATION
Gold    Nadir Metal Rafineri San. Ve Tic. A.Ş.    TURKEY
Tin    Nankang Nanshan Tin Manufactory Co., Ltd.    CHINA
Gold    Navoi Mining and Metallurgical Combinat    UZBEKISTAN
Tin    Nghe Tinh Non-Ferrous Metals Joint Stock Company    VIETNAM
Tungsten    Niagara Refining LLC    USA
Gold    Nihon Material Co., Ltd.    JAPAN
Tantalum    Ningxia Orient Tantalum Industry Co., Ltd.    CHINA
Tungsten    Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC    VIETNAM
Tin    O.M. Manufacturing (Thailand) Co., Ltd.    THAILAND
Tin    O.M. Manufacturing Philippines, Inc.    PHILIPPINES
Gold    Ögussa Österreichische Gold- und Silber-Scheideanstalt GmbH    AUSTRIA
Gold    Ohura Precious Metal Industry Co., Ltd.    JAPAN
Gold    OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastsvetmet)    RUSSIAN FEDERATION
Gold    OJSC Novosibirsk Refinery    RUSSIAN FEDERATION
Tin    Operaciones Metalurgical S.A.    BOLIVIA
Gold    PAMP S.A.    SWITZERLAND
Gold    Penglai Penggang Gold Industry Co., Ltd.    CHINA
Tungsten    Philippine Chuangxin Industrial Co., Inc.    PHILIPPINES
Tantalum    Power Resources Ltd.    MACEDONIA
Gold    Prioksky Plant of Non-Ferrous Metals    RUSSIAN FEDERATION
Gold    PT Aneka Tambang (Persero) Tbk    INDONESIA
Tin    PT Aries Kencana Sejahtera    INDONESIA
Tin    PT Artha Cipta Langgeng    INDONESIA
Tin    PT ATD Makmur Mandiri Jaya    INDONESIA
Tin    PT Babel Inti Perkasa    INDONESIA
Tin    PT Bangka Prima Tin    INDONESIA
Tin    PT Bangka Tin Industry    INDONESIA
Tin    PT Belitung Industri Sejahtera    INDONESIA
Tin    PT Bukit Timah    INDONESIA
Tin    PT Cipta Persada Mulia    INDONESIA
Tin    PT DS Jaya Abadi    INDONESIA
Tin    PT Eunindo Usaha Mandiri    INDONESIA
Tin    PT Inti Stania Prima    INDONESIA
Tin    PT Justindo    INDONESIA
Tin    PT Karimun Mining    INDONESIA
Tin    PT Kijang Jaya Mandiri    INDONESIA
Tin    PT Lautan Harmonis Sejahtera    INDONESIA
Tin    PT Mitra Stania Prima    INDONESIA
Tin    PT O.M. Indonesia    INDONESIA

 

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Tin    PT Panca Mega Persada    INDONESIA
Tin    PT Prima Timah Utama    INDONESIA
Tin    PT Refined Bangka Tin    INDONESIA
Tin    PT Sariwiguna Binasentosa    INDONESIA
Tin    PT Stanindo Inti Perkasa    INDONESIA
Tin    PT Sukses Inti Makmur    INDONESIA
Tin    PT Sumber Jaya Indah    INDONESIA
Tin    PT Timah (Persero) Tbk Kundur    INDONESIA
Tin    PT Timah (Persero) Tbk Mentok    INDONESIA
Tin    PT Tinindo Inter Nusa    INDONESIA
Tin    PT Tommy Utama    INDONESIA
Gold    PX Précinox S.A.    SWITZERLAND
Tantalum    QuantumClean    USA
Gold    Rand Refinery (Pty) Ltd.    SOUTH AFRICA
Gold    Remondis Argentia B.V.    NETHERLANDS
Gold    Republic Metals Corporation    USA
Tantalum    Resind Indústria e Comércio Ltda.    BRAZIL
Tin    Resind Indústria e Comércio Ltda.    BRAZIL
Tantalum    RFH Tantalum Smeltry Co., Ltd.    CHINA
Gold    Royal Canadian Mint    CANADA
Tin    Rui Da Hung    TAIWAN
Gold    SAAMP    FRANCE
Gold    Sabin Metal Corp.    USA
Gold    SAFINA A.S.    CZECH REPUBLIC
Gold    Sai Refinery    INDIA
Gold    Samduck Precious Metals    SOUTH KOREA
Gold    SAMWON Metals Corp.    SOUTH KOREA
Gold    SAXONIA Edelmetalle GmbH    GERMANY
Gold    Schone Edelmetaal B.V.    NETHERLANDS
Gold    SEMPSA Joyería Platería S.A.    SPAIN
Gold    Shandong Tiancheng Biological Gold Industrial Co., Ltd.    CHINA
Gold    Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    CHINA
Gold    Sichuan Tianze Precious Metals Co., Ltd.    CHINA
Gold    Singway Technology Co., Ltd.    TAIWAN
Gold    So Accurate Group, Inc.    USA
Gold    SOE Shyolkovsky Factory of Secondary Precious Metals    RUSSIAN FEDERATION
Tin    Soft Metais Ltda.    BRAZIL
Gold    Solar Applied Materials Technology Corp.    TAIWAN
Tantalum    Solikamsk Magnesium Works OAO    RUSSIAN FEDERATION
Tungsten    South-East Nonferrous Metal Company Limited of Hengyang City    CHINA
Gold    Sudan Gold Refinery    SUDAN

 

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Gold    Sumitomo Metal Mining Co., Ltd.    JAPAN
Gold    T.C.A S.p.A    ITALY
Tantalum    Taki Chemical Co., Ltd.    JAPAN
Gold    Tanaka Kikinzoku Kogyo K.K.    JAPAN
Tungsten    Tejing (Vietnam) Tungsten Co., Ltd.    VIETNAM
Tantalum    Telex Metals    USA
Tin    Thaisarco    THAILAND
Gold    The Refinery of Shandong Gold Mining Co., Ltd.    CHINA
Gold    Tokuriki Honten Co., Ltd.    JAPAN
Gold    Tongling Nonferrous Metals Group Co., Ltd.    CHINA
Gold    Tony Goetz NV    BELGIUM
Gold    TOO Tau-Ken-Altyn    KAZAKHSTAN
Gold    Torecom    SOUTH KOREA
Tantalum    Tranzact, Inc.    USA
Tin    Tuyen Quang Non-Ferrous Metals Joint Stock Company    VIETNAM
Tantalum    Ulba Metallurgical Plant JSC    KAZAKHSTAN
Gold    Umicore Brasil Ltda.    BRAZIL
Gold    Umicore Precious Metals Thailand    THAILAND
Gold    Umicore S.A. Business Unit Precious Metals Refining    BELGIUM
Tungsten    Unecha Refractory metals plant    RUSSIAN FEDERATION
Gold    United Precious Metal Refining, Inc.    USA
Gold    Universal Precious Metals Refining Zambia    ZAMBIA
Gold    Valcambi S.A.    SWITZERLAND
Tungsten    Vietnam Youngsun Tungsten Industry Co., Ltd.    VIETNAM
Tin    VQB Mineral and Trading Group JSC    VIETNAM
Gold    Western Australian Mint trading as The Perth Mint    AUSTRALIA
Tin    White Solder Metalurgia e Mineracao Ltda.    BRAZIL
Gold    WIELAND Edelmetalle GmbH    GERMANY
Tungsten    Wolfram Bergbau und Hütten AG    AUSTRIA
Tungsten    Woltech Korea Co., Ltd.    SOUTH KOREA
Tungsten    Xiamen Tungsten Co., Ltd.    CHINA
Tungsten    Xinfeng Huarui Tungsten & Molybdenum New Material Co., Ltd.    CHINA
Tungsten    Xinhai Rendan Shaoguan Tungsten Co., Ltd.    CHINA
Tantalum    XinXing HaoRong Electronic Material Co., Ltd.    CHINA
Gold    Yamamoto Precious Metal Co., Ltd.    JAPAN
Tantalum    Yichun Jin Yang Rare Metal Co., Ltd.    CHINA
Gold    Yokohama Metal Co., Ltd.    JAPAN
Tin    Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    CHINA
Gold    Yunnan Copper Industry Co., Ltd.    CHINA
Tin    Yunnan Tin Company Limited    CHINA
Gold    Zhongyuan Gold Smelter of Zhongjin Gold Corporation    CHINA

 

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Tantalum    Zhuzhou Cemented Carbide Group Co., Ltd.    CHINA
Gold    Zijin Mining Group Co., Ltd. Gold Refinery    CHINA

Despite our good faith, reasonable country of origin inquiries, due to the number of suppliers for which we have not received confirmed responses from for all of our questions regarding the source and chain of custody of the necessary Conflict Minerals in our Products, we currently have not obtained sufficient information from all of our suppliers to determine the origin, name and location of the facilities used to process all of the necessary Conflict Minerals.

Despite the foregoing conclusion, we undertook and continue to undertake the due diligence measures and procedures to attempt to determine the applicable facilities and countries of origin for the necessary Conflict Minerals for the Products, including making numerous follow up inquiries of the applicable suppliers who were nonresponsive and/or who indicated to us that they were still attempting to independently determine the smelter or source of the Conflict Minerals obtained by such suppliers.

 

6. Risk Mitigation

We are committed to complying with the provisions of the Rule and Form SD and expect to continue our efforts to improve our conflict minerals program and related due diligence. Our supply chain management next steps may include, but are not limited to the following:

 

    continue to work with suppliers that provided incomplete responses or that did not provide responses for 2017 to help ensure that they provide requested information for 2018;

 

    continue to request information and supporting data from each supplier manufacturing products for Alphatec that are subject to reporting requirements by utilizing any revised CMRT; and will pursue a completed template response that identifies material down to the smelter and mine;

 

    continue to refine our Conflict Minerals risk management strategy based on the results of our due diligence on products manufactured and procured in 2017;

 

    continue our due diligence process to review and validate supplier responses that are obtained in support of our Conflict Minerals reporting; and

 

    provide continuing education and training to members of our Conflict Minerals taskforce and our other employees who are involved with Conflict Minerals and suppliers.

 

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