WORLD'S FIRST FAIRTRADE AND FAIRMINED GOLD
14.02.2011 - After the launch of Fairtrade standards for gold in March 2010 (see our article Fairtrade Gold from the 22.03.2010), the first Fairtrade and Fairmined certified gold products are launched today in the UK market by 20 pioneers jewellery companies. Harriet Lamb, executive director of the UK-based Fairtrade Foundation, said: "the reality of gold production is at complete odds with what consumers imagine. Consumers care about the conditions faced by miners. This is why Fairtrade and Fairmined gold has the potential to tackle unfair supply chains, improve working and environmental conditions and deliver tangible and sustainable economic benefits to impoverished communities. Now this is what I call a labour of love".
What are Fairtrade and Fairmined gold standards?
Being part of the Fairtrade and Fairmined system means miners will adhere to a set of standards, guaranteeing that gold is produced in a way that is safe for the people and the environment, including:
- Strengthened miners organisations - Miners have the opportunity to empower themselves through their organisation. They form groups to give themselves better bargaining power with traders, to get a fairer return for their produce, and gain greater control over their jewellery supply chain.
- Improved working conditions - Fairtrade and Fairmined certification requires mandatory use of protective gear and health and safety training for all miners.
- Freedom of association and collective bargaining - Certified miners' organisations must recognise the right of all workers to establish and join trade unions and collectively negotiate their working conditions.
- Responsible use of chemicals - Certified miners must use safe and responsible practices for management of toxic chemicals in gold recovery. Chemicals have also to be reduced to a minimum and, where possible, eliminated over an agreed time period.
In return, certified artisanal small-scale miners will get a Fairtrade minimum price set at 95 per cent of the London Bullion Market Association's (LBMA) fix (the London-based association that represents the wholesale over-the-counter market for gold and silver). Currently, mining companies receive anywhere between 30 and 85 per cent of the LBMA fix. In addition, they will receive a Fairtrade premium, calculated as an additional 10 per cent of the applicable LBMA fixing. For Ecological Gold, meaning gold that is extracted without the use of cyanide and mercury (toxic chemicals generally used in the gold recovery process), an additional ecological premium, calculated as 5 per cent of the applicable LBMA fixing, is paid on top of the Fairtrade premium.
Did you know?
It is estimated that at least 20 tonnes of toxic mine
waste is created to produce just one gold wedding ring!
Currently, only one mine has been certified - the Cotapata mine in Bolivia - but more mines in Peru and Colombia are due to receive certification within the next couple of months. "Now we are Fairtrade, we are receiving a premium," sais Juana Pena Endara, Senior President of the Cotopata Mining Co-operative. "The first thing we will do it buy a smelter and some machinery so we can produce more".
Why Fairtrade gold?
The global jewellery market is big business. Around 50% of the global demand for gold is for jewellery. A staggering $137.5bn was spent on gold jewellery in 2010, making it one of the world's largest categories of consumer goods. But for the 100 million people globally who depend on artisanal and small-scale mining for their livelihood, the reality is exploitation, hard working conditions, and unfair prices for their products. Some 90% of the labour forced involved in gold mining is made up of artisanal and small-scale miners.
Why a dual Fairtrade and Fairmined certification?
The Fairtrade and Fairmined certification mark
The standard originates from the partnership between Fairtrade International and the Alliance of Responsible Mining (ARM), based in Colombia.
ARM is an international multi-stakeholder initiative created to enhance equity and well-being in artisanal small-mining communities. ARM works daily to support their operations to meet criteria for responsible social, labour, environmental and trading practices, as well as to work with governments to advocate for better rights for those communities.
For more information on Fairtrade and Fairmined gold visit www.fairgold.org and www.communitymining.org.
You can also download the updated Fact sheet on Fairtrade and Fairmined gold (pdf, 74Kb)
Watch the video "Gold: Every piece tells a story" about the lives of artisanal small-miners:
