Echaverria Standard Zero For FairtradePresentation Transcript
ARM’S MULTISTAKEHOLDER INITIATIVE Cristina Echavarría Executive Director 8TH CASM ANNUAL MEETING Brasilia, October 2008 STANDARD ZERO FOR FAIRTRADE ARTISANAL GOLD AND ASSOCIATED SILVER AND PLATINUM
Who is ARM?
What conceptual principles underpin the Fair Trade certification scheme for ASM?
Why Fair Trade?
How reliable is the market for fair trade precious metals, gems and minerals?
How is Standard Zero for Fair Trade Gold and Associated Silver and Platinum being developed?
ARM’s mission is to work towards the transformation of artisanal and small scale mining into a socially and environmentally responsible activity, facilitate an economically just supply chain and educate the consumers as to their power to directly improve the quality of life of artisanal miners by purchasing fair trade jewellery and minerals.
Born from Oro Verde in 2004
As an international and multi-institutional organisation operating from the South
Supply chain approach and players
To take advantage of emerging green and fair trade markets as incentives for improved social and environmental performance of ASM and contribute to poverty reduction
ARM proposes a process through which key stakeholders can reach agreements to define universal standards and criteria for the certification of responsible and environmentally friendly artisanal and small scale mining practices.
ASM is a formalized, organized and profitable activity, that uses efficient technologies and is socially and environmentally responsible;
it progressively develops within a framework of good governance, legality, participation and respect for diversity;
it increases its contribution to the generation of decent work, local development, poverty reduction and social peace in our nations,
stimulated by a growing consumer demand for sustainable minerals and jewellery
PRINCIPLES FOR RESPONSIBLE ASM
Framed within the Millennium Development
Rights based approach
Decent labour based ILO guidelines
Quality of life and sustainable human development
Based on organization and integration of ASM
No to illicit activities nor armed conflict
WHY FAIR TRADE?
Exclusive label for small scale producers
Recognises change is a process: minimum and progressive requirements
It is an integrated approach
Based on long term partnerships
Includes pre-financing schemes
Pays a fair trade premium to producers and a fair price
SO WHAT IS THE POTENTIAL FOR FAIRTRADE JEWELLERY?
Emails to ARM requesting responsibly produced gold
Green Gold lost sales due to limited supply in Choco
Jewellers wanting to buy from pre-certified pilot sites to support the process
USA jewellery market is US$45 - $50 billion per annum
International gold jewellery consumption in 2005 was US$39 billion, with US$16 billion for gold jewellery consumption in the US market*
If just 1% of gold was Fair Trade = $400 million for ASM.
PROCESS TO DEVELOP STANDARD ZERO 2006-2009
Participation of Stakeholders
PROCESS TO PILOT TEST STANDARD ZERO
Pilots are based on existing partnerships
Network of support organisations
Hands on learning
Testing producer support toolkits
Making adjustments to comply with the requirements
Testing traceable supply chain
ARM to coordinate and technical committee to follow up
Exchange of experiences
Reinforce miner’s organisations
9 producer organisations in Bolivia, Colombia, Ecuador and Peru
Criteria for Pilot Selection
A variety of national contexts and laws for ASM
Different types, sizes and levels of organization of ASM - local linkages among them
Different types of gold mining, i.e. Alluvial and hard rock.
Different ecosystems: tropical rainforest, Andean mountain, Andean coffee region, and Atacama Desert.
Different processing techniques, i.e. amalgamation, cyanidation, mercury-free gravimetric methods, etc.
Legislation that offers transparent mechanisms for private persons to export metal
MAIN POINTS ABOUT STANDARD ZERO
Standard Zero is for artisanal and small scale mining, with time it may be expanded to medium scale mining
Includes only primary, not recycled gold. Both alluvial and hard rock gold extraction and processing in contemplated.
Includes silver and platinum produced through the same extractive and processing method as the gold.
It addresses the challenges of responsible use of mercury and cyanide and ecosystem restoration
It is an opportunity to promote greater social justice and environmental responsibility for artisanal and small scale mineras producers throughout the supply chain
It is a long term alliance between responsible miners and retailers
It has the potential to benefit millions of miners
Expand the scheme in the vicinity of existing pilots
Expand the standards to include the Garimpo model and test in in Brazil and Peru
Create standards for silver - Mexico in focus
Scoping studies in West Africa - network of pilots in Africa
Scoping and outreach to Asia
Launching of our Brand….
The Brand on a Page
Proposition*: Guarantees a better deal for small-scale mining communities.
Promise: When you buy fairmined jewellery, you are supporting well managed community mines that are environmentally and socially responsible.
Benefit: Precious jewellery with a proven impact and a positive story
Reason to believe: The jewellery has a certified stamp of origin showing it’s been carefully extracted from a limited number of small scale mines, so it can be traced right from the miner to the jeweler. You can access the unique story of every mining community that is ‘fairmined’ certified.
A Living Mark: How does the Mark work in Real Life?