Better Gold Initiative, Phase I

Project completed

The Better Gold Initiative aims to create a mine to market path for sustainably produced gold from small and medium scale mining (ASMM) operations in Peru. Building on simple market mechanisms that honour compliance of producers with standards on traceability, environmental-, social-, governance- and community relation performance, the Better Gold Initiative will contribute to the transformation of small and medium scale mining activities into a motor for better livelihoods and sustainable development. The project is structured around four complementary components along the value chain: 1) Producers: Support to sustainable gold supply through technical assistance and capacity building for Peruvian ASMM artisanal, small scale and medium scale mining activities)- 2) Institutions: Strengthen certification schemes to broaden the impact of ASMM certification- 3) Policy: National Policy dialogue on ASMM related issues and extension strategy on the international level- 4) Demand: Multi-Stakeholder platform on sustainable gold and demand matching in Switzerland.

Country/region Period Budget
Peru
01.01.2013 - 31.12.2016
CHF  2’900’000
Background

Due to the raising gold price the artisanal, small scale and medium scale mining activities (ASMM) in developing countries have increased dramatically during the last years. This "gold rush" has accentuated a wide range of environmental, social and economic problems. International efforts are pursued to "clean up" the supply chains of extractive resources, especially gold.

Objectives

The overall goal is for artisanal, small and medium scale gold mining to become a motor for better livelihoods and sustainable development.

This is to be achieved via simple market mechanisms that honor compliance of producers with standards on traceability, accountability, labour conditions, environmental, social, governance and community relations performance.

Medium-term outcomes

Component 1 (miners): responsible and empowered Peruvian producers establish formal, sustainable, increasing and reliable business relations with Swiss industry and jewelers.

Component 2 (certification standards): ongoing development of the standards facilitate mainstreaming of ASSM certification.

Component 3 (policy dialogue): the formalization process for ASM in Peru makes significant progress and the BGI is recognized for its contribution.

Component 4 (demand side): the Swiss Better Gold Association (SBGA) is fully functioning and nationally and internationally recognized as a successful pioneer in the sustainable gold value chain.

Results

Expected results:  

Component 1 (miners): an inclusive and sustainable gold value chain from Peru to Switzerland is created- and more Peruvian miners adopt sustainable production processes.

Component 2 (certification standards): elements of improvement for certification and labelling schemes are developed.

Component 3 (policy dialogue): sustainable trade and certification is an important element within the Peruvian ASM policy- and extension options for other countries are developed.

Component 4 (demand side): the SBGA has generated all elements to be accepted by Swiss stakeholders as an important partner in the sustainable gold value chain.


Directorate/federal office responsible SECO
Credit area Development cooperation
Budget Current phase Swiss budget CHF    2’900’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    2’900’000
Project phases Phase 3 01.06.2021 - 30.06.2025   (Current phase) Phase 2 01.11.2016 - 30.06.2021   (Completed)

Phase 1 01.01.2013 - 31.12.2016   (Completed)