Swiss gold refinery Metalor Technologies has announced it will no longer deal with artisanal mining operations. The company cites the increasing cost of ensuring that gold is being produced by small mines in compliance with human rights and environmental standards...

The company has refuted many of the charges being levelled at it by human rights groups...

Pressure groups has complained that Metalor’s due diligence was failing to spot back doors through which “dirty gold” was allegedly reaching the refinery.

“The increasing complexity of the supply chain in this sector makes it increasingly difficult for Metalor to continue its commercial relations with artisanal mining operations,” said Metalor CEO, Antoine de Montmollin, in a statement.

“Metalor regrets this well-considered decision, but we will not compromise on defending a more sustainable value chain in the gold sector.” 

Mark Pieth, a champion for greater accountability in the Swiss commodities sector, slammed the refinery’s decision. He believes that cutting ties with trouble spots in response to criticism is not the answer because it strips entire communities of their livelihood...

Pieth also points that sourcing gold exclusively from large-scale mining is no guarantee of a problem free supply chain. Large-scale mining has been associated with environmental pollution, as well as with the displacement and expropriation of indigenous communities.