1. Certification of ASM:
A win-win solution
6th Meeting of the ICGLR-OECD-UN GoE Forum on Responsible
Mineral Supply Chains
The Alliance for Responsible Mining
Kigali 13-15 Nov 2013

2. THE FAIRMINED INITIATIVE
Is a certification initiative that :
1- enables responsible artisanal and small-scale
gold miners to reach the global markets while
recognizing a development premium/incentive for
miners in order to promote positive change in the
sector and the community
2- offers to companies a market advantage as well
as a response to higher consumers’ expectations
on responsibility and positive impact on producing
countries.

3. PILARS OF FAIRMINED CERTIFICATION
PILLAR
STANDARDS
OBJECTIVE
Sets the supply-chain requirements and gives
the scope of the certification impact
TRACEABILITY
Links the producer and downstream supply
chain up to consumers
3rd PARTY CERTIFICATION
Credibility, Integrity & Accountability
PREMIUM & DEV. FEE
Feasibility & Sustainability
FAIRMINED MARK
Assurance & Recognition
Beneficial to all actors in supply chain, from mine to shelf.

4. FAIRMINED TODAY
• 4 audited communities producing
350-400 kgs of Gold annually - 1400
miners
• 30 mines in the process of
certification in 4 countries producing
1600 Kg gold
• 3 audited refiners servicing the supply
chain
• 75 jewelers in 10 countries on board
in 3 continents.

5. FAIRMINED: a solution for every business need
I. FAIRMINED LABELED
• Full track and trace of gold
• Clients buy gold and uses a FAIRMINED authorized
supply chain
• Product claims can be made on the exact origin of the
gold
• Allows for labeling on specific products or lines
• It allows clients to appropriate the story and the impact
on communities
• It offers customers in store materials of labeled products

6. FAIRMINED: a solution for every business need
II. FAIRMINED INCORPORATED
• Licensees can purchase gold through a Fairmined registered operator
• The gold is then integrated into the licensees supply chain, where mixing (mass balance)
is allowed
•
•
•
•
•
Annual audit using FM information system required to demonstrate how gold was integrated
Reduces supply chain costs of full traceability
It allows corporate claims on volumes of FM gold purchased
It allows corporate claims on a % of gold sourced from responsible & certified ASM
It allows negotiated premiums when a certain volume threshold is reached 18kg/y/mine
III. FAIRMINED CERTIFICATES
• The licensee acquires FM certificates, which represent an equivalent volume of
production of certified FM gold
• The licensee does not have to buy gold or integrate it into its supply chain
• The gold is integrated by a FM registered operator and enters formal channels
• Eliminates all transaction and traceability costs
• It allows corporate and impact claims on equivalent volumes of FM gold produced
• It allows claims on % of gold sourced from responsible ASM

7. The PREMIUM is essential for the miners
• Miners lack of working capital makes it difficult for them to
accumulate volumes of gold to export or meet economies of
scale
• Costly implementation for miners (financial and time wise)
• Increased business costs for miners (healthcare, labor,
taxation)
• Need of financing for equipment, and investments in
productivity and cleaner technologies

8. The certification system value for downstream companies
Value creation for companies:
• Excellence
• Responsibility
• An unique product for
unique brands
• Vanguard attitude
• Internal incentive
Cannes 2013: Marion Cotillard wearing
Fairmined Gold made jewels

9. FORMALISATION OF ASM MINERS AND THE FAIRMINED
STANDARD
CHALLENGES
• Lack of appropriate policies and incentives for
formalization
• Availability of mining titles
• Financing the process and access to credit
• Cultural and training challenges
• Legalization is not formalization
• Institutional strengthening
• Generation and access to appropriate information
OPPORTUNITIES
• Complementarity with other initiatives that also
promote formalization: UNEP Global Mercury
Program, OECD DDG, etc.
• The FAIRMINED Standard takes a holistic approach
to ASM and sees formalization as a PROCESS.

10. SCALING UP THE FAIRMINED INITIATIVE
INCENTIVES
• Market incentives; aware and educated consumers
• Public opinion and advocacy
CHALLENGES
• Lack of financial mechanisms for bringing more
ASMO’s into the system (taking that first step from
informality to formality)
• Sustainability of the system to bring more miners and
develop standards
• Possibility of excluding most vulnerable miners while
focusing on large communities
• Unit cost of full traceability is inversely proportional
to volumes produced

11. THANK YOU
Transforming Artisanal and Small-scale
Mining (ASM)