Better Gold Initiative, Phase II
During the second phase of the Better Gold Initiative for artisanal and small-scale mining (BGI for ASM), a scaling-up of responsibly sourced ASM gold shall take place. Value chains for sustainably produced gold from ASM operations in Peru, Colombia and Bolivia to the Swiss market are established. The project follows 3 components: 1) Production and certification: Support to ASM operations in their formalization and certification- 2) Policy Dialogue: Simplification of formalization framework- 3) Demand: Establishment of value chains through collaboration with private sector.
- Foreign Consultants
Whereas only 10-20% of the globally mined gold is produced in ASM sector, it makes up 90% of the workforce employed in the gold mining sector. The environmental (uncontrolled use of mercury, deforestation, water contamination) and social problems (child labor, source of income for criminal groups in the ASM gold sector in these countries are massive. With four of the largest gold refineries in the world, who refine two thirds of the global gold, Switzerland is the world leader in gold refining and processing. Arising from a wish to improve the situation of ASM miners, the BGI was implemented between 2013 and 2016. This is the second phase of this project with an extension to Colombia and Bolivia.
The overall goal is the reduction of poverty and improvement of social and environmental conditions in artisanal and small-scale mining. This is to be achieved through market mechanisms that honor compliance of producers with standards on traceability, accountability, labour conditions, environmental, social, governance and community relations performance.
Outcome 1: Scaling-up of responsible ASM gold exported through the BGI for ASM supply chains.
Outcome 2: Increase in formalized ASM operations thanks to the simplification of the regulatory framework.
Outcome 3: The value chains for responsible gold from the artisanal and small-scale miners to the end-buyers are established in a efficient and sustainable way.
Output 1.1: The ASM gold production from certified, pre-certified and formalised producers is extended.
Output 1.2: The BGI for ASM applies new functioning sourcing models.
Output 1.3: The certified (or pre-certified) ASM mines increase their export-readiness for international markets.
Output 1.4: Improvement of social and environmental conduct of certified and pre-certified mines.
Output 2.1: Simplification of national formalization framework.
Output 2.2: Regional exchange of experience on sustainable value chains among stakeholders in the ASM sector.
Output 3.1: The Swiss Better Gold Association (SBGA) and BGI for ASM collaborate succesfully for the establishment of the value chains.
Output 3.2: The social and environmental conditions in and around the mines are improved through the CSR fund.
Output 3.3: SBGA's institutional capacity and its positioning as a key stakeholder in the area of responsible ASM gold is strengthened.
Results from previous phases:
The first phase of the BGI was implemented in Peru and shall terminate in September 2016. The BGI is a private-public partnership between the SBGA and SECO. Whereas SECO has been financing the activities related to capacity building in Peru, SBGA?s contribution has been essential to establish the supply chains from the mine to the market. In fact, the members of the SBGA have given a factual purchase guarantee for the gold extracted in the certified mines. An independent and external evaluation, which was conducted in mid-2015, confirmed the relevance and the effectiveness of the intervention and recommended the continuation of the BGI in a second phase, so as to strengthen the impact and the sustainability of the initiative. The main result was the establishment of functioning value chains between ASM mines in Peru and the end-buyer in Switzerland. So far, 3 mining operations in Peru have been certified according to FT and FM standards and more than 400 kg of responsibly sourced ASM gold has been channeled through the BGI between 2013 and 2015.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 8'000'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 8'000'000|
|Project phases||Phase 2 01.11.2016 - 30.06.2021 (Current phase) Phase 1 01.01.2013 - 31.12.2016 (Completed)|