Q & A

Your questions answered: Fairtrade and Fairmined gold

What is Fairtrade and Fairmined gold?

Fairtrade and Fairmined certified gold comes from artisanal and small-scale mining (ASM) organisations meeting the Fairtrade and Fairmined gold standard. This means the gold has been responsibly mined and that the miners have received a Fairtrade minimum price and premium which assists in their communities' social, environmental and economic development. The term Fairtrade and Fairmined recognises the partnership between FLO and ARM who are jointly delivering the certified gold.

 

Who are ARM?

The Alliance for Responsible Mining (ARM) is an international multi-stakeholder initiative created to enhance equity and wellbeing in ASM communities. ARM supports ASM mining organisations and communities to meet criteria for responsible social, labour, environmental, and trading practices, and works with governments for better rights for ASM communities.

 

What is artisanal and small-scale mining (ASM)?

ASM is labour intensive but requires little specialist technology, knowledge or skill. The mining method differs depending on geology, for example the miners of Oro Verde, Colombia, pan for gold in water whereas those working for Sotrami carry out hard-rock mining using dynamite and machinery to extract ore, which is then processed to extract gold. ASM attracts the most economically weak and vulnerable rural and urban people, seeking a higher income. It is also seen as an important alternative to less attractive or profitable activities (such as agriculture), and as a chance for people to improve their economic situation. These miners produce 10-15% of our annual gold supplies, but make up 90% of labour in gold extraction.

 

What challenges do ASM miners face?

Globally, 100 million ASM miners are characterised by high levels of poverty. ASM miners are often the most disadvantaged part of society. They often do not get the full price for their gold, sometimes receiving as little as 70% of the internationally agreed price of gold. Lack of transparency in supply chains makes it virtually impossible for consumers to know where and under what conditions the gold in their jewellery was mined.

Most mining communities lack basic sanitation, clean and safe drinking water, have poor housing, little or no access to education and healthcare and are financially unstable.

Mining laws are usually geared towards large-scale industrial mining and governments tend to give the large-scale industry preferential mining rights. This leaves small-scale miners who find it hard to access legal mining rights more vulnerable, pushing them into informal and illegal operations. Working conditions are hazardous and health and safety measures non-existent. The unskilled handling of toxic chemicals such as mercury and cyanide poses severe risks to miners' health and natural environment.

 

What are the benefits of Fairtrade certification to miners?

Like producer organisations certified for other Fairtrade products, mining organisations and their communities are guaranteed a better deal. Miners get market access and a fair price for their gold and increased security from the Fairtrade premium, for investment in economic, social or environmental improvements such as investing in child-care facilities.

The Fairtrade and Fairmined Dual Label ensures that gold has been extracted and processed in a fair way and responsible manner. This means:

• Strengthened miners' organisations

  Miners form groups to give themselves better bargaining power with traders, to get a fairer return for their gold, and gain greater control over the jewellery supply chain. They are required to participate in the social development of their communities.

• Child labour

  Miners' organisations must eliminate child labour from their organisation. No one under 15 years old must be contracted to work in the mining organisation. Those under 18 must not work in hazardous or dangerous conditions.

• 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

  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

  Miners must use safe and responsible practices for management of toxic chemicals in gold recovery, such as mercury and cyanide. Chemicals have to be reduced to a minimum, and where possible eliminated over an agreed time period.

 

Where are the miners Fairtrade and ARM are working with?

Bolivia, Colombia, Ecuador and Peru. More mining organisations from Latin America are expected to join the system in 2011. Work with miners in Africa and Asia to bring them into the system from 2012 has also begun. The scope of the work only covers ASM miners, rather than medium or large-scale industrial mining, because this is where Fairtrade and Fairmined certification could have the most impact. Other initiatives support improvements in large-scale mining such as the Responsible Jewellery Council.

 

How do artisanal and small-scale miners use chemicals to extract gold?

Mining methods vary according to geology of the area. The gold found in riverbeds is easier to extract from the surface with basic tools or from river terraces by removing vegetation or digging pits without the need for chemicals. Hard-rock mining underground extracts ore which is processed on the surface to extract the gold. Most commonly, it is mixed with mercury, which captures the gold to form a mixture known as amalgam. The amalgam is then heated which evaporates the mercury, leaving residual gold and other metals.

Some small-scale miners use cyanidation as an alternative to mercury. Cyanide leaches the gold from the crushed ore, dissolving it in the water. As this process requires substantial investment, special training, a longer processing time, and significant financial capacity, it is less widely used by ASM miners. However when used properly, cyanidation enables miners to eliminate mercury completely and increase gold recovery rates.

 

What is the impact of chemicals used in mining?

The environmental impacts of ASM depend on where it occurs, but can include deforestation, land degradation through air, water and soil pollution from dust, mud or toxic substances, as well as impact on local wildlife. By working with the mining organisations before certification, it is possible to drastically reduce these impacts with the proper support and incentives. ASM is not significantly dirtier per unit of output than other mining activity, and since ASM processes much less ore than large-scale mining per ounce of gold, the magnitude of its impact on the land is much smaller.

If chemical use were not permitted by Fairtrade and Fairmined standards, 95% of all ASM would be excluded from the development opportunity of Fairtrade. Instead the standards set out a process to support ASM mining organisations to minimise the use of mercury and cyanide over an agreed period of time, through responsible practices and technologies to mitigate impact on the environment and human health. The Fairtrade and Fairmined standards require ASM miners to use a process which ensures that mercury emissions are drastically reduced. For many miners' organisations the Fairtrade premium can provide the only opportunity to invest in more environmentally efficient technologies.

 

Will Fairtrade and Fairmined certified gold produced without the use of chemicals be available?

Yes, there are ASM mining organisations who do not use chemicals when mining and promote environmental conservation. The gold produced by groups with strong environmental management systems in place and who are not using chemicals will be known as ecological gold and carries an additional premium on top of the Fairtrade premium. The additional premium is to recognise the additional costs involved in maintaining environmental controls.

 

Would it be better to recycle unwanted gold instead of extracting more to limit the environmental impact of mining?

Although recycling is a good way of reducing the environmental impacts of mining, only 30% of the market for gold can be satisfied from such sources. Fairtrade and Fairmined certified gold will provide direct developmental impacts for ASM miners, who may otherwise take up other exploitative activities in the drug or sex trades.

 

How will I know the product I have bought is from a certified Fairtrade and Fairmined mining organisation?

By creating fully transparent and traceable supply chains, consumers and retailers can have confidence that ASM miners are getting a fair deal and responsible practices have been used. Consumers can recognise Fairtrade and Fairmined products as their packaging will carry the relevant dual label and the jewellery product a stamp (similar to the hallmark). Consumers will recognise products made from ecological gold as it will carry a slightly different dual label and stamp.

 

What will be available and when?

The new standards mean that licensees can apply for certification of gold products such as jewellery, commemorative coins, ingots, medals, trophies and religious artefacts of 9ct gold and above. Fairtrade and Fairmined gold products will be available in stores from 14 February 2011 - more information on store listings.