I have been invited to attend a meeting at the Foreign Office (UK) on Monday to discuss the status of the Kimberly Process.

Issues for discussion:

1) Should the KPs definition of conflict diamond be expanded to include Human Rights?
2)If the KP is not able to address Human Rights issues are there other mechanisms that could address these issues in the diamonds supply chain (i.e. RJC Chain of Custody scheme /OECD guidelines / NAG/BJA plans)
3)Time Permitting
Other industry concerns/views about the KP/System of warranties/consumer confidence etc

Your thoughts as jewellers would be valuable so I can take this into the meeting.

Think what Anglo American will do if they are allowed to mine copper at the Pebble Mine in Bristol Bay, Alaska.

http://aptn.ca/pages/news/2011/12/13/de-beers-decision-to-dump-sewage-into-attawapiskat-played-role-in-current-housing-crisis/

Migori County (MICA) Artisanal Mining COOP was established to allow the local miners and traders to come together and to formalise their relationships in such a way as they could move forward to achieve Fairtrade status and begin exporting their production directly to the international market. Additionally by removing themselves from the economic controls of the bigger traders they would be able to increase their prices and begin lifting themselves out of the poverty that this form of gold trading creates.

Illustratively, the local gold business works through networks of local traders, linking with the artisan miners and then selling their production back to central processing  hubs were the production is weighed, tested for purity and then smelted into simple ‘doray’ bars (unrefined gold bars)  before it is moved to Nairobi and then sold to refiners in Dubai. This system is funded at the front end by money from the traders, who due to their financing, control and monopolise  the entire region.  They buy the gold at discounted rates as much as -28% as I discovered and then adjust for purity. Many miners complain of dodgy scales and purity testing. For example, I had one local processor boast about his cheap PC computer that could scan gold and give a 100% accurate reading on the purity. The genius of this system is it keeps everyone in debt. The local trader may make an average commission as little as KSH 80-100 per gram that he buys on behalf of the Asian buyers with their money. Everyone owes money to these monopoly traders and therefore you have an effective and very efficient form of economic slavery. Any deviation from the proscribed process meets with a swift response as we were to find out.

Over the course of the year, I and others had worked with MICA to see them formalise into a COOP, secure a direct export license and then create a traceable supply chain that would link transparently the miner to the end purchaser of their gold. This in an of itself is progressive as we had to work our way through the myriad of prejudice that exists towards small-scale miners from the refiners, shipping companies and potential financiers and business men, all whose lives are linked to risk mitigation and protecting their investments. Although understandable to a degree, it becomes untenable when in the name of ethics and justice people expect the poor to underwrite their risk with personal guarantees etc.

Anyway with MICA at one end and CRED Jewellery stepping up to the plate to act as the buyer, we booked the trip with a view to enabling the first direct export of gold from a small-scale mining coop from Kenya in the history of the country. The simple aim to enable the COOP to export it first shipment and thereby open up a supply route that would give the COOP access to the international market as well as lay the foundations for a vital part of their becoming a Fairtrade certified mining operation.

However, and this is where it came unstuck, the financial, social, cultural and indentured relationships that have governed this area for so long were not happy with the idea of the local miners being free to export directly, as this would be an erosion of the power they have in the region. Traders have all the power in these artisanal relationships and the COOP discovered that the wrong trader in the mix can kill a process by simply using the economic leverage they have to dictate price, pre-finance behaviour and loyalty. As we came to the day of the trade, it became increasingly obvious that the big traders had a plant in the COOP who simply killed the opportunity, withheld a part of the services needed and prevented the COOP from delivering. That same evening certain members of the COOP were visited by local bully boys and everyone got the message that this movement towards economic independence was not going to be tolerated by the invisible status-quo.

It is a strange thing knowing that you are so near, yet so far. I literally watched the gold disappear in front of my eyes. It was all there, yet the COOP could not bring it all together and deliver and of course this all happened on the same day as the money for the shipment arrived in the COOP account. Also I was now being advised to get out of the area for awhile as things were heating up and the COOP were not happy about the deteriorating security situation. So with driver and passport to hand I jumped into a car and drove to Mwanza to visit some friends there, while the COOP waited for the situation to calm down.

I learned a very valuable lesson on this trip. Traders have the potential to create problems in a way that anyone in the fair trade movement must never underestimate. The Gold mafia are a very real obstacle to change and we must have a strategy for dealing with them. And also that a quality relationship is often forged in adversity, as opposed to success. In many ways the COOP needed to fail on the first trade so that they could fully understand the scale of the mountain they want to climb and how much work they will have to put into their dream.

The COOP I am pleased to say as we parted company with them having transferred the money back to the UK, were very clear of their continued commitment to becoming a Fairtrade COOP. Are now much clearer as to what the obstacles are and also the relationships that prevented their first shipment. In truth we stress tested the system and in doing so all have a greater understanding of what not to do in the future.

Is there a future? Yes there is, and I hope to be able to update everyone on our progress early in the New Year as CRED and MICA seek to facilitate Kenya’s first export from a local COOP.

With yesterdays announcement that Global Witness has removed itself form the Kimberley Process, UK jewellers are seeking answers to why contentious diamonds remain at the forefront of news as they enter the critical festive retail period.

The decision in November by the KP to allow exports of diamonds from certain mines in Zimbabwe rocked the international diamond industry. UK jewellers expressed concern over the decision and subsequently many have sought more assurances from their dealers on the provenance of the goods being imported.

Global Witness were among the founding bodies of the KP and their departure from the dialogue marks a significant shift in confidence that the KP may not be ‘fit for purpose’ in current global politics.

In May of this year, Global Witness met with the UK’s largest trade bodies; the National Association of Goldsmiths who represent over 2500 jewellery retailers and the British Jeweller’s Association, who’s 1000 members belong to manufacturing, trade and wholesale within the industry. The NAG and BJA formed a specialist Ethics Committee in March 2011, tasked with consulting between key UK and International trade and NGO bodies, as well as with the UK Government.

Global Witness gave valuable information about the current crisis in Zimbabwe and discussed the Kimberley process objectives. They expressed frustration that finding representatives of the artisanal miners was proving particularly difficult and it was clear that ensuring a balanced outcome for the diamond miners of Zimbabwe was going to be extremely challenging.

However, despite the withdrawal of Global Witness from the KP, the Ethics Committee maintains that the UK jewellery industry will continue to seek resolutions from the World Diamond Council on the matter and in the meantime recommend jewellers and retailers remain cautious about the origin of their diamonds.

Michael Hoare, CEO of the National Association of Goldsmiths said

“It’s important to retain consumer confidence in British made jewellery .The creation of the Ethics Committee is a commitment to effecting positive changes for the jewellery industry and ensuring that a regular dialogue between all parties is maintained”.

The BJA and NAG have long advocated their memberships take every reasonable precaution in diligently checking the provenance of the diamonds used in British made jewellery. Today, the Ethics Committee announced an evaluation of the  UK response to the recent developments and will assess concrete steps which UK jewellers can take to protect their integrity from the Zimbabwe stones which have attracted the ‘Blood Diamonds’ label by KP critics .

The value of understanding the intricate supply chains in UK jewellery manufacture extends into all aspects of diamonds, coloured gems and precious metals.

In recent months the Ethics Committee have met with the Fairtrade Foundation and the London Bullion Market Exchange, where current standards to ensure best practice in both newly mined and refined or recycled gold were examined.

Simon Rainer, CEO of the British Jewellers Association said

“The UK industry is at the forefront of traceability; working towards the creation of recognisable standards to define transparency in jewellery supply chains”.

-Ends-

Notes to Editors

CONTACT VIVIEN JOHNSTON    vivien@fifibijoux.com, 07789224705

The British Jewellers’ Association has united with The National Association of Goldsmiths to support access to ethical supply chains and chain- of- custody objectives for their members.

Realising that many small businesses are faced with substantial challenges when trying to break down the components of their supply chains and assess ethical credentials, the BJA and NAG have committed to take the lead for UK jewellery manufacturers and retailers.

The committee wish to build a concrete policy and guidelines that meet the high standards required for responsible and transparent  trading in the UK market

Both associations have connections with RJC and CIBJO and are mindful of their contribution to the debate, but act in the best interests of their respective members.

The NAG & BJA‘s ethics working committee will assess the feasibility of a system of auditable standards covering the following areas:

• Mining
• Metals
• Diamonds
• Gemstones
• Manufacturing
• Retailing.

The Ethics Committee will tackle each field and call on experts for an open and frank information exchange in order to develop a robust system in the UK jewellery industry. Vivien Johnston, founder of ethical jewellery brand Fifi Bijoux, has been appointed to steer the project.

Greg Valerio, winner of the Observer Ethical Campaigner Award for his work to bring Fair Trade gold to market, has pledged his support for the realisation of the standards.

Photos of  Simon Rainer, CEO of BJA; Vivien Johnston; founder of Fifi Bijoux and Chair of Ethics Committee; Michael Hoare, CEO of NAG, Greg Valerio, founder of CRED Jewellery & Fair Jewellery Action, available on request.

UK Jewellery Industry Confused by KP Decision

The UK jewellery industry has been left baffled following the recent announcement that Zimbabwe is once again to be included in the Kimberley Process. The message from inside the UK trade has been of confusion and disappointment on the lack of effectiveness of the KP to prevent diamonds mined from the troubled Marange diamond fields from entering the supply chain.

At a meeting in Kinhasa on the 1st November 2011, the Kimberley Process agreed to allow the export of rough diamonds from two KP compliant operations in the Marange region.

A third site at Anjin will be inspected within 14 days to check for compliance. This inspection may be subject to Zimbabwean army and central intelligence approval.

Since 2009, Marange diamonds have consistently been refused KP accreditation owing to human rights abuses and alleged non-compliance with KP certification requirements.

However the diamond stockpiles accumulated by Zimbabwe in 2008 and 2009 when the bouts of violence against artisanal miners were at their height will now too enter the world market.

In a press statement Zimbabwe’s Minister of Mines Mpofu announced “We want to shock the world with our stockpiles. We are going to unleash our worth to the world and Zimbabwe will not be asking for anything from anyone. I hate begging myself and Zimbabwe will not be begging from anyone,”

The Kimberley Process was established in order to prevent the flow of conflict. In allowing the market to become flooded with Marange ‘Blood diamonds’, has the KP failed in its duty and is it now fit for purpose?

Michael Hoare of the NAG said:
“NAG members are concerned about the future of the KP and have been contacting me suggesting that it has to take a firm line; being more transparent and rigorous in pursuit of its objectives. I had sincerely hoped that the Kinshasa meeting would counter retailer’s doubts once and for all so that they could pass on credible assurances to the public about the provenance of their diamonds. I fear that it has in fact generated a ‘lot of heat but not a lot of light’ and failed to put their doubts to rest.”

One of the unintended consequences outside the remit of the KP is that the largest customers of Marange diamonds, India and China are already discounting stones owing to the abundance of new supply. This will have a serious impact on the world market particularly in the supply of cut, polished diamonds and finished jewellery.

China is a huge investor in Zimbabwe and in March of this year lent $585m to the Zimbabwean government in the biggest deal of its kind.

The owners of Marange Resources; Mbada and Anjin Field; are owned or co-owned by ZMDC which remain under US, UK and EU sanctions, therefore no trade of rough can be made in these territories
However, will it now be impossible to prevent Marange Blood diamonds from entering the UK as long as retailers continue trade with China? It looks likely that any item of diamond jewellery manufactured in the Far East will now present an open route to market for a Marange diamond on to the UK high street.

The BJA has been very close to the KP process. CEO Simon Rainer comments

’At its inception, the KP was designed to prevent the sale of rough to fund conflict against democratically elected governments. Today, the KP under the same remit struggles to prevent “democratically” elected governments from using the profits of diamond rough to sponsor political violence against its indigenous population.
Whilst Marange diamonds maybe now compliant to the KP scheme, they are not compliant with the moral and ethical standards that the majority of the world subscribes to”

On November 1st, MP Under-Secretary of State for Foreign and Commonwealth Affairs, Henry Bellingham stated in the Hansard report on the situation “This will help the Zimbabwean Finance Ministry to collect tax and royalties owed to it, and thereby ensure the financial benefits of the diamond sales can reach the Zimbabwean people”.

That view was today slammed as ‘naïve in the extreme’ by Fair Trade Jeweller and Activist Greg Valerio. He went on to say ‘I support the view that to allow Zimbabwe diamonds into the KP system is a grave mistake. It will erode consumer confidence in the diamond. It’s permanently comatosed the credibility of the KP and forces the jewellery trade back to square one in terms of integrity of the diamond supply chain. It’s a sad day for the diamond industry and a sad day for human rights’.

Vivien Johnston of Ethical Jewellery brand Fifi Bijoux agrees
“This does nothing actually to address the torture, beatings or sexual assault to miners in the Marange diamond fields. It has been alleged by BBC reporters and witnesses as recently as August of this year that miners are being held captive and subjected to brutal assaults, rape and extreme violence in Marange. Under no circumstances should the perpetrators of crimes against humanity be allowed to openly profit from their corruption. Whilst the export ban has only been lifted from two sites so far, this opens the door to middle men who will exploit any opportunity to profit from the lifting of the ban. I understand the pressure on the KP to engage with Zimbabwe but this action has only weakened its integrity and thrown the diamond industry further into disarray. We must not forget why Zimbabwe was excluded”.

Talk of the need for a ‘KP Plus’ to provide a new coherent compliance suitable for today’s political challenges give rise to further speculation that the KP in its current format is creaking under the responsibility to make itself fit for purpose.

Certainly, the feedback from the UK jewellery sector demands further assurance on the provenance of diamonds entering our market.
In the US the new Dodd Frank legislation is making strides to prevent metals from “areas of conflict” entering their supply chain. Perhaps this, with other due diligence and chain of custody initiatives to prevent the trade of conflict minerals will become vehicles to prevent cut and polished stones from entering the US market.
Simon Rainer of BJA has already noted activity:

“In Washington on November 17th, the US State department will be holding a series of informal meetings engaging with US jewellery industry representatives, UK/EU public office officials and NGO’s. The purpose of these meetings will be to invite US industry to set its own set of voluntary measures to combat the frailties of the KP in its current form. If agreement cannot be met, then expect the State department to enter the fray and impose an amended version of the Dodd Frank Act or similar that will include diamonds from “areas of conflict”.

He added
“It is a fair reflection that the worldwide jewellery industry is confused by the current situation and that those with most to gain financially from the release of Marange diamonds have been the most vociferous in their support for Marange KP compliance”.

Since the beginning of the year I have been working with Julius Opiyo and the Migori County Artisanal (MICA) miners COOP to begin the walk towards Fairtrade Fairmined certification.

MICA have mad excellent progress this year, having obtained their COOP status, export license and are now days away from being the first Kenyan artisanal gold miners COOP in the history of Kenya to export directly to the international market.

As I sit here in Kenya, we are awaiting confirmation of the money arriving in the MICA account, to release the first 24 Troy Ounces of gold. Needless to say the 25 members of the COOP are extremely happy as they recognise this is a significant step in their ‘liberation’ as local people from the hands of unscrupulous traders.

This first trade for them, means that they are putting the commercial systems in place to facilitate regular shipments of gold to international buyers, as well as cementing an important part of the Fairtrade requirements of having a traceability system in place that guarantees provenance over their gold.

There are huge issues in this region that includes, child labour, mercury usage, poor mine shafts that recently led to 6 deaths in the region, economic exploitation of small-scale miners and much more.

Yet the COOP here are making good progress to build a process that will lead to Fairtrade Certification and broader positive community impact.

More to follow, but good news

A diverse, international group of jewelry, environmental, and mining stakeholders convened in Santa Fe, October 29-30, 2011, and agreed on a common vision of a world in which jewelry, from mine to market, benefits the environment and everyone that touches it.

Participants identified an initial goal to broadly introduce certified Fairtrade and Fairmined gold to the US market in 2012.

The group will undertake a critical examination of standards and work to ensure the best outcome for communities and the environment through the mineral supply chain. The group also sees emerging opportunities to build a market for transparent and traceable ethical metals, and discussed other areas of concern including colored gems, diamonds, other precious metals and manufacturing.

Fair Jewelry Action and Ethical Metalsmiths hosted the dialogue attended by Larry Bohlen (Green Leaf Gold), Eric Braunwart (Columbia Gem House), Marc Choyt (Fair Jewelry Action and Reflective Images Inc.), Christine Dhein, (Revere Academy of Jewelry Arts and Green Jewelry News), Bill Gallagher (Lori Bonn Design, Inc.), Genevieve Ennis Hume (Hume Atelier, Canada), Christina Miller (Ethical Metalsmiths), Toby Pomeroy (TOBY POMEROY Jewelry and Alliance for Responsible Mining (ARM)), and Greg Valerio (Fair Jewellery Action, United Kingdom).

Fairtrade and Fairmined gold certification is the result of a joint effort between Fairtrade International (FLO) and the Alliance for Responsible Mining (ARM), who combined their expertise to enable artisanal and small-scale miners (ASM) to improve their livelihoods through a set of standards for responsible mining, which the miners have to fulfill in order to get certified. Standards include democratic organization, safe working practices, management of toxic chemicals, as well as respect for the environment and women’s rights. Certified miners will receive a guaranteed Fairtrade and Fairmined minimum price, which is democratically reinvested in community projects and improving miners’ operations. Mining organizations will be audited by FLO-CERT, an independent, international certification body, to ensure compliance.

Observing the meeting were Jennifer Krill (Earthworks) and Maya Spaull (Fair Trade USA).

For more information, visit www.fairgold.org, www.communitymining.org and www.fairtrade.net.

Marc Choyt: 505-699-8179 reflective@cybermesa.com
Christina Miller: 513-551-0559 cmiller@ethicalmetalsmiths.org
Toby Pomeroy: 541-231-7836 toby@tobypomeroy.com

The Golden Cockerill

The moment of truth...

Chris Davis from Fairtrade Foundation, the Dean of Chichester Cathedral Nicholas Frayling and myself enjoying the moment

The Fairtrade Golden Weathervane

The gold covering the weathervane was responsibly sourced by Chichester’s Cred jewellers from the Sotrami Mine in Peru – one of the first mines in the world to be certified to Fairtrade standards.   Both the Sotrami Mine and Cred are part of a new – and revolutionary – programme of Fairtrade and Fairmined Certified Gold launched on Valentine’s Day earlier this year.

Fairtrade and Fairmined Gold is the world’s first independent ethical certification system for gold.  The certification enables businesses, from designers and retailers to fabricators and distributors, to offer their customers the guarantee of a product which has been responsibly mined.  Crucially, this means that small scale miners receive a fair price for gold, ensuring a more stable future for them and their communities.

The gilded Cathedral weathervane – a 3ft cockerel – will be installed at the top of the Cathedral Spire on the 2^nd November. (Press and Media representatives are invited – see details below). A team of steeplejacks will climb 131ft – 205 steps – to reach the base of the Spire and then ascend a narrow 146ft ladder directly up the side of the Spire, arriving finally at a tiny scaffold platform erected especially for this project around the Spire Cap.

The Very Revd Nicholas Frayling, Dean of Chichester, explains why the project is so important: ‘Fairtrade and Fairmined Gold provides a lifeline for thousands of impoverished and exploited miners in Bolivia, Colombia, Ecuador and Peru.  If every jeweller, and indeed every customer, were to insist on only gold sourced in this way then thousands of small scale miners, and their communities, would be guaranteed a better future.  The cost of this project has been borne by a private donor to whom we are very grateful, but the wider ambitions of Fairtrade and Fairmined Gold are priceless.’

Chichester’s Cred jewellers have been pivotal to the realisation of Fairtrade and Fairmined Gold and were one of the first ethical jewellers in the UK to produce collections sourced in this way.

Prior to the gilding of the weathervane, the gold was sent to Italy to be turned into gold leaf.  The Italian company Manetti is one of Florence’s oldest companies and the only remaining organisation in Europe who are able to turn gold into gold leaf.  The leaf needed to gild the weathervane is just 8 microns thick (1 micron is 1000^th of a millimetre) and is made out of 23 ½ carat gold.  The gold started life as a pure 24 carat but the leafing process introduces a small amount of copper.

Endnotes:

1.  Press and media enquiries welcome.  Interviews and images available.

For any further information please contact Ruth Poyner at Chichester Cathedral on 01243 812482 or visitors@chichestercathedral.org.uk

For further information about Fairtrade and Fairmined Gold please contact Stuart Barber at the Fairtrade Foundation on 020 7440 7695 or email stuart.barber@fairtrade.org.uk

Photocall invitation to come and see the steeplejacks install the weathervane.  An event especially for Press and Media representatives will take place on the 2^nd November at the Cathedral:

• 10.30 onwards opportunity to film/photograph the weathervane at ground level.
• 11.30 weathervane blessing and opportunity to meet/interview representatives from the Cathedral, the Fairtrade Foundation, Cred Jewellers and Manetti.
• 12 noon onwards opportunity to film/photograph the steeplejacks install the weathervane at the top of the Spire.

If you would like to attend, or for further information please contact Ruth Poyner at Chichester Cathedral on 01243 812482 or visitors@chichestercathedral.org.uk

2. The weathervane was removed from the Spire for refurbishment earlier this year, as part of a five yearly survey of the Spire.  The steeplejacks have also recently completed maintenance work on the Spire stonework: Chichester Cathedral costs £1000 a day to maintain.  The Cathedral is famous for being both ancient and modern, where original medieval features exist alongside a famous collection of modern artworks, including works by Marc Chagall, John Piper, and Graham Sutherland.  Chichester Cathedral is open every day and all year with free entry www.chichestercathedral.org.uk

3. The Fairtrade Foundation is an independent certification body which licenses use of the FAIRTRADE Mark on products which meet international Fairtrade standards.  Its vision is of a world in which justice and sustainable development are at the heart of trade structures and practices so that everyone, through their work, can maintain a decent and dignified livelihood and develop their full potential.

The Fairtrade and Fairmined system means miners will receive a set Fairtrade minimum price for their gold, plus a Fairtrade premium to invest in community and business development projects, these include better working conditions, education, health and environmental restoration.  To date, three miners’ organisations, representing 2,500 miners and their families are being certified under the Fairtrade and Fairmined standards.

Fairtrade and Fairmined Gold was launched in February 2010.  Only products created from Fairtrade and Fairmined Certified Gold can bear the dual stamp of the Fairtrade and Fairmined marks.  The world’s oldest jeweller Garrard, pioneering ethical jeweller Cred, and luxury bespoke jeweller Harriet Kelsal were among the first 20 companies to launch Fairtrade and Fairmined collections.  To date, 34 leading jewellers are designing fabulous collections and one-off pieces.  www.fairtrade.org.uk/gold

4. Cred Jewellers have been trading for 10 years in Chichester and are part of the wider Cred Foundation.  Cred Jewellery was one of the first pioneering companies to launch Fairtrade and Fairmined Gold products and now 34 designers and jewellers have followed them nationwide.  Cred’s Greg Valerio was instrumental in the realisation of the Fairtrade and Fairmined Gold programme.  Greg’s passionate campaigning for change in the jewellery and mining industries led to the launch of the scheme earlier this year and this achievement was also recognised at the Observer Ethical Awards 2011 where Greg was named Global Campaigner of the Year.  To find out more visit www.credjewellery.com

Its a very promising development and I am optimistic about the outcomes,as the people round the table are not just business people, they also represent broader civic society. More will follow shortly…