Tag Archives: Child Labour

Fairtrade Gold – Kenya – a quick update.

Just  a quick post to update everyone on progress here in Kenya and our destination Fairtrade Gold project.

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

Hot tips on being an Ethical Jeweller.

The question is a simple one and goes something like this.

“I want to become more ethical in my business as a jeweller. What do I need to do?”

This is not an easy question to ask. In 2003 when I returned from visiting Oro Verde in Colombia I said to my colleagues at CRED Jewellery that we needed to set the target as a jewellery boutique to be 100% traceable, ethical and fairtrade within five years. We all looked at each other knowing that it was the right thing to do, but to be honest we were all daunted by the idea as we did not have a clue as to how to achieve it. In April of 2009, six years later CRED Jewellery delivered on its promise. What this demonstrates is the jeweller, the jewellery brand, boutique owner, in fact any size and shape of jewellery company can make the change. Below are a few handy tips that I believe will help jewellers to make the change.

1. Take your time over the change.

This may seem rather obvious, but it is true. The difference between success and failure in matters of ethical performance in jewellery is not, as is commonly assumed, the inability of the industry to deliver. It is the setting of unrealistic targets, not hitting them, becoming frustrated and giving up. I am convinced CRED could have achieved the change a lot earlier if we had planned better. By setting realistic targets and time frames you can take the pressure off. In a recent market study I conducted on behalf of Fairtrade Foundation, a lot of jewellers expressed an anxiety about the pressure they were under and how they could not possibly do ethical improvements because of time constraints, even though they also said they wanted to make the changes ‘because it was the right thing to do’. The truth is transforming your business to ethical suppliers and better ethical standards will take years, not months. Its a journey, a challenge, an adventure and a business opportunity.

2. Understand the world you are about to enter.

The world of ethics and fairtrade in jewellery is still in its relative infancy and can appear at first site to be very confusing. Whether it is blood diamonds or dirty gold campaigns, or the broader political and cultural drivers like the environmental crisis, global warming, conflict resources or the banking crisis our world is changing which means the environment of business will continue to be shaped by these and other dynamics. A key to turn for all jewellers is the ‘physical traceability’ key. Without physical traceability in the supply chain, the ethical discussions that everyone is having have no teeth and no substance. This is the question that everyone wants to avoid because no-one wants to be seen as an Emperor with no clothes. Asking this question is the starting gun on the ethical journey.

3. Map your supply chain.

The key areas to give attention to when beginning to address the ethical positioning of your supply chain is, a) Know who is in your supply line from mine to retail,  b) Know the countries that you are touching through your supply chain, c) Make a note of where you draw a blank or get no answer. These questions are foundational questions you need to begin to ask to track your supply chain. Whether it is diamonds, gemstones or gold and silver, each material you touch will have a story and uncovering that story is the key to understanding the impact you are having.

4. Ask three simple questions.

Once you have worked out your supply chain from mine to retail (no easy task) then you can begin to address the next set of three questions,

a) What is the social impact of my supply chain? This looks at the human rights, labour rights, indigenous rights, health & safety and freedom of association that are or may be effected by your supply chain.

b) What is the environmental impact of my supply chain? Mining does not have to be a dirty business. All the products we use are mined and therefore our business has a direct impact on environments and eco-systems all over the world.

c) What is the economic impact of my supply? Are the people in your supply chain being paid a fair and decent wage, with time off?

Many jewellers are shocked when they find out that the majority of people employed in mining earn less than $2 a day. That much of the Ruby sold in Thailand comes from Burma (which is embargoed and therefore illegal), or that some large scale gold mining companies still ruin local communities and their environment in the name of profit. These realities are not very easy to digest for any of us, but they are truths we cannot avoid either.

5. Involve your customers in the process.

This may seem counter intuitive but its not. Understandably the big anxiety that jewellers face is ‘if they highlight attention to the challenges and difficulties, will it drive their customers away?’ In my experience (this is born out through market research in other products as well), if you talk to your customers about the challenges and communicate to them the steps you are taking to address the difficulties that may exist, they in turn respect you for the progressive steps you are taking and this builds a stronger customer relationship, creates a positive halo effect and breeds customer loyalty. It also attracts the new intentionally ethical, green, fairtrade customer.

Naturally in such a short article it is impossible to go into more details about how to do this but I hope that some of the tips above are able to get people off and running. Feel free to contact me if you would like anymore help,  my blog site is beginning to list good suppliers and if you cannot find an answer to your specific question I am sure there is a way we can find it.

Greg Valerio

greg@gregvalerio.com

http://blog.gregvalerio.com

Fairtrade and Fairmined Gold Official Press Release.

At last it is officially official. Well done to everyone at Fairtrade Labeling and ARM. Today the ship is launched. We now have the best story in the gold world.

Fairtrade and Fairmined gold standards launched.

  • Alleviating poverty faced by artisanal and small-scale gold miners
    • Minimising environmental impacts of gold mining
    • Traceable gold

Fairtrade Labelling Organisations International (FLO) and the Alliance for Responsible Mining (ARM) launches the first ever third party independent certification for gold, opening up market opportunities for millions of impoverished artisanal small-scale miners and their families.

The new Fairtrade and Fairmined gold standards will mean that interested licensees can apply for certification of gold products such as jewellery, commemorative coins, ingots, medals, trophies and religious artefacts. An industry market survey of 96 companies across 11 countries identified consumer products such as wedding rings, dress rings, necklaces, earrings and bracelets as potential products.

Globally, over 100 million people who depend directly or indirectly on artisanal and small-scale gold mining are characterised by high levels of poverty and are trapped in unfair supply chains, and struggle to get a fair price for the gold they mine. The democratic organisation of miners, combined with added premium and increased access to markets, will allow miners’ organisations to improve the technology and working conditions at their mines, and also to develop community projects in education, health, environmental restoration and other forms of income. This would lead to more enduring and sustainable development in mining communities.

Artisanal and small-scale miners produce just 15% of global gold supplies, but make up 90% of labour in gold extraction. Through Fairtrade and Fairmined certification, miners can improve their economic, social and environmental conditions.

The Fairtrade and Fairmined standard means that:

  1. Miners will get a better price for their gold, with increased security of the Fairtrade guaranteed minimum price. The Fairtrade minimum price for the pure gold content in unrefined gold is set at 95% of the London Bullion Market Association’s (LBMA), fixing at the FOB export point.
  2. Miners will receive a Fairtrade social premium, calculated as 10% of the applicable LBMA fixing. For Ecological Gold, gold that has been extracted without the use of chemicals and with strict ecological restoration requirements, an additional ecological premium, calculated as 5% of the applicable LBMA fixing on top of the Fairtrade premium must be paid.
  3. 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 the jewellery supply chain. Though the price of gold is widely known in gold mining communities, miners often receive less owing to the number of middle-men between the miner and exporter. Once everyone takes their percentage, the miner may receive as little as 70% of the LBMA. Fairtrade and Fairmined certification will provide miners the chance to ask for pre-financing from prospective buyers, and provide miners with a minimum price for their product creating more competition in local markets and so improving trading relations to the benefit of the miner.
  4. Certified 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 the years. Miners earn an additional ecological premium when they recover gold through gravity only.
  5. The Fairtrade and Fairmined gold will not contribute to conflict or violence. On the contrary, where certified organisations are located in conflict areas, increased economic stability, transparency and traceability from sale of their certified gold may help contribute to peace-building.

Harriet Lamb, Executive Director of the Fairtrade Foundation said:

‘Companies and consumers will embrace this golden opportunity to make a real difference to miners’ lives. The launch of Fairtrade and Fairmined standards for gold provides a lifeline for communities who find themselves at the mercy of unbalanced markets, when agriculture and other livelihoods are not viable. Many face exploitation from middle men who pay below market prices and cheat them on weight and purity of the gold content. Mining community members lack basic sanitation, clean and safe drinking water, poor housing, little or no access to education and healthcare and are financially unstable. The Fairtrade and Fairmined standards are an important development tool, and will complement other development interventions.

‘Our research shows that customers believe buying jewellery for a special occasion holds greater value and significance if it carried the Fairtrade and Fairmined hallmark. People said that the label reassures both the giver and receiver that the miners are getting a better deal.’

Cristina Echavarria, ARM´s Executive Director, said:

‘The Fairtrade and Fairmined Standards are the best standards in the market today for gold in terms of development impact on mining communities. They even set an example for the large-scale mining industry on issues such as traceability. Fairtrade and Fairmined is the premium among consumer labels, taken up by the most conscious consumers, a growing market segment that is setting future trends. Through them artisanal and small-scale miners all over the world will gain legitimacy and recognition by the mining sector and governments so that a historically disenfranchised group, often abused by illegal groups, can finally get recognition for its contribution to the livelihoods of millions, and access the hearts and minds of consumers who want to ensure that through their jewellery purchase, they can improve the lives and the environment of mining communities. Their decision is already impacting the whole of the mining and jewellery industries. This is a fundamental reason why we at ARM are so proud to have achieved this partnership with FLO and why the miners are so keen to deliver responsibly produced Fairtrade and Fairmined gold to ethical jewellers and consumers.’

The standard was piloted by ARM with nine legally established mining organisations in Bolivia, Colombia, Ecuador and Peru and will now be open to applications all small-scale and artisanal gold mining organizations in Latin America. More producer organisations from Latin America are expected to join the system in 2011 and beyond. As from 2010 ARM will establish a network of pilot projects in Africa, and later in Asia.

Manuel Reinoso Rivas, President of the Association of Artisanal Miner Producers of Central and Southern Peru, and ARM Board member says: ‘Fairtrade and Fairmined certification motivates all artisanal and small-scale miners, men and women alike, to press for better working conditions and above all improved health and safety. We need to learn how to use clean, non-polluting technologies that will not only preserve our environment but also help us recover increased quantities of metals. We are determined to cut the number of accidents and reduce the impact of occupational disease and help our workplaces and our communities to provide our fellow miners, our families, our wives and our children with a secure quality of life and an environment free from major risks and able to coexist with ours and others productive activities.   In fulfilling this responsibility we are contributing to a better quality of life and setting an example to our own children and to future generations.’

Fairtrade and Fairmined gold will be initially launched in the UK and then rolled out to other countries with a long term vision of capturing 5% of the gold jewellery market over a 15-year period, totalling 15 tonnes of Fairtrade and Fairmined gold annually. Fairtrade and Fairmined gold will be co-labelled, bearing both the FAIRTRADE Mark and the FAIRMINED Mark in order to present to the consumer the strength of the partnership between the two organisations.

– ENDS –

Eileen Maybin

Head of Media Relations

020 7440 7686/07770 957 451

eileen.maybin@fairtrade.org.uk

Martine Julseth

Media and PR Manager

020 7440 7695/07825 827 791

martine.julseth@fairtrade.org.uk

Faith Mall

Media and PR Manager

020 7440 8597/07766 504 947

faith.mall@fairtrade.org.uk

Neil Martin

Assistant Press Officer

020 7440 7620

neil.martin@fairtrade.org.uk