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Article

18 Jun 2019

Author:
Swissinfo

Boycotting artisanal gold miners is not the answer

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It is true that conditions in many artisanal mines and their surrounding communities can be appalling and dangerous...

But – and it’s a big but – if other refineries follow suit rather than engaging with the issues and trying to solve them, it will be catastrophic for the 100 million people worldwide who rely on artisanal mining for their livelihoods.

About 80% of miners work in small-scale mines, but generate only 20% of [...] newly mined gold...

Firstly, it is simply not economically possible to disregard 20% of the world’s gold production. If responsible refineries refuse artisanal gold, it will instead end up in the cauldrons of poorly regulated refineries with zero care for compliance in the United Arab Emirates or India.

Secondly, it is a basic factual mistake to believe that gold from large-scale industrial mines is any cleaner than artisanal gold...

Most importantly, the Organisation for Economic Co-operation and Development (OECD) in its Alignment Assessment 2018 deplores the “risk-averse approach to sourcing” that Metalor has been panicked into taking, and this form of “internal embargo” on artisanal mining...

So, what should Metalor and other responsible gold refineries with the collective power to change the industry do?

First, acknowledge the scale of the problems and show willingness to engage – with the problems and with others trying to solve them.

Second, pinpoint the obvious no-go areas. Gold coming from conflict areas (like Sudan) or mined by children (child miners are common in many countries, including Burkina Faso, Niger and Côte d’Ivoire), for example.

And third, work together with other refineries to jointly tackle the issues of artisanal mining and help raise standards for those 100 million impoverished people who rely on it.

Metalor cites “resources to secure compliance” as a reason for its blanket ban on artisanally mined gold. But the cost of proper, transparent audits tracing back through the entire gold supply chain is mere pocket money for a refinery of this size – and if the refineries engage in collective action, it’s a matter of gold dust.